As I recall, in the pre-bubble days, those were called "special situations" _ companies that were undergoing a fundamental change in their business, either with new management, a significant joint venture, financial recapitalization, whatever.
Kmart would be a higher-profile example of that. But the best ones, of course, are the smaller-cap names. Barron's had a piece a couple of weeks ago on a fund manager. The best stock he ever owned was Daytona International Speedway, purchased several years ago, and which rode the Nascar boom _ TV revenue, memorabilia, Dale Earnhart, etc.
I'm still bullish overall. I think the higher quality runners of the last 9 months will pull back, and the junk will roll over. We're going to have an adjustment _ but not a bear market.
PB |
