Posted
Oct 14 2009, 05:36 PM
by
CAPS Editor
This post comes from The Motley Fool's Matt Koppenheffer.
I am always looking for a good deal, whether that means buying an extra box of Golden Grahams when they're on sale or pouncing on undervalued stocks.
The idea that anybody would sell a stock for less than it's worth seems silly, but legendary value investor Ben Graham (no relation to the cereal) tells us, by way of allegory, how we can spot these situations.
In "The Intelligent Investor," Graham introduces readers to a wacky chap named Mr. Market. Mr. Market's game is to pay house calls, offering to sell you interests in businesses he owns or buy interests in businesses you own.
Sometimes Mr. Market is excited when he arrives, offering premium prices for your holdings; other times, he's inconsolably depressed about the future, selling what he's got for pennies on the dollar.
Bing: Get more on value investing
To find stocks that make Mr. Market despondent, I've turned to the MSN CAPS investor community. I'm looking for companies that had five-star ratings (the highest) from the community within the past month and that could be considered undervalued despite the rally that pushed the Standard & Poor's 500 Index ($INX) to its 2009 high today.
Here are our stocks, all but one of which have a five-star CAPS rating:
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