3 Bottom Fishing Stocks to close out 2012
Three stocks that are now comfortably off their 12 month lows are shares of Dendreon Corp (DNDN), Chipotle Mexican Grill Inc (CROX), and Crocs Inc (CROX). These are great bottom fishing plays and they could really bounce if we don't go off the 'Fiscal Cliff'.
Both Crocs (CROX) and Chipotle (CMG) are trading 12% above their 12 month lows. Dendreon (DNDN) is now 22% from its 52-week low. All three of these stocks have bottomed and are starting to regain market share. What we like about these stocks is they are very popular. They tend to trade with a great deal of volume, a few hundred thousand shares at the minimum. That means you can cash these stocks out if they don't move as you expect.
We started to warm up to Chipotle back in October, recall our article Chewing on Chipotle. The stock has finally bottomed and we listed a ton of reasons why its a buy. Now that CMG is in the $200 range and done crashing to new lows -- its starting to look attractive.
Like we said last month, Dendreon was worth the Gamble. Review that article to learn why Dendreon is a buy. Now that its 12% off its recent 12 month low, its time to start a position.
Crocs tends to follow the bullish and bearish trends of the market. This soccer mom / children's / nurse footwear play is worth a few bucks and it trades with a respectable P/E ratio. If the Fiscal Cliff problems are solved, this stock will bounce higher.
Bottom line: Don't bet the farm on these 3 stocks. Play the trend as these stocks move higher and go for the 5% to 10% gain. Don't be greedy. These stocks can fall back to their recent lows.
Let's recap our 3 bottom fishing stock picks for the end of 2012:
Dendreon Corp (DNDN) shares are trading under $5 at $4.73 a share. Dendreon shares have traded between $3.69 and $17.04 over the past 12 months.
Crocs Inc (CROX) shares have traded between $12 and $22.59 over the past 12 months. CROX shares are now trading with a P/E Ratio of 8.6 and EPS of 1.54.
Crocs is trading at $13.64 and its shares are 12.02% from its 52-week low.
Chipotle Mexican Grill Inc (CMG) shares have a 52-week range between $233 and $442. over the past 12 months. CMG shares are now trading with a P/E Ratio of 30.8 and EPS of 8.6.
Chipotle is trading at $266.51 and its shares are 12.27% from its 52-week low.
Best of the Blogs
Scanning and identifying the best blog entries every hour
- Q3 Estimates Beginning to Slip | Financial Sense
- The Allocation is Nearly Complete | iBankCoin.com
- Foreign Secretary Warns Russian Sanctions "Will Hit UK Economy" | ZeroHedge
- Whole Foods Discovers Stock Buybacks, And It's Too Little Too Late: Stock Tumbles Again | ZeroHedge
- Deadbeat Nation: A Shocking 77 Million Americans Face Debt Collectors | ZeroHedge
- Right Now: House Voting Whether To Sue Obama | ZeroHedge
- Case-Shiller Home Prices Tumble Most Since Dec 2011, Miss 2nd Month In A Row | ZeroHedge
The most relevant financial news and articles from the Internets
- ... | StreetInsider.com
- Russia Is Waging War On American Burger Chains | Business Insider
- The Recovery Doesn't Look As Good After A Revision Buried In Today's GDP Report (... | Business Insider
- STOCKS FALL, RUSSIA HIT WITH FRESH SANCTIONS: Here's What You Need To Know (DIA, SPX, SPY, QQQ... | Business Insider
- Book Review: <em>Thinking, Fast and Slow</em> by Daniel Kahneman | BusinessWeek
- Twitter's CEO Took Open Questions, And Thousands Wanted To Know What He Plans To Do... | Business Insider
- It Is 'Highly Unlikely' Snapchat Will Raise A Boatload Of Money From *Alibaba* | Business Insider