Articles that list “great value” buys should be food for thought, but may not put food on your table.
Value stocks are those with low Price to Earnings ratios. To say that a particular Value Stock has an “Awesome” value is to say that it has been significantly undervalued by the market.
While sometimes the market is ignorant of the growth potential and strong fundamentals of a particular company, the author of such an article would have you believe there is a great big crystal ball in his office.
Maybe one of these will take off after a while — maybe two. Or maybe none of them.
While there are inefficiencies in the market at times, you must realize that there are millions of somewhat rational investors out there, and everyone is using their money to vote of quality, using all available information.
And there’s a lot of information out there. Take such recommendation with a (big) grain of salt.
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