| Over the past few months, several investment | | | | dot.coms suffering from the fallout of that |
| professionals have brought up the topic of | | | | moniker, while some languish in other areas |
| the down-and-out company of the day and | | | | of high tech. The energy market has taken |
| whether to buy now as a speculation. Last | | | | more than its share of hits since Enron's |
| year, K-Mart was the big news, and everyone | | | | collapse, and that industry is well |
| wanted to know whether this was a good stock | | | | represented on the list. Telecom, still |
| play. Today the news is focused on WorldCom | | | | reeling from WorldCom's collapse, is also |
| and its downfall. Thus, some people are | | | | present. For variety, the list includes |
| pondering this stock for quick profit | | | | everything from media to education, from |
| potential.Here's the scoop: Don't buy | | | | international trade financing to |
| WorldCom.I know! It's impossible for MCI to | | | | pencil-graphite production.If you're |
| disappear: they're too big, they're too | | | | convinced that buying the beaten down is the |
| popular, their service is excellent, etc. | | | | best way to make money, this should provide |
| That's the good news that everyone is talking | | | | you vastly better choices than K-Mart or |
| about. But there's another side a darker side | | | | WorldCom. Anything on this list is better |
| to the story. The company filed for | | | | than those two doomed stocks. While a few are |
| bankruptcy because of their massive debt | | | | pending investigation (*starred), most have |
| load, not just because of accounting | | | | fallen simply because of the whims of the |
| failures. The accounting failures probably | | | | market. Some are even maintaining profits in |
| only came to light as a result of the | | | | this tough environment.With the market in the |
| company's lack of funds.In the end, it will | | | | doldrums, out-of-favor companies sometimes |
| be the same story as K-Mart. It won't matter | | | | fall more than would be rational. As a |
| whether K-Mart or MCI survive, the | | | | result, you might find great buys in stocks |
| shareholders will not. If the business | | | | like this. But in this market, there are |
| survives still debatable in K-Mart's case, | | | | great buys everywhere. The question is when |
| but more likely in MCI's business ownership | | | | to buy.Market timing is not necessarily wise, |
| will be transferred to the bondholders and | | | | but when the market is falling as harshly as |
| other creditors by law. This is what | | | | it has been, one can afford to wait until the |
| bankruptcy courts do. Shareholders get | | | | stock is so low that you are virtually |
| nothing. If you want to gamble on MCI | | | | certain it can't go lower. Some of these |
| WorldCom, you might consider their bonds | | | | stocks have reached that level.To send |
| rather than their stocks, although that | | | | comments or to learn more about Scott |
| option may not be great either.So, is it | | | | Pearson's Investment Advisor Services, visit |
| pointless to look at "down-and-out" stocks as | | | | Pearson is an investment advisor, writer, |
| quick turnaround opportunities? Well, we may | | | | editor, instructor, and business leader. As |
| avoid the "down-and-out", and instead just | | | | President and Chief Investment Officer of |
| invest in the "down-and-uncertain". These can | | | | Value View Financial Corp., he offers |
| be awesome opportunities, but be aware that | | | | investment management services to a wide |
| the risks are sometimes high among these | | | | variety of clients. His own newsletter, |
| downtrodden firms.Here is a list of 25 of | | | | Investor's Value View, is distributed |
| these beaten down stocks which today sell for | | | | worldwide and provides general money tips and |
| under $5. Some are well-known businesses, | | | | investment advice to readers both |
| other names are less commonly known. Some are | | | | internationally, and in the U.S. |