There are a lot of calls from investors to pick up some “low hanging fruit” in the market. While its true that you can find some potentially valuable stocks for cheap, there may also be a lot of duds. The trick is to sift through and see if a stock is unnaturally low and will rise again or the correction placed that stock in the right position. The best case is to find stocks that have shown tremendous earning potential that are still priced at a reasonable level. Of course this is no easy task.
What to Buy
One hot pick is Arena Pharmaceuticals (ARNA) co founded by Jack Lief and Dominic P. Behan, PHD. Right now the stock is priced at a cheap 1.33 and it has been as high as 7.55 this past year. There is not reason to doubt that the stock will climb a lot higher since the company made 59.90% in revenue growth last year. This company has massive potential in the long run and anyone in it right now will stand to make a lot of money. Arena Pharmaceuticals focuses on weighloss issues. With more of the world heading towards obesity, this will increasingly be an important issue.
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