Solar companies are on sale for a reason. Yes, they are trading at cheap valuations. However, they are really risky companies. Their dependence on government funding, either through large government projects or through government-subsidized private investment, is very dangerous in an era of austerity. Regardless of good intentions, spending on renewable energy gets cut when the going gets tough.
Clearly, solar companies are trading at low price multiples more »
Investors seeking cheaply-valued companies have to learn to analyze turnaround stories. These are businesses that have to change their strategies and products to survive.
The following companies were screened to find those which are producing net losses, but have histories of yielding dividends. These stocks can prove attractive if (1) they are discounted to compensate investors for the risk of a turnaround and (2) if management is truly committed to more »
In 2012 investors in financial companies should know that they are investing in black boxes that generate huge, sporadic losses. Firms like JPMorgan Chase (NYSE: JPM) and Barclays (NYSE: BCS) will seem stable for years only to report catastrophic losses or scandalous, regulation-challenging news. Investors have no chance of forecasting such events from financial statements. Though unpredictable in timing, severity, or details, such events should not come as a surprise more »