Best Low Price Stocks To Watch For 2018

A few days ago, an article about Nike (NYSE:NKE) argued that “Nike’s shares aren’t priced to buy.” The reasoning was that “Nike is, at best, fairly valued. And it certainly isn’t trading hands at fire-sale prices.” The question is: should you expect (and wait for) fire-sales prices? Most value investors know the maxim that it is better to buy a great business at a fair price than to buy a mediocre business at low price. We think that Nike is a great business at a fair price. We have been waiting for Nike’s price to come down for a long time and meanwhile, we have sold PUT options, though unfortunately these options have never been exercised (but we cashed-in premiums). Today, we bought the stock.

Reasons to avoid the stock

We invest with a long-term view and therefore we ask long-term questions:

Has the management of Nike changed its strategy? Is Nike’s long-term strategy ultimately going to fail? Is there anything that can or has damaged the Nike brand?

Of course, competition is there, but is there any industry where there is no long-term competition? Under Armour (NYSE:UAA), Adidas (OTCQX:ADDDF), Lululemon (NASDAQ:LULU) are all good companies, but they have always been there. Under Armour and Lululemon are perceived as new entrants, but they were actually founded 20 years ago (in 1996 and 1998), Adidas is almost a century old, while Nike is “only” 52-years old. So, what has changed? These industries move in waves, but the quality of the Nike brand, its management, and innovation have been a constant. In sum, if your answer to any of the previous questions is YES, then you should reconsider our investment thesis. If it is NO, then we can move on to the next paragraph.

Best Low Price Stocks To Watch For 2018: Suncor Energy Inc.(SU)

Advisors’ Opinion:

  • [By ]

    Suncor Energy Inc. (SU) – “We expect modestly below-consensus results driven by
    downtime and the ramp costs at Fort Hills. We still see a robust second-half 2018 and 2019 free cash flow story and would recommend investors look through any near-term
    noise.”

  • [By Tyler Crowe]

    I don’t know if you have noticed, but oil prices have been on the rise lately, which has done miraculous things for the bottom lines at oil and gas companies. The same can be said for Suncor Energy (NYSE:SU), which was able to post a rather healthy earnings per share number considering one of its major oil sands facilities was shut down in the most recent quarter.

  • [By Tyler Crowe, Reuben Gregg Brewer, and Travis Hoium]

    Clearly, investors should be at least looking at stocks in this industry, so we asked three of our investing contributors to each highlight a great company in the industry to help you get started. Here’s why they picked Baker Hughes, a GE Company (NYSE:BHGE), Suncor Energy (NYSE:SU), and Total (NYSE:TOT).

Best Low Price Stocks To Watch For 2018: Fidelity Southern Corporation(LION)

Advisors’ Opinion:

  • [By Max Byerly]

    ValuEngine cut shares of Fidelity Southern (NASDAQ:LION) from a strong-buy rating to a buy rating in a research note published on Wednesday morning.

Best Low Price Stocks To Watch For 2018: Tesla Motors, Inc.(TSLA)

Advisors’ Opinion:

  • [By ]

    But what should investors do with the stocks of Facebook, Amazon and Tesla (TSLA) , three market darlings that fell out of favor this month? Cramer weighed in with his opinions.

  • [By ]

    Tesla (TSLA) CEO Elon Musk looked dead tired and in need of a sandwich in a new CBS interview that filled up Twitter feeds over the weekend. It’s great to see Musk allegedly sleeping in an office on the production floor – not many CEOs of companies with a market cap of more than $50 billion would do the same in an effort to drive desired performance.

  • [By ]

    At this rate, ‘Jolt’ will become nothing more than a morning Tesla (TSLA) blog that so happens to be delivered straight to your email inbox. Keeping up with the daily news flow on Elon Musk’s car creation is becoming darn near impossible. There is around-the-clock speculation on production goals. People hop into chat rooms to complain about Model 3 build quality and factory working conditions. Musk always looms large on Twitter. There are YouTube videos of people passing parking lots filled with just produced Model 3s.

  • [By ]

    Perhaps it’s maneuvering in a traffic jam or maybe it’s engaging Autopilot on a Tesla Inc (TSLA) Model S. (Although, this program has been basting in controversy as of late).

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