This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

15 Gritty Survivors Worth a Gamble

The stock is up 300% since then -- mostly in a slow and steady move, until Monday. And yet it's still dirt cheap, even by the standards of the low-margin air cargo business, with a price-to-sales ratio around 0.15 and a price-to-book value of under 0.25. It has traded in better times at a price-to-sales multiple of better than 1.0, so it has a lot of muddy water to slog through before anyone can complain it is overvalued.

Long-Odds Lucent

And then, of course, there is Lucent Technologies (LU), which has been in the intensive care unit almost as long as the bear has been growling. It has regularly made the list of the five companies most likely to declare bankruptcy.

Yet it keeps chugging along, laying off workers and executives, restructuring debt, throwing away divisions and dumping real estate, all the while developing new products for the next phase of the digital age. The stock may never even reach $10 again.

Yet, with a price-to-sales multiple of 0.75, bankruptcy staved off this long and both SEC investigations and shareholder litigations now in the rearview mirror, Lucent is probably an even bet to get back to the $5 range. But there's a catch, of course: Investors must decide to lift Lucent's sales multiple back closer to the 2 perch it held before the bubble began in the late 1990s. Lest you forget, it was at $5 as recently as last May.

Each of these names has its own survivor story, and perhaps more lasting trauma will emerge in coming months to dampen our appreciation. But at least consider celebrating the spirit of Aron Ralston by finding a place in your portfolio for companies that seem to be walking out of the desert alive.
Jon D. Markman is senior investment strategist and portfolio manager at Pinnacle Investment Advisors. While he cannot provide personalized investment advice or recommendations, he welcomes column critiques and comments at . At the time of publication, his fund was neither long nor short any stock mentioned in this column, but positions can change at any time.
4 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ELN $0.00 0.00%
AMKR $4.86 2.53%
CGO $11.59 0.61%
INTC $31.74 1.70%
MXT $0.57 -20.95%


Chart of I:DJI
DOW 16,790.19 +13.76 0.08%
S&P 500 1,979.92 -7.13 -0.36%
NASDAQ 4,748.3610 -32.9030 -0.69%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs