15 Gritty Survivors Worth a Gamble
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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV