When Price Is the Catalyst

According to my valuation model, the cheapest stocks in the S&P 500 today that have at least modestly good prospects are Fiserv (FISV), SunGard Data Systems (SDS)), Cendant (CD), Reebok International (RBK) and Hewlett-Packard (HPQ).

Each is weighed down by price/multiples that are chintzier than their peers and the broad market, and are underwater in trading this year. But like Computer Network Tech and Mas-Tec, their time in the sun could come in the next six months -- and they will catch bears and short-sellers by surprise. For as you have seen, even without huge improvement in their business, a low price alone can spur buyers to action.

P.S. Don't forget -- now is a great time to get in on bargain stocks before the prices go up. Get my picks with a free trial to TheStreet.com Value Investor.

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Please note that due to factors including low market capitalization and/or insufficient public float, we consider Computer Network Technology to be a small-cap stock. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.

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