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
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Four Oversold Stocks Ready To Bounce Higher

NEW YORK (TheStreet) -- One of the most challenging aspects of value investing is refraining from buying a stock before the full distress of other investors is over.

Take Sprint (S), for example. Investors that bought the stock a little over a year ago had a long and painful road in front of them. Once the market understood that Sprint was oversold and held much greater value than its sub-$3 share price, the stock moved up quickly. Even so, many investors are just breaking even or worse, despite the exuberant increase in share price since June.

Sprint demonstrates that being right about a stock is never enough. You must also have the correct timing, or risk a price drop shaking you out of your position. It may be nearly impossible to time your entries perfectly every time, but that doesn't mean you can't give your portfolio every advantage possible.

Over the long run, fundamentals dictate the value of any given stock or security. But in the short run, prices are ruled by emotions. Fortunately, the emotions of investors are rather predictable and technical analysis helps us predict the odds.

Once you combine technical analysis with fundamentals, you have a potentially very powerful and alpha-creating edge for your portfolio. Once discipline and effort are added, the deck becomes stacked in your favor. It's no easy feat aligning everything, but it can be done.

The biggest problem with chart reading is that it's a lot like sex. Most people think they are a lot better at it than they really are. It doesn't need to be that way, though. With study, effort and by taking the time to learn the skills needed, instead of rushing in, technical analysis can be very satisfying.

Consider these four stocks, which came to my attention through a screening process that weighs a combination of company fundamental factors and my own variation of technical analysis, based in part on DeMark market-timing indicators:

Stock quotes in this article: S, NOK, HPQ, PBR, RSH 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,424.85 +162.29 1.00%
S&P 500 1,862.31 +19.33 1.05%
NASDAQ 4,086.2250 +52.0640 1.29%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs