NEW YORK ( TheStreet) -- Bag-holder, bottom-feeder and catcher of falling knives have all been used to describe buyers of stocks that have fallen out of favor with the market. There is another term that is used, although rarely at the purchase time: value investor.
This is what you call someone who buys stocks that are beaten down but then rise.
The difference between the bag-holders and the value investors is akin to the difference between gamblers and speculators.
The speculator understands the potential risks and rewards while carefully determining the correct course of action. The gambler is too busy to be bothered with "all that stuff that doesn't matter." Fortunately, the market offers many opportunities to evaluate any given stock's value to you.On Aug. 15, I wrote
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Companhia Siderurgica Nacional (SID - Get Report) Background: Companhia is a large, integrated steelmaker in Latin America. It operates its own mines, steel mill, railroads, ports and service and distribution centers. The company was founded in 1941 and is headquartered in Sao Paulo, Brazil.