This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Let the Dumpster Diving for Stocks Begin

Stocks in this article: JNTFX JAVTX RYN AEO PRXI JAKK

Retailers are not typically my cup of tea but American Eagle Outfitters (AEO) is another potential candidate. Shares are down 28% year to date. That may get worse before the year is over. The balance sheet is in good shape, with about $357 million in cash and no debt, and the stock currently yields 3.1%. It would be nice to see this one fall further before year-end, to see investors pile out in droves to create a real bargain basement price. The stock's profits are tied to fashion and the whims of 15- to 25-year-old consumers.  That demands a big margin of safety.

AEO Chart
data by YCharts

Second, I look for ugly, down and out situations in which companies have made major missteps or have hit the ropes. This is much more speculative in nature. Premier Exhibitions (PRXI) runs touring exhibitions but, more important, owns more than 5,500 artifacts that it salvaged from the Titanic wreck site.

Shares are down 55% year to date. The company has been unable to follow through on the sale of the artifacts, which were appraised at $189 million several years back. Premier must sell the artifacts as a single collection due to a court decision that awarded title to them. The company tried to auction off the collection in 2012, with the winning bidder to be announced on the 100th anniversary of the Titanic sinking. The auction failed. As the company has continued attempts to find a home for the collection, the stock has sunk further.

There is a huge disconnect between the company's current market cap and the assumed value of the Titanic collection. This is the epitome of the value investor's dilemma: extremely valuable assets that must be sold for that value to be realized.

PRXI Chart
data by YCharts

2 of 3

Select the service that is right for you!

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.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

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