MOST READ: 3 Stocks That Will Double by '09

Updated from 10:16 a.m. EDT

When a stock has these characteristics:

• analyst expectations going up
• lots of cash and no debt
• low P/E ratios
• solid revenue and earnings growth
• the winds of demographics at its back

it's usually a great bargain. Why do bargains like this exist? Because everyone has blindly kept their fingers on the sell button.

I spoke to a friend of mine who is a young trader at a multibillion-dollar mutual fund family. "When we get redemptions," he said, "we have to sell everything we can. We need to raise cash that day."

So it isn't about price, and it isn't about dividends, P/E ratios, growth -- if it moves, kill it. Consequently, some very good stocks have been cut in half or more. ...