It's easy to be a perma-bull on undervalued companies that have solid market positions and strong balance sheets and that generate a lot of free cash. I might be a perma-bull on companies like

Liz Claiborne

(LIZ)

,

Ethan Allen

(ETH) - Get Report

and

Raymond James Financial

(RJF) - Get Report

, maybe owning them for 10 years or more.

But being a perma-bear on profitable companies -- many such bears appear to be out there -- makes no sense to me. Given enough time, reasonably well-positioned companies making a reasonable level of profits are going to increase in value.

I've panned a lot of profitable companies in

RealMoney

columns, companies where excess valuations combined with specific catalysts (e.g., end-market weakness) have caused the stocks to suffer.

It's time to change tunes on several of them. I'm not going to make the mistake of being a perma-bear. I'll divide my opinions on these stocks into neutral (no longer bearish), negative (still bearish) and no rating (explained in detail later).

Want to know more? Which ones are still bearish candidates, and which might emerge from the cave? Find out by clicking here for a free trial to RealMoney. Once you sign up, you can read Arne's conclusions here -- as well as access all of our premium content.

The Turnaround Report

For subscribers to

The Turnaround Report

, look for your next issue Monday morning, where I'll discuss my latest opinion on 20 different turnaround stocks.

Click here for a free trial.

Arne Alsin is the founder and principal of Alsin Capital Management, an Oregon-based investment advisor specializing in turnaround situations. At time of publication, Alsin and/or ACM was long Liz Claiborne, Ethan Allen and Raymond James, although holdings can change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Alsin appreciates your feedback and invites you to send it to

arne@alsincapital.com.

Click here

to receive Arne's latest favorite stock picks from his newsletter, The Turnaround Report.