This isn't an endorsement for Allscripts right now, though. Instead, it's a chance for you to really come to understand this business model while it's deeply out of favor -- and then buy when you think the time is right. Just a few months ago, investors were looking at Allscripts as a decent company in a really attractive business. After a deep fix, that will likely again be the investor sentiment several quarters from now.

Risks to Consider: Buybacks don't prevent stocks from falling -- they just cushion the blow against even deeper falls.

Action to Take: Share count bloat is one of the key factors behind disappointing EPS growth. Conversely, falling share counts can make a tepid growth story look like much better. That's why these stocks are often a fertile area for investment ideas. Aside from Allscripts, any of the stocks in the list above should give you a good head start on your research.

David Sterman does not personally hold positions in any securities mentioned in this article.

StreetAuthority LLC does not hold positions in any securities mentioned in this article.

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