Some investors like to stick with the crowd and own popular stocks with the hope of riding the positive momentum. However, often investors who follow this strategy lose sight of the value of the company they are buying. This is a problem as when the 'music stops', investors who have paid well above value face the prospect of a fall back in price to a more realistic level.
Another type of investor utilises a strategy of searching amongst the unloved and unpopular stocks for opportunities. While this strategy has its own set of risks and dangers, one of the benefits is that it usually forces an investor to put the consideration of value front and centre of their thought process.
The following four stocks could all be considered as unloved by the market at present and while they may not all be worth buying right now, they could all be worth keeping an eye on.
Fleetwood Corporation Limited (ASX: FWD) has hit a new 52-week low of $2 this week and is down around 35% in 2014. The new low comes a few days after stockbroking firm Hartleys was reported by The Australian Financial Review as having reaffirmed its "reduce" recommendation on the stock citing an FY 2015 outlook which remained challenging.
Like many stocks exposed to the mining services sector, things may not get better in a hurry for Fleetwood but it could all be reflected in the price by now.
Fund manager OC Funds recently reported that it had exited its position in Tox Free Solutions Limited (ASX: TOX) after the industrial services division reported results below expectations. The poor result was blamed on weak demand on the east coast from the infrastructure and commercial sectors. With Tox's activity levels on Barrow Island set to wind down as construction comes to an end, OC views the earnings outlook for FY 2015 as deteriorating.
With the share price having fallen nearly 22% this calendar year it looks like the market is losing faith.
Ainsworth Game Technology Limited (ASX: AGI) share price has fallen 23.5% so far in 2014. This is in stark contrast to its peer Aristocrat Leisure Limited (ASX: ALL) which has gained 21%. With the gaming and poker machine provider reporting 18% growth in profits for FY 2014 and further revenue growth expected in FY 2015, this stock could be worth a closer look at current levels.
Shareholders in leading beverage producer Coca-Cola Amatil Ltd (ASX: CCL) have watched as the share price in their company has plummeted 25% this year. It would appear a good bet that there will still be plenty of consumers drinking Coke in the future, making it 'simply' a matter of price as to when to buy this stock.
