Scraping The Bottom Of The Barrel: The Good

Yesterday we looked at 4 stocks that were trading close to their 52 week lows.  After taking a closer look it appeared that they still weren’t a good value even at such a reduced price. 

In second part of this series, we take a look at 4 stocks that are trading near the bottom of their 52-week ranges, but appear to offer great value at such prices. 

The Street

The Street’s share price has been on a downward spiral ever since they reported disappointing 1^st quarter results.  However, The Street appears to be using this economic slowdown to expand their network of sites.  While they continue to be a premier financial content destination, the recently launched MainStreet.com is an expansion into entertainment news & gossip.  A preliminary view of traffic trends indicate that the site is starting to gain some traction.  With a wider array of offerings, The Street will be able to attract a more diversified stable of advertisers which should provide a nice boost to revenues and earnings.

eHealth

eHealth continues to be one of the most enticing stocks in the internet sector and it’s almost baffling to see a company with such a great business model and market leadership see its stock price drop so dramatically. If their 1^st quarter results are any indication, eHealth has seen little effect of any economic slowdown on their business. In fact, management reiterated their full year guidance and our checks continue to show strong y/y traffic growth. The stock posted strong gains today after setting a new 52-week low yesterday and we would expect to see continued appreciation in the stock price ahead of their quarterly earnings announcement.

The Knot

People continue to get married regardless of the economy or price of gas.  The Knot whose flagship website is considering by many to be the premier wedding resource.  Although the stock price is down in the cellar, traffic to the site continues to grow rapidly.  Advertisers will continue to pay a premium for the targeted audience that The Knot delivers.  So expect this stock to shake its wedding day blues in the coming months.

Autobytel

Autobytel’s shares have been particularly volatile over the last few weeks falling almost 30% in the last 2 weeks after previously gaining over 20%. Management has indicated that they will reduce annual costs by $15M and be GAAP-breakeven by year-end. The recently launched MyRide.com seems to be gaining traction and is seeing increased visitor engagement. In addition, the company’s cash position (~$1/share) seems to limit further downward movement in the stock price providing an attractive entry point.

If you are looking to take a position in some attractively valued stocks that have been hard-hit by the recent market slowdown, these 4 stocks all appear to have attractive features that should help their stock price to recover in the months ahead.

At the time this article was published, the author owned shares in The Street and Autobytel. 

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