Stalking The Unloved Stock

June, 1998

After 16 years of a bull market, are there any underpriced stocks left? This month I'll tell you how to find stocks that have fallen out of favor with institutional investors but that still possess strong financials and good growth prospects. Our strategy will make use of a statistical concept that will accomplish the seemingly impossible: buying unloved stocks in a bull market and still getting a good night's sleep.Regression to the mean sounds like a room-emptying topic if ever there was one....