3 Beaten Down Stocks Ready For Reversal

Wouldn’t it be nice if we can always buy stocks at low and sell at high? Unfortunately, it is very difficult to do this. However, we can try to buy at the bottom by looking for stocks that have lost interest with investors, and at the same time start to show early signs of reversal and low risk. Today, I will be
looking at three potential stock that fit this category and could be a good stock to add to your investment portfolio. These stocks have fallen in the range of 30-60% from their high of last year and have started to show some signs of upward trend.

Uluru (ULU) is a specialized pharmaceutical company that has fallen almost 60% from its 2009 high. Recently, however, the buyers have come back and ULU seemed to have turned around the corner. This stock is interesting in that at one point in 2007, it was trading at $5 range. Since then it has declined all the way to $0.10 in 2009. Check out the volume in red circle. It has increased considerably in 2009. I believe ULU could serve as a good hedge strategy in case the stock market falls. It has the potential to rise at least $0.50 or more in 2010.

Palm (PALM) sold off more than 40% from its 2009 high. A weaker 2010 outlook was the main reason for the sell-off in 2009. Recently, there is a small turn around in PALM as we may have seen the low. From the 1 year chart, it would seem PALM is headed towards it resistance level at $12.50. If this is true, then we could easily make 25% profit.

Corinthian Colleges (COCO) is down more than 30% from its 2009 high but have rebounded by in the past several weeks. Despite being out of favor with investors, this education company has posted solid growth and future potential growth. In looking at a one year chart, it should rebound to at least $16 range.