Bottom Fishing

in #leofinance3 years ago

Hi Friends,

One of my favorite types of investing is bottom fishing for stocks that I think will return to their former glory.

Here is one of those stocks: Embraer, ticker ERJ:

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This is a south american airline manufacturer, which took a hit when the airlines did during Covid. They have lost some business due to Boeing's struggles as that is one of their most important customers, but I think they are set up well and have a good enough reputation to weather the covid storm and come out on the other end ready to thrive, which should correspond with a strong rise in the stock price.

I found this running stock screens for companies trading near 52 week lows, had growing revenues and had a market cap under $5 billion.

This stock has traded as high as the mid $40s so my basis of $6 per share could really pay off - the stock is starting its ascent already, though there are no guarantees.

Thanks for coming by,
Brian

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Interesting play, I suppose you could play the options for more leverage too.

Posted Using LeoFinance Beta

I might need to try this strategy when I buy actual stocks and not fractional shares.

Seems to be a right pick. A high of $40 and now trading for $6 has a huge potential of recovery of the stock. We could also see a buy back of stock. Cheers
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