Top 5 Stocks Trading At Half The Justified Price (ADY, SPU, SD, WAC, NCTY)

According to an article published on Motley Fool, smart investors like Warren Buffett or Marty Whitman love it when stocks fall and start selling at bargain-basement prices. At these prices, these stocks become no-brainer buys not only for the Buffetts and Whitmans of the stock market, but also for investors in the Motley Fool CAPS community.

Below are the five companies whose shares are high in the Motley Fool investor-intelligence database, but are currently selling at least 50% below their 52-week highs:

1. American Dairy (NYSE: ADY): This stock is trading 51% lower than its 52-week high. ADY’s shares closed at $21.71 yesterday.
2. SkyPeople Fruit Juice (NYSE: SPU): This stock is currently trading at $6.80, which is 53% lower than its 52-week high.
3. Walter Investment Management (NYSE: WAC): This stock is trading 61% lower than its 52-week high. WAC closed at $15.71 in yesterday’s trading.
4. The9 (NASDAQ: NCTY): This stock is trading 56% lower than its 52-week high. NCTY rose 3.13% to close at $7.24 yesterday.
5. SandRidge Energy (NYSE: SD): SD is trading 50% lower than its 52-week high. SD’s shares closed at $7.45 yesterday.

As for SD, it has a mix of high debt, negative tangible book value and negative earnings, making several people believe that the company is going out of control and may fail shortly. However, the CAPS community remains very bullish about the growth prospects of SD, with 96% of the members believing that it will outperform the market.

Trading at just 9 times the forward earnings estimates, SandRidge is cheaper than a similar company Patterson-UTI Energy (NASDAQ: PTEN), which is trading at more than 37 times the estimates. Thus, if SD can circumvent the negative factors facing it, it can prove to be a profitable investment.