Yesterday’s Loser Could Prove To Be Today’s Winners (AYI, CEPH, GME, HCBK, DCM, PRA, SAY, WABC, WGOV)

There can’t always be a Cinderella story, even though we have been taught to believe so since we were very little. This is not necessarily true in the investment world. In the stock market it is possible that yesterday’s losers just might be tomorrow’s stars.

It is hard to find quantitative measures to determine a company that would rebound from losses but market capitalization is an important measurement because the bigger the company, the larger room they have for error. Looking at stocks with at least $ 1 billion in capitalization is usually a good place to start. For example, Acuity Brands Inc. (NYSE: AYI) has 14 billion in Market Capitalization to bank on. Yesterday AYI fell from $33.24 to $31.99 for an almost 4% drop. Today, prices have gone up to $32.99 and continue to rise.

A company’s Long term Debt ratio usually determines whether a management is relatively conservative. At around 25%, the management is relatively conservative, thus giving investors the confidence that the company can recover without plunging into too much debt. Cullen/Frost banker Inc. (NYSE: CFR) is an excellent example of this as it begins to rise today after dropping to $46.5 from $47.03

Other stocks poised for a rebound are Cephalon (NASDAQ: CEPH), Beckton Dickinson and Co. (NYSE: BDX), GameStop Corp. (NYSE: GME), Hudson City BankCorp (NASDAQ: HCBK), NTT DoCoMo Inc. (NYSE: DCM), ProAssurance Corp (NYSE: PRA), Satyam Computer Services (NYSE: SAY), WestAmerica Bancorp (NASDAQ: WABC), Woodward Governor Company (NASDAQ: WGOV).