Sometimes you may want to invest just for fun. But when it comes to mad money, don't bet too much, and apply a little method to your madness. One strategy is to pick down-on-their-luck stocks that once traded for more and that have real revenues -- even though profits are currently scant or nonexistent. You're betting that the market has overreacted, which is often a safe bet, and that a turnaround is just a couple of quarters' worth of good results away.
| Row 0 - Cell 0 | More $1,000 Ideas |
| Row 1 - Cell 0 | Enter Our Best $1,000 Idea Contest |
TiVo (symbol TIVO, recent price $6) invented digital TV recording. Like Xerox and FedEx, its name is used as a verb, so its brand recognition is strong. But the stock has lagged because of fears that bigger communications powers will muscle the business away or force TiVo to spend its scarce reserves to defend its base of 4.4 million customers. TiVo's counterattack includes selling advertising, launching a high-definition recorder and signing marketing deals with Comcast and other media companies. TiVo first offered its stock at $16 in 1999, but at $6, it's worth a shot.
UQM Technologies (UQM, $4) makes parts for electric-vehicle motors and performs contract electric-propulsion research. It's a tiny company, with annual revenues below $10 million, but product sales rose 53% last year and contract-research revenues rose 37%. UQM's idea is to help develop electric-powered motors for heavy trucks, military vehicles and off-road SUVs. The company is speculative because it's small and loses money, but it has good customers (including the U.S. government and Air Force) and the numbers are moving in the right direction.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Omnova Solutions (OMN, $5) makes, among other things, simulated marble and granite countertop surfaces. If you've looked at replacing a Formica countertop recently, you know that such synthetic-stone surfaces are all the rage. The company swings from small profits to small losses, but its financial picture is improving.
As for our $1,000 low-price stock picks last year, we called two out of three: Design Within Reach rose from $5 to $6, and Hanger Orthopedic Group was up from $7 to $12. Phoenix Footwear was the one loser, dropping from $5 to $2.75.
-
A Lesson From the School of Rock About the MarketsIt's hard to hold your nerve during a downturn, but next time the markets take a tumble, remember this quick rock 'n' roll tutorial and aim to stay invested.
-
I retired at 65 with $7.8 million and feel like I over-saved. My 40-something son is on the same path. Should I tell him to reconsider?We ask financial experts for advice.
-
What the Rich Know About Investing That You Don'tPeople like Warren Buffet become people like Warren Buffet by following basic rules and being disciplined. Here's how to accumulate real wealth.
-
How to Invest for Rising Data Integrity RiskAmid a broad assault on venerable institutions, President Trump has targeted agencies responsible for data critical to markets. How should investors respond?
-
What Tariffs Mean for Your Sector ExposureNew, higher and changing tariffs will ripple through the economy and into share prices for many quarters to come.
-
How to Invest for Fall Rate Cuts by the FedThe probability the Fed cuts interest rates by 25 basis points in October is now greater than 90%.
-
Are Buffett and Berkshire About to Bail on Kraft Heinz Stock?Warren Buffett and Berkshire Hathaway own a lot of Kraft Heinz stock, so what happens when they decide to sell KHC?
-
How the Stock Market Performed in the First 6 Months of Trump's Second TermSix months after President Donald Trump's inauguration, take a look at how the stock market has performed.
-
Fed Leaves Rates Unchanged: What the Experts Are SayingFederal Reserve As widely expected, the Federal Open Market Committee took a 'wait-and-see' approach toward borrowing costs.
-
Fed Sees Fewer Rate Cuts in 2025: What the Experts Are Saying
Federal Reserve The Federal Reserve cut interest rates as expected, but the future path of borrowing costs became more opaque.
