Should You Look for Bargain Basement Stocks ?

“With the Standard & Poor’s 500 Index having risen 16 percent so far this year, investors may be tempted to opt for the few stocks that have missed out on the party.

But hunting for bargains in this environment could be more trouble than it’s worth, experts tell The Wall Street Journal.

“I don’t believe the laggards are going to arise from the dead any time soon,” Kim Forrest, a senior equity analyst at Fort Pitt Capital Group, told the newspaper.

All but 40 of the stocks in the S&P 500 have gained so far in 2013, indicating the underperformers are unlikely to catch up soon, experts say.

Just because a company has a low share price doesn’t mean its stock is a good buy. The low share price may simply be a reflection of the company’s problems.

So in an effort to avoid overpaying for a pedigree, you may just be purchasing just a dog….”

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