Finding Winner Among Depressed & Low Priced Stocks

Richar Evans book provides very detailed guidelines for defining and buying depressed stocks. I rate it 5 stars because it provides actual strategies and methods that can be easily employed by the average investor. However, I want to clearly state at the beginning of this review that I do not recommend anyone actually use this book as an investment guide. Most people will lose money if they try to implement this book.The first of three sections is an explanation of why this style of investing is profitable. The middle section is devoted to technical charting to identify the bottom of a falling stock. The third section is devoted to case studies.I would not recommend this book to anybody I know personally, since there is a very real danger that a person will actually try to invest using this system, and will lose a great deal of money. However, an investor with the desire to get above average returns, who has a proven ability to deal with stress of risky investments, can use the information in this book very profitably. Who do I think can profit from this book? Anyone who has actually experienced losing over 30% of their portfolio, and were able to profit from the experience (either by buying more at the bottom when everybody else was trying to get out, or simply having the patience and character hold onto your stocks). So unless you have been invested during at least one major stock market crash, and profited (either financially, or learned a lesson about fear/greed/panic) I would definately not recommend this book. Ignore this warning at your own risk.

I was not sure what to expect when I picked up the book, but for [the price] why not check it out. It was much better than anything I expected or have read in similar titles. The author gives the reader a solid foundation for entering and exiting low priced stocks. The book is filled with lots of good examples of the right time to buy beaten up stocks. The primary focus of his selection technique is technical analysis, although there is a fundamental bent thrown in. If you are thinking that there are bargins to be had after the past 2 years in the market, this is a title well worth checking out.

Very helpful in determining what, where, and when to buy stocks that have experience significant correction. Since the latest 2000 correction in the market, one would think that people will pay more attention to this type of thinking rather than simple momentum investing.Excellent details, charts, graphs and explanations of how to chart the beginning of a turnaround for stocks that have been corrected or depressed.

This is a very informative book. Evans' thesis is that low-priced and depressed stocks account for the major stock gains. In the first chapter he outlines the risks in buying these stocks and some precautions to take. The second chapter covers technical analysis, and the third chapter covers using the technicals to evaluate the charts of companies that have gone through major pullbacks, built bases, and seem ready to go up again. Chapters two and three are excellent, and really seem to be the book's center of gravity. However, later chapters go into numerous case studies which are very good teaching stories. The writing is accessible and clear, and should appeal to beginners as well as more advanced investors and traders.

If you are interested in buying stocks in the low price range, $20 all the way down to penny stock range, this is the book for you. Evan's methods add a bit safety to this volatile price range by sticking with larger companies or depressed and distressed blue chips. You will appreciate all his research, some from noted financial journals, as well as his numerous charts and examples. The first chapter goes through his rational and many studies on why low price stocks outperform. Chapter 1 alone is well worth the price of this book. Very well written, a definite classic.