The world's top value investors love it when their best stocks ideas are selling at bargain-basement prices. For those rarified investors, companies offering fire-sale prices become no-brainer buys.

So regular investors like you and me would do well to emulate the masters and look at companies offering a "buy one-get one" sale on their stocks. We'll pair the companies selling at least 50% below their 52-week highs with the insights of the top investors in the Motley Fool CAPS community. When top earthbound investors also like a company's prospects, it may be wise for us to take notice, too.

Stock

CAPS Rating (out of 5)

% Off 12-Month High

Source: Motley Fool CAPS.

Naturally, you'll want to do more due diligence before buying. Low-priced appliances in thedent-and-ding sectionof your home-remodeling superstore might be there for more reasons than just a few scratches on the surface: Real trouble might be lurking below. Same thing here, so make sure there's nothing seriously wrong with the company before you plug it into your portfolio.

Making a connection It might not be the two-bagger-plus some investors are hoping for, but even analysts at BMO Capital see the momentum turning in favor of communications equipment provider Alcatel-Lucent. Continuing its trend of taking share from Cisco (Nasdaq: CSCO) and Juniper Networks (NYSE: JNPR) , particularly in the router market, and with LTE becoming such an important component of future telecom expansion, the equipment maker should be able to capitalize on its leading position by deploying more of its wireless and optical technology. BMO sees shares hitting $4 a stub, which would represent a 65% gain from current levels.

Previously I noted Alcatel was driving a huge wedge into the market with its small-cell wireless technology that will help telecoms meet the burgeoning demands being placed on their networks. Although other analysts remain concerned about its sale of the Genesys, its call center and videoconferencing software unit, the separation allows Alcatel to focus its energies on its core networking infrastructure and beating Cisco and Juniper in their own backyards. Let the short-sellers target it; they'll be squeezed when the expected collapse doesn't materialize.

CAPS member kferg2 believes the liquidity concerns are overblown and is confident it will be able to successfully generate the cash flows necessary to sustain itself.

Continued here:
There's a BOGO Sale on These Top Stocks

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March 19, 2012 at 8:58 pm by Mr HomeBuilder
Category: Basement Remodeling