Some of the biggest companies in America have watched their stock prices tumble in recent months. In this Your Money report, an investment expert tells News 8 why buying bargain stocks could double or even triple your money.
After years of surging, stock prices these days look like a roller coaster ride to the bottom, which is why Wilsey Asset Management President Brent Wilsey says now may be the time to buy bargain stocks.
"You might see some huge gains in some of these companies," Wilsey said.
Starting with Starbucks, a company that in 2006 traded for nearly $40 a share and as of the filing of this story was selling for $8.57 a share.
"You're getting a great company for a very low price. It might not turn around tomorrow, but Starbucks has a very good brand name. They have a very good business model," Wilsey said.
Cheaper bargain stocks allow investors to get more shares for their buck, but make sure you do your homework.
SDSU finance professor Dr. Dan Seiver says just because a stock sells for less than $10 a share doesn't mean it's a winner.
"It could get even cheaper than it is now and you have to be willing to hold on, but I think for an investor who has a three- to five-year horizon, this is a great time to pick up stocks," Dr. Seiver said.
Wilsey and his clients both own Bank of America stock, which in 2006 traded for nearly $50 a share and is now selling for $3.74. Wilsey says the price is low because of the fear the government will take B of A over, but he doesn't see that happening.
"Why would the government come in and take over Bank of America when they are profitable," Wilsey said.
Wilsey's final bargain stock is eBay.
"eBay is one of the most recognizable names in the world, and the stock has fallen down to $10.50 a share," he said.
With a $1,000 investment, at $10.47 a share you could buy 96 shares of eBay. If the price goes back up to 2004 levels of $58 a share, your money could potentially grow to more than $5,000.
So the big question is how long do you have to wait until those stocks slowly start to inch up and you actually see a profit. Wilsey says give it at least 12 to 24 months.
With any investment there is risk. A recent example is Circuit City, where you could have bought their stock for less than a pack of batteries, but the company shut down and that stock value is now worthless.
Every year, CBS looks for more than a dozen people to live in a house together and compete for $500,000 on “Big Brother.” On Sunday hundreds of people gathered in Miramar to show off why they deserve to be the next houseguest on the show.
From the cost of feeding the zoo animals in 1978 to the grand opening of the first Legoland outside Europe in 1999, grab your ticket and let’s take a roller coaster ride through the past 40+ years of San Diego attractions.
Active Valor, the combat veteran non-profit organization in San Diego, will host its fifth Valor Adventures of the year in Bonsall on Sunday at Rawhide Ranch.
Rady Children’s Institute for Genomic Medicine is 50 percent of the way to reaching a major goal – the sequencing of 100 critically ill infants.
Each week, the News 8 Crimefighters help authorities in looking for fugitives in San Diego. This week’s fugitive is: John William Richardson
This Sunday will be your chance to audition for the next season of the hit CBS show "Big Brother." And who better to ask for casting call advice than last year's winner?
Public Utilities Department officials say they have made major changes in wake of last year’s high water bill scandal.
Everybody loves a new pair of pajamas. Those are words Oceanside resident, Margaret Dailey, has lived by for the past ten years.
Four-time New York Times bestselling author, podcaster, and speaker Gretchen Rubin visited the News 8 Morning Show studio to talk about her new book "Outer Order, Inner Calm." Her book offers a multitude of ideas to help readers de-clutter and simplify to make room for happiness.
The first ducklings of the season arrived at the Rancho Coastal Humane Society’s San Diego Wildlife Center in Carlsbad this week.