Some Stocks Are Cheap! Some Stocks Are Cheap! Some Stocks Are Cheap

Now is the time buy. There, I have said it. Considering the market's recent behavior, these may be foolish words. However, I do not believe that to be so. For sure, many of the stocks that dropped during this week's correction, which I believe is almost over, were overvalued given their prospects and fundamentals and some may still be. Others, however, were simply victims of a market that blindly slashed the prices of good and bad, cheap and expensive equally. The good and cheap are the companies to buy. Bold investors need to act in the next few trading days for these bargains will not last forever. Dynamic and innovative companies such as Allegheny Technologies and Sasol now sale for PEG Ratios (5 year expected) for 0.88 and 0.68 respectively. Both companies are in good financial shape and Sasol pays a dividend in excess of 3 percent. The key is to strike before the market realizes the error in its ways and bids these companies to new heights. Furthermore, there are literally dozens and dozens of quality companies now selling for bargain bin prices that investors would be wise to snap up.

For purposes of disclosure I own shares in Sasol. Additionally, for those who are unfamiliar with the PEG ratio, I will explain it. It is simply the price divided by earnings divided by the projected 5 year growth rate of a given company. Any company trading at less than one should be considered a bargain.