Stocks from the Gutter- Bottom Fishing for more forgotten gems......

Hey folks,


When bottom fishing for stocks, there are several important factors that you need to weigh in. You have to look at fundamentals. Have they changed? What poor fundamentals led the company to sell off and slide down (bad earnings, bad news, lawsuits, wrongful deaths, etc). You have to see if the fundamentals have turned favorable again. Has the company turned itself around? Have they issued upped guidance, debt reduction, improving earnings, new, exciting and innovative products? All these have a factor. Those are the fundamentals.

What about the technicals? These can include chart patterns, such as a double or triple bottom formation. Has there been a huge spike in volume when the stock made a bottom? Is there any increase in insider or institutional buying/ownership? Has the stock crossed over its 5oday or 200 day with above average volume (signaling insitutional support)? If yes, then you have a good contender. Just remember that the stocks that have fallen from grace have fallen from it for a reason. With that thought in mind, try to keep it neat and simple. Do not buy the shares with a dream that the company is going to make the comeback of the year and retest previous 52wk highs. Its probably not gonna happen. Instead, buy these stocks with a mindset of a swing trader. Its more like wam-bam-thankyou-M'am kinda relationship. You marry you fiance, you don't marry your stocks! From what I am told, one marriage is enough, lol!


Design Within Reach Inc (DWRI) is trading at 5.85 on the NAs.


Intralase Corp (ILSE) is a stock trading on the NASDAQ for 17.44. The stock looks like it has already bottomed out, as it has already broke out and above its 50day MA. Now only one question remains. Is ILSE ready to start an ascending pattern? Time will tell. Personally, I'd like to see more institutional sponsership. Then we'll talk. Also keep in mind that the Medical Systems and Equipment industry group is a hot group right now with such heavyweights such as CUTR, ELOS, ISRG, SMTS, IRIS, and many more. These may be more worth your time until ILSE further establishes a postive trend.