| Over the past few months, several investment | | | | the fallout of that moniker, while some languish in other |
| professionals have brought up the topic of the | | | | areas of high tech. The energy market has taken |
| down-and-out company of the day and whether to | | | | more than its share of hits since Enron's collapse, and |
| buy now as a speculation. Last year, K-Mart was the | | | | that industry is well represented on the list. Telecom, still |
| big news, and everyone wanted to know whether this | | | | reeling from WorldCom's collapse, is also present. For |
| was a good stock play. Today the news is focused | | | | variety, the list includes everything from media to |
| on WorldCom and its downfall. Thus, some people are | | | | education, from international trade financing to |
| pondering this stock for quick profit potential.Here's the | | | | pencil-graphite production.If you're convinced that |
| scoop: Don't buy WorldCom.I know! It's impossible for | | | | buying the beaten down is the best way to make |
| MCI to disappear: they're too big, they're too popular, | | | | money, this should provide you vastly better choices |
| their service is excellent, etc. That's the good news | | | | than K-Mart or WorldCom. Anything on this list is better |
| that everyone is talking about. But there's another side | | | | than those two doomed stocks. While a few are |
| a darker side to the story. The company filed for | | | | pending investigation (*starred), most have fallen simply |
| bankruptcy because of their massive debt load, not | | | | because of the whims of the market. Some are even |
| just because of accounting failures. The accounting | | | | maintaining profits in this tough environment.With the |
| failures probably only came to light as a result of the | | | | market in the doldrums, out-of-favor companies |
| company's lack of funds.In the end, it will be the same | | | | sometimes fall more than would be rational. As a |
| story as K-Mart. It won't matter whether K-Mart or | | | | result, you might find great buys in stocks like this. But |
| MCI survive, the shareholders will not. If the business | | | | in this market, there are great buys everywhere. The |
| survives still debatable in K-Mart's case, but more likely | | | | question is when to buy.Market timing is not necessarily |
| in MCI's business ownership will be transferred to the | | | | wise, but when the market is falling as harshly as it has |
| bondholders and other creditors by law. This is what | | | | been, one can afford to wait until the stock is so low |
| bankruptcy courts do. Shareholders get nothing. If you | | | | that you are virtually certain it can't go lower. Some of |
| want to gamble on MCI/WorldCom, you might consider | | | | these stocks have reached that level.To send |
| their bonds rather than their stocks, although that option | | | | comments or to learn more about Scott Pearson's |
| may not be great either.So, is it pointless to look at | | | | Investment Advisor Services, visit Pearson is an |
| "down-and-out" stocks as quick turnaround | | | | investment advisor, writer, editor, instructor, and |
| opportunities? Well, we may avoid the "down-and-out", | | | | business leader. As President and Chief Investment |
| and instead just invest in the "down-and-uncertain". | | | | Officer of Value View Financial Corp., he offers |
| These can be awesome opportunities, but be aware | | | | investment management services to a wide variety of |
| that the risks are sometimes high among these | | | | clients. His own newsletter, Investor's Value View, is |
| downtrodden firms.Here is a list of 25 of these beaten | | | | distributed worldwide and provides general money tips |
| down stocks which today sell for under $5. Some are | | | | and investment advice to readers both internationally, |
| well-known businesses, other names are less | | | | and in the U.S. |
| commonly known. Some are dot.coms suffering from | | | | |