Turning the Ugly Duckling to a Swan.

Stressed about your money?  Who isn't lately when stocks just keep on going down, down, down.  It is hard to stay optimistic.

All the financial articles speak of taking advantage of the lows from those stocks that were always out of reach before.  Makes sense, but I struggle with how low is the low?

For example, RIM (Research in Motion) the poor blackberry just can't seem to catch a break.  My dad loves this stock but I have been avoiding it.  But when it started trading in the low $25 range a couple weeks ago, my husband wanted to snag himself some.

I used a free trail on Stock Pointer and they had a great chart where it compares what the stock is currently at and what the stock SHOULD be at based on financials.  It was an eye opener.

The chart showed that RIM is valued at $120 but actually was at $26 at the time.  Wow, talk about a stock doing the opposite what all the research says it should be.  I then had to check my Lululemon (LLL).  A stock that has made no sense as far as a retail store goes.  It showed the opposite.  Before the stock split (back in July) it was sitting at $115, but showed the stock only worth in the $30???

I figured Lululemon is like the Prom Queen.  People love it.  You are seen wearing it around town with the "prom queen" wrapped around your bottom or top and everyone will smile at you.

Sometimes you just have to understand the company and what the people see or don't see in a product.  Financial reports just don't mean much.  It's just a popularity contest.

So I took the dive and bought him some at $25.  I was feeling great.  Thinking I had hit it's low.  Opps,  it went down to $23.11!!  I was kicking myself, but realized maybe there is something to be said about financials.

The stock has slowly crept back up after the announcement of new products, but I am still in the red. I am hoping that the stock screener will at least meet me half way.  The popular kids will see the potential and "coolness" of the blackberry and start buying again.

I will hold for now and hope that my ugly duckling will soon turn into a swan.