Tag: dirtcheap

This Dirt-Cheap Grocery Stock Just Got a Sweet Deal on Its Own Shares

Investors might not be very familiar with the stock of Albertson’s (NYSE:ACI). Although the grocery store chain is 81 years young, it only recently became a public company after its initial public offering in June. But for defensive investors looking for pandemic-proof stocks, grocery stores in general and Albertsons in particular may be worth a look.

Its stock is cheaper than rival Kroger (NYSE:KR), but like Kroger, Albertson’s is also posting blockbuster sales and profits during the pandemic. Yet shares trade about 15% below its June IPO price of $16, which was below the $18 to $20 range the company had hoped for.

Albertson’s was also given a gift recently, as it was able to buy back a significant amount of shares below its already-discounted price.

A shopper in a mask inspects a product in a grocery store.

Grocery stores have posted bumper results amid the pandemic. Image source: Getty Images.

A forced sale is music to shareholders’ ears

On

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Why I’d buy dirt-cheap stocks instead of taking advantage of the surging gold price

The idea of buying dirt-cheap stocks may not appeal to some investors at present. The prospects for many companies are currently challenging in an uncertain economic world, which could lead to disappointing share price performances in the near term.

However, over the long run, their low prices could mean they produce higher returns than more popular assets such as gold. As such, now could be the right time to purchase undervalued stocks, rather than seeking to profit from gold after its recent price rise.

Current price levels

Since nearly all investors would rather buy assets when they trade at low levels, buying dirt-cheap stocks could be a sound long-term strategy. It may enable investors to purchase high-quality businesses while they offer wide margins of safety.

This could lead to impressive returns as the world economy recovers in the coming years, and the stock market gradually returns to previous highs.

By

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Stock market crash: how I’d make a growing passive income with dirt-cheap dividend shares

The prospects for many dividend shares may be relatively uncertain after the market crash. In fact, some companies have cancelled their dividends to provide them with greater financial stability in the short run.

However, it’s still possible to build a portfolio of dividend stocks that produces a growing passive income. Through obtaining a wide margin of safety and focusing on a company’s dividend cover, you can select the best stocks to buy right now.

Dividend cover after a market crash

The recent market crash has brought risk more sharply into focus for many investors. After all, the weak global economic outlook may mean that the operating conditions for many businesses come under pressure. This may make it more difficult for them to afford their current level of shareholder payouts.

Therefore, it’s prudent to check the affordability of a company’s dividend before buying it. This can be done through dividing its

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3 reasons why I’d sell gold to buy dirt-cheap stocks today

Selling gold to buy dirt-cheap stocks may not seem to be a sound move at first glance. Economic risks are high, and gold’s defensive status may help to protect investors from further volatility in the stock market.



Gold bullion on a chart


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Gold bullion on a chart

However, the precious metal’s high price and low valuations on offer across the stock market could mean equities provide a more attractive long-term capital return outlook.

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The recovery potential for dirt-cheap stocks

While there are a wide range of dirt-cheap stocks on offer at present, history suggests this situation won’t last in perpetuity. No period of economic weakness or stock market decline has ever remained in place over the long run.

Eventually, global GDP growth has always returned to positive figures and the operating environment for stocks has improved. This has always led to rising stock prices, and a shift

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Forget gold and Bitcoin. I think dirt-cheap stocks can make you rich

Buying dirt-cheap stocks after the market crash could be a sound means of generating high returns in the long run. Undervalued shares have historically offered strong capital gains as the stock market recovers from its lows.

Other assets such as Bitcoin and gold have risen sharply in price over recent months. But the risk/reward opportunity from stocks could be more appealing. Over time, the stock market could help you to improve your financial situation.

Dirt-cheap stocks

Buying dirt-cheap stocks and holding them for the long term is a relatively simple investment strategy. However, it could prove to be highly effective in generating impressive returns.

The stock market has a long history of experiencing ups and downs that provide an opportunity for investors to buy stocks when they are undervalued, and sell them when they are overvalued. Clearly, executing that strategy is likely to be more difficult than it sounds in

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