It seems to be commonly accepted that value investors spend their time searching the 52 week low list for new investing candidates. There are some highly respected and successful value fund managers that use this exact approach (which I am not discrediting). However, I would like to submit an opposing technique – we are contrarians after all. Generally we think of value names in those companies that are experiencing internal or external setbacks – things like economic downturns, net losses, legal problems, etc. Yet there are companies that are humming along just fine, but the market simple hasn’t put a premium on its shares. I disagree that a company needs to be hitting its lows for it to be cheap. In fact, it’s very possible that a poorly performing stock may indeed by overvalued. As value investors we are trained to ignore the market’s volatility and short-term think to look beyond the noise for bargains. But there are times when the market can provide clues that we should at least acknowledge, if not take advantage...................

full Story: http://www.gurufocus.com/news.php?id=96476