Trying to catch falling knives is a tough and dangerous game. The floor is falling every day in the stock and many times, investors allow their egos to prevent them from making the right decision. But even though that's the case, I sometimes still choose to make the move if I believe it's clear that fear has taken over in the emotions of investors and the stock is clearly undervalued. As the often-quoted Warren Buffett saying goes, "Be fearful when others are greedy and be greedy when others are fearful." Often the best types of investments are those made against the crowd, or contrarian.One such stock is Bon-Ton Stores (NASDAQ: BONT). Plagued by lower outlooks and falling sales figures, the stock has been getting killed recently.
However, I think the stock is a very interesting buy at these levels for a couple reasons. It looks cheap, insiders are buying, and it has an interesting pool of owners, among other things.
Before the bell: Stocks futures steady ahead of GDP, housing data
Google's plan for netbook PCs moves higher into the clouds
So long peak oil, here comes peak uranium
