8 Stocks Trading at Their 52-Week Low [Podcast]

52-Week Lows: A Screening Trigger, Not a Buy Signal

We use 52-week lows as a starting point for investigation, not a reason to buy. A stock can be “cheap” for very good reasons—and sometimes never returns to past highs.

• Price weakness can reveal negative sentiment that deserves a deeper look

• Avoid price anchoring (“it used to be $100, so it’ll go back”)

• A good setup is strong fundamentals + a negative narrative you can properly evaluate

The “Ratings Illusion” and the Power of Perception

Analyst ratings can be useful, but they’re still models + assumptions. If the assumption is wrong, the “deal” may never materialize.

• Valuation models can label a stock undervalued… even if the market never agrees

• “5-star” doesn’t protect you from a dividend cut or a long downtrend

• The goal is to separate fear-driven selling from fundamentals-driven deterioration

Healthcare at a Low: Great Businesses, Real Policy Risk

Two healthcare leaders show strong historical fundamentals—but both are dealing with headline risk and uncertainty.

• UnitedHealth (UNH):

  • What we like: vertical integration (insurance + care delivery), long history of strong execution

  • Why it’s down: a pile-up of bad news + cost pressure + Medicare Advantage reimbursement uncertainty

  • Our stance: high risk / high reward, but not a current holding for him

• Zoetis (ZTS):

  • What we like: category leader in animal health, sticky vet relationships, repeat purchases

  • Why it’s down: guidance concerns + viral safety narrative around a pet drug

  • Key caution: Mike wants more clarity before sizing conviction—industry/regulatory nuance matters

SaaS Under Pressure: AI Fear vs. Actual Numbers

Several software-heavy businesses are down—not because their results collapsed, but because investors fear AI could commoditize software. Mike argues the narrative is ahead of the evidence (so far).

• AI disruption fear: “people will build software themselves and cancel subscriptions”

• Our counterpoint:

  • AI helps most when users have expertise; otherwise they hit a wall

  • Many businesses still need pros to implement, maintain, secure, and scale systems

• The important distinction: what people think will happen vs. what the financials show today

Constellation Software: Why Mike Breaks His Dividend Rule Here

Constellation is down hard, but Mike still likes the business model—enough to own it even without dividend growth.

• Vertical software acquisitions across niche industries

• A repeatable, disciplined acquisition “playbook”

• Strong cash generation used to fund more deals (instead of dividend growth)

• The debate is about valuation + narrative pressure, not a broken model

Roper & Salesforce: Similar “Sticky” DNA, Different Pathways

Three tech names are discussed through the same lens: sticky products, recurring revenue, and the question of whether AI changes the long-term math.

• Roper (ROP): a U.S. cousin to Constellation—asset-light, niche software, recurring revenue

• Salesforce (CRM): a CRM leader with a newer dividend profile

  • What’s to like: subscription model, cross-selling, acquisition-driven expansion

  • What’s feared: SaaS plateau if AI reduces dependency or pricing power

Thomson Reuters: “Industrial” Label, SaaS Reality—and Valuation Whiplash

TRI is effectively a subscription information business with strong stickiness, but it got hit by both AI anxiety and “priced for perfection” valuation risk.

• Over 80% subscription-based revenue = high predictability

• Watch-out: revenue rising while EPS stagnates can signal margin pressure

• When a stock trades at a very high multiple, even small disappointments can trigger big drops

Financials at Lows: A Quality Compounder vs. a Prom-Night Lender

Two very different financial models show why “cheap” can mean very different things.

• Brookfield Asset Management (BAM.TO):

  • What we like: asset-light fee machine, fundraising momentum, strong earnings/dividend growth

  • Why it’s down: not obvious from fundamentals—sometimes Brookfield names drop despite strong results

  • Note: Brookfield complexity is a real consideration (you’re trusting management with a “black box” element)

• goeasy (GSY):

  • What we like: fast growth + strong underwriting in good times

  • Why it’s risky: late-cycle credit risk—loss provisions rising can accelerate quickly

  • Key line: growth isn’t always good if it’s fueled by stressed consumers

How to Separate Opportunity from “Priced Accordingly”

There’s no perfect formula—but we use a consistent framework:

• Start with the numbers (Dividend Triangle, trends, profitability)

• Identify the narrative and ask: is it fear… or structural damage?

• Stay in your circle of competence: higher conviction when you understand the business and industry

• Don’t build a portfolio of falling knives: one or two “rebound candidates” is different than a strategy

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