The 'three bears' stocks to buy now

Profits lie in companies that are misunderstood by investors, says professional stock picker Alex Savvides. Here, he tips three such stocks, from a corporate giant to a penny share.

With the crisis in the eurozone drowning out often strong individual corporate fundamentals, investors are finding market conditions a little dispiriting. But when the headwinds finally ease and investors start to take a more discerning view of individual stocks, the many attractively priced opportunities on offer should come to the fore. Our focus is on identifying companies that are benefiting from change, especially when that change is misunderstood or unappreciated by investors. The three stocks below are examples from right across the scale in terms of market capitalisation.

Let's start in the large-cap world. BP (LSE: BP) is finally starting to make headlines for the right reasons after a dreadful year and a half when its very existence was called into question. It is 19 months since the announcement of the Macondo disaster, during which BP's shares fell by around 30% and underperformed Royal Dutch Shell by a huge 65%. However, the well has stopped leaking, the Gulf of Mexico coastline has been cleaned up and the flow of claims against BP has abated. The majority of clean-up costs have been accounted for and BP's partners have stumped up their share of these costs. The contractors Halliburton and Transocean have not yet admitted any liability, but this seems to be just a matter of time.

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Alex Savvides

Alex has contributed to MoneyWeek’s share tips in the past. He is the manager of the Jupiter UK Dynamic fund. He became the first internally developed Fund Manager to launch a new and UK investment process at JOHCM when he launched UK Dynamic in 2008. Alex has a Securities Institute Diploma and he has a Bachelors in Politics from the University of Nottingham.