Comeback Kids: Cheap Stocks Ready to Jump

Will Starbucks return to high-octane profitability under CEO Howard Schultz -- and should you buy the stock?

Brent Wilsey, president of Wilsey Asset Management, takes on the coffee chain -- and names two tech-oriented stocks he says are bargain buys.

Outlook

Ben Steverman, reporter at BusinessWeek, suggested that Starbucks is so beaten down that "now might be a good time to get in on it." He praises the company's "good strategy" of re-focusing on its core coffee product.

But Wilsey disagrees: "The stock is still trading too high... and the balance sheet is just not as good as it used to be," he said, pointing to a debt-to-equity ratio of 48 percent.

So what does the strategist like?

Recommendations

Wilsey says Seagate Technology , down 30 percent from its 52-week high, is due for a turnaround. And he likes RadioShack , down 54 percent from its 52-week high.

• Video: Watch the entire Wilsey interview (4 mins, 33 secs)

Steverman says his journalistic research points to Nordstrom , as the upscale retailer has a young market and plenty of room for expansion -- and is trading cheaply.

Disclosure

No disclosure information in re stock ownership was available at the time of publication.

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