Undervalued Securities Offer Growth, Income With Low Risk

June 19, 2012

Investing in portfolios made up of undervalued securities can offer investors faster growth than the equity indices, and an income for clients, who are approaching or in retirement, and want as high an income as they can get with low risk, says Malcolm Gissen, Founder and Investment Adviser of Malcolm H. Gissen & Associates Inc.

“For those people, we’ve developed an expertise in finding lesser-known assets that will provide 7%, 8%, 10% dividends without undue risk,” he said. “As a philosophy, we believe in buying undervalued, unappreciated, underfollowed, lesser-known and beaten-down securities.”

Gissen favors Uranium Energy Corp. (UEC), a uranium producer, who is currently undervalued. He says there is greater development of the nuclear power industry than ever before, despite the Fukushima disaster. Gissen also expects nearly half of the uranium supply to the U.S. to end by the end of 2013 after the expiration of a treaty with Russia.

“What will happen to uranium prices when 45% of the uranium supply to the United States goes away, in addition to the construction of 61 new plants? That’s why we are invested in Uranium Energy Corporation, which is currently producing uranium in situ in Texas,” he said. “After Fukushima, the company lost more than half its value; it offers a great buy, a great opportunity.”