How to Set Up (3 Steps)
- •Step 1: Search for quality stocks that have declined on StockAlert.pro (e.g., META, PYPL, INTC)
- •Step 2: Select "New 52-week low" alert type (triggers automatically when stock makes new low)
- •Step 3: Choose notification method (email or SMS) and save
Done! You'll receive automatic alerts when stocks hit new yearly lows. Context determines if it's opportunity or warning.
Example: Meta Capitulation November 2022
- •Setup: META hit new 52-week low of $88 in November 2022, down -75% from highs amid 'Metaverse is a failure' narrative
- •Signal: Cash flow still $20B+ annually, 3 billion users, Zuckerberg buying stock, trading at 7x earnings
- •Alert Trigger: New 52-week low at $88 with volume 2.8x average - capitulation signal
- •Result: Contrarian buyers entered $88-$100 after 2-week stabilization, META recovered to $350+ by late 2023 (+250%)
- •Key Insight: Capitulation (high volume) + intact fundamentals + insider buying = fallen angel, not value trap
Scenario Guide
| Scenario | Volume | Fundamentals | Example | Action |
|---|---|---|---|---|
| Capitulation (Buy) | >2.5x average | Cash flow positive | META $88, Zuckerberg buying | Buy after 2-week stabilization |
| Value Trap (Avoid) | Average | Cash burn, debt rising | PTON -75%, no path to profit | Avoid - structural decline |
| Slow Bleed | <1x average | Mixed signals | Gradual decline, no panic | Wait for capitulation volume |
| Cyclical Low | High | Industry-wide weakness | Oil stocks 2020, banks 2009 | Buy leaders when sector bottoms |
| Dead Cat Bounce | Spike then fall | Deteriorating | Rally fails within 2 weeks | Exit or avoid - more downside |
When to Use
- •You're a contrarian investor looking for quality stocks at maximum pessimism
- •You want alerts on positions you own to trigger fundamental review
- •You're tracking known turnaround stories waiting for entry points
When Not to Use
- •Stock has negative cash flow and declining fundamentals (value trap)
- •You plan to buy immediately without waiting for stabilization
- •The industry is in structural decline (not cyclical weakness)
Conclusion
52-week low alerts identify potential turnarounds and value traps. Buy only with positive cash flow, insider buying, and clear catalysts. Wait 2-4 weeks for stabilization before entry.