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Valeant Pharmaceuticals’s head office in Laval, Que. (Ryan Remiorz/AP)
Valeant Pharmaceuticals’s head office in Laval, Que. (Ryan Remiorz/AP)

A potentially lucrative (and high-risk) strategy: Bet on multiple misfit stocks Add to ...

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Betting on a turnaround at Valeant Pharmaceuticals International Inc. comes with a lot of uncertainty. But what about diversifying your risk and betting on a bunch of Valeant-like stocks that are priced for failure?

Buying one or two beaten-up stocks comes with a lot of risk. But spreading out your bet among a number of stocks is more compelling because it reduces the downside risk while preserving much of the reward should a few of these dogs survive.

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