As a follow up to yesterday’s message from Investing Daily regarding our belief that the current stock market volatility represents an opportunity to buy stocks that were previously overpriced, we feel now is the time to take advantage of current price weakness by picking up quality stocks trading at a significant discount to their recent values.

Earlier this week we wrote in Smart Tech 50 Weekly Movers, “Back in August we closed out positions in Western Digital (NSDQ: WDC) and Seagate Technology (NSDQ: STX) at prices of $100 and $60 respectively. Now priced at $89 and $54, they are very close to being added back to our portfolio.  We are not short-term traders by nature, but we have to play the cards we are dealt.”

Given the extreme volatility that has taken place over the past few days we feel it is time to add these positions back to our portfolio as they have dropped down a bit lower (now trading at $86 and $52, respectively). So, we are changing the status of Western Digital (NSDQ: WDC) and Seagate Technology (NSDQ: STX) back to a ‘buy’ with limit prices of $80 (WDC) and $48 (STX).

We note that Seagate Technologies is scheduled to release quarterly earnings on October 27^th and Western Digital the following day. A lot can happen over the next two weeks, so we suggest putting your limit orders in now in case the market begins to stabilize prior to then.

It’s not often we get the chance to buy a stock for 20% less than what we just sold it for, but this is how you can compound your gains in a hurry. The bull market is not over, and it won’t be too long before both of those companies are heading back up to where we sold them previously. Let’s do it again!