ACPW, ADLR, BBND: Time to go Back to Safe Stocks

Active Power Inc (NASDAQ: ACPW), Adolor Corporation (NASDAQ: ADLR) and BigBand Networks Inc (NASDAQ: BBND) are some stocks with low beta coefficients. While stocks are headed for a second straight day of deep cuts amid growing concerns about global economy, it may be a good idea to churn the portfolio in favor of these tried and tested picks.

Europe is all down amid fresh worries that a bailout might be needed for Italy too. On a broader note, the repercussions of the sovereign debt issue aren’t specific to Italy or Greece or even Eurozone. Truth be told, it is fast becoming a global issue and it would be foolhardy to assume that the US will remain insulated from the aftereffects.

In this scenario, it would be a wise move to either sit on cash or act proactively and reduce exposure from risky plays. Active Power Inc (NASDAQ: ACPW) is one such stock with a low beta coefficient of just 0.47. It is not only this stock’s tendency to move at lower magnitude than the indices which makes it a pick but the fundamental attractiveness of the business. The company provides flywheel based systems to facilitate uninterruptible power supply to businesses to cope with the black outs and power disturbances. While the company isn’t profitable, it does provide a degree of comfort to turn around specialists who keep looking for attractive businesses. The stock currently trades at $2.4, on the upper side of the 52 week range of $0.88 - $3.03 and a lot of this high price level has to do with the attractiveness of the company in terms of acquisition target.

Adolor Corporation (NASDAQ: ADLR) is a biopharmaceutical company that focuses on pain-management products. The stock currently trades at $2.67, near its year high level of $2.83. It may be a speculative stock with 5 per cent intraday moves being a norm. However, it is one of the better stories in the biotech space. After yesterday’s jump of 4.5 per cent, it may be in for a mild correction but remains a ‘buy on decline’ stock.  

BigBand Networks Inc (NASDAQ: BBND) isn’t into an exotic business. Rather, its offerings are more mundane that allow multiple system operators (MSOs) and telecommunications companies to transmit videos across a range of networks. However, this mundane business means the stock is less volatile and has a beta coefficient of 0.18 only. At $2.1, it is available near its year low of $1.97.