Is The Perp Walk A Buy Signal?
By Jonah Freedman

(MONEY Magazine) – Aggressive types looking for turnaround stocks sometimes snap up companies embroiled in executive scandals (as long as the company itself is sound). But when is the ideal time to buy? Answer: When a top exec takes his or her perp walk, judging by what's happened to the stocks below. Each tumbled after bad news leaked, hit bottom around the time the exec faced charges, and approached a post-scandal high 18 to 24 months later. Just two of these stocks have rebounded to pre-scandal levels, but an investor who jumped in during the walks of shame could have made nice chunks of change. Something to chew on as the insurance scandals play out. —JONAH FREEDMAN