The Bizarro Portfolio

This week, S&P scrapes the barrel to find the stocks that perform the worst according to two proprietary measures. Among the selections: Cosi and Flowserve

While it's much more fun to uncover stocks that could be considered attractive, we think it's a good idea every so often to look at those issues that investors would do well to avoid. In this week's screen, we looked for stocks that perform poorly under two key S&P investing measures.

Our first filter: S&P's stock-ranking system, known as STARS. This is a qualitative ranking system based on fundamental research conducted by S&P's own analysts. We searched our database for stocks with the lowest rank, 1 STARS (strong sell). Stocks with that designation are expected to underperform the total return of the S&P 500 index by a wide margin over the coming 12 months, with shares falling in price on an absolute basis.

Next, we used S&P's Fair Value model, a proprietary quantitative stock ranking system. The model calculates a stock's weekly Fair Value -- the price at which a stock should trade at current market levels -- based on fundamental data such as corporate earnings and growth potential, price-to-book value, return on equity, and current yield relative to the S&P 500. We looked for those stocks ranked "1", indicating these issues are significantly overvalued.

Our screen turned up these not-so-fab five names:

Before it's here, it's on the Bloomberg Terminal.