If you are a contrarian investor, then you are also a believer in "regression to the mean".  Which generally works, if one is patient.

However, I would suggest that there are two spaces where regression to the mean does NOT work - technology and retail.  There are no mediocre players in these spaces...you are either making more money than ..... or on your way to Chapter 11.  There is rarely any in between....

That being said, not all retailers will be run over by Amazon.  But any retailer that struggles - for whatever reason - to generate consistently positive same store sales...stay away from!!!!