The start to the stock markets in 2016 has been unprecedented. There have been some structural issues in some markets such as China but some of the carnage may not be warranted. As a value investor, this is where I bring out my shopping basket. Also, at our London Value Investing meetup, we have been looking for undervalued companies.
If you’re a trader or someone who doesn’t like a “falling knife” and is looking for a bottom, you may not agree with the below analysis, and that’s fine – you have a different strategy of making money and I respect that.
To get us started, we just did a simple number crunching exercise to find companies that have a market cap of greater than $5bn and are quoting within 10% of their 52 weeks low. This analysis does not by itself give you any buy recommendations, but it’s start from where we need to do more detailed fundamental analysis. All the data is as at 10 Feb 2016.
We’ve added a column showing upside from current market price to the 52 week high. How you look at it depends on your view on the overall market. If you believe we are now in a bear market, ignore it. But if you believe we are just having a correction and the bull market will resume again, some of these stocks that have been battered down without any fundamental reason could scale to new heights in the future
Disclosure: I and/or stakeholders of CityFALCON may have positions in some of the stocks listed below
|Company||Sector||Market cap ($bn)||Net Debt ($bn)||Enterprise Value ($bn)||CMP ($)||52 week low ($)||52 week high ($)||CMP upside to 52 week high||Read latest news and analysis on the company|
|Tenaris S.A.||Industrial goods||11.1||-1.84||9.26||19.6||18.53||32.77||67.19%||Tenaris S.A.|
|The GAP||Services||8.78||0.71||9.49||23.52||21.57||43.9||86.65%||The Gap|
|Dr. Reddy’s Laboratories||Healthcare||6.98||6.28||13.26||42.26||40.67||68||60.91%||Dr. Reddy’s Laboratories|
|Icahn Enterprises||Industrials||5.61||8.7||14.31||46.98||43.42||101.5||116.05%||Icahn Enterprises|
|Xerox Corporation||Technology||8.69||6||14.69||8.84||8.48||14.02||58.60%||Xerox Corporation|
|Cheniere Energy||Basic Materials||7.07||11.07||18.14||20.78||20.02||34.55||66.27%||Cheniere Energy|
|Adobe Systems||Technology||37.59||-2.08||35.51||74.99||71.27||96.42||28.58%||Adobe Systems|
|British Petroleum||Basic Materials||84.36||26.56||110.92||28.04||27.56||43.85||56.38%||British Petroleum|
Sources: Finviz, Google Finance
You can track latest news and analysis for all the above mentioned stocks in one watchlist here.
Disclaimer: Please do your own analysis before investing in these stocks. We are just trying to help with some basic analysis.