MENU

3 Blue-Chip Companies Flirting With 52-Week Lows

Walter J. Schloss is an investment manager that Warren Buffett once called a superinvestor. Schloss studied under Benjamin Graham in 1935 and started his own fund in 1955. One of the criteria Schloss looks out for before investing, among others, is whether the price of the company is near the 52-week low.

Let’s take a look at three companies that are part of the Straits Times Index (SGX: ^STI) that are flirting with the 52-week low, as of the close on 4th September 2013. The companies are arranged in the order of proximity to the 52-week low, with the nearest at the top.

Company Price 52-Week Low Date of 52-Week Low Price/52-Week Low Price-to-Earnings Price-to-Book Dividend Yield
Singapore Airlines (SGX: C6L)

$9.44

$9.41

30/8/2013

1.003

29.3

0.84

2.4%

Capitaland (SGX: C31)

$2.97

$2.92

28/8/2013

1.017

13.6

0.81

2.4%

Capitamall Trust (SGX: C38U)

$1.855

$1.815

30/8/2013

1.022

12.0

1.09

5.1%

 

Singapore’s flag carrier, Singapore Airlines, announced last week that it has committed to setting up a term loan facility for Australian airlines Virgin Australia to access funding, which is 19.9% owned by SIA. Air New Zealand and Etihad Airways are also chipping in to the term loan facility, which will amount to A$90m.

Capitaland saw a slip in its second quarter profits in July. However, Capitamall Trust fared better for its quarterly earnings. It posted higher net property income and distributable income on the back of positive rental reversions. Talk of tapering of the monetary stimulus by US Federal Reserve and possible increase in interest rates may also have affected the share performance of both Capitaland and Capitamall Trust.

We at Motley Fool Singapore advocate responsible investing. Just because a company is trading near the 52-week low, does not necessarily make it a buy. There could be many reasons why the share price of a company falls. It could be due to mismanagement of the business causing a decline in actual value, or is it due to poor market conditions, overall industry decline or temporary problems. It is essential to understand why the price has fallen before you decide if a company is worth investing in.

Click here now for your FREE subscription to Take Stock Singapore, The Motley Fool’s free investing newsletter. Written by David Kuo, Take Stock Singapore tells you exactly what’s happening in today’s markets, and shows how you can GROW your wealth in the years ahead.  

Like us on Facebook   to keep up-to-date with our latest news and articles. The Motley Fool’s purpose is to help the world invest, better.

The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.  Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.