Although the market has since rebounded slightly after the oil price fear a few weeks ago, there are still many companies trading near their 52-week low prices.
Here are 3 recent ones.
Bumpy Flight Plan
SIA Engineering Company Limited (SGX: S59) is an aircraft maintenance, repair and overhaul company in the region. The company is considered a listed subsidiary of Singapore Airlines Limited (SGX: C6L). After many years of consistent growth from 2009 to 2013, the company saw a slight drop in profit from FY2013 to FY2014. Sadly, the drop does not seem to be rebounding anytime soon. The company is heading for a second year of decline profit in FY2015 as well. Unless the company has a plan to turn its profit decline soon, the company’s share price might break 52-week low yet again in the near future. The company is still trading at a price to earnings ratio of 20.1 times but has a dividend yield of 5.1%. Read about the company’s latest earnings here, and analyses of the company here and here.
The Other Oil Producer
Being a commodity producer is tough, you have no control over your product pricing. All you can do is produce as much as you can and hope for the best. First Resources Limited (SGX: EB5) is one such company. Faced with slumping global demand for palm oil. The company has been expanding fast in the past few years, but it seems the expansion is not enough to offset the low palm oil price. The company is currently trading at 10.7 times price to earnings ratio and has a dividend yield of 2.6%. Read about the company’s latest earnings here, and analyses of the company here and here.
Not So Fragrant After All
With its distribution of all outstanding Global Premium Hotels (SGX: P9J) shares to the shareholders, Fragrance Group Limited (SGX: F31) is left with only its property development and property investment businesses. Losing its crown-jewel could not have come at a worst possible time, with property sector slowing down significantly and still no sign of regaining its growth, the share price of this company might be staying low for longer than its shareholders would like. Read more about the company here and here.
So are these companies’ low prices signs of opportunities for investors or omens of more trouble ahead. There is no sure way of knowing. The best we, as retail investors, can do is to perform our due diligence and see if their underlying business fundamentals are still intact and if their valuation makes sense at current prices.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Stanley Lim owns shares in First Resources