Some great investors ? such as John Neff and Walter Schloss ? like to buy stocks with beaten-down prices. That?s because they believe that some stocks that have fallen hard may be a bargain relative to their actual economic worth.
I periodically run a filter to sieve for companies with stock prices that are near 52-week lows. On a related side note, the use of stock filters can help investors narrow the playing field instead of going through the list of over 700 companies in Singapore?s stock market one by one.
So, what does my 52-week low filter show this week?…
Some great investors – such as John Neff and Walter Schloss – like to buy stocks with beaten-down prices. That’s because they believe that some stocks that have fallen hard may be a bargain relative to their actual economic worth.
I periodically run a filter to sieve for companies with stock prices that are near 52-week lows. On a related side note, the use of stock filters can help investors narrow the playing field instead of going through the list of over 700 companies in Singapore’s stock market one by one.
So, what does my 52-week low filter show this week? Here are a few companies chosen at random from the list: United Overseas Bank Ltd (SGX: U11), Yeo Hiap Seng Ltd (SGX: Y03), and Hotel Properties Limited (SGX: H15).
Source: S&P Global Market Intelligence
Some investors may find UOB and Yeo Hiap Seng familiar since both offer products and services that are close to consumers.
UOB is one of the three major banks based in Singapore. It currently has a network of over 500 offices in 19 countries and territories in Asia Pacific, Western Europe, and North America. The bank also has an insurance subsidiary in United Overseas Insurance Limited (SGX: U13).
Meanwhile, Yeo Hiap Seng is a food & beverage manufacturer. Some of its branded consumer beverage products include YEO’s Chrysanthemum Tea and the isotonic sports drink H-TWO-O. On the food side of things, Yeo Hiap Seng’s product portfolio includes sauces, condiments, instant noodles and more. Most of the products come under the YEO’s brand.
The third company in our list is Hotel Properties, which is less consumer-oriented. The company, as its name suggests, owns, operates, and manages hotels. It also engages in property development and investments.
In the hotel business, Hotel Properties manages hotels, resorts, and shopping galleries in 13 countries including Indonesia, Malaysia, Maldives, Singapore, Thailand, Bhutan, and the Czech Republic. Some of the hospitality brands that the company deals with are Four Seasons, Concorde Hotels & Resorts, and Hard Rock Hotels.
As for the property division, Hotel Properties develops and sells residential properties in Singapore, Thailand and London. Examples of the company’s projects in Singapore are Tomlinson Heights and d’Leedon condominiums, both of which are near the Orchard Road shopping belt. Hotel Properties’ portfolio of investments include Concorde Hotel & Shopping Mall and Forum the Shopping Mall.
The table below show how the trio’s earnings have changed over the last 12 months:
Source: S&P Global Market Intelligence
It’s worth noting that not every company with a stock price near a 52-week low is a legitimate bargain. A declining stock price can decline yet further if the underlying business performance continues to weaken.
Nothing we’ve seen here about UOB, Yeo Hiap Seng, and Hotel Properties should be taken as the final word on their investing merits. The information presented in this piece should be viewed only as a useful starting point for further research.
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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 Lawrence Nga doesn’t own shares in any companies mentioned.