Here Are 3 Companies With Stock Prices Near 52-Week Lows

Some of the greatest investors around – such as John Neff and Walter Schloss – source their investing ideas from lists of stocks that have fallen hard. They believe that some beaten-down stocks may be a bargain in relation to their actual economic worth.

Nearly once every week, I run a filter to look 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 investigating the 700-plus listed companies in Singapore one at a time.)

For this week’s exercise, Asian Pay Television Trust (SGX: S7OU), Straco Corporation Ltd (SGX: S85), and United Overseas Insurance Limited (SGX: U13) are three companies that emerged from my filter. There were many others and I had picked the trio at random.

APTT, STraco, and UOI share price table
Source: S&P Global Market Intelligence

The three companies are all in vastly different types of business.

Asian Pay Television Trust, known as APTT for short, is a business trust that currently counts the aptly-named and Taiwan-based Taiwan Broadband Communications Group as its main asset. Taiwan Broadband Communications provides cable television, digital television, and broadband services.

In its latest earnings (for the second-quarter of 2016), APTT saw increases in the number of subscribers for its Basic Cable TV, Premium Digital Cable TV, and Broadband services when compared to a year ago. But, the average revenue per user for all three services were down. You can see these in the table below:

APTT subscriber and ARPU table - Lawrence
Source: APTT’s earnings presentations

Next, we have Straco, a tourism asset owner with operations in China and Singapore. In China, the company has the Shanghai Ocean Aquarium and Underwater World Xiamen as its main attractions. As for Singapore, Straco had bought a majority stake in the iconic Singapore Flyer – one of the largest observation wheels in the world – in late 2014.

Straco has seen high growth in its business over the years. From 2006 to 2015, its revenue has soared from S$18.5 million to S$127.7 million (a 23.9% compound annual growth rate) while its net profit has spiked from S$3.38 million to S$49 million (a 34.6% compound annual growth rate).

Lastly, there is United Overseas Insurance, an insurance company that focuses on general insurance and reinsurance products. General insurance covers a broad spectrum, such as fire, marine, motor, engineering, general accident, and liability insurance.

The company has consistently achieved positive insurance underwriting profit in its last five fiscal years from 2011 to 2015. In fact, United Overseas Insurance’s insurance underwriting profit has also been rather steady, dipping from S$18.6 million in 2011 to S$14.6 million in 2013, before rebounding to S$20.1 million in 2015.

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 APTT, Straco, and United Overseas Insurance 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.