As an investor, one of the methods that I use to search for investment ideas is stock screening.
One of my personal favourite screens is the 52-week low list. This screen, which is usually performed weekly, will give me a list of companies that are trading at their 12-month low.
Why do I like this screen? As a value investor, I like to search for companies that are trading at good value. The 52 weeks low could be a good place to start, since these companies might have been ignore by the investment community for various reasons. Some deserve to be.
Occasionally, however, the market might have been overly negative. These companies could have good long-term prospects, despite some short-term headwinds. My job, then, is to try to separate the wheat from the chaff.
So what are the companies that have shown up on this week’s list? Here are two of them:
|Company Name||Mkt. Cap. S$ million||Price vs. 52 weeks Low in %||P/BV|
|Fragrance Group Limited (SGX: F31)||1,100||0%||1.06|
|Straits Trading Co Ltd (SGX: S20)||810||7%||0.62|
Fragrance Group Limited is a property developer with presence in Singapore and Australia.
FGL’s development projects comprise mainly residential, commercial, hotel and industrial properties, with over 80 project launches to date.
Its current overseas development properties include a maiden project, namely, Premier Tower, which is a skyscraper mixed-use development in Melbourne, and NV Apartments, freehold apartments in the Central Business District of Perth
The company’s other significant business is property investment. FGL’s current property investment portfolio includes prime commercial properties situated in and near Singapore’s CBD, a unique seafront Food and Beverage outlets, and an industrial building.
Straits Trading Company is an investment company with stakes in real estate, hospitality, resources and investments that span the Asia Pacific region.
It owns an 89.5% stake in Straits Real Estate Pte. Ltd. is a co-investment vehicle that looks for real-estate related investments & opportunities globally. It also owns a 20.1% stake in SGX-listed ARA Asset Management (SGX: D1R) and a 30% interest in Far East Hospitality Holdings Pte. Ltd., which is one of the largest hospitality operators in the Asia Pacific.
Straits Trading also engages in tin mining and smelting through its 54.8% owned subsidiary, Malaysia Smelting Corporation Berhad (KLSE: 5916.KL; KLSE: MSC.KL; SGX: NC9), that is dual listed on Bursa Malaysia and the Singapore Exchange
Though companies trading at 52-week low are a good place to search for investment ideas, the low price itself should not be the sole reason to invest in these companies.
As we all know, there is no guarantee that share prices will not fall further, just because it is trading at a 52 weeks low.
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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.