Regular readers will be familiar that one of my favourite ways to search for stocks is to use the 52 weeks low list.
Why do I like this screen?
Because as a value investor, I like to search for companies that are possibly trading at good value. The 52-weeks low is a good place to start, since these companies are usually hated or neglected by the investment community for various reasons, and many might deserve to be.
Occasionally, however, market participants may have overreacted to companies that 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 which are the companies on this week’s list? Let’s look at three of them:
Source: Author’s Calculation
Of the three companies above, investors may be familiar with ComfortDelGro Corporation Limited (SGX: C52), which is the main taxi operator in Singapore. It operates Comfort and CityCab.
The company is also present in markets outside of Singapore, such as Australia, the United Kingdom, and China. The company has a total fleet size of over 46,500 buses, taxis and rental vehicles.
The company recently reported slightly lower revenues, driven mainly by weaker pound as a result of Brexit. But ComfortDelGro still managed to grow its net profit. Please see here for more information.
Raffles Education Corporation Limited (SGX: NR7) is involved in education.
Since establishing its first college in Singapore in 1990, the Group has grown to operate 30 colleges in 28 cities across 14 countries in Asia-Pacific, Europe and the US: Australia, Cambodia, China, India, Indonesia, Italy, Malaysia, Mongolia, Saudi Arabia, Singapore, Sri Lanka, Switzerland and Thailand.
Presently, the company has 20,000 students enrolled in its tertiary education, of which 19,000 are in China.
Frasers Centrepoint Limited (SGX: TQ5), a real estate company with a presence in Singapore, Australia, China, South-East Asia and UK.
The company is a sponsor of four trusts, namely, Frasers Centrepoint Trust (SGX: J69U), Frasers Hospitality Trust (SGX: ACV), Frasers Commercial Trust (SGX: ND8U) and Frasers Logistics and Industrial Trust (SGX: BUOU).
To put it simply, Frasers Centrepoint is one of the largest property names in Singapore.
Though companies trading at 52 weeks low is a good place to look for investment ideas, the low price itself should not be the sole reason to invest in such companies.
As we all know, there is no guarantee that share price 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.