Here Are 3 Stocks Trading Near 52-Week Lows

Some of the greatest investors around – John Neff and Walter Schloss are good examples – source their investing ideas from lists of stocks that have fallen hard. That’s because they believe some beaten-down stocks will be bargains in relation to their actual economic worth.

Nearly once every week, I run a screen to look for companies with stock prices that are near 52-week lows.

There are many companies that pop up on my screen each time I run them. This week, let’s look at three companies I’ve chosen at random from a list of those that appeared. They are Vicom Limited (SGX: V01), Low Keng Huat Singapore Ltd (SGX: F1E), and Tianjin Zhongxin Pharmaceutical Group Corporation Ltd (SGX: T14).

Source: S&P Global Market Intelligence

Of the three companies mentioned, two are Singapore-based – the odd one out is TianJin Zhongxin, which is based in China.

Vicom is a company that provides services that most drivers in Singapore would likely have come across – itis a leading provider of technical testing and inspection services for vehicles here. The company also provides technical testing and inspection services for a wide range of industries such as electronics, biotechnology, marine and offshore, oil and petrochemical, and more.

It happens to be majority-owned by, Comfortdelgro Corporation Ltd (SGX: C52), one of the world’s largest land transport companies

In Vicom’s latest quarterly earnings, it reported declines in both revenue and net profit. The two numbers fell by 6.9% and 12.6%, respectively. VIcom also commented that demand for its services will “continue to be impacted” and “is not expected to improve.” These may have contributed to Vicom’s shares falling to near a 52-week low.

The next company on the list is Low Keng Huat, which has three core businesses: construction and civil engineering, property development, and property investment.

2015 was not a good year for the company as it saw its revenue and profit decline by 93% and 65%, respectively. The first six months of 2016 was a mixed bag. While Low Keng Huat’s revenue fell by 48%, its bottom-line managed to jump by 292% to S$46.4 million largely due to the sale of Duxton Hotel Saigon in May this year.

The company mentioned in its earnings release that government measures “continue to slow down the already sluggish property market.” In any case, volatility in the results of construction and property development companies is not unusual.

Tianjin Zhongxin is the last company here. It is mainly engaged in the development, manufacture, and distribution of pharmaceutical products. The company’s products include Chinese patent medicines, western medicines, Chinese medicinal materials, pharmaceutical raw materials and preparations, biological medicines, dietary supplements and other products.

Tianjin Zhongxin’s results in the first-half of 2016 have been somewhat flat. While revenue dipped by 3% to RMB 3.25 billion, profit managed to inch up by 3% to RMB 250 million.

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 Vicom, Low Keng Huat, and Tianjin Zhongxin 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.