These 3 Stocks Are Trading Near Their 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. Market participants can at times react too negatively to certain companies that have sound long-term prospects but have experienced some short-term stumbles.

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 two companies I’ve chosen at random from a list of those that appeared. They are StarHub Ltd (SGX: CC3), Hotel Properties Limited (SGX: H15), and Frasers Centrepoint Ltd (SGX: TQ5).

Source: SGX Stock Facts

StarHub is a company that should be familiar to many in Singapore since the company is one of the only three that are providing telecommunications services here.

The company has been facing challenges in its business lately. For instance, over the past year, StarHub’s Pay TV business had lost 35,000 subscribers. In the third-quarter of 2016, the company’s revenue had fallen by 3% year-on-year while its profit had dropped by a steeper 28%.

In the second-quarter of 2016, StarHub also reduced its outlook for revenue growth; the company had initially expected to grow its revenue at the low single-digit percentage level in 2016, but ended up calling for its 2016 revenue to be around the same level as 2015’s.

The next company on the list is Hotel Properties. As its name suggests, Hotel Properties owns, operates, and manages hotels in addition to developing and investing in properties.

Hotel Properties’ hotel-related business has interests in 13 countries including the Maldives, Singapore and Bhutan. Some of the hotels and resorts in the company’s portfolio include the Four Seasons Hotel in Singapore, the Hard Rock Hotel in Indonesia, and the Four Seasons Resort in Maldives.

The other aspect of Hotel Properties’ business relates to the rental and sale of residential and commercial properties in Singapore, Thailand, and the United Kingdom. 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.

In the third-quarter of 2016, Hotel Properties saw its book value per share grow by 2.8% from S$3.25 to S$3.34.

Last on the list is Frasers Centrepoint, a company with wide interests within the real estate space. It develops and invests in properties, and also manages various real estate investment trusts that have an individual focus on property sectors such as retail, commercial, and hospitality.

The company saw both its revenue and profit grow in the third-quarter of 2016 (the former by 3.4% and the latter by 22.6%). Frasers Centrepoint also managed to grow its book value per share by 2.2% from a year ago to S$2.30.

In the earnings release, the company also commented that most of its markets are showing signs of weakeness.

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 StarHub, Hotel Properties, and Frasers Centrepoint 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.