Regular readers will be familiar with that one of my favourite ways to look for stocks is to use the 52 weeks low list.
This screen, which is usually done on a weekly basis, will give me a list of companies that are trading at 12 months low.
As a value investor, I like to look for companies that are trading at good value. The 52-week low can be a good place to start, since these companies are either disliked or have been neglected by the market.
Occasionally the market can reacted overly negatively to certain companies that could have good long-term prospects, despite some short-term headwinds.
here are three companies that have appeared on this week’s list.
|Company Name||Mkt. Cap.in||Price vs. 52||Price to book|
|S$ million||weeks low (%)||ratio|
|Singapore Airlines Limited (SGX: C6L)||11,437||0.8%||0.86|
|Perennial Real Estate Holdings Limited (SGX: 40S)||1,390||1.2%||0.49|
|United Industrial Corporation Limited (SGX: U06)||3,903||2.0%||0.63|
Singapore Airlines is a company that needs little introduction. Other than its full-service business, Singapore Airlines also owns Silkair, Scoot and Tigerair.
SIA also owns SIA Engineering Company Ltd (SGX: S59), which specialises in providing aircraft maintenance, repair, and overhaul (MRO) services to major airlines around the world
In its latest quarterly results, which can be found here, the company reported weaker results, with revenue, net profit and EPS all down year-on-year.
The company also expects challenging conditions. In the management’s own words:
“The passenger airline business continues to be impacted by geopolitical uncertainty and weak global economic conditions. The outlook in most major economies remains tepid. Furthermore, excess capacity and aggressive pricing continue to persist in the market, exerting pressure on loads and yields.”
Perennial Real Estate Holding, an integrated real estate and healthcare company. It focuses on large-scale mixed-use developments. It has a presence in China, Singapore, Malaysia and Ghana, with a combined portfolio of over 45 million square feet in gross floor area.
Perennial is also a healthcare services owner and operator focused predominantly on China. Its healthcare business services include medical, hospital, eldercare and senior housing, and maternal and child health management.
For more information about Parennial, please click here.
United Industrial Corporation’s main business consists of developing properties for investment and trading, investment holding, property management, investment in hotel and retail centers, trading in computers and related products, and providing information technology services.
UIC is an owner of hotels and investment properties. Some examples include Singapore Land Tower, Clifford Centre, SGX Centre, The Gateway and others. UIC also has a “smaller” IT related business that provides services under its subsidiary UIC Technologies Pte Ltd.
The company’s significant shareholder is Dr Wee Cho Yaw. he owns 49.32% through direct and indirect shareholdings. Dr Wee is also the chairman of United Overseas Bank Ltd (SGX: U11).
Although companies trading at 52 weeks low can be a good place to look for investment ideas, a low price should not be the sole reason to invest in these companies.
There are no guarantees that the share price might not fall further, just because it is at a 52-week 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.