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. This time around, there were many companies that popped up on my screen ?…
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. This time around, there were many companies that popped up on my screen – as usual. Here are three companies I picked at random from the list: Singapore Press Holdings Limited (SGX: T39), CapitaLand Limited (SGX: C31), and StarHub Ltd (SGX: CC3).
The trio also happen to be blue chip stocks given their status as constituents of Singapore’s stock market benchmark, the Straits Times Index (SGX: ^STI).
Source: S&P Global Market Intelligence
Singapore Press Holdings, as many may know, is the publisher of major newspapers in Singapore such as The Straits Times, The Business Times, Lianhe Zaobao and more.
But that’s not all. The company is also in the real estate business and has interests in other areas such as events management and online advertising portals. As part of the company’s real estate business, Singapore Press Holdings is the majority owner and manager of SPH REIT (SGX: SK6U), a real estate investment trust that owns retail malls in Singapore.
The company’s legacy newspaper business has experienced a multi-year decline in advertising revenues. But is the company completely doomed? My colleague Stanley Lim has explored this question recently. Check out his thoughts here.
The next company on the list is CapitaLand, one of the largest real estate companies in Singapore’s stock market. It is a real estate developer and investor. Its portfolio around the world includes integrated developments, shopping malls, serviced residences, offices and homes.
There are a number of Singapore-listed real estate investment trusts that are linked to CapitaLand. These REITs include Capitaland Mall Trust (SGX: C38U), CapitaLand Commercial Trust (SGX: C61U), CapitaLand Retail China Trust (SGX: AU8U), and Ascott Residence Trust (SGX: A68U).
Last but not least, there is StarHub. The company is one of the three operational telcos here. It has five business segments, namely, Mobile, Pay TV, Broadband, Enterprise Fixed, and Sale of equipment (i.e. the sale of mobile phones).
One of the biggest stories in Singapore’s telco space right now is the impending entry of the Australia-based TPG Telecom. Earlier this month, TPG Telecom became Singapore’s fourth telco when it won the New Entrant Spectrum Auction organised by the Infocomm Development Authority (IDA).
My colleague Chin Hui Leong had recently written an article that will help investors better understand the Australian telco. Find out more here.
A Foolish conclusion
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.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended units of CapitaLand Mall Trust. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.