Any Value Stocks?

Value Hunter

Hi Guys,

So has anyone got any value investing stocks their keen on at the minute?

Been finding it more and more difficult to find undervalued stocks in this bull market

Feel free to throw out any stocks you reckon are undervalued, and give your thoughts on why if you want

arrowloopboy

Value Hunter wrote: »

Hi Guys,

So has anyone got any value investing stocks their keen on at the minute?

Been finding it more and more difficult to find undervalued stocks in this bull market

Feel free to throw out any stocks you reckon are undervalued, and give your thoughts on why if you want

Much easier in Ben's day:D

Jim2007

Value Hunter wrote: »

Hi Guys,

So has anyone got any value investing stocks their keen on at the minute?

Been finding it more and more difficult to find undervalued stocks in this bull market

Feel free to throw out any stocks you reckon are undervalued, and give your thoughts on why if you want

Why don't you start by sharing your own thoughts???? Or do you expect us to do the work for you???

Sonnenblumen

Jim2007 wrote: »

Why don't you start by sharing your own thoughts???? Or do you expect us to do the work for you???

That's an excellent suggestion. VH as this is your thread, you can start and you can nominate 1-3 companies and we'll respond in kind.

Johnerr

1. Diageo- @ £20 a share you may have missed the boat on this one but I think there is more to come. Hopefully as high as 26, with lows of 18. Marketing along with owning 70% of the market puts them a good place for growth. 1bn investment in Scotland for scotch whiskey and growth of Asian markets.

2. GSK- Been holding these since start of year, last week I bought an extra 800 shares, they have new drugs awaiting approval and seem to be in a good position even though most of their patents are running out. They seem to be focusing a lot of their efforts on new drugs and bringing them to market.They have a lot of debt but I think most companies of this size operate this way. Got them at £15.74. They pay good dividends!

3. Glanbia- I've been watching this share, I think big things are coming for this company, they are expanding there business with large investments, and getting ready for when the milk quota is abolished next year (or is it 2015). Anyway I think these could be a good pick although I haven't researched them enough yet. One to watch.

Charlie

Jim2007

A quick run of the numbers would suggest to me:

Diageo => Relative value 170%, projected value 163%! % debt to equity falling but still 132% last year

GSK => Relative value 166%, projected value 163%! % debt to equity gone from 146% in 2009 to 249% last year

Glanbia => No interest, sorry.

Looks like your idea of value and mine are a bit different...

I have a preference for small middle European banks as it's what I now best. I've just started reviewing the Liechtensteinische Landesbank AG. It normally takes me about two or three months to come up with the valuations.....

AugustusMinimus

Barclays Bank anyone ?

Price to Book Value of only .7 That alone interests me.

Jim2007

AugustusMinimus wrote: »

Barclays Bank anyone ?

Price to Book Value of only .7 That alone interests me.

And the the T1 ratio is??? At this stage anyone buying banks needs to pay close attention their T1 and how easily they will achieve the Basel III required levels.

Just say this comment on bloomberg:

To meet the ratio this year, the bank will have to raise either 7 billion pounds ($11 billion) in equity or cut 240 billion pounds of assets, analysts estimate. The bank was one of only two to miss the regulator’s target in June.

The 0.7 ratio probably reflects the fact that there is not much there for shareholders right now...

AugustusMinimus

What are your own thoughts on what to invest in ?

Johnerr

Jim2007 wrote: »

A quick run of the numbers would suggest to me:

Diageo => Relative value 170%, projected value 163%! % debt to equity falling but still 132% last year

GSK => Relative value 166%, projected value 163%! % debt to equity gone from 146% in 2009 to 249% last year

Glanbia => No interest, sorry.

Looks like your idea of value and mine are a bit different...

I have a preference for small middle European banks as it's what I now best. I've just started reviewing the Liechtensteinische Landesbank AG. It normally takes me about two or three months to come up with the valuations.....

Diageo have served me well over the years, got in at £8.50, ill be holding this stock long term 10+ years. I am still investing in diageo at a preferential rate and I believe this stock has more to give.

As for GSK, I originally got in @ 14.92 around march and I've been watching this stock since. I sold some other stock recently and put my gains into GSK as the stock I sold was very volatile. GSK appear to be a solid company and pay a good DIV so I felt it was a good choice at this time.

As for Glanbia, I dont know much about the company but I do know there shaping up for something big, so i'll be watching & researching this stock.

Question: why do you prefer small middle European banks, what type of risks are involved with this banks/investments? if you don't mind me asking.

I see you are in Switzerland, it is my understanding that most Swiss people invest the pensions in banks which are seen as a safe investment, is this true?

Charlie.

Jim2007

Johnerr wrote: »

Question: why do you prefer small middle European banks, what type of risks are involved with this banks/investments? if you don't mind me asking.

Because it is what I know, I've spent 30 years doing it and it works very well for me. Such banks tend to have a very simple business model:

- Basic banking services
- Private banking
- Asset management

Asset management usually delivers the major part of the income and that is a fairly safe way to generate income.

Johnerr wrote: »

I see you are in Switzerland, it is my understanding that most Swiss people invest the pensions in banks which are seen as a safe investment, is this true?

No it is not true, not even close. Swiss pension funds are highly regulated when it comes to asset allocation and instrument selection. So they all hold a low risk diversified portfolio and in addition, fund managers are only allowed draw down fees after the fund delivers a guaranteed minimum return and in years where this is not achieved fund managers are required to kick in the difference!

Furthermore, gains from investing are tax free for all residents

steel_balls

bmw has a PE of only ten times earnings

as does ford , ford especially has beaten estimates every quarter for nearly two years at this stage , I see another 20% upside and it hasn't gone anywhere in months , its due to breakout IMO

steel_balls

Johnerr wrote: »

1. Diageo- @ £20 a share you may have missed the boat on this one but I think there is more to come. Hopefully as high as 26, with lows of 18. Marketing along with owning 70% of the market puts them a good place for growth. 1bn investment in Scotland for scotch whiskey and growth of Asian markets.

2. GSK- Been holding these since start of year, last week I bought an extra 800 shares, they have new drugs awaiting approval and seem to be in a good position even though most of their patents are running out. They seem to be focusing a lot of their efforts on new drugs and bringing them to market.They have a lot of debt but I think most companies of this size operate this way. Got them at £15.74. They pay good dividends!

3. Glanbia- I've been watching this share, I think big things are coming for this company, they are expanding there business with large investments, and getting ready for when the milk quota is abolished next year (or is it 2015). Anyway I think these could be a good pick although I haven't researched them enough yet. One to watch.

Charlie

glanbia may indeed go higher but you could hardly call a stock with a present PE of more than 20 a value stock , the thing is up around 150% in the past eighteen months

Value Hunter

Sonnenblumen wrote: »

That's an excellent suggestion. VH as this is your thread, you can start and you can nominate 1-3 companies and we'll respond in kind.

Volkswagen (VOW)

CF Industries (CF)

Next one I'm considering is IBM due to their huge share buyback which they plan to use to increase EPS to $20 per share, currently at $14.44. I plan to buy on the recent weakness.


Expect huge gains in VOW and CF over the next 5 years, CF up between 10% -15% since my thread on it in May.

http://www.boards.ie/vbulletin/showthread.php?p=84665439

Dividends also been increased by 150% since then (which I predicted in the thread)

Ford is a good company but better value can be had in that industry. I originally got Ford at $10.40 sold at roughly $13.50 after a few months, just felt there was better out there. Volkswagen trade with a P/E of 4.5! (Was 3.5 when I first got them!!)


Keep the ideas flowing!

AugustusMinimus

There any reasons for VW to have such a low P/E ratio ?

fire_lighter

Value Hunter wrote: »

Volkswagen (VOW)

CF Industries (CF)

Next one I'm considering is IBM due to their huge share buyback which they plan to use to increase EPS to $20 per share, currently at $14.44. I plan to buy on the recent weakness.


Expect huge gains in VOW and CF over the next 5 years, CF up between 10% -15% since my thread on it in May.

http://www.boards.ie/vbulletin/showthread.php?p=84665439

Dividends also been increased by 150% since then (which I predicted in the thread)

Ford is a good company but better value can be had in that industry. I originally got Ford at $10.40 sold at roughly $13.50 after a few months, just felt there was better out there. Volkswagen trade with a P/E of 4.5! (Was 3.5 when I first got them!!)


Keep the ideas flowing!

so you bailed before the bulk of gain in ford were realised , im holding for until it gets near $30 which I think will happen within three years , the 2.5% dividend only sweetens the deal

fire_lighter

AugustusMinimus wrote: »

There any reasons for VW to have such a low P/E ratio ?

autos are cylicals , most cyclical stocks have low PE,s , well the well established ones like CAT etc , tesla is a cyclical but a new kid on the block , PE is something like 100

Value Hunter

fire_lighter wrote: »

so you bailed before the bulk of gain in ford were realised , im holding for until it gets near $30 which I think will happen within three years , the 2.5% dividend only sweetens the deal

More like I took a 30% - 35% profit after 3 months :pac:

Hardly a bad ROI

Volkswagen are a better investment vs Ford. Hence why I sold Ford

Cyclical wouldn't justify such a low P/E. Ford is trading at 12 times earnings which is fair and is in the exact same industry. My guess is VOW is just out of favour at the minute due to Europe's economy. The companies figures speak for themselves though

'Value should scream at you' - Ben Graham

Sonnenblumen

RSA Insurance (RSA.L) - P/E 13. SP £1.26, Yield 4.89%
Sainsbury(SBRY.L) - P/E 12, SP £3.97, Yield 4.22%
BP(BP.L) - P/E 5, SP £ 4.51, Yield 5.07%
IFG (IFG.I) - P/E 6.55, SP € 1.4, Yield 3.48%

Pending List

Glanbia
Fyffes
GlaxoSmithKline
British American Tobacco

gordongekko

Love the way most posters around here end up banned shortly after telling us we are all doomed

Value Hunter

gordongekko wrote: »

Love the way most posters around here end up banned shortly after telling us we are all doomed

Before they re reg and try again :pac:

You have any stocks tucked away on your list Gekko? Bluestars on the comeback trail I hear

Value Hunter

Sonnenblumen wrote: »

RSA Insurance (RSA.L) - P/E 13. SP £1.26, Yield 4.89%
Sainsbury(SBRY.L) - P/E 12, SP £3.97, Yield 4.22%
BP(BP.L) - P/E 5, SP £ 4.51, Yield 5.07%
IFG (IFG.I) - P/E 6.55, SP € 1.4, Yield 3.48%

Pending List

Glanbia
Fyffes
GlaxoSmithKline
British American Tobacco

Whats the story with BP now? I stopped following it over a year ago. Had a quick look on yahoo finance and its saying P/E ratio of 328. Did they recently pay off their fine from the oil spill, and its taken out their EPS?

jank

Have been keeping a little eye on BRAC, VOW and VOD.
Almost jumped into KO a few times but just can't do it at the present price even though its a great company.
Looking for exposure to euro/UK based shares, I find it hard to get info on them.
How about GE. Was looking at them when they were in the 20's. Now in the mid 35's. Auto stocks would not be really classified and value 'buy and hold' stocks though. They are cyclical but it appears now is a good time to get in there.

The big concern for me though especially for US stocks is the tapering of QE which is coming.

ToxicPaddy

gordongekko wrote: »

Love the way most posters around here end up banned shortly after telling us we are all doomed

MOD NOTE:

Just to clear this up before any rumours start.

This user was banned by a mod in another forum on a completely unrelated matter. The reason for the banning was for offensive comments made and ignoring a mods instruction.

This has absolutely nothing to do with any posts that this user made in the Investments and Markets forum

mickman

jank wrote: »

The big concern for me though especially for US stocks is the tapering of QE which is coming.

lots of things are coming . If you believe in a business then buy it , if you are basing decisions on tapering then wont do well

Sonnenblumen

A quick question, I'm looking at a few UK shares, which are going ex-Divi 6th Nov+ and hoping to catch any divi payouts.

How soon after confirming trade is new shareholder's name recorded on share register?

Thargor

I tipped Trinity Biotech back in March and they're up 40% or so since then, easily my best performer coming up on 80% now, got a good year ahead to look forward to aswell, new products coming onstream and excellent finances and they're expanding everywhere. With the dividend Im nearly tempted to go all in and forget about it for a couple of years tbh, Id say I was buying on the dips but it never seems to dip anymore, green every day.

simongurnick

You would need to buy the shares the day before the ex date.
Although, the dividend you will receive will by offset by the reduction in the stock's price when it goes ex.

Value Hunter

Thargor wrote: »

I tipped Trinity Biotech back in March and they're up 40% or so since then, easily my best performer coming up on 80% now, got a good year ahead to look forward to aswell, new products coming onstream and excellent finances and they're expanding everywhere. With the dividend Im nearly tempted to go all in and forget about it for a couple of years tbh, Id say I was buying on the dips but it never seems to dip anymore, green every day.

Very nice return, is it mostly small caps you invest in?

Thargor

Yeah nearly all small caps, thinking of going to cash for a while though, just dont have a good feeling about the way things are headed, just my amateur opinion though no research to back it up, if interest rates werent so bad Id probably be finished with shares for a while or if there was a bit of certainty in the property market Id have bought an investment property by now but I feel there might be bad times coming there aswell.

Sonnenblumen

ToxicPaddy wrote: »

MOD NOTE:

Just to clear this up before any rumours start.

This user was banned by a mod in another forum on a completely unrelated matter. The reason for the banning was for offensive comments made and ignoring a mods instruction.

This has absolutely nothing to do with any posts that this user made in the Investments and Markets forum

OK the poster was found guilty of a punishable offence in another jurisdiction, but I fail to see the relevance of an unsolicited notice? Is this additional punishment?

ToxicPaddy

Sonnenblumen wrote: »

OK the poster was found guilty of a punishable offence in another jurisdiction, but I fail to see the relevance of an unsolicited notice? Is this additional punishment?

It was in response by another poster on this thread who claimed albeit in a light hearted manner that anyone who posts negatively gets banned.

I was simply knocking any rumours on the head before they started. We wouldn't want anyone getting the wrong impression now would we??

Cute Hoor

Value Hunter wrote: »

Volkswagen (VOW)

Expect huge gains in VOW over the next 5 years

Not a bad start, up nearly 5% this morning.

Not sure if Ferrovial represents good value, but it's SP has nearly doubled in the last 18 months and pays a very good dividend, they have just declared a 40 cent interim dividend to be paid in early December (probably factored into the SP yesterday).

Value Hunter

BP got a nice bump during the week, along with a improved dividend

http://uk.reuters.com/article/2013/10/29/uk-bp-results-idUKBRE99S08W20131029

Volkswagen also had a nice bump, as another poster pointed out. Got around to having another look at why their P/E is so low as well, turns out there was a large bonus in profits last year relating to their takeover of Porsche which I assume is lowering the P/E. With this discounted they will still be trading at 7 times earnings vs 4.5 as reported now. Still excellent value as far as I'm concerned.

Anymore stocks people are keen on?

Value Hunter

Thargor wrote: »

Yeah nearly all small caps, thinking of going to cash for a while though, just dont have a good feeling about the way things are headed, just my amateur opinion though no research to back it up, if interest rates werent so bad Id probably be finished with shares for a while or if there was a bit of certainty in the property market Id have bought an investment property by now but I feel there might be bad times coming there aswell.

Yeah its a tough time for investing, so much uncertainty ahead.

Any other small caps you had earmarked, for curiosities sake? I've enjoy valuing small caps, nothing better than spotting an obscure bargain no one else has considered

draiochtanois

This post has been deleted.

Value Hunter

draiochtanois wrote: »

This post has been deleted.

Reasons why?

draiochtanois

This post has been deleted.

Sonnenblumen

On board with BP and IFG. The latter is probably more a steady eddie stock but a tight well managed co. Pays a good divi which is a bonus. BP I reckon has plenty of upside and a good divi.

love_struck

Value Hunter wrote: »

BP got a nice bump during the week, along with a improved dividend

http://uk.reuters.com/article/2013/10/29/uk-bp-results-idUKBRE99S08W20131029

Volkswagen also had a nice bump, as another poster pointed out. Got around to having another look at why their P/E is so low as well, turns out there was a large bonus in profits last year relating to their takeover of Porsche which I assume is lowering the P/E. With this discounted they will still be trading at 7 times earnings vs 4.5 as reported now. Still excellent value as far as I'm concerned.

Anymore stocks people are keen on?

id be more bullish on bmw than vw , the rich are doing great worldwide as is self evident from equity market returns this past few years , bmw has a PE which is no higher than VW

Value Hunter

love_struck wrote: »

id be more bullish on bmw than vw , the rich are doing great worldwide as is self evident from equity market returns this past few years , bmw has a PE which is no higher than VW

VW own Porsche and Audi, so they're covered on that side of the market.

There is also quite a difference in P/E ratios. BMW is still a very good investment though

betonit

any views on Kerry. I keep thinking i missed the boat in this one as a long term investment. Can it the stock price grow much further

wenxue

CCIH，you will get double back，a few friend working in this company,they told me

Value Hunter

betonit wrote: »

any views on Kerry. I keep thinking i missed the boat in this one as a long term investment. Can it the stock price grow much further

No views from me, I may give them a look over. A quick glance on yahoo finance shows a P/E ratio of 30 which seems over cooked. I've no background to the fundamentals though so I can't call it just yet

Value Hunter

wenxue wrote: »

CCIH，you will get double back，a few friend working in this company,they told me

Small cap internet provider in china. Exceptional potential, coupled with exceptional risk. Any more details you can provide?

Sonnenblumen

DCC makes for very interesting reading. £10billion T/O, and cash rich, strong management team. Must take another look.

The co has attracted a lot of interest since moving to LSE.

rock_dinasaur

betonit wrote: »

any views on Kerry. I keep thinking i missed the boat in this one as a long term investment. Can it the stock price grow much further

long term most certainly but it currently has a PE of over 25 which is high

dairy sector in Ireland is set for very significant growth from april 2015 as milk quotas are removed

both Kerry and glanbia also have very profitable high margin product enterprises overseas

gordongekko

It depends on how you define value. Is it something you hope will go up in 12 months or something you will lock away for 10 years.

The 1 year shares are harder to find and a bit riskier the 10 year shares may see a fall short term but still provide long term growth.

draiochtanois

This post has been deleted.

Value Hunter

Ryanair down 11.5% this morning on a profit warning.

Buying opportunity? Or the continuation of their recent heavy declines?

wenxue

dont have any more information,only know this company is No1 CDN service in China,about 57 per market share,this year profit can improve,Q3 Earnings Release at 18 Nov,only information I know,but cant confirm it