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?