10 Singapore Blue-Chip Stocks Trading Near Their 52-Week Low Share Prices
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10 Singapore Blue-Chip Stocks Trading Near Their 52-Week Low Share Prices

Sudhan P
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If you belong to the value investing camp, one way to search for investment ideas is to look at stocks trading near their 52-week lows.

Stocks under this category are usually beaten down because of their poor long-term business fundamentals.

However, some of them could be trading at their 52-week lows due to weak short-term market sentiments.

If investors can pick out those temporarily unloved gems, they could turn out to be profitable investments over the long run.

Screening for 52-Week Low Stocks

I ventured on my journey to find stocks that are beaten down among the Straits Times Index (STI) components.

I picked the Singapore benchmark instead of the whole stock market to narrow down the universe of stocks from more than 700 to just 30.

With the help of the stock screener available at StocksCafe, I screened for blue-chips that are trading very close to their 52-week low share prices.

Here are the top 10 STI stocks whose share prices are languishing near their 52-week lows (data as of 26 August 2020).

NameTickerLast Close52-Week Intraday LowChange from 52-Week Intraday Low (%)Price-to-Earnings RatioPrice-to-Book RatioDividend Yield (%)
Keppel CorpSGX:BN4 S$4.61S$4.590.44-0.813.25
SingtelSGX:Z74S$2.31S$2.195.4835.11.405.30
Singapore ExchangeSGX:S68S$8.64S$7.968.5419.67.423.53
CapitaLandSGX:C31S$2.79S$2.568.9810.60.584.30
UOLSGX:U14S$6.59S$6.019.6543.10.552.66
ComfortDelGroSGX:C52S$1.46S$1.3210.6128.11.286.71
OCBCSGX:O39S$8.67S$7.8011.1510.00.825.06
Jardine Matheson HoldingsSGX:J36US$42.3US$37.3713.19-0.454.07
UOBSGX:U11S$19.56S$17.2813.199.10.825.83
Hongkong Land SGX:H78US$3.93US$3.4613.58-0.265.60

Source: StocksCafe and SGX 

Separating the Wheat From the Chaff

As you can see from the list above, companies such as Keppel Corporation (SGX: BN4) and Singapore Telecommunications Limited (Singtel) (SGX: Z74) are selling at rock-bottom prices for a reason.

Over the past couple of years, both companies have been struggling to grow their businesses as their net profits have been falling.

More recently, Keppel Corp made news when Temasek dropped its bid for the conglomerate after the former posted poor results.

Meanwhile, earlier last week, Singtel gave a business update for its first quarter ended 30 June.

The telco’s operating revenue tumbled 13.9% year-on-year to S$3.54 billion while its earnings before interest, tax, depreciation and amortisation (EBITDA) fell 24.2% year-on-year to S$897 million.

Therefore, just because a company is trading near its 52-week low price doesn’t make it an automatic buy.

It is important to understand why the price has fallen.

Is it due to mismanagement of the business, causing a permanent decline in value?

Or is it due to temporary poor market conditions that will be resolved?

If it’s the former, the price decline might be warranted.

But if it’s the latter, there could be some mispriced opportunities to take advantage of.

The list given above is certainly not a recommendation to buy or sell any of the companies mentioned.

What investors can do with the list is to dig deeper into the stocks, and determine which are worth investing in for the long-term.

Have Burning Questions Surrounding The Stock Market?

Why not check out the SeedlyCommunity and participate in the lively discussion regarding stocks!

Disclaimer: The information provided by Seedly serves as an educational piece and is not intended to be personalised investment advice. ​Readers should always do their own due diligence and consider their financial goals before investing in any stock. The writer may have a vested interest in some of the companies mentioned.

About Sudhan P
It isn't fair competition when only one company in the world makes Monopoly. But I love investing in monopolies. Before joining the Seedly hood, I had the chance to co-author a Singapore-themed investment book – "Invest Lah! The Average Joe's Guide To Investing" – and work at The Motley Fool Singapore as an analyst.
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