Dear readers, a Happy New Year 2022 to you and family once again! Going into the new year, what will your investing strategy be?
For some investors, it may be to invest in the stock markets when the markets correct. For some others, they may want to invest in stocks which are of value to them, such as buying the stocks at below their book value (i.e. undervalued stocks).
As at 31 Dec 2021, there are ten undervalued Straits Times Index (STI) stocks, each of Price-to-Book (PB) ratio of below 1. Let us take a look at these ten undervalued STI stocks with their PB ratios as below:
Capitaland Integrated Commercial Trust (0.99)
Jardine C&C stock (0.87)
Keppel Corporation stock (0.84)
Capitaland Investment stock (0.81)
City Development stock (0.77)
YangZiJiang stock (0.73)
SIA stock (0.67)
Jardine Matheson Holdings stock (0.66)
UOL stock (0.60)
Hongkong Land stock (0.35)
In my personal opinion, investing in undervalued STI stocks does not necessarily translates into profits over the long-term even though investors are buying them below cost. I believe metrics that are more important to investors when investing are Return-on-Equity and Profit Margin. It does not make good investing sense to invest in undervalued stocks when the stocks are not profitable or have low Return-on-Equity.
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- KEPPEL STOCK: PRICE TREND AS EXPECTED!
- HOW MALAYSIA STOCK MARKETS PERFORM COMPARED TO SINGAPORE STOCK MARKETS?
- MY VERDICT OF THE 50 CENTS COFFEE
That’s it for my insights today. I Thank you once again for your support of SG STOCKS INVESTING, your Money and Lifestyle magazine! Connect with me here to follow the daily exciting and useful posts on these two blogs, Thank You for your support!
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