Since I’ve not been writing much over the past few weeks, I thought I’d do a wrap up of what bargains I think are out there currently.
- EBO – I think these are cheap at $26 or below. I’ll leave you to search my reasoning in my EBO articles (Click the NZX menu button, then click on EBO to see my articles about EBO).
- SUM – I’ll leave you to place a number on what these are worth because I’m running out of time to do a financial analysis on SUM, but take a look at my last article on SUM to give you some food for thought.
- RYM – As with SUM, flat inflation = an increase to the OCR = cheap mortgages = higher property prices = good for retirement villages.
Shares That Are Worth A Look
The following shares are worth investigating and analysing (I intend to, but haven’t had the time). Note that I’m definitely not suggesting they are worth buying, just that they are worth investigating:
- M7T – I’m not saying these are cheap right now because I’ve not done the analysis (again – no time), but they are definitely worth investigating. If you’re looking for an explanation about why the share price fell recently, the clue is in the expected NPAT vs what was delivered. I would say that there was a lot of depreciation and amortisation that people weren’t expecting (something I’ve been harping on about for a while if you read through my M7T articles, specifically the stuff about Capitalized Costs). That said, I’m not aware of any fundamental problems there, but worth looking into.
- DGL – It’s a company that may benefit from increased property prices. I don’t know if they are having issues distributing goods to China or not. Needs investigating because the company has also had solid growth outside of any benefit from property prices.
- NZX – Could be a good hedge, as companies need to have access to money during tough times, also the NZX takes a subscription fee, which I like as an investor.
- HGH – For the first time that I am aware, HGH has offered the lowest mortgage rates. This could be an accelerant to help them acquire a decent market share. Needs investigating.
- Over on the ASX, the following companies interest me and I need to do some analysis: CSL, GPR, NXT, PME, BGA, EVS.