Mispriced Stocks Opportunities

As the world is putting out all efforts to contain worst ever pandemic, the economic turmoil and cost of containing the virus has led to falling of stock markets around world to multi year lows. So let’s use this opportunity to identify the hidden jewels which have taken severe beating during this downturn, also the stocks which are trading at big discounted P/E’s.

 

Mispriced means the current stock price is quoting below the intrinsic value due to events surrounding the market or sector or the particular company, which, in our view, are transient in nature.


Objective is to identify the companies who are: 1. Fundamentally and technically strong but have taken small moves during this tough time. 2. Potential to bounce back in foreseeable future. 3. Potential upside to target of 3X-4X in a year’s time.


Under this strategy, liquid capital which can be spared for a year should be deployed for getting potential returns.


Investment Frequency: It will be optimum to put capital at launch of passive portfolio but entry can be made during the process as well. The return will depend upon time of entry of the portfolio.


Type of Stocks: The stocks will be screened based on intrinsic value, sector outlook, P/E of stocks and the discounted value of stocks. The stocks will be mix of frontline and midcaps along with 2-3 potential small caps.


Investment Horizon: 6 Months to 18 Months

Pricing: 6500 SGD | 300 SGD at the time of every rebalancing.

Return Expectation: 3x-4x of Investment

Number of Recommendation: Portfolio of 15-20 (Fundamentally strong stocks)

 

Mispriced Stocks Opportunities

As the world is putting out all efforts to contain worst ever pandemic, the economic turmoil and cost of containing the virus has led to falling of stock markets around world to multi year lows. So let’s use this opportunity to identify the hidden jewels which have taken severe beating during this downturn, also the stocks which are trading at big discounted P/E’s.

 

Mispriced means the current stock price is quoting below the intrinsic value due to events surrounding the market or sector or the particular company, which, in our view, are transient in nature.


Objective is to identify the companies who are: 1. Fundamentally and technically strong but have taken small moves during this tough time. 2. Potential to bounce back in foreseeable future. 3. Potential upside to target of 3X-4X in a year’s time.


Under this strategy, liquid capital which can be spared for a year should be deployed for getting potential returns.


Investment Frequency: It will be optimum to put capital at launch of passive portfolio but entry can be made during the process as well. The return will depend upon time of entry of the portfolio.


Type of Stocks: The stocks will be screened based on intrinsic value, sector outlook, P/E of stocks and the discounted value of stocks. The stocks will be mix of frontline and midcaps along with 2-3 potential small caps.


Investment Horizon: 6 Months to 18 Months

Pricing: 6500 SGD | 300 SGD at the time of every rebalancing.

Return Expectation: 3x-4x of Investment

Number of Recommendation: Portfolio of 15-20 (Fundamentally strong stocks)