Sunday, October 26, 2008

Attractive Stock Valuations Being Created In This Bear Market

The market decline this year has been anything but short of amazing. So far in the month of October the market is down 24.72% and down 39.24% year to date through October 24th. It seems as though investors (or maybe forced hedge fund selling) are selling anything that is a stock. Undoubtedly, the economy is going through a significant deleveraging process. However, in this environment, it appears a number of stocks are trading at levels suggesting they are going out of business. Following is a list of some stocks that are trading at single digit P/Es.

Not all of the stocks on the list pay a dividend. Additionally, before purchasing any of the stocks, an investor should evaluate the sustainability of the projected earnings. It is possible that the "E" (earnings) in the P/E ratio is overly optimistic; hence, a downward earnings revision would mean a higher P/E for the company's stock.

(click table for larger image)


stock screen value October 24, 2008

Stocks mentioned:

Allegheny Technologies (ATI)
Anglo American (AAUK)
Best Buy (BBY)
Carpenter Technology (CRS)
Cnooc (CEO)
Jacobs Engineering Group (JEC)
Orient-Express Hotels (OEH)
Prudential Plc (PUK)
Rio Tinto (RTP)
Titanium Metals (TIE)
Transocean (RIG)
United States Steel (X)

Source:

Bargain Hunting ($)
Outlook Newsletter-Standard & Poor's
By: Beth Piskora, Managing Editor
October 29, 2008
http://www.outlook.standardandpoors.com/NASApp/NetAdvantage/servlet/login?url=/NASApp/NetAdvantage/index.do


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