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Weekly Bargain Bin Emerging Blue Chips Update Q3 Week 11

206 views  2012-09-16 14:01   Tagsblue  chip  bargain  bin  below  book  value 

Emerging Blue Chip Stock = minimum market cap 100M + minimum 2/10 continuous years of dividends.
Market Price = book value + premium for future growth.

Bargain Bin Emerging Blue Chips

Out of 225 stocks in my emerging blue chip watchlist, 20 trade at or below half of price-to-book-value: 4 from Americas, 5 from Asia and 11 from Europe.

I did not blog my lists of blue chip and emerging blue chip stocks last week because I was too busy working on my article for value idea contest entitled "Fundamental Analysis: Guangshen Railway (GSH)".

The 5 stocks that went above 1/2 price-to-book value from two weeks ago are Numura Holdings (NMR), AU Optronics (AUO), Flughafen Wien (VIAAY), ING Groep (ING) and Mechel (MTL).

Near Bargain Bin Emerging Blue Chips

The following 44 stocks from my emerging blue chip stocks watchlist trade at or below 0.8X book value:  9 from Americas, 17 from Asia and 18 from Europe.


New additions to my emerging blue chip Americas list from two weeks ago are 1. Niko Resources (NKO) and 2. Comp. Paranaense de Energia (ELP).

Niko is a Canadian, 553.08M market-cap, upstream oil & gas company with operations in India, Bangladesh, Indonesia, Kurdistan, Trinidad, Madagascar and Pakistan. After rising from a 2008 low of $40.92 to a 2010 high of $113.02 (+176.2%), the stock has fallen steadily -90.5% to where it now trades at $10.71 per share.

Companhia Paranaense de Energia (Copel) is a Brazilian, 4.45B market-cap utility company. Copel is the largest company in the State of Paraná, with 19 power plants that collectively produce 4,552 Megawatts of energy. The company serves 3,952,707 customers through a distribution system which consists of 184,983 km of lines. After rising from a 2009 low of $8.77 to a 2010 high of $28.89 (a gain of +229.4%), the stock has fallen -43.7% to where it now trades at $16.27 per share.


Besides the 3 stocks that have risen above 1/2 P/B (NMR, SHG and AUO), there are no new additions to my list of emerging blue chips Asia. Risen above 0.8 P/B is Alumina (AWC).


The 3 European emerging blue chip stock that came up from below 1/2 P/B in the last two weeks are Flughafen Wien (VIAAY), ING Groep (ING) and Mechel (MTL). For some reason, Flughafen (the Austrian airport stock) stopped recording prices at the end of July this year. I guess it is a pretty iliquid stock. Since August 31, ING Groep and Mechel have risen +19.1% and +42.8% respectively.

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