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Bargain Bin Blue Chips Update: January 19, 2013

178 views 2013-01-19 21:07 Tags: blue chip bargain bin below book value

Blue Chip Stock = minimum market cap 1B + minimum 10/10 continuous years of dividend payments.
Market Price = book value + premium for future growth +/- the nonsense of Mr. Market.

In keeping with my long-term investment philosophy, I am only taking a look at my portfolio and watch-list(s) every third week or so. When I first began blogging my stock market activities/research about a year ago, I was a compulsive daily or multiple-times-a-day portfolio checker. There is something fascinating about watching my stocks go up or down since some of them are after all... mine. But that is kids-stuff after all. Now that I am a bit more mature in my investing theses, there is simply no need nor desire to check the prices of my stocks so often. Which is a wonderfully freeing thing I notice.

Meanwhile, I am always on the hunt for cheap stocks. Is there ever a cheap blue chip stock? This must sound like such a basic question - and it is! However, IMO the best value investors always keep it simple. The K.I.S.S. formula is one of the most basic and good pieces of advice for all aspects of life.

Another point is, since I am not a professional with all my time devoted to the study of annual reports, I need a simpler system in order to be an effective investor. If it is not simple I will either not do it or I will fail at it due to lack of resources. So, at the end of the day, I like my simple system of looking for cheap blue chip stocks. Safe stocks on sale. Or put another way, "buy cheap shares a stock of known value."

Below are my lists of bargain bin and near-bargain bin blue chip stocks. Data for financial ratios are obtained from Yahoo! finance.

Bargain Bin Blue Chips (stocks at or below half price/book value)
Company	Symbol	Country	Industry	P/B	P/E	5-Yr Low/High	Price
Sony Corp	SNE	Japan	Technology	0.50	N/A	9.63 → 55.30	12.7
Nippon T & T	NTT	Japan	Telecom	0.50	8.89	18.05 → 27.17	21.18

Near-bargain-bin Blue Chips: Americas
Company	Symbol	Country	Industry	P/B	P/E	5-Yr Low/High	Price
Partner Re	PRE	Canada	Financials	0.72	5.75	$48.50 → $83.05	83.53
Enerplus Corp	ERF	Canada	Oil & Gas	0.80	N/A	$11.54 → $48.64	13.35
Pengrowth Energy	PGH	Canada	Oil & Gas	0.58	N/A	$4.75 → $20.86	4.88
Petrobras	PBR	Brazil	Oil & Gas	0.76	14.03	$17.40 → $72.38	19.53

Near-bargain-bin Blue Chips: Asia
Company	Symbol	Country	Industry	P/B	P/E	5-Yr Low/High	Price
Guangshen Railway	GSH	China	Industrials	0.72	14.35	$14.34 → $43.63	21.52
Henderson Land	HLDCY	Hong Kong	Financials	0.74	8.65	$3.04 → $9.55	7.58
Mitsubishi Corp	MSBHY	Japan	Industrials	0.75	6.68	$21.70 → $71.85	40.55
Mitsuishi UFJ	MTU	Japan	Financials	0.59	N/A	$4.05 → $11.62	5.41
Wacoal Holdings	WACLY	Japan	Consumer Goods	0.68	15.37	$41.99 → $76.21	51.56
Singapore Land	SINPY	Singapore	Financials	0.63	45.86	$2.00 → $7.05	6.10
Posco	PKX	S. Korea	Utilities	0.70	9.58	$42.89 → $189.18	84.50

Near-bargain-bin Blue Chips: Europe
Company	Symbol	Country	Industry	P/B	P/E	5-Yr Low/High	Price
Delhaize Group	DEG	France	Consumer Services	0.67	10.17	$32.20 → $101.19	48.31
AXA Group	AXAHY	France	Financials	0.68	12.61	$7.87 → $45.55	18.14
BNP Paribas	BNPQY	France	Financials	0.69	8.50	$13.54 → $61.45	30.93
Societe Generale	SCGLY	France	Financials	0.52	23.02	3.89 → 38.80	8.86
Veolia Environnement	VE	France	Utilities	0.66	N/A	$10.32 → $96.48	11.97
Deutsche Bank	DB	Germany	Financials	0.62	12.22	$20.24 → $135.43	49.03
E.ON	EONGY	Germany	Utilities	0.77	N/A	$17.64 → $72.80	18.53
LUKOIL	LUKOY	Russia	Oil & Gas	0.70	5.39	$25.50 → $113.15	66.70
Repsol	REPYY	Spain	Oil & Gas	0.77	9.78	$14.62 → $42.61	22.61
Barclays	BCS	England	Financials	0.66	23.35	$3.07 → $59.25	18.96