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Bargain Bin Blue Chips Update: January 19, 2013

220 views  2013-01-19 20:07   Tagsblue  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

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