Saturday, September 2, 2017

WILL YOU BUY THIS MOST UNDERVALUED SINGAPORE STOCK?


Falcon Energy stock
Dear readers, some fundamental investors and value investors like undervalued stocks. Undervalued stocks are often defined as stocks where the current stock price is below the net book value of the stock. In a nutshell, this means the Price-to-Book ratio of P/B ratio is less than one.
In my stock screening conducted yesterday, I have identified one Singapore stock which has the lowest P/B ratio of all Singapore stocks on SGX. The name of the stock is Falcon Energy stock. Falcon Energy stock has a P/B ratio of 0.084 according to the SGX webpage (you can access the information here ).

On the same page above, we also noted that the dividend yield of Falcon Energy stock is at a high of more than 10%. This is until we noted from the dividends history of Falcon Energy stock that Falcon Energy has stopped paying dividends after year 2015.

Falcon Energy stock price is currently a fraction of what the stock used to trade in its heyday before the oil and energy sector goes into a downturn. We must always assess the fundamentals of a stock in a more holistic way rather than just using a single metric like the P/B ratio in this case. Join the emailing list to receive regular Financial and Singapore stocks newsletters too! Like" me on Singapore Stocks Investing Facebook page to receive all posts on your Facebook as well as read more articles. Follow me on Twitter too.

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