Hello everyone, great to have your company on Kalkine TV.
I'm Sage and you’re watching The Buzzing Trends.
In today’s show, we have got you three value stocks under one dollar and over
100% returns in last one year. Stocks in focus today are Ambertech, CPT Global and
Michael Hill International. We all love discounts, whether it comes in the form of
a Black Friday sale or random online coupon from our recent purchase. Investors are no different,
eyeing to grab the best bargains on the financial markets. However, unlike conventional shopping,
these bargains do not come with the flashy sale sign. They more often remain under the radar,
to be cherry-picked through the art of value investing. Embraced by the likes of Benjamin
Graham and Warren Buffet, value investing has remained as one of the key investment
styles to minimise risks while meeting investment goals over time.
So, what exactly is value investing? It is very important to understand this concept before we
jump to exploring the value stocks like Ambertech, CPT Global and Michael Hill International.
Well, value investing is a popular approach to investing, which involves buying stocks
or securities that are quoting at a lower price than what they are worth.
In other words, value investing helps an investor identifying undervalued securities,
that are trading below their intrinsic value. Value investing was popularised in the investment
world by Benjamin Graham and David Dodd, way back in the 1920s. It may seem easy
to go out and just buy undervalued securities to become the next Warren Buffett or closer to him,
but Value investing is not that easy. The knowledge and skills required to identify
the true value of a business-like Buffett is not a game of mere excel sheets. Finding the intrinsic
value of a share is the most difficult part which is determined by doing fundamental analysis
of the company. Once the true value which is intrinsic value has been determined, the strategy
then capitalises on an assumption that sooner or later the market would price that security at its
intrinsic value, hence finishing the gap between the current value and the intrinsic value. This
valuation gap is the potential profit that a value investor aims for. Therefore, value investors are
constantly on a hunt for securities that “in their opinion” are trading below their intrinsic value.
They also take the opportunity of temporary market reaction, which is often caused by a good or a bad
event such as the recent COVID-19 pandemic, to buy stocks at quite a bargain. The assumption
behind buying stocks at these knee-jerk reactions, is there is no change in the fundamentals of the
underlying business, and its just a temporary noise that has created such a value gap.
Alright the, I believe we can now look at three such stocks with a price to earnings ratio
under 10. These stocks have delivered significant returns in the last one year.
First one to look at is Ambertech. This company distributes audio-visual solutions
in Australia and New Zealand for all types of installation projects. The solutions are
catered to broadcasters, content creators, commercial and residential installers,
consumer electronics & musical instrument retailers, and government and non-government
users of communications infrastructure. The company reported solid results for the
Financial Year 2021, with revenue from ordinary activities increasing by 36 per cent. Meanwhile,
profit after income tax attributable to members improved by over 549 per cent.
Well, its time for a small break but stay tuned with me on kalkine TV
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Hello and welcome back, Sage this side. You are watching, buzzing trends
and we are exploring you three value stocks under one dollar and over 100% returns in last one year.
Next value stock to look at is CPT Global. This company provides specialist IT consulting
services, with its service lines including transformation, assurance, and optimisation.
Significantly, 80 per cent of the largest banks in the world have engaged CPT Global.
The company’s financial performance witnessed a 33 percent revenue increase. The strong growth
was driven by a 51 per cent year-on-year revenue increase from the Australian
segment. Meanwhile, the company reported a profit of 3.4 million dollars in the financial year 2021.
And the last stock to look at is Michael Hill International.
Michael Hill is a multi-channel retail jewellery chain that operates globally. It has a range
of stores as well as a digital platform across Australia, Canada, and New Zealand. The company’s
statutory Net Profit After Tax edged up in the Financial Year 2021 to 45.3 million dollars.
Michael Hill saw its digital sales rise 53 per cent to a record 34.8 million dollars.
So, these are the three value stocks that are
trading at a bargain and have given great returns in the last one year.
Now as hinted earlier these value stocks are considered undervalued in the stock market.
They have a high dividend yield and a low PE ratio. Besides, value stocks tend to have fewer
fluctuations in prices during market highs and lows. People generally prefer value stocks as
these are established firms that would bounce back in time as soon as the investors realise
their true value. Value stocks also trade at a price below their peer companies,
falling within the same industry group. These stocks are comparatively less risky but may
also take time to turn around. Hence, they are considered suitable for long term investors.
However, price fluctuations could be seen in value stocks more than growth stocks.
So, if you are an investor with patience do try and look at the three value stock picks
shared today. On that note, it is time to wrap up today’s Buzzing Trends show.
Hope you found it informative. Keep watching Kalkine TV for more stocks related
insights and latest market updates. This is Sage signing off.