Value stocks are usually good bargains, but not all bargain stocks are good values. The search for value stocks that will rise—and hold their value—begins with sound fundamental investing. You look for stocks that have what it takes to be successful in the long term, even if investors haven’t yet anticipated how successful the company can be. Our new free report shows how to spot the best of these value stocks. Just click on Canadian Value Stocks: How to Spot Undervalued Stocks & Our Top 4 Value Stock Picks to get your free copy.
When we look for value, we seek out stocks that are trading at prices that seem cheap in relation to their sales, earnings and assets. Typically, when we find hidden assets, we find good value stocks. Indeed, some of the value stocks that have done best for our subscribers are well-established stocks that unlocked the hidden value in assets that were not on their balance sheets.
As more investors come to recognize the value of these stocks, they begin to rise. Well-informed investors who recognized the value while the stock lingered at a cheaper price begin to reap the benefits of their foresight.
In Canadian Value Stocks: How to Spot Undervalued Stocks & Our Top 4 Value Stock Picks, you will get inside tips on how to uncover the best value stocks, like these 4:
How the price-earnings ratios is used to identify value stocks
With the ratio of a stock’s market price to its per-share earnings, the p/e, the general rule is that the lower the p/e, the more room for growth. A p/e of less than 10 usually represents excellent value. But not always. Discover how we use the price-earnings ratio in conjunction with other financial factors to determine a stock’s true value.
How real estate can be a huge indicator of hidden value
When a company buys real estate, the purchase price goes on its balance sheet as the historical value of the asset. Over a period of years or decades, the market value of that real estate may climb substantially. But the purchase price never changes on the balance sheet. Discover the ways real estate can be a huge profit center for companies.
Why a tech company’s growth by acquisition strategy can be a ticking time-bomb
Companies sometimes grow quickly by buying other companies. Sometimes this growth by acquisition strategy burns through too much capital and leaves the company without sufficient assets to promote further growth. Discover how we choose tech companies that have both hidden value and real growth potential.
Why we think corporate spinoffs offer more value than IPOs
Occasionally, companies set up one or more of their divisions or subsidiaries as an independent firm, then give shares in that company to their own investors as a special dividend, or “corporate spin-off.” Studies show that after a few months, spin-offs tend to outperform comparable stocks for several years. Discover why we almost most always stay out of new issues.
You’ll discover much more as well, including how to unlock the underlying value in a holding company discount, and how dividend yields can be misleading in the search for value.
And we identify four of our favourite value stocks for buying now.
This exclusive report is yours FREE as my “thank you” for signing up for TSI Wealth Daily.
To, you can download Canadian Value Stocks: How to Spot Undervalued Stocks & Our Top 4 Value Stock Picks to get your free copy now.
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For our view of the future of energy stocks and how well-informed investors will benefit, download our new free report, Canadian Natural Resources Stock Guide: What to look for in Canadian Energy Stocks.
