Author Topic: Most Undervalued Assett Class/Sector  (Read 3003 times)

Wfearful_Bgreedy

  • Newbie
  • *
  • Posts: 11
Most Undervalued Assett Class/Sector
« on: July 01, 2018, 10:16:13 AM »
Wanted to get ideas from the crowd on what you think the most undervalued assett class/sector is today and examples. Some primer or thoughts I had include healthcare, agriculture, volatility, productive low CAPE indexed countries (e.g. Russia).

-Concrete examples:

Agriculture (Out of favor)
CORN
LAND
FPI

Russia (sold on fear)
SBRCY


Cardboard

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 2506
Re: Most Undervalued Assett Class/Sector
« Reply #1 on: July 02, 2018, 05:52:56 AM »
Canadian energy and service stocks (exclude majors such as Suncor).

Cardboard

cameronfen

  • Full Member
  • ***
  • Posts: 188
Re: Most Undervalued Assett Class/Sector
« Reply #2 on: July 02, 2018, 07:38:37 AM »
Canadian energy and service stocks (exclude majors such as Suncor).

Cardboard

I second this.  Long stuff that is heavily dependant on tar sands economy but not E&P so no movement in responce to surging oil yet. 
« Last Edit: July 02, 2018, 06:06:03 PM by cameronfen »

tombgrt

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 1870
Re: Most Undervalued Assett Class/Sector
« Reply #3 on: July 02, 2018, 09:49:21 AM »
E&P in N-A as said above. Agree with Russia too. Some value in Southern-Europe and Asia. EM in general will likely outperform US/EU over 10 year time frame imo.

StevieV

  • Full Member
  • ***
  • Posts: 128
Re: Most Undervalued Assett Class/Sector
« Reply #4 on: July 03, 2018, 07:05:31 AM »
Canadian energy and service stocks (exclude majors such as Suncor).

Cardboard

I think so too, but there hasn't been much profit in it yet.  In my opinion, the risk/reward for some names has gotten much better as the oil storage situation has improved, the spot pricing of oil has improved, the potential for better pipelines (Line 3 and Transmountain) has improved, and stock prices have remained stagnant.  At $30-$40 WTI, you had to be willing to anticipate improved oil prices.  At today's approximately $75 WTI, you are only betting on sustained pricing (or course, there will be substantial swings).

thowed

  • Jr. Member
  • **
  • Posts: 63
Re: Most Undervalued Assett Class/Sector
« Reply #5 on: July 03, 2018, 08:58:25 AM »
Yeah, it's some good stuff to start with, but lots of pitfalls.

SBRCY is interesting - seems to be a great company and dirt cheap.  However institutions seem to use it almost as a quasi-tracker i.e. if they have one stock in the country, it's that one, so the price can plunge if they all go off Russia.  Of course, that also provides opportunity.

DTEJD1997

  • Hero Member
  • *****
  • Posts: 1330
Re: Most Undervalued Assett Class/Sector
« Reply #6 on: July 03, 2018, 09:38:02 AM »
Hey all:

Undervalued stuff & "value" is what I am looking for....

Oil & Gas certainly has some candidates in it.

Up until recently, retail was a INCREDIBLY ripe area...bargains galore as "Amazon will sell everything, don't you know?"

REITS up until recently were offering some great bargains.

BDC's were offering some compelling opportunities.

HOWEVER, I might think that the auto manufacturing sector is perhaps the most undervalued.  Notice, I'm not talking about TSLA.  I am talking about companies that are selling for 4 P/E's.  Of course, in the next year or so, every car will be electric and everybody will be ferried about in a driver less vehicle...so it is amazing that these stocks are selling for even a 4 (or less) P/E.

Then you've got the economy...if it goes down, surely the auto companies will be rushing to the courthouse to file the bankruptcy papers...

Who knows though? 

Liberty

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 9838
  • twitter.com/libertyRPF
    • twitter.com/libertyRPF
Re: Most Undervalued Assett Class/Sector
« Reply #7 on: July 03, 2018, 12:12:01 PM »
Good books.

They cost the same as crappy books, and the rights ideas can be worth millions if not billions of dollars.
"Most haystacks don't even have a needle." |  I'm on Twitter  | Watch this, please (new link)

scorpioncapital

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 1511
    • scorpion capital
Re: Most Undervalued Assett Class/Sector
« Reply #8 on: July 06, 2018, 01:36:26 AM »
Two points, it's not easy to tell if a class is undervalued or correctly valued. Also, it isn't most undervalued class but most undervalued in relation to risk. I'll take a slightly less undervalued class that I felt was less risky than one that was a speculative bet. Again the thing I find is you can very easily be wrong on your assessment. The key is to work on the skills and insights that make you a better appraiser.

I think in a year like this arbitrage is undervalued. Also possibly cable stocks though I'm not totally sure, I don't think losses are large at today's prices.
I also think some advanced material stocks are good deals , both industrial and biotech. In this case I don't always think in terms of current earnings.








petec

  • Hero Member
  • *****
  • Posts: 1322
Re: Most Undervalued Assett Class/Sector
« Reply #9 on: July 10, 2018, 02:15:39 AM »
Canadian energy and service stocks (exclude majors such as Suncor).

Cardboard

I think so too, but there hasn't been much profit in it yet.  In my opinion, the risk/reward for some names has gotten much better as the oil storage situation has improved, the spot pricing of oil has improved, the potential for better pipelines (Line 3 and Transmountain) has improved, and stock prices have remained stagnant.  At $30-$40 WTI, you had to be willing to anticipate improved oil prices.  At today's approximately $75 WTI, you are only betting on sustained pricing (or course, there will be substantial swings).

Can you give some stock examples? I have some Peyto, but that's gas, and I don't know the oily names.