Opportunities In The Bear Market

We note that the STI had fallen substantially in the last 6 months.  The actual price movements are as follows:

There was a major dip in August in 2015, a partial recovery in October 2015 and a precipitous fall since the start of 2016.

If we can generate a list of companies whose stock prices that have fallen significantly but have reasonably good fundamentals based on their historical performance, we may be able to identify some good candidates for investment over a one to two years’ timeframe when the global outlook recovers to give a lift to our stock market as well.

We may consider the following conditions to set for use with the ShareInvestor Market Screener:

 Screener Results

(Updated on 27th Jan 2016 during the afternoon trading session)

1. 10 records were found as below (ranked by extent of price fall):

2. Companies on this list which stands out includes DBS, which just 6 months ago was trading at an all-time high of more than $21. At the current price now, it is even trading below its NAV.

3. There are obviously many kinds of reasons that account for the drastic price falls, such as exposure to energy/commodity prices, exposure to China, potential contracts cancellations due to concentration of exposure to a significant customer, exposure to real estate sector, etc. 

4. We shall leave you to make your own investigations on the above list to arrive at a list of potential winners.  The Screener is a powerful analytical too which can generate additional lists based on your preferred criteria, and we wish you the best of luck in picking winners!

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The screen results are not to be taken as advice to buy or sell the identified stocks. Each user should go through with his usual self-analysis of his risk appetite and perform additional due diligence before making any investment or trading decision. The progression to become an expert user using this Screener tool is limited only by his capacity to learn and profit from his live experience using ShareInvestor to invest and trade.