Over the last year, we have discussed many stocks that have appeared to trade at significant discounts to their intrinsic values. But lately, undoubtedly due in part to the market's rally, we find ourselves discussing previously downtrodden stocks that are actually approaching their[More...]

Further to my recent post on Phoenix stocks, I was asked by my Canadian friends for a Phoenix list for Canadian stocks (as I am living in Canada). The problem is that the Canadian stock market is full of low-priced stocks, a key criteria of the Phoenix screen. Consider the members of S&P/TSX Composite Index, 29.8% of its members are priced below $10 a share, compared to 10.6% for the S&P 500. Even if we lowered the cutoff to $5, 8.7% of the S&P/TSX Composite trade below $5, compared to 3.2% for the S&P 500. Moreover, the Canadian market is full of low-price mining stocks that you could take a punt with, here is an example (which is not a suggestion to buy or sell the stock).<br[More...]

Last week, we looked at the historical price to book value of Melcor, and noticed that it sells today near historic lows. While this may suggest a buying opportunity to some, many would argue that varying levels of price to book ratios are appropriate based on changing expectations for the value of Melcor's book[More...]

Most (though surprisingly not all!) investors like the idea of buying a stock for less than it is worth. But it's the calculation/determination of what a company is worth that trips most investors up. For some securities, however, determining this value can be relatively easy. For example, if a large proportion of a company's assets have a liquid market (e.g. a mutual fund), the calculation can be[More...]