This post is part of a two-part series, part two of which can be accessed here.
In the interests of openness I’ve decided to revisit a previous post ‘The London Stock Exchange; Scouring The 52 Week Lows‘ in which I shared 3 stocks that looked interesting from a value perspective from the previous week’s daily 52 week lows.
Now the quickest way to see how these stocks have performed since I dismissed them last year is to provide their charts with each one starting from the date on which I poo-pooed them (22 April 2013) and finishing on today’s date (close of business 16 May 2014).
Each chart has a brief synopsis of what I said about the stock at the time:
Faroe Petroleum (LSE: FPM)
Negative EPS for 2009, 2010, 2012 (2011 was only positive because of a one-off disposal of assets), a high price to tangible book at 2.85, good balance sheet with a current ratio of 1.95, half of it’s assets are intangibles mostly made up of exploration COSTS.
Price Chart Of Faroe Petroleum
Faroe’s share price rose from about 111p to 134p, a 20.72% gain
Griffin (LSE: GFM)
Dividend paying, 3 year EPS growth of over 77% and 5 years at 24%, debt to equity excluding intangibles of 0.02, price to tangible book of 0.57, PE ratio 4.91, net profit margin 19%, a joint venture that decimated it’s balance sheet to a current ratio of 0.43.
Price Chart Of Griffin Mining
Price rose from about 27p to 29p, a 7.4% gain
Morgan Advanced Materials (LSE: MGAM)
FTSE 250 dividend payer, PE Ratio 8.90, current ratio 1.91, 3 year EPS growth 20% over 5 years it’s 4%, debt to equity excluding intangibles 72.21.
Price Chart Of Morgan Advanced Materials
Morgan’s price rose from 240p to 358p, a 49.16% gain
At the time I declared that none of these stocks would merit any further attention from me or be added to my portfolio.
Hindsight’s a wonderful thing and all three stocks merit looking at again to see why their prices rose.
For expediency I’ll choose Morgan Advanced Materials for a bit of hindsight analysis to see why it rose in value simply because it recorded the largest price rise out of the three stocks and post my results next Monday morning.
Have a great weekend everyone 🙂
EDIT: Read the follow-up post on Morgan Advanced Materials here.
- How The Stock Market Drives Me Insane
- Testing Benjamin Graham; Final Results 2013
- 10 Things I Learned From The UK Investor Show 2014 – Part 1
- Why Graham And Dodd Is Still relevant Today
Charts from Yahoo! Finance