Ok considering we have had a bad start to the year I was thinking that there are sure to be alot of stocks out there at the moment that are very good value ATM.
So I was thinking that ASF members could post up stocks that they think are good value at present.
Although I understand that there are alot of stocks that have taken a big tumble lately and are trading well below what they are worth, please don't simply say XYZ stock as it will most likely be deleted by the mods.
Obviously I have a fair few in mind but the one that I will start with (as I have been researching this one for a couple of days) is MFS.
MFS like many financials has been dragged down recently by the whole US 'sub prime crisis' this in itself is bringing value not just to MFS but the market as a whole.
MFS today finished at $3.18, the last time it was this low was around May 2006, however this is in the face of a proposed merger between CITY PACIFIC and MFS.
CIY proposes to:This was announced to the market yesterday following which MFS shot up to a high of around $4.20issue of 225 million new CIY shares in consideration for the acquisition of MFS’s financial services business. On the basis of each CIY share being valued at $3.70 per share and on the assumption that the MFS financial services business will hold ongoing net debt of approximately $500 million the transaction has an enterprise value of approximately $1.33 billion. This consideration is based on the relativities of both company’s confirmed FY08 guidance.
See this link for more on the mergerhttp://www.aussiestockforums.com/for...112#post245112
As I mentioned in the MFS thread, as a result of this merger deal, MFS shareholders would end up with both MFS and CIY shares. CIY will be a property funds management company and MFS will keep stella, which is a travel business. If Flight centre's PE is anything to go off then the future for stella looks very good.
Obviously there is much more pros to this merger that I could delve into (apart from potentially attracting another party to the bidding table) but I think that the above says enough for now.
So post up the stocks that you have your eye on but remember to provide a reason as to why you think they are good value.