Most Undervalued Asset Class/Sector

[Wfearful_Bgreedy]

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]

Canadian energy and service stocks (exclude majors such as Suncor).

 

Cardboard

[cameronfen]

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. 

[tombgrt]

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]

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]

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]

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]

Good books.

 

They cost the same as crappy books, and the rights ideas can be worth millions if not billions of dollars.

[scorpioncapital]

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]

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.

[Sharad]

Tobacco stocks.

[BargainValueHunter]

I can't think of anything more undervalued at the moment than IJR puts

[stahleyp]

I can't think of anything more undervalued at the moment than IJR puts

 

Why do you think that?

[Lance]

I can't think of anything more undervalued at the moment than IJR puts

 

Why do you think that?

 

Perhaps VBK

 

Thanks

Lance