3 Bargain Stocks for Brave Investors

THE VALUE INVESTOR: Looking to add to your equity portfolio? These three companies are trading at significantly less than their fair value and could prove to be profitable

Emma Wall 27 August, 2015 | 12:12PM
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Stock markets have bounced around this week – significantly depressed on Monday, with reversed fortunes just 24 hours later. Buying equities on these short-term fluctuations is best left to the professionals but if you are looking for long term investment opportunities we have highlighted three stocks that are trading at below their market value according to Morningstar equity analysts.

Burberry (BRBY)

If you had been savvy enough to invest in Burberry in November 2008 when the shares were worth £1.60 you would have seen your money grow ten times in value. A lot of this share price inflation can be put down to the appointment of Christopher Bailey as head designer in 2009.The Yorkshire-born creative overhauled Burberry’s image and its global revenues. In October 2013 Burberry chief executive Angela Ahrendts left to work for Apple (AAPL) and Bailey took over as chief executive – retaining his position as chief creative officer too. The share price dipped on the news – but stabilised to rise to a peak of £19 in February this year.

But a lot of the global interest Bailey sparked is centred in emerging markets – and in particular Asia. The luxury brand opened a flagship store in Shanghai in April last year with a 1,500-guest party. And so when the Chinese stock market began to lose value earlier this year, so did Burberry’s share price.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Apple Inc146.83 USD0.67Rating
BHP Group PLC1,891.80 GBX0.01Rating
Burberry Group PLC1,844.50 GBX1.07Rating

About Author

Emma Wall  is former Senior International Editor for Morningstar

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