4 Value Stocks for Growth Investors

Three top value investors from Schroders, Fidelity and Milkwood Capital give their stock tips for growth investors

Karen Kwok 31 May, 2017 | 3:26PM
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Standard Chartered (STAN)

“Banks are among the cheapest sectors in the world, and within the sector, Standard Chartered is one of the cheapest banks,” said Kevin Murphy, co-manager of the Silver Rated Schroder Recovery fund. The fund gained 30.2% in 2016, came third of the rank in its UK flex-cap equity category and outperformed its index – the FTSE All Share – by 13.4% in 2016.

There are very few companies that are still trading at 2009 levels, particularly in the financial sector. Standard Chartered is one of them, according to Murphy. According to Morningstar data, Standard Chartered is trading at £7.27 today, while on the same day in 2009, it was trading at £11.49. The stock peaked in 24 January 1994 at £42.93, but it fell to just £1.85 in May the same year, due to an exposé of a bribe among officials in Asia.

“Standard Chartered is now trading at two-third of its 2009 price, and nearly half of analysts think you should sell Standard Chartered. But for us, the bank is an opportunity – it has a solid balance sheet while trading at discount compared to other banks. If interest rates start moving up, you will suddenly see shares of the Standard Chartered moving aggressively. The money will start moving back to sensible, objective value. That is what we think it will happen and I hope it does,” said Murphy.

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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
Amazon.com Inc3,389.79 USD0.00Rating
DX (Group) PLC24.80 GBP0.00
Fidelity Special Situations4,409.27 GBP0.78Rating
Menzies (John) PLC275.00 GBP0.00
Naspers Ltd Class N2,457.02 ZAR0.00
Schroder Recovery A Acc239.60 GBP0.38Rating
Standard Chartered PLC425.90 GBP0.00Rating
Tencent Holdings Ltd462.60 HKD0.00Rating

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk