What are some of the undervalue stocks at the moment?

Larger Gold miners are great value right now but it requires a lot of patience and some luck with the underlying commodity. I prefer speculating on junior and mid cap Canadian firms in energy and copper/silver mining. Firms like Baytex, Tamarack Valley, Meg Energy, Enerplus, Crew Energy, Athabaska, Birchcliff, Surge Energy ... have done really well but could be huge home runs in an $80-$100 WTI scenario ( there are some nat gas in there but sympathy play if Oil gets super popular or if Nat Gas spikes ). Downside risk is limited as long as Oil stays above $60 long enough to see more huge earnings reports.

On the Gold value play, Kinross for example has been dead money all year but at under $9 Cdn it looks cheap. Most analysts expect $13-$15 eventually and it did hit $22 the last Gold bull. Seems like a free call on higher Gold prices imo. I like firms like Calibre that are profitable but the market isn't really giving them credit for it yet. Could be like Endeavour Silver which did rally nicely this year. I may revisit this area shortly before the next earnings cycle starts if Gold cooperates and/or the Oil bull does a corrective move.
 
newwurldmn said:
why do you think CCL is cheap?
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Price depressed due to recently added Biden administration restrictions subsequently lifted. Company now stripped of all underperforming assets. But I may have to withdraw that call because I expected a strong gap and surge this morning that didn't happen.
 
GrowleyMonster said:
Price depressed due to recently added Biden administration restrictions subsequently lifted. Company now stripped of all underperforming assets. But I may have to withdraw that call because I expected a strong gap and surge this morning that didn't happen.
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Well, valuation can take months or years to be realized. A lack of a surge this morning doesn't make the stock cheap or rich.

There's a nice article on seeking alpha where the guy looked at the dilution and compared it to 2022 earnings (since 2021 is a wash) and came to the conclusion the reopening is largely priced in.
 
"Undervalued" is a very ambiguous term. But I'll help you understand value from a professionals point of view:
- The value factor explains the returns of stocks that have low pe/, p/b, ev/ebitda ratios (usually lowest quintile rank, e.g. bottom 20%)
- These stocks tend to perform better during periods of recovery or rising interest rates because they typically have higher free cash flows (or are economically depressed)
- They will underperform growth stocks assuming low rates (sub 3% on the 10-yr)

Trading these companies is not a great strategy.

A better strategy is to find value gaps. For example, say XYZ Corp is trading at 34x forward PE (consensus). Recently, however, the industry began to experience significant (and accelerating) growth. Using your estimate of the company, you find that at current prices, the stock is trading at 22x forward PE. The market is not assigning a high enough probability to your growth forecast and this may represent a good value. Your due diligence will prove or disprove your thesis (of a value gap) -- maybe the company has pending litigation, or perhaps the CEO has hinted she will retire; you will need to evaluate that catalysts to determine if they are likely and what their impact on the bottom line will be (also, how will the market react to positive/negative news on those?).

Buying "value" is a quality, not quantity, style of investing/trading.
 
Nine_Ender said:
Larger Gold miners are great value right now but it requires a lot of patience and some luck with the underlying commodity. I prefer speculating on junior and mid cap Canadian firms in energy and copper/silver mining. Firms like Baytex, Tamarack Valley, Meg Energy, Enerplus, Crew Energy, Athabaska, Birchcliff, Surge Energy ... have done really well but could be huge home runs in an $80-$100 WTI scenario ( there are some nat gas in there but sympathy play if Oil gets super popular or if Nat Gas spikes ). Downside risk is limited as long as Oil stays above $60 long enough to see more huge earnings reports.

On the Gold value play, Kinross for example has been dead money all year but at under $9 Cdn it looks cheap. Most analysts expect $13-$15 eventually and it did hit $22 the last Gold bull. Seems like a free call on higher Gold prices imo. I like firms like Calibre that are profitable but the market isn't really giving them credit for it yet. Could be like Endeavour Silver which did rally nicely this year. I may revisit this area shortly before the next earnings cycle starts if Gold cooperates and/or the Oil bull does a corrective move.
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Not trusting the US money printing machine...I triple downed on Canada. I bought more Canadian ETFs today. Not looking to make a killing...Just want to preserve capital!!
 
Compare....Need i say more?

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