These 'stocks have been forgotten': research note

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These 'stocks have been forgotten': research note

Brian Sozzi
Anchor, Editor-at-Large
Thu, 7 October 2021, 1:59 am

Concerns over commodities inflation and slowing consumption by shoppers has led to consumer staples stocks really being out of favor among investors right now.

The share of consumer staples within the S&P 500 has plunged below 6% for only the second time in 30 years, according to a note from Sundial Capital Research. Researchers at Sundial say the decline reflects lagging stock prices and shrinking market caps among consumer staples, and more upbeat trading in other S&P 500 sectors.

"So many of the stocks have been forgotten, for so long, that the McClellan Summation Index for the sector has dropped below -500, enough to consider it deeply oversold," points out Sundial.

The consumer staples landscape is rife with underperforming stocks currently.

Shares of Campbell Soup, Coca-Cola, Hormel and Conagra Brands are down on average of 10% in the past six months, per Yahoo Finance analysis. Over in the consumer products arena, Clorox shares have shed 16% in six months time while Kimberly-Clark is down 5%. Proctor & Gamble's stock has lagged the S&P 500 since mid-April, though is up 2%.

The S&P Consumer Staples Index is down 5% going back to early September.

More details in
Specuvestor: Asset - Business - Structure.
Great reminders.

Thank you Cyclone and I'm very happy to see your posts.

One valuebuddy mentioned about the number of posts in would corresponding to the interest of investing in stock market.

May be or may not.

However, I did have 2 experiences that I make use of the (number of ) posts in for my market operations, both turn up +ve for me.

1) BWL
The stock was consistently below 20cents when I suddenly realised to do something.  It was at least 80cents when I first noticed it, when AK was talking about how good BWL biz.  It was in my watchlist and nothing need to be done.

When I realised that in, the sentiment on BWL was trending -ve due to it's court case with Indonesia Income Tax, I continue to monitor for a while and really, the number of posts dropped significantly and that triggered me to queue everyday and buy below 20cents. 

My market operation stopped when Sam Goi came in to mop up BWL too.

The rest is history, it's more than 10x profit when I sold out when I'm not comfortable with the china operation model.

2) PIL
The stock was an exceptionally favourite stocks for valuebuddies (more so than BWL) because here, we had a strong group of PIL supportors.  Naturally, PIL is in my watchlist (as everyone else - I supposed).  Suddenly, no dividend was declared and sentiment turned into -ve. I watched patiently for the trigger point - in this case, again (number of) posts in  When I realised that the sentiment is so -ve and the number of posts (meaning to me, interest in PIL) dropped, I took a keen interest in PIL.  I calculated two Qtr of PIL performance and waited patiently for the 3Q result (before I could project the full year result more accurately).  

Same thing, I managed to buy below 40 cents during this (difficult) period.

As the saying goes, the rest is history, I had profited handsomely on PIL and would love to repeat it again.  Tongue

Thank you Cyclone and thank you value buddies for helping me in my learning journey. 

(08-10-2021, 09:01 AM)¯|_(ツ)_/¯ Wrote: 1) BWL
2) PIL

Pardon my ignorance, but could you give the full names of these two companies. Neither are existing tickers. I'd love to take a look at them too, but not sure which ones you mean: Best World and Penguin ?
(08-10-2021, 09:41 PM)¯|_(ツ)_/¯ Wrote: hey jaco,
yes, you figured out.  i gathered that you're not a SGX fan. Smile

Thanks for clarifying that and offering some suggestions. Indeed, I am not Singaporean, but I do hold Capitaland Investment Ltd and a few REITS clustered around them, as well as Dairy Farm (unfortunately).

I am going to look further into the names you mentioned!
Dear ¯|_(ツ)_/¯,

Would appreciate it if you could use actual company names rather than symbols. This aligns more towards the principle we espouse - to view the companies as businesses, rather than a ticket counter.


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