The start to the stock markets in 2016 has been unprecedented. There have been some structural issues in some markets such as China but some of the carnage may not be warranted. As a value investor, this is where I bring out my shopping basket. Also, at our London Value Investing meetup, we have been looking for undervalued companies.

If you’re a trader or someone who doesn’t like a “falling knife” and is looking for a bottom, you may not agree with the below analysis, and that’s fine – you have a different strategy of making money and I respect that.

To get us started, we just did a simple number crunching exercise to find companies that have a market cap of greater than $5bn and are quoting within 10% of their 52 weeks low. This analysis does not by itself give you any buy recommendations, but it’s start from where we need to do more detailed fundamental analysis.  All the data is as at 10 Feb 2016.

We’ve added a column showing upside from current market price to the 52 week high. How you look at it depends on your view on the overall market. If you believe we are now in a bear market, ignore it. But if you believe we are just having a correction and the bull market will resume again, some of these stocks that have been battered down without any fundamental reason could scale to new heights in the future

Disclosure: I and/or stakeholders of CityFALCON may have positions in some of the stocks listed below

Company Sector Market cap ($bn) Net Debt ($bn) Enterprise Value ($bn) CMP ($) 52 week low ($) 52 week high ($) CMP upside to 52 week high Read latest news and analysis on the company
Twitter Technology 9.5 -1.89 7.61 14.4 14.31 53.49 271.46% Twitter
Tenaris S.A. Industrial goods 11.1 -1.84 9.26 19.6 18.53 32.77 67.19% Tenaris S.A.
The GAP Services 8.78 0.71 9.49 23.52 21.57 43.9 86.65% The Gap
LinkedIn Technology 12.25 -1.97 10.28 101.8 98.25 276.18 171.30% LinkedIn
Dr. Reddy’s Laboratories Healthcare 6.98 6.28 13.26 42.26 40.67 68 60.91% Dr. Reddy’s Laboratories
Harley-Davidson Consumer Goods 7.38 6.12 13.5 39.03 36.36 65.2 67.05% Harley-Davidson
Icahn Enterprises Industrials 5.61 8.7 14.31 46.98 43.42 101.5 116.05% Icahn Enterprises
Xerox Corporation Technology 8.69 6 14.69 8.84 8.48 14.02 58.60% Xerox Corporation
Cheniere Energy Basic Materials 7.07 11.07 18.14 20.78 20.02 34.55 66.27% Cheniere Energy
Tesla Consumer Goods 20.19 1.25 21.44 150.5 141.05 286.65 90.47% Tesla
eBay Services 25.61 0.68 26.29 22.27 21.51 66.73 199.64% eBay
Adobe Systems Technology 37.59 -2.08 35.51 74.99 71.27 96.42 28.58% Adobe Systems
Biogen Healthcare 54.95 3.1 58.05 253.35 243.85 480.18 89.53% Biogen
Diageo Consumer Goods 64.57 9.65 74.22 103.88 100.12 122.23 17.66% Diageo
Boeing Industrial goods 78.07 -2.09 75.98 118.16 115.02 158.83 34.42% Boeing
AstraZeneca Healthcare 72.28 8.2 80.48 28.98 28.29 36.69 26.60% AstraZeneca
Vodafone Technology 77.54 26.85 104.39 29.31 28.83 39.46 34.63% Vodafone
British Petroleum Basic Materials 84.36 26.56 110.92 28.04 27.56 43.85 56.38% British Petroleum
Pfizer Healthcare 187.12 18.24 205.36 29.33 28.25 36.46 24.31% Pfizer
Barclays Financials 36.72 177.93 214.65 9.22 8.98 18.05 95.77% Barclays
HSBC Financials 123.95 180.02 303.97 31.81 31.05 50.26 58.00% HSBC
Citigroup Financials 111.36 368.85 480.21 38.5 36.68 60.95 58.31% Citigroup
Apple Consumer Goods 529.34 24.89 554.23 95.92 92 134.54 40.26% Apple

Sources: Finviz, Google Finance

You can track latest news and analysis for all the above mentioned stocks in one watchlist here.

Happy Investing!

Disclaimer: Please do your own analysis before investing in these stocks. We are just trying to help with some basic analysis.