Saturday, 19. August 2017  
15.04.2017 00:13
Author: Nic Wright

STOCK SCREEN: Potential Turnaround Stocks With Significant Upside To Intrinsic Value (Part 1: Iberia)

 

Investing in distressed companies can produce enormous gains, if the recovery is successful. However, almost two third of all distressed companies don't recover, and some decay into bankruptcy, where equity holders usually get wiped out and bond holders may get a partial or full recovery.

 

In looking for ideas this week, we screen as a part 1 of a Turnaround Stock Screen series the Iberian region of Europe for companies that have declined in market value over the last 5 years, are significantly below our AVM’s fair value and have stabilized in market value during the last 6 months. Above that we require supportive director’s dealings within the last 12 months.

 

Here are the filter criteria:

1. Market capitalization above 0.5bn.

2. Above 20 percent Upside according to at least one of our AVM’s fair value estimate.

3. Share purchases by directors within last 12 months.

 

Here is our list of stocks matching all criteria in alphabetical order. Company names in the table below are linked to the ANALYZER, our single stock analysis tool. Intrinsic Value Model assumptions can be adapted in the MODELER, our modeling and forecasting environment:

CLICK COMPANY NAME FOR DETAILED STOCK VALUE ANALYSIS

COUNTRY

LAST PRICE

MARKET CAP.

MEAN MULTIPLE UPSIDE [%]

GRAHAM UPSIDE [%]

GREENBLATT UPSIDE [%]

DIVIDEND YIELD [%]

 ACCIONA SA

 Spain

74,25

4252

20,7

-100,0

-100,0

3,9

 ACS ACTIVIDADES CONS Y SERV

 Spain

32,81

10323

161,2

72,7

-12,6

3,6

 EDP-ENERGIAS DE PORTUGAL SA

 Portugal

3,14

11492

23,0

-22,3

-19,4

6,1

 MOTA ENGIL SGPS SA

 Portugal

2,27

538

46,2

119,7

177,9

3,1

 SACYR SA

 Spain

2,25

1162

61,5

-100,0

-100,0

2,9