# Favourite undervalued blue chip?



## stockGURU (22 March 2005)

What's your favourite undervalued blue chip stock? There has to be some good value out there somewhere. Please note I am taking a medium to long term outlook.

At the moment I like PBB (Pacifica). Been sold down recently but I have a feeling it may be bottoming out. Been on a steady decline for around twelve months. There is solid long term support at around $2.50. Take a look at a 10 year PBB chart. Currently at $2.66 and although I'm not prepared to buy just yet it is one I am watching closely for signs of a definite turnaround.

What are your favourite undervalued blue chips?


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## DTM (22 March 2005)

stockGURU said:
			
		

> What's your favourite undervalued blue chip stock? There has to be some good value out there somewhere. Please note I am taking a medium to long term outlook.
> 
> At the moment I like PBB (Pacifica). Been sold down recently but I have a feeling it may be bottoming out. Been on a steady decline for around twelve months. There is solid long term support at around $2.50. Take a look at a 10 year PBB chart. Currently at $2.66 and although I'm not prepared to buy just yet it is one I am watching closely for signs of a definite turnaround.
> 
> What are your favourite undervalued blue chips?




If it's undervalued in a bull market then what would make it turn around?  

What would it's value be if the bull market turned into a bear one?  

In response to your question, SSX and OST are undervalued, although I'm not sure if they are blue chip.


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## stockGURU (22 March 2005)

DTM said:
			
		

> If it's undervalued in a bull market then what would make it turn around?
> 
> What would it's value be if the bull market turned into a bear one?




Each company is different. PBB operates primarily in the auto industry and is experiencing a soft market at the moment but revenue is forecast to improve strongly in 2006. I feel it has been sold off too far and am tipping it will bounce back over the next 12 months.

Like I said, I am asking people to approach this thread with a medium to long term outlook.


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## money tree (22 March 2005)

NAB
QAN
AMP


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## DTM (22 March 2005)

stockGURU said:
			
		

> Each company is different. PBB operates primarily in the auto industry and is experiencing a soft market at the moment but revenue is forecast to improve strongly in 2006. I feel it has been sold off too far and am tipping it will bounce back over the next 12 months.
> 
> Like I said, I am asking people to approach this thread with a medium to long term outlook.




Sorry, just had to ask the question.  I am also interested in your view how it would perform in a bear market (or the whole industry) if we do go through a downturn.  I'm sure that even if there's no bear market, we'll have to deal with a correction sooner or later.


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## whisky6210 (23 March 2005)

I prefer underestimated rather than undervalued.......ALINTA GAS (ALN)
   Watch this space.....


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## el_ninj0 (23 March 2005)

I'd have to say my favourite is MAP. Alot of potential, they have excellent financials, good management over the past 3 years, they own alot of alot. I think they'll be the one to go for in 2005 for blue chips.


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## seaurchin (23 March 2005)

stock guru....yes i was lured into Pbb..for afew reasons mainly yield..then i saw it looking weak @ 303 about and sold ...now again I gree with you support will come and a short term trade could also be made on the pivot or turn ...upwards...WHEN ?..i follow the crowd.
MY BEST POSSIBLE BLUE CHIP UDERVALUED IS ''INDEPENDENCE GROUP'' igo.
LOW pe..3-5 TIMES. AND I 'VE BEEN TOLD THIS WILL APPRECIATE IN PRICE BEFORE JUNE....WHICH IT IS ...JUST YESTRDAY GOT SOLD OFF AFTER XDIV.
tHIS COULD BE ENTRY LEVEL ..?? NO LIABILITY ...THANKS FOR LISTENING.


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## RichKid (23 March 2005)

My view is OST is undervalued and people have not recognised the advantage it has through owning its own iron ore supply (Bluescope BSL doesn't own iron ore mines).
ExDiv sell off continuing and a new CEO takes over in a few months and people are a bit cautious of steel companies like OST. It'll come back into favour once people refocus on the sector imo. Broad uptrend still continues.


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## skin (23 March 2005)

SOT - a little beauty - well managed and very agressive. Not really blue chip but will be.


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## chicken (24 March 2005)

I feel MAP...a very undervalued stock...also BPC...as very low PE...and earning will supprise...MAP..earned 73cents per share...and a pe of 2.6


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