# Low PE producing stocks



## prawn_86 (12 January 2008)

I have recieved a few questions from members lately with regards to what stocks have low PE's.

The following are my pick of the bunch:

*AZC - Aus Zircon.*
Has recently began mining and yet SP has continued to slide downwards. Forecast EPS of 4 - 6 cps before any production ramp ups put this at a PE of 4

*IRL - India Resources*
Has also just begun mining, Copper concentrate out of the Surda mine in India. Depending on how well production goes and how quickly the ramp it up to full capacity its PE on the surda mine alone is between 2 - 5. Plus holds other investments and lots of exploration targets.

*RRT - Record Realty Trust*
Not a miner but a low PE of 3 and a div yeild of about 11%. Current price 61c with NTA per share of around $1.10. Something doesnt add up, but this will probably be my next buy when i get some cash.

*FDY - Findlay Securities*
Again, not a miner, but a current PE of 4. The more market turnover there is, the more these guys make, simple as that. Illiquid though, which seems to hurt it at the moment. Once profit anns come through this should change


For more detailed info i suggest you read through each stocks thread.


And putting my mod hat on: 
I am doing this to help others out and you are more than welcome to comment or add your own low PE stocks, but lets not turn this into a ramping thread. Stocks posted without analysis will be removed.

Enjoy!

Prawn

**Disc - At this point of time I only hold IRL, but wish i held them all**


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## Awesomandy (12 January 2008)

prawn_86 said:


> *RRT - Record Realty Trust*
> Not a miner but a low PE of 3 and a div yeild of about 11%. Current price 61c with NTA per share of around $1.10. Something doesnt add up, but this will probably be my next buy when i get some cash.




Last time I checked, their dividends are generally generated by refinancing their properties, and, in the current climate... good luck is all I can say.


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## prawn_86 (12 January 2008)

Awesomandy said:


> Last time I checked, their dividends are generally generated by refinancing their properties, and, in the current climate... good luck is all I can say.




From one of their last anns:


> Further, only four of the forty assets representing 5.4% of the
> total asset level debt, have debt that will expire on or before April 2010.




It is a complex business structure, but what i gathered is their divs are generated from selling assets. Perhaps they meant selling from one loan to another  Now i know this isnt good policy, but with such a large SP vs NTA difference i think there is upside here.


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## treefrog (12 January 2008)

at the risk of getting bumped because there is minimal research behind these
but with discussion about low PE stocks in ZFX thread I did a search for low PE stocks with reasonably good capitalisation (> $100m) and these came up

posted here for people to do their own research to sort the wheat from the chaff (I know everone always does their own research don't they - so that was a bit redundant - wasn't it!!)

a start - no idea how much of producers they 

ASX Code Co Name P/E Ratio Market Cap 

CER Centro Retail Group 2.29 1,337,543,663 

PMV Premier Investments Limited 1.19 766,593,427 
CNP Centro Properties Group 1.80 726,799,732 
TSO Tishman Speyer Office Fund 3.17 490,518,218 

TWR Tower Limited 2.69 376,892,772 
LRF LinQ Resources Fund 2.10 365,808,010 
WOTCA Westpac Office Trust 3.78 279,044,444 
AAH Arana Therapeutics Limited 1.43 260,834,501 
RRT Record Realty 2.83 245,546,874 
CTN Contango Microcap Limited 2.26 198,223,709 
IEF ING Real Estate Entertainment Fund 3.31 196,221,595 
HAP HFA Accelerator Plus Limited 3.26 189,060,671 
MAFCA Multiplex Prime Property Fund 2.95 180,329,521 
WAM WAM Capital Limited 3.76 177,013,465 
FPG Forest Place Group Limited 3.10 136,254,539 
CPK CP1 Limited 2.89 121,917,633 

MFI Mariner Financial Limited 3.02 103,424,712 
RHG RAMS Home Loans Group Limited 2.24 99,076,807 
SLF SPDR S&P/ASX 200 Listed Property Fund 3.87 83,856,017 
ALF Australian Leaders Fund Limited 3.92 82,502,979 
FGE Forge Group Limited 0.99 78,462,040 
DES Destra Corporation Limited 2.74 77,460,246 

PNN PepinNini Minerals Limited 3.42 72,667,873 
HWG Hostworks Group Limited 1.59 65,920,110 
NAM Namoi Cotton Co-Operative Limited 3.87 49,830,205 
KAT Katana Capital Limited 3.99 47,520,672 
LIC Lifestyle Communities Limited 1.62 46,555,981 
GLE GLG Corp Ltd 3.59 34,086,000 
CDM Cadence Capital Limited 3.16 29,144,731 
OEQ Orion Equities Limited 2.18 21,911,698 
AHC AHC Limited 3.01 21,817,653 
TAG Tag Pacific Limited 3.30 21,377,518 
TWT TWT Group Limited 3.70 20,599,691 
SCB Scarborough Equities Limited 2.87 18,356,243 
FTD Fig Tree Developments Ltd 0.27 16,228,281 
GUL Gullewa Limited 2.98 15,741,443 
EPY E-pay Asia Limited 1.84 15,066,488 
MPJ Mining Projects Group Limited 1.74 14,668,351 
TDI Tidewater Investments Limited 2.63 12,608,401 
TTH Tooth & Company Limited 3.33 12,444,402 
LCE London City Equities Limited 1.58 12,393,125 
TVN TVN Corporation Limited 0.42 10,316,846


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## lazyfish (12 January 2008)

*IPM* - Incremental Petroleum Limited

Oil producer and developer, gas developer. Currently trading at a PER of 6.9 (based on last financial year). Has a 50% dividend pay out policy. Also developing gas prospects in northern Turkey with OEL (self funded from memory).

Disclosure I own this and have just recently topped up.


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## dhukka (12 January 2008)

Awesomandy said:


> Last time I checked, their dividends are generally generated by refinancing their properties, and, in the current climate... good luck is all I can say.




A quick glance at the 2007 financials for RRT show they have been using the same ponzi financing scam as the likes of centro. *$1.9 *billion in debt vs *$420m* in equity, I wouldn't put much faith in their ability to generate high payout ratios going forward. 5.4% of almost $2 billion is still a lot to refinance and I doubt they will get as favourable terms as they have in the past.


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## dhukka (12 January 2008)

prawn_86 said:


> Stocks posted without analysis will be removed.




And the 2 lines you've written on each of these stocks constitutes analysis? Do we need mods to moderate the mods?


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## Nyden (12 January 2008)

dhukka said:


> And the 2 lines you've written on each of these stocks constitutes analysis? Do we need mods to moderate the mods?




He didn't say *detailed* analysis, but rather I believe he wants some form of description about the stock, a rough piece..

Although, listing TMR seems a little iffy :
Thread isn't 'stocks that may become low PE'


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## ZacR (12 January 2008)

Nyden said:


> He didn't say *detailed* analysis, but rather I believe he wants some form of description about the stock, a rough piece..
> 
> Although, listing TMR seems a little iffy :
> Thread isn't 'stocks that may become low PE'





I agree, "but once new copper mine comes online this year (hopefully)" is hardly analysis...  So let's say people who put up a stock name and nothing else will be bumped, yea ?


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## prawn_86 (12 January 2008)

The reason i put 'hopefully' for TMR is the fact that nearly every mining project runs behind schedule. I have also stated that people are free to go over to each stocks thread and discuss there or find more detailed info 

And in hindsight it probably doesnt fit perfectly under this title so i have now removed it...


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## mrgroundwork (14 January 2008)

Crown (CWN) has a very low PE at the moment due to recent SP weakness... fair enough it is going to have to generate a lot of its future growth through acquisitions, but it does seem mighty cheap for a quality large cap... 

people will still gamble even through recessions and it has very strong and stable cashflows... just a thought...


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## gfresh (17 January 2008)

ASX Code Co Name P/E Ratio Market Cap

MCR Mincor Resources NL 6.20 643M (4.3% div yield)


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