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These well known, and not so well known companies are trading very close to, or below their stated book values. In general, these names offer earnings growth, reasonable PE ratios and even dividends in some cases. With markets getting more volatile, it makes sense to stay focused on companies that are trading at undervalued levels. If we see a market correction, I expect that these book value stock bargains will outperform. Here are the companies:
Molson Coors Brewing Company (TAP) shares are trading at $44.29. Molson Coors is a brewing company with a diversified line of products including Coors, Blue Moon, and Keystone. The 50 day moving average is $45.78 and the 200 day moving average is $46.09. Earnings estimates for TAP are about $3.84 per share in 2011 and even more for 2012 so the PE ratio is only about 11. TAP pays a dividend of $1.12 per share which is equivalent to a 2.5% yield. The book value is stated at $41.75.
Why Molson could be an attractive investment: These shares are trading at a discount to other brewers and beverage companies in terms of PE ratio. By comparison, Anheuser-Busch (BUD) is trading for about 17 times earnings. TAP shares have fallen from about $50 since the beginning of this year, which has created an opportunity to buy cheap now. TAP insiders are seeing the value in these shares and have been buying, which you can see here.
Aercap Holdings (AER) shares are trading at $12.91. Aercap is a leading aviation leasing company. The 50 day moving average is $14.21 and the 200 day moving average is $12.91. AER is estimated to earn about $1.82 per share in 2011. This puts the PE ratio at about 7 which is extremely low for this well managed company. Book value is listed at $16.26 per share which is significantly less than the current share price.
Why Aercap could be an attractive investment: These shares are trading at a substantial discount to the market PE ratio, below book value, and they are trading close to strong support levels which is the 200 day moving average of $12.91. The recent drop to these levels looks like a low risk buying opportunity.
Allstate (ALL) shares are trading at $31.36. Allstate is a leading insurance company based in Illinois. The 50 day moving average is $31.25 and the 200 day moving average is $30.11. Earnings estimates for ALL are about $3.39 per share in 2011 and $3.78 for 2012 so the PE ratio is about 9. ALL pays a dividend of 84 cents per share, which is equivalent to a 2.6% yield. The book value is stated at $35.68.
Why Allstate could be an attractive investment: These shares are trading at a low PE ratio and earnings are expected to grow. Add a solid dividend and a share price that's about 10% below book value. Allstate looks like a low risk investment at these levels.
Federal Agricultural Mortgage (AGM) shares are trading at $18.48. This company is based in Washington, DC, and provides agricultural loans. The 50 day moving average is $17.79 and the 200 day moving average is $14.58. AGM pays a dividend of 20 cents per share which is equivalent to a 1.1% yield. The book value is stated at $19.07.
Why Federal Agricultural Mortgage could be an attractive investment: Farmland and other rural properties have held up better and rebounded in value lately due to strong demand for agricultural properties. These shares regularly traded for over $25 a couple of years ago, and could be headed back to those levels. This stock is volatile, I would only buy this on pullbacks.
JA Solar (JASO) shares are trading at $6.49. JA Solar is a leading manufacturer of solar products and is based in China. The 50 day moving average is $7.29 and the 200 day moving average is $7.05. Earnings estimates for JASO are about $1.35 per share in 2011 and even more for 2012, so the PE ratio is only about 4. The book value is stated at $6.22.
Why JA Solar could be an attractive investment: These shares are dirt cheap from a book value and earnings per share perspective. JASO recently announced a deal with MEMC Electronics (WFR) which adds to future growth potential. You can read more about JASO in this great article written by "Investing Hobo" who is brilliant when it comes to analyzing solar stocks. This one is also good.
Arch Capital Group (ACGL) shares are trading at $94.56. Arch Capital is a leading insurance and reinsurance company based in Bermuda. The 50 day moving average is $89.76 and the 200 day moving average is $84.55. Earnings estimates for ACGL are about $6.82 per share in 2011 and $8.16 for 2012. The book value is stated at $90.88.
Why Arch Capital could be an attractive investment: These shares are trading at a low PE ratio, and earnings are expected to grow substantially higher in 2012. Arch Capital looks like a low risk investment, if you can buy on dips between $85 to $90 per share.
Astoria Financial (AF) shares are trading at $13.98. Astoria is a savings and loan company, based in New York. The 50 day moving average is $14.22 and the 200 day moving average is $13.27. Earnings estimates for AF are about 87 cents per share in 2011 and even more for 2012. AF pays a dividend of 52 cents per share which is equivalent to a 3.8% yield. The book value is stated at $13.41.
Why Astoria could be an attractive investment: These shares are trading for about book value and offer a solid dividend. AF shares regularly traded for over $20 before the financial crisis, and could be headed back to those levels as earnings grow.
The data is sourced from Yahoo Finance. The information and data is believed to be accurate, but no guarantees or representations are made. Rougemont is not a registered investment advisor and does not provide specific investment advice. The information contained herein is for informational purposes.



Disclosure: I am long AER. I may go long on JASO soon.

Source: 7 Stock Bargains Based on Book Value