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The following is a list of seven low PE stocks which Soros Fund Management bought last quarter as released in their latest 13F filing with SEC.

Stock

Symbol

Shares Held - 06/30/2011

Shares Held - 09/30/2011

Forward PE

Sandisk Corp.

SNDK

0

394,668

9.54

YPF S.A.

YPF

233,400

544,400

7.26

Weatherford International Ltd.

WFT

458,600

1,320,800

8.83

Banco Bradesco S.A.

BBD

0

588,000

8.71

American Electric Power Co. Inc.

AEP

0

201,000

12.06

Hewlett-Packard Company

HPQ

79,300

377,616

5.9

Sanofi-Aventis

SNY

0

201,400

8.38

I believe Sandisk and YPF S.A. have a good chance to outperform the broader markets going forward.

SanDisk Corporation is engaged in designing, developing and manufacturing data storage solutions in a range of form factors using the flash memory, controller and firmware technologies. The Company’s products are used in a range of consumer electronics devices, such as mobile phones, tablets, eReaders, global positioning system (GPS) devices, gaming systems, imaging devices and computing platforms. Sandisk’s EPS forecast for the current year is $4.59 and next year is $5.07. According to the consensus estimates, its top line is expected to grow 17.30% next year.

In the near term, SanDisk is likely to benefit from an improved product mix as solid state drive adoption in PCs is accelerating due to the expected hard disk drive shortage caused by Thai floods. While the Thailand floods have negatively affected DRAM and PC, they are a net positive for the NAND market.

In the medium term SanDisk’s exposure to high growth NAND Flash market and increasing competitive barrier to entry in the NAND market are likely to bode well for SanDisk. Unlike DRAM, NAND is no longer a commodity business. Technical issues create huge variations in performance between solutions and higher performance solutions enabled by advanced controllers command high premiums.

SanDisk is financially strong with ~$2.5bn or $10/share in short term cash and $2.7bn or $11/share in long term investments offset by $1.6bn or $6.50/share in long term debt. Adjusted for cash Sandisk is trading at less than 6x FY12 earnings which is attractive given its leadership position in the industry.

YPF SA is Argentina’s largest integrated oil and gas company. Its business is structured in six activities: Exploration and Production; Refining and Logistics; Marketing; Chemicals; Lubricants, and YPF Gas. The Company’s majority shareholder is Repsol YPF SA. YPF’s EPS forecast for the current year is $3.87 and next year is $4.61. According to the consensus estimates, its top line is expected to grow 9.30% next year.

The company recently announced an upgrade on its unconventional shale oil to 927 million boe (up from previous 150 million boe). There is an enormous resource potential for the company from shale oil /gas in Argentina and it is likely going to be a key value driver in the long term. The company’s management is focussed on full appraisal/development of shale oil assets, with goal of 50tbpd of oil output in 2015-16 and eventual output of 80+ tbpd. This would enable YPF to provide 100% of crude processed in its refineries. The breakeven price for the development of shale oil would be at ~US$60/Bbl. Although company’s shale oil/gas resources will take a few more years to monetize, they can be company transforming and will unlock substantial value for long term investors.

Source: 7 Low PE Stocks George Soros Is Buying