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As worries in Europe continue to push markets downward, many stocks are now selling at a relative discount. This two-part series will focus on stocks that appear undervalued due to low price-to-book ratios (P/B) and high, over 20%, return on equity (ROE).

A company's price-to-book ratio and return on equity are generally good fundamental statistics to look at when beginning a search for value opportunities. A low P/B, a ratio used to compare a stock's market value to its actual book value, and a high ROE, a percentage measurement that shows the amount of profit a company generates with the money invested by shareholders, often times indicates a strong company that is currently undervalued by investors.

Below is a list of eight stocks with over 30% ROE that are currently selling for less than book (P/B < 1), sorted by ROE:

This list of equities is offered as speculation. P/B and ROE should be used in conjunction with other statistics to determine investment opportunity. Please perform thorough fundamental and technical research before investing.

Callon Petroleum Co. (NYSE:CPE) has a P/B of 0.97 with a ROE of 69.01%. The company holds an average analyst price target, from a total of six analysts, of $9.08, 99.56% above its current price of $4.55.

The stock recently broke below up-trending support but will likely find strong support at $3.50, a price level it has not lingered below since early 2010.

(click charts to enlarge)

Full House Resorts Inc. (NASDAQ:FLL) has a P/B of 0.71 with a ROE of 54.84%. The company holds an analyst price target of $5.00, 68.35% above its current price of $2.97.

The stock has been trading within a consistent price channel with a wide, $1.00 range between the $2.40 and $3.40 price levels. No other significant support or resistance levels are apparent.

Westell Technologies Inc. (NASDAQ:WSTL) has a P/B of 0.73 with a ROE of 54.83%. The company holds an average analyst price target, from a total of two analysts, of $3.50, 65.88% above its current price of $2.11.

The stock is now trading near a strong $2.00 support level, potentially offering a good entry point. The company has not traded below this price for more than a week since August, 2010.

MGM Resorts International (NYSE:MGM) has a P/B of 0.92 with a ROE of 50.31%. The company holds an average analyst price target, from a total of 20 analysts, of $15.98, 46.47% above its current price of $10.91.

The stock recently found price resistance at $14.50 and looks to be heading back toward strong support at the $9.00 level. As MGM has not traded below $9.00 for more than a week since August, 2009, if the stock continues to move closer to this support level value investors should take notice.

Network Engines, Inc. (NASDAQ:NEI) has a P/B of 0.37 with a ROE of 47.62%. The company holds an average analyst price target, from a total of two analysts, of $1.68, 93.10% above its current price of $0.87.

As this stock is naturally very volatile at its current price level and shows no significant levels of support or resistance, investors should use caution and thoroughly research this company before investing.

Safeguard Scientifics, Inc. (NYSE:SFE) has a P/B of 0.94 with a ROE of 37.94%. The company holds an average analyst price target, from a total of three analysts, of $21.33, 37.88% above its current price of $15.47.

The stock has recently broken below up-trending support but appears to be consolidating near the $15.00 price level. Additional, strong support should be found at the $13.50 price level, a price the stock has not lingered below since October, 2010.

Entercom Communications Corp. (NYSE:ETM) has a P/B of 0.74 with a ROE of 32.48%. The company holds an analyst price target of $14.00, 178.88% above its current price of $5.02.

The stock is trading just above strong support at the $4.75 price level, offering a good entry point for value investors. Entercom Communications Corp. has not traded below this $4.75 support level for more than a week since September, 2009.

Casual Male Retail Group, Inc. (CMRG) has a P/B of 0.90 with a ROE of 32.12%. The company holds an average analyst price target, from a total of three analysts, of $5.33, 81.29% above its current price of $2.94.

The stock has recently fallen below strong support at the $3.00 price level. As no other significant support levels are apparent, it is unclear when or at which price level this stock may consolidate in the future.

Source: 15 Stocks With Over 20% Return On Equity Selling For Less Than Book, Part I: 30% + ROE