How to find ridiculously cheap stocks

The trick to successful investing is finding cheap stocks. But how do you do that? Phil Oakley explains one classic approach, and picks three stocks worth keeping an eye on.

Ask an expert what works in investing, and quite often you'll get the reply: "buy cheap stocks".

That's all well and good. But how?

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Share price (p)398.121.7571.2
Book value per share (p)545.374.7116
Working capital per share (p)501.963.649
Price/earnings ratio15.2N/A12.1
Dividend yield (%)1.97.44.9

Phil spent 13 years as an investment analyst for both stockbroking and fund management companies.

 

After graduating with a MSc in International Banking, Economics & Finance from Liverpool Business School in 1996, Phil went to work for BWD Rensburg, a Liverpool based investment manager. In 2001, he joined ABN AMRO as a transport analyst. After a brief spell as a food retail analyst, he spent five years with ABN's very successful UK Smaller Companies team where he covered engineering, transport and support services stocks.

 

In 2007, Phil joined Halbis Capital Management as a European equities analyst. He began writing for MoneyWeek in 2010.