Top 5 value stocks for October 2021

Highlights

  • Publicly traded companies whose stocks trade for relatively lower prices compared to their earnings and growth potential in the long term are deemed as value stocks. 
  • Some studies have demonstrated that a short-term focus can often push prices to lower levels creating buying opportunities for investors.

Value stocks are those which are remains undervalued by the stock market, or simply publicly traded companies whose stocks trade for relatively lower prices compared to their earnings and growth potential in the long term are deemed as value stocks. 

Some of the best metrics for evaluating best value stocks include price-to-earnings or P/E ratio and Price-to-book (P/B) ratio. Some studies have demonstrated that a short-term focus can often push prices to low levels creating buying opportunities for investors.

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Let’s take a look at some of the top value stocks in the UK for the month of October. The selection has been made on a standardised metric of lower price to earnings and lower price to book value, particularly below 1.2X, however, there are many other criteria to identify value stocks, and that needs to be considered as well.

Starvest Plc (LON: SVE)

AIM-listed Starvest is a British investment firm engaged in supporting early-stage mineral exploration projects. It focuses on focus on small firm issues and pre-initial public offering prospects.

The company’s focus on precious metals helped it endure the impact of the pandemic. Although its net asset value declined from £17.95 million as of 30 September 2020 to £16.72 million as of 30 March 2021, however, it increased by 220% year-on-year from £4.56 million as of 30 March 2020. The company’s net asset value grew to £19.09 million as of 30 April 2021.

The shares of Starvest have a market capitalisation of £9.28 million as of 29 September 2021. Starvest’s P/E ratio is 0.91x, and the price to book value per share ratio is 0.63x.

Red Rock Resources Plc (LON: RRR)

Red Rock Resources is a natural resource development and exploration company. Its main activities include gold mining and exploration in Ivory Coast and Kenya. Recently, the company disposed of a substantial portion of its holding in Jupiter at an average price of AUD 0.304 per share or a total of AUD2.32 million. It also completed a 115-line KM of IP survey in the Masurura area of the Mikei Gold Project in Kenya.

For the half-year ended 31 December 2021, Red Rock Resources’ cash and cash equivalents stood at £435k compared to £139k as of 31 December 2019.

The shares of Red Rock Resources have a market capitalisation of £7.00 million as of 29 September 2021. Red Rock Resources’ P/E ratio is 1.13, and the price to book value per share ratio is 0.33.

Georgia Capital Plc (LON: CGEO)

Georgia Capital is an investment firm focused on developing businesses. The company recorded a NAV per share (GBP) increase of 24.9% in Q2 2021 (15.2% in H1 2021) and a quarterly EBITDA of GEL114 million, representing an increase of 89.1% year-on-year.

It also announced divestment of US$35 million worth of commercial real estate properties at a premium of 15.4% completed during Q2 2021.

The shares of Georgia Capital have a market capitalisation of ££283.87 million as of 29 September 2021. Georgia Capital’s P/E ratio is 0.87, and the price to book value per share ratio is 0.48.

Bristol & West Plc (LON: BWSA)

Bristol & West is a financial services company and a subsidiary of Bank of Ireland UK Holdings plc. It was formerly engaged in providing savings and lending products through various distribution channels.

Bristol & West recorded a profit before tax of £0.5 million for the six months ended 30 June 2021 compared to £1.3 million for the half-year ended 30 June 2020. Its cash and cash equivalents at the end of 30 June 2021 was £11.7 million.

The shares of Bristol & West have a market capitalisation of £50.68 million as of 29 September 2021. Bristol & West’s P/E ratio is 0.24, and the price to book value per share ratio is 0.02.

Golden Prospect Precious Metals Ltd (LON: GPM)

Golden Prospect Precious Metals is an investment firm focused on investments in gold and precious metal companies.

The shares of Golden Prospect Precious Metals have a market capitalisation of £35.27 million as of 29 September 2021.

The company recorded a net income of £32,318 for the year ended 31 December 2021. Its cash and cash equivalents at the end of the year was a loss of £1.95 million.

The shares of Golden Prospect Precious Metals have a market capitalisation of £35.27 million as of 29 September 2021. Golden Prospect Precious Metals’ P/E ratio is 1.19, and the price to book value per share ratio is 0.62.

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