Cheap Stocks To Watch Out For In March

Qantm Intellectual Property and WONHE Multimedia Commerce are companies that are currently trading below what they’re actually worth. Investors can determine how much a company is worth based on how much money they are expected to make in the future, or compared to the value of their peers. The list I’ve put together below are of stocks that compare favourably on all criteria, which potentially makes them good investments if you believe the price should eventually reflect the stock’s actual value.

Qantm Intellectual Property Limited (ASX:QIP)

QANTM Intellectual Property Limited providing IP services for start-up technology businesses, multinationals, public research institutions, and universities in Australia and internationally. Qantm Intellectual Property was founded in 1879 and with the market cap of AUD A$156.16M, it falls under the small-cap group.

QIP’s shares are currently trading at -33% beneath its true value of $1.75, at the market price of AU$1.18, according to my discounted cash flow model. This mismatch signals an opportunity to buy QIP shares at a discount. Additionally, QIP’s PE ratio is currently around 14.63x compared to its Professional Services peer level of, 18.61x indicating that relative to its peers, you can buy QIP for a cheaper price. QIP is also a financially robust company, with short-term assets covering liabilities in the near future as well as in the long run.

Continue research on Qantm Intellectual Property here.

ASX:QIP PE PEG Gauge Mar 26th 18
ASX:QIP PE PEG Gauge Mar 26th 18

WONHE Multimedia Commerce Limited (ASX:WMC)

WONHE Multimedia Commerce Limited designs and develops software and hardware technology products in the People’s Republic of China. WONHE Multimedia Commerce was established in 2010 and with the company’s market capitalisation at AUD A$18.23M, we can put it in the small-cap group.

WMC’s shares are currently hovering at around -92% under its real value of $1.53, at a price of AU$0.12, according to my discounted cash flow model. The difference between value and price signals a potential opportunity to buy WMC shares at a discount. What’s even more appeal is that WMC’s PE ratio stands at 3.23x while its Communications peer level trades at, 26.92x indicating that relative to other stocks in the industry, you can buy WMC for a cheaper price. WMC is also robust in terms of financial health, with short-term assets covering liabilities in the near future as well as in the long run.

Interested in WONHE Multimedia Commerce? Find out more here.

ASX:WMC PE PEG Gauge Mar 26th 18
ASX:WMC PE PEG Gauge Mar 26th 18

OZ Minerals Limited (ASX:OZL)

OZ Minerals Limited engages in the exploration, development, mining, and processing of mining projects in Australia. The company now has 297 employees and with the market cap of AUD A$2.69B, it falls under the mid-cap group.

OZL’s shares are now trading at -58% below its true level of $21.21, at a price tag of AU$9.00, based on my discounted cash flow model. The divergence signals an opportunity to buy OZL shares at a low price. Furthermore, OZL’s PE ratio stands at around 11.63x while its Metals and Mining peer level trades at, 12.8x suggesting that relative to other stocks in the industry, OZL can be bought at a cheaper price right now. OZL is also in great financial shape, as near-term assets sufficiently cover liabilities in the near future as well as in the long run. OZL has zero debt on its books as well, meaning it has no long term debt obligations to worry about. More on OZ Minerals here.

ASX:OZL PE PEG Gauge Mar 26th 18
ASX:OZL PE PEG Gauge Mar 26th 18

For more financially sound, undervalued companies to add to your portfolio, explore this interactive list of undervalued stocks.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

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