FirstGroup (LSE: FGP) and Anglo American (LSE: AAL) are starting to look like buying opportunities.
The FTSE 100 (UKX) looked like it was well away from its 52-week low of 5,075 points and more likely to breach its 52-week high of 5,989. But with the eurozone plunging back into recession, we can't be so sure now. Still, at least the current level of 5,743 points is nearer the top of the range than the bottom.
Sadly, even if the index is well away from its low point, there are individual shares hitting the depths every day. Here are three trading close to their 12-month low points:
FirstGroup
Shares in travel operator FirstGroup (LSE: FGP) have been on a slide this year, and are now down around 50% over the past 12 months to 176p -- and that's just a penny above their 52-week low of 175p. FirstGroup's woes stemming from the farce that was the West Coast train line franchise are well publicised, but that is only a part of the problem, and the shares were already well down before the cancellation was announced.
But if you're looking for battered companies due a recovery, City expectations put FirstGroup shares on a price-to-earnings (P/E) ratio of only 6. And there's a surprisingly high dividend yield, of 13%, forecast. But there's an awful lot of debt on the books, too.
Anglo American
Nobody needs telling that miners are in the dumps right now, and Anglo American (LSE: AAL) is one of the hardest hit. The share price, at 1,690p, is only a little above its 52-week low of 1,664p set last Friday, and it looks like it's moving down again today.
There's a big fall in profits expected this year, but forecast growth for 2013 puts the shares on a P/E of under 10. Are Anglo American shares oversold and too cheap now? With a longer-term view, I think they may well be.
Chemring
Aerospace and defence engineer Chemring Group (LSE: CHG) has had a bad year, with the share price down nearly 50% on a year ago. In fact, at 215p, the price is today heading for its lowest 52-week close price. Chemring replaced its chief executive last month, with turnaround expert Mark Papworth taking the helm, and that cast doubt on rumours of a takeover by US equity investment firm Carlyle.
With the price having fallen since then, and forecasts now putting the shares on a P/E of just 5.6, is this another recovery candidate? Could be.
Finally, how does Britain’s ace investor Neil Woodford avoid share price falls? He goes for a strategy of buying solid blue-chip shares paying dependable long-term dividends. And in doing so, he's built a record of beating the FTSE for nine straight years.
If you want to see how Mr Woodford manages to beat the market, the free Motley Fool report "8 Shares Held By Britain's Super Investor" takes a look at some of his key holdings. To get your copy, click here while it’s still available.
> Alan does not own any shares mentioned in this article.
