3 ‘Bargain Basement’ Shares: Royal Dutch Shell Plc, J Sainsbury plc And Standard Chartered PLC


With the FTSE 100 continuing its fall and now being down over 2% since the start of October, a number of high-quality mega caps are trading at very attractive prices.

Certainly, they could dip further in the short run, as the Eurozone economy continues to struggle and question marks are raised regarding a tightening of monetary policy on both sides of the Atlantic.

However, for long-term investors, now could be the perfect time to invest in great value stocks. Here are three that could fit the bill.


2014 has been a positive year for Shell (LSE: RDSB), with sentiment improving as the company’s new strategy begins to take hold. Indeed, Shell’s goal of becoming smaller, more efficient, and more profitable seems to be paying off – as seen in its most recent results.

However, shares in the oil major have dipped in recent weeks and now offer superb value for money. Certainly, a weak oil price is hurting sentiment (and could continue to do so over the short term) but, with shares in the company trading on a price to earnings (P/E) ratio of just 10.1, they seem to offer superb value for money.

In addition, a yield of 4.8% should keep demand for shares in Shell buoyant as interest rates remain well below their historic average of 4% – 5%.

J Sainsbury

Clearly, J Sainsbury (LSE: SBRY) is going through a hugely challenging period at present. Indeed, investors in the stock are not buying a company that is experiencing a purple patch.

However, J Sainsbury’s current share price seems to have fallen to a point where it is unjustifiably low. Certainly, trading conditions are tough, but for shares in the company to trade below net asset value seems to indicate a strong buy signal.

With J Sainsbury having a price to book ratio of just 0.74 and a balance sheet that comes with plenty of cash and property, it could turn out to be a superb turnaround story over the long term.

Standard Chartered

While the first half of 2014 was tough for Standard Chartered (LSE: STAN), with profit falling by 20%, the Asia-focused bank continues to offer enticing value for money.

For example, shares Standard Chartered currently trade on a P/E ratio of just 10.3, which seems hugely appealing when you consider that earnings are forecast to grow by 10% next year.

This puts shares in the bank on a price to earnings growth (PEG) ratio of just 0.9, which indicates that not only are they cheap, but they also offer growth at a very reasonable price.

Of course, these 3 aren't the only shares that could be worth owning right now. So, which others should you buy, and why?

A free and without obligation guide from The Motley Fool could lend a helping hand. It details which stocks and sectors our analysts are bullish on and can best be summarised as a guide to Where We Think The Smart Money Is Headed.

It could help to boost your portfolio returns and make 2014 and beyond an even more prosperous period for your investments.

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Peter Stephens owns shares of Royal Dutch Shell and Sainsbury (J). The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.