If you belong to the value investing camp, one way to search for investment ideas is to look at stocks trading near their 52-week lows. Stocks under this category are usually beaten down because of their poor long-term business fundamentals. However, some of them could be trading at their 52-week lows due to weak short-term market sentiments. If investors can pick out those temporarily unloved gems, they could turn out to be profitable investments over the long run.

Screening for 52-Week Low Stocks

I ventured on my journey to find stocks that are beaten down among the Straits Times Index (STI) components. I picked the Singapore benchmark instead of the whole stock market to narrow down the universe of stocks from more than 700 to just 30. With the help of the stock screener available at StocksCafe, I screened for blue-chips that are trading very close to their 52-week low share prices....