After being a major laggard in 2020, the Straits Times Index (STI) is finally waking up from its slumber. Year-to-date (as of 26 March), the benchmark index for the Singapore stock market is up 11.1%, outpacing all the major world benchmark indices. This includes the US’ Dow Jones Industrial Average and S&P 500. Source: Singapore Exchange If things continue the way it has, it will be the STI’s best first quarter in nine years. However, despite the optimism surrounding the index, a couple of blue chips are still selling at below their net asset or book values. Potentially Undervalued Companies The late Benjamin Graham, who is often touted to be the father of value investing, liked to purchase a stock for less than its intrinsic value. For example, when we purchase $1 worth of an asset for 50 cents, we have a margin of safety of 50%, and this “safe distance” can help minimise the downside risks of the investment....