Australian Investment Blog

Is there value in 3 underperforming household names?Good morning everyone and hope you all had a great weekend!OverviewSo far 2015 has been a fascinating but tough year for equities. The market is down almost 4% but some household names have been literally hammered e.g. ANZ Bank -14%, Seek -19% and BHP -35%.When household names get oversold the reactions can be dramatic as was witnessed by QANTAS rallying ~250% over the last few years; clearly aided by the collapse in oil prices that was significantly larger than analysts were predicting. However picking the bottom of stocks that are under pressure is statistically fraught with danger as was illustrated perfectly by Slater and Gordon's 74% plunge last week alone. Then we look at BHP where Market Matters has recently been looking to pick a value bottom which clearly illustrates how dangerous and potentially expensive this can be.Turning to the MarketsToday Market Matters has chosen 3 well known stocks that have fallen between 18 and 47% in 2015.1 Myer (MYR) $1.07