U.S. Markets closed

Best Discounted Cylical Stocks in June

Bryan Cramer

China All Access (Holdings), China Display Optoelectronics Technology Holdings, and Cowell e Holdings are technology companies which share a common feature – they’re also great dividend stocks. The tech sector is known to be highly volatile and cyclical since firms face high competition, constant disruption and generally relies on consumer discretionary income. China All Access (Holdings) and China Display Optoelectronics Technology Holdings are tech companies that are currently trading below what they’re actually worth. Investors can benefit from buying these cyclical companies while they are discounted, because they gain when the market prices move towards the stocks’ true values. Below is a list of stocks I’ve compiled that are deemed undervalued based on the latest financial data.

China All Access (Holdings) Limited (SEHK:633)

China All Access (Holdings) Limited, an investment holding company, provides communication application solutions and services in the People’s Republic of China. Established in 2007, and headed by CEO Kwok Keung Shao, the company provides employment to 1,664 people and with the market cap of HKD HK$1.49B, it falls under the small-cap group.

633’s shares are currently hovering at around -70% less than its actual level of ¥2.64, at a price of HK$0.78, according to my discounted cash flow model. This mismatch indicates a chance to invest in 633 at a discounted price. Also, 633’s PE ratio is trading at around 5.43x compared to its Communications peer level of, 15.55x implying that relative to its peers, 633 can be bought at a cheaper price right now. 633 is also strong financially, as short-term assets amply cover upcoming and long-term liabilities.

More on China All Access (Holdings) here.

SEHK:633 PE PEG Gauge Jun 8th 18

China Display Optoelectronics Technology Holdings Limited (SEHK:334)

China Display Optoelectronics Technology Holdings Limited, an investment holding company, engages in the research, development, manufacture, distribution, and sale of liquid crystal display modules for mobile phones and tablets in Hong Kong, China, South Korea, and Taiwan. Started in 2004, and run by CEO Jian Li, the company now has 2,593 employees and has a market cap of HKD HK$1.50B, putting it in the small-cap group.

334’s stock is now hovering at around -55% under its true value of ¥1.6, at a price tag of HK$0.72, based on its expected future cash flows. This difference in price and value gives us a chance to buy low. Additionally, 334’s PE ratio is trading at 10.19x relative to its index peer level of, 13.32x indicating that relative to its comparable company group, 334 can be bought at a cheaper price right now. 334 is also a financially healthy company, as near-term assets sufficiently cover liabilities in the near future as well as in the long run.

Dig deeper into China Display Optoelectronics Technology Holdings here.

SEHK:334 PE PEG Gauge Jun 8th 18

Cowell e Holdings Inc. (SEHK:1415)

Cowell e Holdings Inc., an investment holding company, engages in the design, development, manufacture, and sale of camera modules for smartphones, multimedia tablets, laptops, PDAs, and other mobile devices with camera functions in China and South Korea. Established in 1992, and headed by CEO Kyung Lee, the company now has 4,267 employees and with the company’s market capitalisation at HKD HK$1.72B, we can put it in the small-cap group.

1415’s stock is now trading at -54% less than its actual level of $4.53, at a price tag of HK$2.07, based on my discounted cash flow model. This price and value mismatch indicates a potential opportunity to buy the stock at a low price. Moreover, 1415’s PE ratio stands at 7.94x against its its Electronic peer level of, 11.98x indicating that relative to its peers, we can buy 1415’s stock at a cheaper price today. 1415 is also a financially robust company, with near-term assets able to cover upcoming and long-term liabilities. Finally, its debt relative to equity is 14.13%, which has been falling over time, indicating its capacity to reduce its debt obligations year on year. More on Cowell e Holdings here.

SEHK:1415 PE PEG Gauge Jun 8th 18

For more financially sound, undervalued companies to add to your portfolio, explore this interactive list of undervalued stocks.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.