Here in the middle of March the S&P/ASX 200 Index (ASX: XJO) (Index: ^AXJO) has declined about 1% over the last month. The recent earnings reporting season would have played a part in pushing up the market average, but the rise has settled down.
And that's good!
When you are looking to buy stocks, you want them as cheap as possible. Warren Buffett, probably one of the greatest investors of our time, is quoted as saying,
"Price is what you pay. Value is what you get."
What price opportunities over the last month is the market offering now?
Santos Ltd (ASX: STO) is down 6% from ongoing low crude oil prices pressuring LNG pricing. The company is starting LNG production at its GLNG project this year, but the world oil supply glut is dampening revenue prospects.
Retailing giant Woolworths Limited (ASX: WOW) has seen 8% shaved off its share price as slow growth, stronger competition and the ongoing loss of its Masters DIY hardware business weaken the company's outlook. Woolworths plans to create $500 million in cost savings to improve supermarket performance, so investors should look toward results over the next 1 – 3 years.
Suncorp Group Ltd (ASX: SUN), the insurer and banker, reported a 15% gain in half-year net profit, but has reduced top line growth targets to single digits. That may have led to the 4% share price decline. Its business simplification program is still on track to deliver about $225 million in savings in financial year 2015 with a further target of up to $265 million by financial year 2016. Investors should concentrate more on the bottom line after savings are achieved and stick with Suncorp.
Number one leader in telecommunications Telstra Corporation Ltd (ASX: TLS) also slipped 4% down with the market still showing concern about its overseas expansion plans. The company is also investing in its cloud network service, business enterprise solutions and the quickly growing e-health industry. Still, change and investments take time to produce a return. Long-term Foolish investors need to look at the bigger picture of where the company will be in 5 – 10 years.
