Core Insights - The article emphasizes the focus on value investing in Asia, particularly in Hong Kong, targeting stocks with significant discrepancies between market price and intrinsic value [1] - It highlights two main categories of investment opportunities: deep value balance sheet bargains and wide moat stocks, which are characterized by their strong competitive advantages [1] Group 1: Investment Strategy - The research service aims to identify deep value balance sheet bargains, such as net cash stocks and low price-to-book (P/B) ratio stocks, which are available at a discount [1] - It also seeks wide moat stocks, which are high-quality businesses with strong earnings power that can be acquired at a discount [1] - The service provides monthly updates and watch lists to assist investors in tracking potential investment opportunities [1] Group 2: Market Focus - The primary focus is on the Asian equity market, with a particular emphasis on Hong Kong-listed stocks [1] - The service is designed for value investors looking for unique investment opportunities in the region [1]

Core Insights - The article discusses the current market concerns regarding high valuations in the tech sector, particularly highlighted by Palantir's nearly 8% drop despite strong earnings, which contributed to a broader market sell-off [2][3] - It emphasizes the potential of deep value stocks as attractive investment opportunities amidst the ongoing AI boom and market volatility [4] Market Overview - Investor discussions are increasingly focused on the high valuations of tech stocks and the potential for a market correction, with Palantir's decline serving as a key example [2] - The S&P 500 fell by 1.17% and the Nasdaq by over 2% following the market reaction to Palantir's performance [2] Expert Opinions - CNBC's Jim Cramer noted that the market's focus on high-growth speculative stocks may lead investors to overlook other opportunities within the S&P 500, where many stocks are trading at reasonable valuations [3] - Cramer views Palantir's decline as a cooling moment for overheated valuations rather than a sign of weakness [3] - Goldman Sachs's David Solomon predicts a potential 10% to 20% drawdown in equity markets within the next 12 to 24 months [4] Investment Strategy - The article suggests that while high-growth tech and AI stocks dominate headlines, there are significant opportunities in deep value stocks, which are characterized by low valuations, steady earnings, and strong fundamentals [4] - The methodology for selecting deep value stocks includes screening U.S.-listed companies with a market capitalization over $2 billion, a forward P/E ratio of 8 or lower, a return on equity of at least 10%, and a dividend yield of at least 1% [7] Deep Value Stocks - The article presents a list of 12 deep value stocks, starting with Bread Financial Holdings, Inc. (NYSE:BFH), which has a forward P/E of 6.54, a return on equity of 14.78%, and a dividend yield of 1.45% [9] - Bread Financial's recent Q3 results exceeded analyst expectations with an EPS of $4.02, supported by a 5% YoY growth in credit sales [11] - Vale S.A. (NYSE:VALE) is highlighted as another deep value stock, with a forward P/E of 6.64, a return on equity of 13.27%, and a dividend yield of 6.6% [13] - Vale's Q3 results showed a 17% YoY EBITDA growth to $4.4 billion, driven by strong iron ore and base metals output [15] - Lincoln National Corporation (NYSE:LNC) is also included, with a forward P/E of 5.23, a return on equity of 23.08%, and a dividend yield of 4.17% [16] - Lincoln reported an EPS of $2.04 for Q3, beating expectations and marking its fifth consecutive quarter of adjusted operating income growth [18]

Core Viewpoint - Bristol-Myers Squibb Company (NYSE:BMY) is identified as a trending stock with significant deep value potential, trading at a substantial discount to fair value and offering a high dividend yield [1][2] Group 1: Stock Valuation and Performance - BMY is rated as a five-star stock, trading at a 33% discount to its fair value [1] - The stock offers a dividend yield of 5.6% and trades at under eight times earnings estimates for the current year [1] - The company has faced challenges with upcoming patent expirations but has a promising pipeline that may not be fully recognized by the market [1] Group 2: Patent Expiry and Market Competition - BMY has three major franchises facing patent expirations: Revlimid (generic competition starting in 2026), Eliquis (generic entry in 2028/29), and Opdivo (biosimilar competition starting in 2029) [2] - The company is attempting to mitigate the impact of these expirations with new product formulations, such as a subcutaneous version of Opdivo [2] Group 3: Investment Sentiment and Positioning - PGIM Jennison Health Sciences Fund initiated a position in BMY due to perceived undervaluation and positive expectations for its neuropsychiatric drug Cobenfy [2] - The fund later took profits as the stock rallied, but subsequently reduced its position due to concerns over trial designs and disappointing updates on key products [2]