It is the beginning of a new year. Here in New Zealand an annual tradition is the media reporting of brokers views of the top stocks for the coming year. Here is one of the lists. We were not invited to participate this year - maybe next year. We decided to put out our list of our most undervalued and most overvalued NZX stocks - based on valuations done on the Valuecruncher blog. Unlike the lists in the media - our list includes our assumptions.

Valuecruncher Five Most Undervalued (Cheap)

1. Air New Zealand - +34.78%

2. Michael Hill - +31.34%

3. Sky TV - +31.22%

4. Nuplex - +26.19%

5. Rakon - +24.00%

Valuecruncher Five Most Overvalued (Expensive)

1. Mainfreight - -8.84%

2. Auckland International Airport - -7.65%

3. Fletcher Building - -7.29%

4. F&P Healthcare - -6.45%

5. Steel & Tube - -5.56%

Our valuations have been completed since early October 2008. The percentage over or under valuation was based on the share price at the time the valuation was completed. The Valuecruncher interactive model allows you to play with our assumptions. If you disagree with our analysis - change our assumptions and tell us what you think.

Comparing our list with the traditional brokers. Four of the six brokers list Sky TV - which is one of our picks as most undervalued. But also three of the six list F&P Healthcare - while we have it as one of our most overvalued.

We will revisit these valuations as the year progresses.

Disclosure: None

Tags: AIA, AIR, FBU, FPH, MFT, MHI, NPX, NZX, RAK, SKT, STU

This entry was posted on Tuesday, January 6th, 2009 at 9:34 am and is filed under Air New Zealand, Auckland International Airport, FP Healthcare, Fletcher Building, Mainfreight, Michael Hill, NZX, Nuplex, Rakon, Sky TV, Steel & Tube. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.