The Market Is on Sale But Only If You Know Where to Look 🧐

If investors are still piling into AI hype stocks, I’m doing the opposite. Instead of chasing Nvidia at all time highs, I’m looking at moaty companies (see key below) trading near book value and there are some real bargains out there.

Here’s what caught my eye this morning:

• Intel (INTC) - has taken a beating and is trading at about 1.1 times its book value. The U.S. government now owns around 10% of the company, which adds risk: the government might push for different goals than Intel’s managers, creating conflicts and slowing decisions. Keep that in mind before investing.
  

• Banks in East Africa are trading for less than their book value (P/B < 1) and still pay steady dividends. Decide in advance how you'll get in and out of the market before you put your money in.
  

• Commodities quietly rising - copper and gold are both signaling inflation might be creeping back. Pardon the pun, but dig deeper to find gold

My Watchlist Move:

I’m running a screen for companies with:

• Strong ROE (>15%)

• Trading below book

• Low debt-to-equity

Translation: I’m looking for high quality businesses (on sale) that can grow and multiply returns over time.

Bread Bin Take:
Markets look wobbly, but that’s usually where the bargains are hiding. Focus on what’s quietly discounted, not what’s loudly trending.

Key
 
Moaty Company = is a company with a strong, durable competitive advantage something that protects its profits from competitors over the long term. The term comes from Warren Buffett’s idea of a “moat” around a castle:

• The castle = the business

• The moat = whatever keeps competitors from invading (stealing market share)

ROE (Return on Equity) = Net income ÷ Shareholders’ equity.
It shows how well a company turns owners’ money into profit.

Quick points:

• 15% ROE = company made $0.15 for every $1 of owner capital.

• Higher is generally better, but watch for high debt or low equity inflating ROE.

• Best used vs peers and as a multi-year trend—not alone.

P/B < 1 = means a company's stock price is less than its book value (what its assets are worth on the books).

Quick points:

• Simple meaning: You're paying less than the company’s recorded net asset value.

• Why it matters: Can signal a bargain, the market may be undervaluing the company.

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⚠️ Disclaimer:
This is for educational purposes only, and is not financial advice. Always do your own research before making investment decisions.