Which Blue Chips to Buy on Dips?

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Collated using Shareinvestor

The onslaught of bad sentiments recently have caused substantial correction to our index stocks. I base my "stocks to watch" criteria on four aspects : High rolling EPS, Positive Earnings CAGR, Price/Nav of <2x and PE of <12x.

Despite the possible change to core profits and sector risk on these stocks, I expolated a table based on top Rolling EPS of all STI index stocks(Top 13). The stocks that fit into my four criterias are UOB, DBS, KeppelCorp, OCBC and Sembcorp Ind.

As the trading price gets more and more attractive, I personally believe the counters with strong and sustainable earnings prowess will be the first to recover. These stocks coincidentally also have an acceptable yield(for a blue chip) of 3-4% and zero net debt to equity, except KepCorp(0.112x). I use their 52 weeks low as relative reference points(as shown in the table). To each his own.