Blog > International Investing > Four stocks to buy on weakness: Rexam (REX), Scottish and Southern Energy (SSE), Aggreko (AGK) and HSBC (HSBA)
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Four stocks to buy on weakness: Rexam (REX), Scottish and Southern Energy (SSE), Aggreko (AGK) and HSBC (HSBA)

Today's Financial News - Posted October 6, 2008

With the markets in turmoil, it’s time to grab some great stocks at their current cheap prices before they return to pre-crash levels. And Julian Chillingworth, chief investment officer and manager of the Rathbone Income and Growth fund, picked his four favorite London “weakness stocks” for MoneyWeek. Included in the list: Rexam (London:REX), Scottish & Southern Energy (London:SSE), Aggreko (London:AGK) and HSBC (London:HSBA). Learn why and when to buy below.

by Julian Chillingworth

Baltimore — (TFN):  It’s been an extraordinary few weeks for finance, filled with collapses, bailouts and takeovers. We doubt that government-sponsored initiatives will draw a line under the credit crisis, so the risk of serious capital erosion is high.

That’s why we are staying defensively positioned in investments that can show low levels of gearing, strong balance sheets, cash generation and visibility of earnings.

No bell will ring when the market bottoms, but arguably we have another downward leg to endure as the market takes account of the burden on the U.S. taxpayer from the bail-outs and its impact on the real economy.

Markets capitulate when the economic environment is at its bleakest – this is now most probable in 2009 for UK investors. Our cash levels remain high, and trading is muted. However, we are watching the following stocks for suitable entry points.

Container manufacturer Rexam (LSE:REX) is a defensive play. Its share price rose about 20% after good interim numbers. The business model is easy to grasp… Read on to learn more.

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