txitxo Posted January 3, 2014 Posted January 3, 2014 Singapore seems quite attractive according to its CAPE (11.78 vs a median 21.48), and there are many cheap, solid companies showing up in my screener, in fact more than 50% of the top companies in CAPE<15 countries belong to Singapore. Anything non-obvious to take into account when investing there? Hidden macro risks? Idiosyncratic accounting?
king888 Posted January 3, 2014 Posted January 3, 2014 Where do you find the CAPE for Singapore market ? And other Asian markets? I tried google it before but info was not up to date. Can you share the link? Thanks
xxx1313 Posted January 3, 2014 Posted January 3, 2014 Be very careful with Chinese (I mean PRC) companies trading in Singapore. Many of them were/are fraudulent. Among large caps in Sinpagore, Jardine Matheson and Jardine Strategic seem reasonably priced, for example. Unfortunately, I cannot trade stocks in Singapore via my brokers.
kwong72 Posted January 3, 2014 Posted January 3, 2014 Hi I am from Singapore. As mentioned, one has to be careful of SG-listed PRC companies. Especially those with too much cash, yet dont pay dividends. Many companies listed Singapore Stock Exchange (SGX) are majority-owned and managed by founding families. So the incentive to pay out cash is lesser. For those interested in SGX listed shares, can see http://www.sgx.com/wps/portal/sgxweb/home/company_disclosure/company_announcements/!ut/p/c5/04_SB8K8xLLM9MSSzPy8xBz9CP0os3gjR0cTDwNnA0sDC3cLA0_XsDBfFzcPQwtnA30_j_zcVP2CbEdFAL-aWoI!/dl3/d3/L2dBISEvZ0FBIS9nQSEh/ http://valuebuddies.com/ - local value investing forum
txitxo Posted January 4, 2014 Author Posted January 4, 2014 Hi I am from Singapore. As mentioned, one has to be careful of SG-listed PRC companies. Especially those with too much cash, yet dont pay dividends. Many companies listed Singapore Stock Exchange (SGX) are majority-owned and managed by founding families. So the incentive to pay out cash is lesser. For those interested in SGX listed shares, can see http://www.sgx.com/wps/portal/sgxweb/home/company_disclosure/company_announcements/!ut/p/c5/04_SB8K8xLLM9MSSzPy8xBz9CP0os3gjR0cTDwNnA0sDC3cLA0_XsDBfFzcPQwtnA30_j_zcVP2CbEdFAL-aWoI!/dl3/d3/L2dBISEvZ0FBIS9nQSEh/ http://valuebuddies.com/ - local value investing forum Thanks a lot, also to xxx1313. I do avoid PRC companies, no matter where they are listed. My investment system is quantitatively-based, so you need to be able to trust the numbers. I am sure there are wonderful Chinese companies out there, but it would take too much time for me to figure out which ones are good and which ones aren't. In any case I combine almost 20 different parameters, so a company needs to have good indicators in many areas, not only cash, P/B, or P/E to get to the top of the list. I'll have a look at valuebuddies forum…I see threads on some of the companies I'm interested in… kwong, why do you think stocks in Singapore are so cheap? HK is more dependent on China and it is significantly more expensive.
kwong72 Posted January 4, 2014 Posted January 4, 2014 Hi I am from Singapore. As mentioned, one has to be careful of SG-listed PRC companies. Especially those with too much cash, yet dont pay dividends. Many companies listed Singapore Stock Exchange (SGX) are majority-owned and managed by founding families. So the incentive to pay out cash is lesser. For those interested in SGX listed shares, can see http://www.sgx.com/wps/portal/sgxweb/home/company_disclosure/company_announcements/!ut/p/c5/04_SB8K8xLLM9MSSzPy8xBz9CP0os3gjR0cTDwNnA0sDC3cLA0_XsDBfFzcPQwtnA30_j_zcVP2CbEdFAL-aWoI!/dl3/d3/L2dBISEvZ0FBIS9nQSEh/ http://valuebuddies.com/ - local value investing forum Thanks a lot, also to xxx1313. I do avoid PRC companies, no matter where they are listed. My investment system is quantitatively-based, so you need to be able to trust the numbers. I am sure there are wonderful Chinese companies out there, but it would take too much time for me to figure out which ones are good and which ones aren't. In any case I combine almost 20 different parameters, so a company needs to have good indicators in many areas, not only cash, P/B, or P/E to get to the top of the list. I'll have a look at valuebuddies forum…I see threads on some of the companies I'm interested in… kwong, why do you think stocks in Singapore are so cheap? HK is more dependent on China and it is significantly more expensive. hi Maybe it is cheap. A sign of cheap valuations is the spat of buy-outs (privatisations) offers by controlling shareholders and/or PE funds in 2013. Those that are cheap may have poor corp governance issues or just plain sleepy. There is no real shareholder activism in SG to wake up sleepy companies.
mcliu Posted January 4, 2014 Posted January 4, 2014 That's sort of my impression too of most Asian companies. They're still run like family businesses despite being public entities. Seems tough to be minority investors. Would like to hear some ideas though of companies with good governance and shareholder-minded owners.
yadayada Posted January 4, 2014 Posted January 4, 2014 The hour glass looks interesting, Luxury watch retailer with amazing management, highest inventory turn over , best margins etc. Trading at 7 times earnings. But I cant get comfy enough with the possible cycle of the luxury market.
kwong72 Posted January 6, 2014 Posted January 6, 2014 I have some k1 Ventures. It is a SGX-listed holding company with stakes (valued at cost) in some US companies. I am sure you guys heard of these companies. Knowledge Universe Guggenheim Partners Helm Financial K12 China Grand Auto (TPG investee company going for IPO in HK) http://www.k1ventures.com/investments/investments.asp
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