Top 5 Favourite Undervalued Companies SGX/SEHK

My top 5 fav undervalued companies are :

1, Asia Standard  ( 00129.HK)  latest price $1.48  ( NAV = $11.73 )
2. Aisia Orient  ( 00214.HK)  latest price  $1.51   ( NAV = $ 12.10 )
3. Road King  ( 01098.HK)  latest price $6.85  ( NAV = $18.10)
4. Dan Form  ( 00271.HK)  latest price $1.23  ( NAV = $4.04 )
5. Lai Sun     ( 00191.HK)  latest price  $0.93  ( NAV=  $6.7 )

I bought at the "right price" but still  was higher than "latest price".  So buying strategy  at "right time" must be better  than at "right price" ???

(01-09-2015, 03:24 AM)soros Wrote: I bought at the "right price" but still  was higher than "latest price".  So buying strategy  at "right time" must be better  than at "right price" ???

I agree that buying at "right time" is better than "right price", but with a catch. Buying at "right time" consistently is difficult if not impossible, but buying at "right price" is possible via experience and skill.

Alternative histories, is a term I learned recently. You may not at "right time" in this history, but probably at "right time" in most other alternative histories. You ended up in this history, may be just unlucky 

https://www.farnamstreetblog.com/2014/03...e-history/

(sharing a view, after reading a book on Mr. Nasssim Taleb)

I have modified the title to include SEHK listings, to expand the scope for the needs.

Thanks

Regards
Moderator

Mine would include

Metro- high dividends, low price to book

Karin- high dividend, low price to book, good cashflow, earning growth

AP Oil- high return on assets less cash, large cash hoard, low enterprise value

China Aviation Oil- low price, strong associates

PEC- selling at net net, low enterprise value, strong order book, decent dividends

<vested>

Sichuan Expressway 105.HK (highway) - low pe low pbv (but debt a bit high)
Soundwill Holding 878.HK (property holding) - low PBV, low debt (but div yield a bit low)
Suntien Holdings 0956.HK - low PBV, low PE, in the right sector (wind power, nat gas distribution). But debt a bit high
China Resources Power 0836 - low PE (about 7x). Falling coal price is a good thing for this company

Both Sichuan expressway and Suntien Holdings are owned by Chinese local govt.

Also, chinese banks listed in hk are trading at very low pbv and pe multiples. In scenario where they can gradually write off bad debts and sell them to govt entities like Cinda and Huarong, bank shares should be quite ok. But if there is catastrophic financial crisis coming in China, then all bets are off (think of Citibank and AIG shares).

Note: vested.

(13-09-2015, 11:24 AM)fundamentalman Wrote: Sichuan Expressway 105.HK (highway) - low pe low pbv (but debt a bit high)

I wonder the pick of Sichuan Exp 105.HK, over the other two, Jiangsu Exp 177.HK, and Shenzhen Exp 548.HK?

The Sichuan Exp has the lower PE, and PB among them, but poorer in other factors. I am tracking Jiangsu, and Shenzhen Exp, as competitors of CMPacific in SGX.

(vested in CMPacific, but not others)

(14-09-2015, 10:05 PM)CityFarmer Wrote:

(13-09-2015, 11:24 AM)fundamentalman Wrote: Sichuan Expressway 105.HK (highway) - low pe low pbv (but debt a bit high)

I wonder the pick of Sichuan Exp 105.HK, over the other two, Jiangsu Exp 177.HK, and Shenzhen Exp 548.HK?

The Sichuan Exp has the lower PE, and PB among them, but poorer in other factors. I am tracking Jiangsu, and Shenzhen Exp, as competitors of CMPacific in SGX.

(vested in CMPacific, but not others)

Jiangsu Exp has very sollid balance sheet. Shenzhen Exp has some debt too.

The reason I own a bit of Sichuan Expressway is the low PBV and low PE. The debt is a bit of a problem. But I don't foresee much higher interest rate in China in the next few years. Also, given the fact that all these expressway companies are SOEs, these expressway operators should have no problem rolling over debt.

Having said that, I normally don't place more than 2% of my money in a single stock. It is a very volatile time when it comes to investment, with market that can go up and down very fast in just a couple of months.

Btw, there is another stock on my watchlist: Anhui Expressway (low debt, SOE, PE around 10x). Probably can start collecting when price break below 4.5 (it has run up a bit in the past year).

My personal 2c.

Huadian Power (1071.HK) - earning growth has been strong in the past few years. PE below 10x.

It is a reverse-coal play. Price of this stock bottomed in 2011 (the same year coal price peaked), and has got a good run until now. It should have good run if coal price continues to plummet in the next few years.

Threat to the bull run: if govt decides to cut power price deeply (if power price cut exceeds the decline in coal price) to stimulate the economy, or if interest rate goes up substantially (the balance sheet is very highly geared, but most of the debt is in RMB).

<vested>

(15-09-2015, 11:54 AM)fundamentalman Wrote:

(14-09-2015, 10:05 PM)CityFarmer Wrote:

(13-09-2015, 11:24 AM)fundamentalman Wrote: Sichuan Expressway 105.HK (highway) - low pe low pbv (but debt a bit high)

I wonder the pick of Sichuan Exp 105.HK, over the other two, Jiangsu Exp 177.HK, and Shenzhen Exp 548.HK?

The Sichuan Exp has the lower PE, and PB among them, but poorer in other factors. I am tracking Jiangsu, and Shenzhen Exp, as competitors of CMPacific in SGX.

(vested in CMPacific, but not others)

Jiangsu Exp has very sollid balance sheet. Shenzhen Exp has some debt too.

The reason I own a bit of Sichuan Expressway is the low PBV and low PE. The debt is a bit of a problem. But I don't foresee much higher interest rate in China in the next few years. Also, given the fact that all these expressway companies are SOEs, these expressway operators should have no problem rolling over debt.

Having said that, I normally don't place more than 2% of my money in a single stock. It is a very volatile time when it comes to investment, with market that can go up and down very fast in just a couple of months.

Btw, there is another stock on my watchlist: Anhui Expressway (low debt, SOE, PE around 10x). Probably can start collecting when price break below 4.5 (it has run up a bit in the past year).

My personal 2c.

why are you investing in so many expressways? you should pick the best of the lot and invest in something else as part of portfolio diversification. tracking all expressways is fine for comparison purposes. Expressways in China is subjected to regulatory risk.

(15-09-2015, 12:07 PM)Jacmar Wrote:

(15-09-2015, 11:54 AM)fundamentalman Wrote:

(14-09-2015, 10:05 PM)CityFarmer Wrote:

(13-09-2015, 11:24 AM)fundamentalman Wrote: Sichuan Expressway 105.HK (highway) - low pe low pbv (but debt a bit high)

I wonder the pick of Sichuan Exp 105.HK, over the other two, Jiangsu Exp 177.HK, and Shenzhen Exp 548.HK?

The Sichuan Exp has the lower PE, and PB among them, but poorer in other factors. I am tracking Jiangsu, and Shenzhen Exp, as competitors of CMPacific in SGX.

(vested in CMPacific, but not others)

Jiangsu Exp has very sollid balance sheet. Shenzhen Exp has some debt too.

The reason I own a bit of Sichuan Expressway is the low PBV and low PE. The debt is a bit of a problem. But I don't foresee much higher interest rate in China in the next few years. Also, given the fact that all these expressway companies are SOEs, these expressway operators should have no problem rolling over debt.

Having said that, I normally don't place more than 2% of my money in a single stock. It is a very volatile time when it comes to investment, with market that can go up and down very fast in just a couple of months.

Btw, there is another stock on my watchlist: Anhui Expressway (low debt, SOE, PE around 10x). Probably can start collecting when price break below 4.5 (it has run up a bit in the past year).

My personal 2c.

why are you investing in so many expressways? you should pick the best of the lot and invest in something else as part of portfolio diversification. tracking all expressways is fine for comparison purposes. Expressways in China is subjected to regulatory risk.

Bro, for expressway stocks, currently I only own sichuan expressway. Other expressways, I don't own them (price not right yet).

I do own other stocks in other sectors and other countries (diversification).

You are right, Chinese govt in the past have declared "free days" ... that is the risk.