Risk off?

(11-10-2014, 07:49 PM)greengiraffe Wrote: Just remember noone complain when Global markets going north non stop from Jan to Sept 14. Now just a sustained correction cry father, cry mother... must have more standards lah...

Very Jialat
GG

Haha dun forget I am one of few who been complaining since last year lah

To add further, UE has sold or in process of selling MFS, UE E&C, WBL sold its auto division, Fisher Tech and LKT looking to be delisted, GPI buying back own shares and keep increasing its stake in GPB, Boustead's JV with Dubai sovereign wealth fund to hunt for Ind Real Estate assets in Singapore, CMP just completed purchase of Jiurui and continued the lookout for more toll road assets...

Any buddies are welcome to keep adding to the corporate activities lists in case I m getting old and absence minded

(11-10-2014, 07:49 PM)greengiraffe Wrote: Mkt very efficient... adjusting in anticipation of forthcoming events... hence minimal chances of crashing... inline with text book doctored events.

Mkts only crashed when events defies textbook and human logic... nothing of such sorts are happening.

Globally most brokers are dead broke...

Real Godfathers are still buying back own shares or expanding businesses:

Banker Wee still buying UOL, UOL still buying UIC, Ow buying new ships, Charoen still buying hard assets globally, OCBC completed purchase of Wing Hang and even Temasek still iron teeth on China, Chinese busy buying up everywhere on earth...

http://www.valuebuddies.com/thread-5133-...l#pid94544

Market is just correcting for a longer healthier march towards 2017...

Just remember noone complain when Global markets going north non stop from Jan to Sept 14. Now just a sustained correction cry father, cry mother... must have more standards lah...

Very Jialat
GG

China market just trading at 7 times earnings
investors are worried of a hard landing, but their blue chips are just sooo cheap yet no one dares to buy haha

agree. my eyes is on China too. it bounced back about 1-2 months ago.
Now, we also started to shout out loud.

I should take some action on Monday.

Thank you.

Love Compassion


Earth day - save the world everyday.

  2823 Hk.pdf (Size: 2.1 MB / Downloads: 25)

a very good piece of report by OCBC on 2823 HK
Ishares FTSE A50 China Index

"A50 China Index attractively
valued given soft landing base
case scenario
Our base case is for a soft economic landing
in China, and we are forecasting real GDP
growth to gradually slow from 7.7% p.a. in
2012-2013 to 7.3% in 2014 and 7.1% in
2015. Given this benign baseline, we believe
the A50 China Index, currently trading at
7.1x PE and 1.2x PB (both around 10Y lows
and more than one standard deviation below
their 10Y averages), is attractively valued,
particularly when put against regional and
global peers. In addition, we note that 46%
of A50 Index components, by index weight,
currently trade at a discount to their dual-
listed H-shares, which further points to an
undervalued A50 China Index"


After reading the report I agree strongly with the facts and thus started buying 2823 HK, at 7 times earnings I do feel that there's a lot of margin of safety

Cheers

(11-10-2014, 11:12 PM)LLS Wrote: a very good piece of report by OCBC on 2823 HK
Ishares FTSE A50 China Index

"A50 China Index attractively
valued given soft landing base
case scenario
Our base case is for a soft economic landing
in China, and we are forecasting real GDP
growth to gradually slow from 7.7% p.a. in
2012-2013 to 7.3% in 2014 and 7.1% in
2015. Given this benign baseline, we believe
the A50 China Index, currently trading at
7.1x PE and 1.2x PB (both around 10Y lows
and more than one standard deviation below
their 10Y averages), is attractively valued,
particularly when put against regional and
global peers. In addition, we note that 46%
of A50 Index components, by index weight,
currently trade at a discount to their dual-
listed H-shares, which further points to an
undervalued A50 China Index"


After reading the report I agree strongly with the facts and thus started buying 2823 HK, at 7 times earnings I do feel that there's a lot of margin of safety

Cheers

It is worth remembering that the 'E' part of the quoted 'PE' of the Shanghai index, and the 'B' part of PB, is based on mainland accounting and reporting practice. I think most of us here have had an expensive lesson on that in relation to S-chips. So the question is whether the information from companies quoted on the Shanghai exchange is uniformly reliable while the same information from many of the S-chips quoted in Singapore is not? Did China keep the good companies, while selling a steaming pile of droppings to gullible Singapore investors in return for Singapore gold? There is possibly a grain of truth there, but I for one am not going to risk any more of my Singapore gold on companies where the management is based in China. My New Year's resolution from several years ago is that I will only invest in companies doing business in China if the overall company management is based in Singapore or Hong Kong. That cuts out the Shanghai exchange, 65% of the market capitalisation of Hong Kong, S-chips and Alibaba. I broke that resolution once, to my cost. Not again, at least in the forseeable future. Just my personal, and rather jaded, view.

(11-10-2014, 11:12 PM)LLS Wrote: a very good piece of report by OCBC on 2823 HK
Ishares FTSE A50 China Index

"A50 China Index attractively
valued given soft landing base
case scenario
Our base case is for a soft economic landing
in China, and we are forecasting real GDP
growth to gradually slow from 7.7% p.a. in
2012-2013 to 7.3% in 2014 and 7.1% in
2015. Given this benign baseline, we believe
the A50 China Index, currently trading at
7.1x PE and 1.2x PB (both around 10Y lows
and more than one standard deviation below
their 10Y averages), is attractively valued,
particularly when put against regional and
global peers. In addition, we note that 46%
of A50 Index components, by index weight,
currently trade at a discount to their dual-
listed H-shares, which further points to an
undervalued A50 China Index"


After reading the report I agree strongly with the facts and thus started buying 2823 HK, at 7 times earnings I do feel that there's a lot of margin of safety

Cheers

Just a note, they are using synthetic replication strategy. From what I had read on other articles regarding etf, synthetic replication might be a bit too risky.

But, as what other buddies have mentioned as well, the current valuation do give a certain margin of safety as well. My 2 cents worth

(11-10-2014, 11:12 PM)LLS Wrote: a very good piece of report by OCBC on 2823 HK
Ishares FTSE A50 China Index

"A50 China Index attractively
valued given soft landing base
case scenario
Our base case is for a soft economic landing
in China, and we are forecasting real GDP
growth to gradually slow from 7.7% p.a. in
2012-2013 to 7.3% in 2014 and 7.1% in
2015. Given this benign baseline, we believe
the A50 China Index, currently trading at
7.1x PE and 1.2x PB (both around 10Y lows
and more than one standard deviation below
their 10Y averages), is attractively valued,
particularly when put against regional and
global peers. In addition, we note that 46%
of A50 Index components, by index weight,
currently trade at a discount to their dual-
listed H-shares, which further points to an
undervalued A50 China Index"


After reading the report I agree strongly with the facts and thus started buying 2823 HK, at 7 times earnings I do feel that there's a lot of margin of safety

Cheers

The A50 is heavily weighted in banks and property stocks, which carries the biggest risk in the China economy. CSI300 might be a better choice.

Also, the HSCEI is currently valued at only 7x PE. There are many H shares that are valued at less than 10x PE ex cash. On the A shares, we will be able to buy the A180 and A380 component stocks by end Oct. There might be some undervalue stocks that might be worth looking into, though they will not be as cheap as the index had already rebounded about 20%.

Thanks a lot man, i will take a look at csi300 thanks

(11-10-2014, 08:15 PM)BlueKelah Wrote:

(11-10-2014, 07:49 PM)greengiraffe Wrote: Just remember noone complain when Global markets going north non stop from Jan to Sept 14. Now just a sustained correction cry father, cry mother... must have more standards lah...

Very Jialat
GG

Haha dun forget I am one of few who been complaining since last year lah

I just want to point out that "noone" is not a true statement in this forum

http://www.valuebuddies.com/thread-5386-...l#pid90170
http://www.valuebuddies.com/thread-5689-...l#pid95778
http://www.valuebuddies.com/thread-3828-...l#pid96218

The weather next 6 months doesn't look good.

I've also mentioned in the twitter thread that twitter listing likely marked the peak of Nasdaq. Looks like it is BABA that will mark the Nasdaq peak instead

http://www.valuebuddies.com/thread-3837-...l#pid81283

(11-10-2014, 03:22 PM)egghead Wrote:

(11-10-2014, 03:17 PM)opmi Wrote: I dont even see enough greed yet. Those who been thro early 90s boom, dotcom, pre-GFC boom, will know it is not time to bring out Warren's 'fear and greed' quote.

Totally agree with this assessment.

Markets have been sanguine with easy money taken as given and we had a mini 2nd dot com bubble. I dont think we are going for a crash but a major >20% correction is actually quite likely