Posts: 2,512
Threads: 24
Joined: Sep 2010
Reputation:
19
"Personally, I think banks are slightly cheap now. I could buy half a position if I had lots of money and nowhere else to put it"
har, not a good choice i think, nowhere else to put it...
Why not grab some STI index stock?
1) Try NOT to LOSE money!
2) Do NOT SELL in BEAR, BUY-BUY-BUY! invest in managements/companies that does the same!
3) CASH in hand is KING in BEAR!
4) In BULL, SELL-SELL-SELL!
Posts: 3,732
Threads: 6
Joined: Oct 2012
Reputation:
95
13-10-2016, 07:31 AM
(This post was last modified: 13-10-2016, 07:38 AM by specuvestor.)
(12-10-2016, 09:08 PM)BlackCat Wrote: Inspired by this thread, and because bank shares have fallen for a year, I took a look at the local banks:
Part 1: Intro & Non-interest Income
Part 2: Losses & Leverage
Part 3: Deposits & Derivatives
Part 4: Returns and Valuations
I found that, over the long term:- OCBC is the most conservative bank, with the lowest allowances and highest returns/risk-weighted-assets
- DBS has the lowest cost of deposits
- UOB has the highest ROA
Personally, I think banks are slightly cheap now. I could buy half a position if I had lots of money and nowhere else to put it.
I haven't read your blog in details but your conclusion above is generally right, but I do think that there has been some changes in the past decade where OCBC has become less sleepy and UOB less shrewd due to management. I feel that they have become more similar and so historical relative valuation might not hold anymore
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward
Think Asset-Business-Structure (ABS)