The Next Big Crash - Are You Prepared?

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(09-06-2013, 06:15 PM)Temperament Wrote:
(09-06-2013, 06:10 PM)freedom Wrote: I wonder which stock or stocks are trading below PE of 13 within STI.

I don't remember anyone(maybe SembCorp?). I don't count property stocks as their earnings are too erratic.

Sorry! i am speaking off-hand without backing with facts. That's why i give myself some leeway. i am saying maybe only.

nothing to be sorry of.

I was curious about the chart provided earlier. The PE of STI was around 13. I wonder which of the 30 are trading below 13 since all those yield stocks such as Singtel/Starhub/ST Engg/SIA Engg/SPH etc are traded far above PE of 13.
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(09-06-2013, 05:48 PM)pianist Wrote: Where the source of yr chart? Is it accurate?

Read the chart..... Bloomberg & iFast Smile

Note... This is Monthly Chart so it is a reflect overall market trend.
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http://www.spdrs.com.sg/etf/fund/fund_detail_STTF.html#

at the current 13 times earnings and 2.5% yield do you guys think that the STI ETF is undervalued as compared to a historical average of 15 times?

If not, what would be a comfortable entry?
12 times or 10 times earnings?
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Even though Nikkei index has never recovered ever from its highest, it does not mean that it is not possible to gain from holding Jap stocks during the entire era.

Eg.
Toyota
https://www.google.com/finance?cid=655880

itochu corp
https://www.google.com/finance?q=TYO%3A8...YmVkQXDqAE

nippon painting
https://www.google.com/finance?q=TYO%3A4...Y2ekgWLzAE

Most importantly for any investor, can your portfolio outperform the index?
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I am very confused with the many different PE given to STI.

http://www.btinvest.com.sg/blogs/2013/01...he-market/

http://www.sharesinv.com/prices/index-sti/indicators

According the the BT article, STI PE was already 14.8 at 1 Jan 2013 at 3167pt. If that is the case, STI will be above 15 since the beginning of year. Based on Share Investment, the current weighted PE is 14.4. This will bring the PE to 15 at end of May.

So, which is correct?
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STI Stock PER.....
Take note that Average PER calculation is base on each stocks market cap as weighted average.


[Image: STI%2520-%252020130609%2520Stock%2520PER.png]


(09-06-2013, 06:15 PM)Temperament Wrote:
(09-06-2013, 06:10 PM)freedom Wrote: I wonder which stock or stocks are trading below PE of 13 within STI.

I don't remember anyone(maybe SembCorp?). I don't count property stocks as their earnings are too erratic.

Sorry! i am speaking off-hand without backing with facts. That's why i give myself some leeway. i am saying maybe only.
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Yeah seems very confusing why all of them giving different PE

but if at the end of the day if you are putting money into purchasing an index then the PE given by the fund should be considered.

(09-06-2013, 06:21 PM)freedom Wrote:
(09-06-2013, 06:15 PM)Temperament Wrote:
(09-06-2013, 06:10 PM)freedom Wrote: I wonder which stock or stocks are trading below PE of 13 within STI.

I don't remember anyone(maybe SembCorp?). I don't count property stocks as their earnings are too erratic.

Sorry! i am speaking off-hand without backing with facts. That's why i give myself some leeway. i am saying maybe only.

nothing to be sorry of.

I was curious about the chart provided earlier. The PE of STI was around 13. I wonder which of the 30 are trading below 13 since all those yield stocks such as Singtel/Starhub/ST Engg/SIA Engg/SPH etc are traded far above PE of 13.

The 3 local banks make out about 30% of the index, they each trade below 13 times earnings I think.
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(09-06-2013, 06:48 PM)Ray168 Wrote: STI Stock PER.....
Take note that Average PER calculation is base on each stocks market as weightage.


[Image: STI%2520-%252020130609%2520Stock%2520PER.png]

please educate me how you derive the chart.

as far as I know, if there are only a few stocks(I don't know how you calculate PE of property stocks, how about exceptional items?) which PE is under 13 and their weight in STI is low, how can the whole STI's PE is only 13?

even according to this not-well-calculated(I don't know how THBEV can have a PE of just above 13, by my rough calculation at least 20) website http://www.sharesinv.com/prices/index-sti/indicators, the whole STI PE can't be just 13.
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its because the Sti is market cap weighted
meaning the larger the size of company the heavier its weighted in the index

the top 6 counters alone make up about half the index already

they are the 3 locals banks + Singtel +Kep corp + Jardine Matheson = 50% of sti index
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(09-06-2013, 07:02 PM)felixleong Wrote: its because the Sti is market cap weighted
meaning the larger the size of company the heavier its weighted in the index

the top 6 counters alone make up about half the index already

they are the 3 locals banks + Singtel +Kep corp + Jardine Matheson = 50% of sti index

I understand that STI is market cap weighted. Unless we are only using headline PE number without diving into the quality of earning. very unlikely we have a PE of below 13 for STI.

by my rough calculation, none of the 3 banks had a PE below 12. Singtel surely had a PE above 13.

Keppel's earning are too erratic, I always wonder how analysts calculate PE for it.

as for the J family, they are the jokers of STI. They are so illiquid, but cause STI to fluctuate in a big way.
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