The Next Big Crash - Are You Prepared?

[camelking]

I thought Miss Teh's method of using data from 35 years ago ignores the state of economy.
35 years ago, Singapore was still a developing nation with 10% GDP year in year out. Hence, PE of STI index should rightfully, be higher.

The extraordinary low interest environment also help in driving the price of equity higher hence, resulted in higher PE. (Just ask the holders of Reit)

Just my view.

[swakoo]

I thought Miss Teh's method of using data from 35 years ago ignores the state of economy.
35 years ago, Singapore was still a developing nation with 10% GDP year in year out. Hence, PE of STI index should rightfully, be higher.

As I understand it, each year's PE is calculated using the earnings from the prior 10 years. So any effects of high GDP due to developing nation status in the early years will be smoothed out over time.

[KopiKat]

Wow! Lots of good information and data on Market PE....

But, unless I'm going to invest in STI ETF, I'd still better focus on the individual company PE as one of the metrics. For the large caps in my watch list, I have hardly any with PE < 15. In fact, many are still having PE > 20, even after the recent week plus of correction.

That was the main reason I'd shifted my focus to mid-caps where mostly, PE is closer or < 10.

[CityFarmer]

Wow! Lots of good information and data on Market PE....

But, unless I'm going to invest in STI ETF, I'd still better focus on the individual company PE as one of the metrics. For the large caps in my watch list, I have hardly any with PE < 15. In fact, many are still having PE > 20, even after the recent week plus of correction.

That was the main reason I'd shifted my focus to mid-caps where mostly, PE is closer or < 10.

Take a look at mine, it seems better, most are <= 15, except SingTel (16.8) and M1 (19.4), all telecom stocks.

[KopiKat]

Wow! Lots of good information and data on Market PE....

But, unless I'm going to invest in STI ETF, I'd still better focus on the individual company PE as one of the metrics. For the large caps in my watch list, I have hardly any with PE < 15. In fact, many are still having PE > 20, even after the recent week plus of correction.

That was the main reason I'd shifted my focus to mid-caps where mostly, PE is closer or < 10.

Take a look at mine, it seems better, most are <= 15, except SingTel (16.8) and M1 (19.4), all telecom stocks.

Those > 20 in my list using last Friday's closing price and latest FY EPS,

SingPost 20.05
SIAEC 20.48
STEng 20.36
SMRT 25.55
SBS 23.46
RafflesMed 30.86
Genting 29.31

In the 15 -20 range

SPH 18.74
SATS 19.88
ComfortDelgro 15.60
HLFin 15.23
SemMarine 16.47
StarHub 19.54
M1 18.94
SingTel 16.80

I think I ought to go thro' the STI component stocks to find those with lower PEs to add to my watch list...

[Temperament]

PE can be 5 or 55 yet i don't know really which stock is better. Talking about a market, STI ETF PE should be a benchmark for SGX as S & P 500 PE should be for US market. Still we have to know why at PE 5 and PE 55. But for novice (as i did when i was) PE is a good ratio to start before going into more ratios or other criteria.

[CityFarmer]

Wow! Lots of good information and data on Market PE....

But, unless I'm going to invest in STI ETF, I'd still better focus on the individual company PE as one of the metrics. For the large caps in my watch list, I have hardly any with PE < 15. In fact, many are still having PE > 20, even after the recent week plus of correction.

That was the main reason I'd shifted my focus to mid-caps where mostly, PE is closer or < 10.

Take a look at mine, it seems better, most are <= 15, except SingTel (16.8) and M1 (19.4), all telecom stocks.

Those > 20 in my list using last Friday's closing price and latest FY EPS,

SingPost 20.05
SIAEC 20.48
STEng 20.36
SMRT 25.55
SBS 23.46
RafflesMed 30.86
Genting 29.31

In the 15 -20 range

SPH 18.74
SATS 19.88
ComfortDelgro 15.60
HLFin 15.23
SemMarine 16.47
StarHub 19.54
M1 18.94
SingTel 16.80

I think I ought to go thro' the STI component stocks to find those with lower PEs to add to my watch list...

In mine, among 10 stocks, only 4 with MC > S$1 billion. Mid and Small caps seem offering more opportunities IMO.

I use shareinvest.com for analysis, and it improved in the productivity.

[KopiKat]

Wow! Lots of good information and data on Market PE....

But, unless I'm going to invest in STI ETF, I'd still better focus on the individual company PE as one of the metrics. For the large caps in my watch list, I have hardly any with PE < 15. In fact, many are still having PE > 20, even after the recent week plus of correction.

That was the main reason I'd shifted my focus to mid-caps where mostly, PE is closer or < 10.

Take a look at mine, it seems better, most are <= 15, except SingTel (16.8) and M1 (19.4), all telecom stocks.

Those > 20 in my list using last Friday's closing price and latest FY EPS,

SingPost 20.05
SIAEC 20.48
STEng 20.36
SMRT 25.55
SBS 23.46
RafflesMed 30.86
Genting 29.31

In the 15 -20 range

SPH 18.74
SATS 19.88
ComfortDelgro 15.60
HLFin 15.23
SemMarine 16.47
StarHub 19.54
M1 18.94
SingTel 16.80

I think I ought to go thro' the STI component stocks to find those with lower PEs to add to my watch list...

In mine, among 10 stocks, only 4 with MC > S$1 billion. Mid and Small caps seem offering more opportunities IMO.

I use shareinvest.com for analysis, and it improved the productivity.

Agree... see my previous post, the part in bold... I have 5 in my watchlist with PE < 10 and a few just a tad above 10. Those which I'm vested in seems quite resilient so far during the recent market weakness... keep my fingers crossed...

PS. I used to screen using the Shares Investment magazine. Now, I prefer to extract the figures from the companies' financials as it gives me a better feel of the biz by going thro' the individual quarters and years. With lots of practice, it's not that time consuming nowadays...

[CityFarmer]

That was the main reason I'd shifted my focus to mid-caps where mostly, PE is closer or < 10.


Agree... see my previous post, the part in bold... I have 5 in my watchlist with PE < 10 and a few just a tad above 10. Those which I'm vested in seems quite resilient so far during the recent market weakness... keep my fingers crossed...

PS. I used to screen using the Shares Investment magazine. Now, I prefer to extract the figures from the companies' financials as it gives me a better feel of the biz by going thro' the individual quarters and years. With lots of practice, it's not that time consuming nowadays...

Oh.. yes, i missed it.

I used both now, excel for key numbers derivation, and building valuation model which are not available from standard tool, Shareinvest.com for initial stock screening and watch-list monitoring.

Wish you all the best for the "value stock(s)" hunt...

[felixleong]

Hmmm mid cap stocks at pe 10 or less? Dunno why those mid cap ones that i am looking at are still very high pe, example ara,venture and sats. May i know what mid cap stocks are you guys talking about?