Which overseas market is a good hunting ground for value stocks?

[d.o.g.]

There is plenty of value to be found in Singapore, as evidenced by the large number of companies getting bought out. Hong Kong also has a lot of privatizations going on. I would say that there are interesting ideas on both exchanges.

Japan and Korea are statistically cheap, but there are persistent corporate governance issues such as low dividend payouts, complicated shareholding structures designed to entrench founders, and little or no interest in shareholder value. However the situation is improving and sometimes the relative change can be more important than the absolute change.

Taiwan is also not expensive and there is a dividend culture. It is a tech-heavy exchange but of course there are also old-economy businesses like cement, hotels, banks, car makers etc.

Currency is always an issue. JPY is on a long-term downtrend, KRW is very volatile. It is possible to hedge by selling FX futures, or you can just accept that FX will affect returns in both directions.

[weijian]

Hi weijian, thanks for your advice. I can see that you have spent a lot of time looking at other markets. Were you also unable to find what you want locally? Certainly i'm not looking for excitement, nor aggressive; which is why i have concerns about having forex exposure. I'm looking for value and i'm willing to wait a few years for the ideas to bear fruit. But your input made me realise i might have been impatient with the absence of value in the local market (just can't stand not having the next investment idea, right). I will try to get the book you mentioned. Thanks.

Hi karlmarx,
On the contrary, i don't have indepth micro-level (company specific) understanding on markets. I just have the knowledge of the macro fundamentals of different markets and appreciate how they came about to where they are, through reading their history. I am one of those that people say, "is paralyzed by home-market bias".

Rather than worry about FOREX, maybe the first thing is to worry about one's knowledge about foreign markets first? Ie. take the first dip in and experience the FOREX effects for yourself later? I am reading "Walden" by Henry David Thoreau recently and i leave with you his quote that i especially like - "I went to the woods because i wished to live deliberately, to front only the essential facts of life, and see if i could not learn what it had to teach.........to know it by experience, and be able to give a true account of it in my next excursion"

There is a old time forumer who nicked himself as "Temperament". I mean, we haven't seen anyone who nicks themselves as "Intelligence" here right? Maybe Temperament is more important than Intelligence i reckon?

[ksir]

I personally think that there are abundance of value in Singapore market. My value hunts are only capped by my times, competency & capital.
I am aware in short & medium term the growth of spore domestically would not be pretty. But, there are a lot of nimble spore fishes fighting in the blue ocean. They are pretty competitive IMHO, but it is just human nature that the neighbor wife is generally prettier. (:

[Layman A]

How about the Ah Tiong market ? 

After all the big bashing, China doom, China die, China die cork stand, who knows they may pan out nicely and emerge like a phoenix from the ash a few years down the road ! 

Till then the big 4 banks that is listed in Hong Kong exchange, the mega state own oil company, the 1st line property giant etc may again start flying.
Currently they are trading at dirt cheap prices as if they are destined to doom. 

One more thing, the pegging of Hong Kong to US dollar will ensure that the Forex risk is minimum, with the up tick of the US interest cycle.

Just my layman opinion . 

[soros]

If you are looking for a seriously undervalued share and willing to wait , then No.191 Lai Sun International , quoted on the HK Stock Exchange may suit your buying spec.

The share price today is HKD $1.55 compared to NAV = $8.68 . The company has not paid dividend for many years and only resumed 3 years ago but paying a miniscule dividend.

The special situation in this share is that 2nd largest shareholder, Mr Yu has increased his stake from 17% one year ago to 24% now.

I am sure he did not buy more just to collect the dividend.

Vested .

[opmi]

Lai Sun...coincidentally, some news related to Lam on Apple Daily

http://hkm.appledaily.com/detail.php?gui...e=20161216

林建岳前女友5億買洋房


■傳林學華以5.25億元買入Mount Nicholson洋房。　資料圖片
【本報訊】加辣後名人富豪紛以首置客身份解辣入市，其中會德豐（020）山頂豪宅Mount Nicholson佔最多，近日更有麗新發展（488）主席林建岳前女友林學華不怕身份曝光，以個人名義斥資5.25億元買入洋房，料慳稅5,600萬元。

購會德豐山頂豪宅會德豐Mount Nicholson頻獲名人追捧，當中11號洋房早前以5.25億元售出，實用7,065方呎，呎價74,310元。土地註冊處資料，洋房登記買家是林學華（Lin Schiueh Hua Nancy），與林建岳前女友林學華名字相同。林學華曾任職投資銀行界，其後亦曾創業，將化妝品牌Erno Laszlo引進內地市場。

資料顯示，林學華名下設有5間公司，部份已告解散，過往未見她透過公司名義持有物業。至於私人名義，西半山豪宅高雲臺一個中低層D室，1995年林學華與另外兩名同屬姓林人士，以570萬元聯名買入，按土地註冊處資料顯示，單位於2007年以620萬元售予林俊標，12年間升8.7%或50萬元，目前她私人名義或未持有物業，因而即使加辣後入市，應不用付新辣稅，估計慳稅逾5,600萬元。

[soros]

opmi,

I think you are confusing everybody with "luxury priced houses on the Peak and Nancy Lin" which have nothing to do with OP's quest for undervalued stocks and markets.

[karlmarx]

hi soros, no harm with a little sidetrack. seems there are many here keeping tabs on overseas market and news. thank you for your sharing. i will spend some time looking into lai sun.

hi ksir, i realised (after reading the responses) that the reason why i'm not seeing value is because there are certain species of fish which i do not (fully) understand, and hence unable to (fully) appreciate. tech-related, semicons, big banks, mining, and O&G are some of the industries where i'm less comfortable. for example, when i see a proportionally massive ppe on one of such financials, i get uneasy, because i don't know what it represents, and how much of it is really productive and for how long can it be productive. i'd actually prefer to not look at the neighbour wife, which means i'll have to learn more about -- and hence be able to appreciate -- the local one.

hi weijian, it must be that time of the year where everyone is feeling pensive for you to quote 19th century classics to resolve 21st century investing dilemmas. hahah. but yes, i suppose you're not wrong. as most have mentioned, there is no straight-forward way around forex exposure. i'm not quite ready to learn what the forex market can teach me though (read: aversion to loss).

hi d.o.g., thank you for your informative and insightful sharing. will you say taiwan is a good learning ground for SG investors interested in overseas markets?

[weijian]

hi weijian, it must be that time of the year where everyone is feeling pensive for you to quote 19th century classics to resolve 21st century investing dilemmas. hahah. but yes, i suppose you're not wrong. as most have mentioned, there is no straight-forward way around forex exposure. i'm not quite ready to learn what the forex market can teach me though (read: aversion to loss).

hi Karlmarx,
Humans tend to go full circle. We solve old problems of the past with new solutions, but forgot the old solutions that solved older problems. From a market cycle standpoint, isn't that what happens?

I am not referring to what the forex market can teach us, but what the foreign markets can teach us (i reckon it might be your typo but just want to clarify if it isn't)...I am probably getting out of topic very soon, and as moderator i need to lead by example not to (do so).

[psslo]

karlmarx,

Fundsupermart is promoting HK stock/ETF trading via its FSMOne if you are interested - https://secure.fundsupermart.com/fsm/#!/...-HK-50-NOW

In conjunction, they have been publishing some articles to help introduce HK market to investors. You may find it helpful.

https://secure.fundsupermart.com/main/ar...cks--12210
https://secure.fundsupermart.com/fsm#!/a...he-Hang-Se