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12-Oct-2010 13:57

Others / MIA forumers

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na na pok?

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06-Oct-2010 21:51

CSC / CSC - Construction sector

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There was notable mention of CSC in Business Times today

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06-Oct-2010 21:28

Straits Times Index / STI to cross 3000 boosted by long-term investors

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any average joe can make money by diversifying their risk through buying an Index e.g STI but to pinpoint and pickout just one stock that moves up takes a genius to do that.. Warren Buffet once said diversifying is for people who don't know what they are doing.. Focus is the key..

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06-Oct-2010 21:17

ShareJunction / VIKING offshore

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Smart money always goes in when the activity is low and the potential gems are not in the spotlight..

they wait for months, years before the market realises the true potential and start to spotlight on the stock..

this is a signal for the Smart money to get ready to dispose their shares when they see more n more analyst upgrading their stock

and more and more retailers take notice of their stock..

by then they would have made many folds - 4, 5 or even 10 times..leaving the lean meat for the latecomers to fight over..

once the price becomes overvalued the smart money exits, leaving the retailer/late comers the hot potatoe..

~THE END~

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06-Oct-2010 16:48

Straits Times Index / STI to cross 3000 boosted by long-term investors

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STI index up big DEAL...

if u bot SGX then u would have made money..

other counters still ding dong bing bong.. all sleeping..

MARKET RALLY IS NOT BROAD BASED...HOW CAN BE HEALTHY...

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06-Oct-2010 15:37

Straits Times Index / STI to cross 3000 boosted by long-term investors

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Shares some way from irrational exuberance

By Teh Hooi Ling
Senior Correspondent

I HAD lunch with a friend on Monday and he asked: 'Do you think stocks are undervalued now? Well, if you compare individual stock prices today with when the Straits Times Index was previously at this level - before the crisis - a lot of shares are still underwater. At the very least, the stocks I monitor are still below their 2007 levels.'

Is that true, I wondered. So I set out to find out. The Straits Times Index ended at 3,081.1 points on Thursday. The previous time it was near this level, prior to the global financial crisis, was on Jan 22 2007.

So I compared all the Singapore Exchange listed stocks between the two dates. Here's what I found. Indeed, the majority of stocks in Singapore are now lower than their January 2007 levels - to be exact, 69 per cent of the equities in the market are still below their pre-crisis levels. And mind you, we are comparing the STI when it was just under 3,100 - not when it peaked at around 3,800. The median price decline is 26 per cent.

In terms of market cap, 56 per cent of the companies are smaller now compared with close to four years ago. The median decline in market cap is about 9 per cent.

Does the price decrease reflect the more difficult environment that companies are operating in? In other words, have earnings shrank, and as a result, are investors are less willing to value stocks at anywhere close to their previous levels?

I tallied the two measurements of valuation for stocks: price-to-book (PTB) ratio and price-earnings (PE) ratio. PTB ratio is the market price of a stock over the book value of its net assets. Book value used to be just based on the historical costs a company paid for its assets. But changes in the accounting rules in recent years have allowed companies to revalue their asset prices. So this measure may not be as useful as before. Still, it offers some insight into how much a stock is valued over the historical or market value of its assets.

PE ratio, meanwhile, is the stock price over the most recent year's earnings per share for the stock. Obviously, the higher these two measures are, the more highly valued the stock is.

Back in January 2007, the median PTB ratio for Singapore stocks was 1.32 times. As at Thursday, the figure was 0.99. That's a decline of 25 per cent.

As for PE ratios, the median in 2007 was 13.5 times. This week, stocks in Singapore were trading at 11.6 times their most recent financial year's earnings. In other words, stocks in Singapore on average are valued 14 per cent cheaper today than in 2007 in terms of earnings multiple.

Is this a phenomenon just in Singapore, or have other regional markets experienced the same thing?

Well, the performance of the Hong Kong market is similar to that of the Singapore market. The Hang Seng Index level that approximates today's 22,000 points was registered on June 28, 2007. Then, the index was at 21,938 points.

The drop in valuation in the Hong Kong market, vis-a-vis its similar level in 2007, appears deeper. For example, the median declines in PTB and PE was 32 per cent and 27 per cent respectively, compared with Singapore's 25 per cent and 14 per cent.

Hong Kong's market cap has also shrunk 17 per cent.

However, despite the compression in value, Hong Kong stocks today are still valued slightly higher than Singapore stocks. The median PTB of 1.17 times is higher than Singapore's 0.99 times, while its PE ratio of 12.4 times is higher than the Republic's 11.6 times.

I also took a look at other regional markets - Malaysia and Thailand. Malaysia's Kuala Lumpur Composite Index is trading at around its peak in the past three to four years. This is in contrast to Singapore, which is still some 20 per cent off its peak in the second half of 2007.

But even in Malaysia, 65 per cent of the stocks are still trading lower than their previous peak. The median decline is 17 per cent. The median valuations for Malaysian stocks are 0.74 times PTB, and 9.4 times PE. And that's still lower than the 0.93 times PTB and 11.8 times PE back in January 2008 when the KLCI was at 1,467 points. Thai stocks are now comparable to their previous peak in October 2007.

So do companies of a certain size suffer more in terms of valuation compression? In terms of PTB ratio, in both Singapore and Hong Kong, companies in the $100 million to $1 billion range have experienced the biggest plunge in value. The decline is in excess of 40 per cent in both countries.

As for PE ratio, the mega caps in Hong Kong suffered the most. Their PE ratios were depressed to just 13.2 times now, from 21.3 times back in 2007.

So back to my friend's question: Is the market undervalued now? Well, I'd say we are still some way from the irrational exuberance that was starting to grip the market back in early-2007.

The writer is a CFA charterholder.

ozone2002 ( Date: 04-Oct-2010 13:22) Posted:

ditto..

ozone2002 ( Date: 02-Oct-2010 13:56) Posted:

that's right..STI can go to 4000 but ur share still same price what's the use..

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06-Oct-2010 15:25

SGX / SGX

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SGX bull run!

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06-Oct-2010 11:28

GLD USD / Gold going up this year?

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Gold
Dec. 2010 contract
$ / troy ounce

Floor

1,340.30

+23.50

+1.78%

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06-Oct-2010 09:09

Straits Times Index / STI to cross 3000 boosted by long-term investors

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CHIONG AH!!!! = SELL

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06-Oct-2010 00:32

Straits Times Index / STI to cross 3000 boosted by long-term investors

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ditto ditto

ozone2002 ( Date: 04-Oct-2010 13:22) Posted:

ditto..

ozone2002 ( Date: 02-Oct-2010 13:56) Posted:

that's right..STI can go to 4000 but ur share still same price what's the use..

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05-Oct-2010 14:04

Others / Very funny market!

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Who's laughing?

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05-Oct-2010 14:03

Lorenzo Intl / Lorenzo-5IE possible a gem?

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furniture maker so good ah???

a lot of pple buy house in SG ..must buy lorenzo furniture?

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05-Oct-2010 10:49

Teckwah / Teck Wah - Just wake up

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MEGA CHIONG !!! ~10%..

high vol..

Chuan thian poh making big bucks..

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05-Oct-2010 10:46

Lorenzo Intl / Lorenzo-5IE possible a gem?

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What the ...HALT?!?!?!?!

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04-Oct-2010 14:35

China Sky Chem / Worth a bet ??

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patience is the key..

every dog will have its day..

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04-Oct-2010 14:30

Lorenzo Intl / Lorenzo-5IE possible a gem?

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y so power?

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04-Oct-2010 14:00

Straits Times Index / STI to cross 3000 boosted by long-term investors

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good to time profit..2 yr HIGH!!

Singapore Stocks-At two-year high, led by rig and ship builders

On Monday 4 October 2010, 13:03

* Index up 1.1 percent; upside potential seen

* Oil rig and ship-builders up on positive sector views

* Tiger Airways underperformed on flight cancellations

By Eveline Danubrata

SINGAPORE, Oct 4 (Reuters) - Singapore shares surged in line with a rally in other Asian markets at midday on Monday to their highest levels since the middle of 2008, led by oil rig and shipbuilding firms, and may see further rise after the break.

By the lunch break, the Straits Times Index (STI) <.FTSTI> was 34.58 points higher at 3,165.48. Earlier, it hit an intra-day high of 3,167.96 points.

"We have Asia in general performing well and out of Asia the STI is one of the cheapest indices. It's not that surprising to see a continued push upwards for the STI," said Phua Ming-Weii, an investment analyst at Phillip Capital.

Local traders said there may be further upside to the STI after the break.

Asian stocks shot to a two-year high on Monday, helped by emerging market funds, while Wall Street extended its rally on Friday, led by gains in resource stocks after data in China showed a pick-up in manufacturing activity. [ID:nSGE69302H] [ID:nN01101277]

Shares of oil rig builders Keppel Corp and Sembcorp Marine rose as much as 2 percent and 1.3 percent respectively as investors were more bullish on the oil and gas sector. [ID:nSGE69304G]

At midday, shares of Keppel Corp were trading at S$9.28 on a volume of 5.8 million shares.

Sembcorp Marine shares were trading at S$3.99, with 2.6 million shares changing hands.

Shares of Singapore-listed Chinese shipbuilders Yangzijiang Shipbuilding , Cosco Corp and JES International rose on Monday following positive media and broker reports on the sector. [ID:nSGE69301P]

At midday, Cosco was up 2.8 percent, Yangzijiang rose 1.7 percent and JES International gained 8.6 percent.

Shares of Singapore budget carrier Tiger Airways fell as much as 3.9 percent after a local newspaper reported that the firm had cancelled about 40 flights over a four-day period. [ID:nSGE69302B]

At midday, Tiger Airways shares were trading at S$2 on a volume of 2.8 million shares.

(Reporting by Eveline Danubrata)

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04-Oct-2010 13:22

Straits Times Index / STI to cross 3000 boosted by long-term investors

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ditto..

ozone2002 ( Date: 02-Oct-2010 13:56) Posted:

that's right..STI can go to 4000 but ur share still same price what's the use..

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04-Oct-2010 11:50

China New Town / ChinaNTown

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17c now..

well done..

once it list on HK it will shoot to the roof!

80c!! ipo price..

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04-Oct-2010 10:51

Viking Offshore / NOVENA bot a warehouse 98, Pasir Panjang. 13.5mil

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viking looks to be moving..

from 20c last week now 21c..

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