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30-07-2019, 09:26 PM
About two years ago, I thought that there wasn't much cheap stocks to be found in the Singapore market. So I started looking into our regional markets: Malaysia, Indonesia, Thailand, and Philippines. The market of these developing countries should be pretty shunned by investors, since they would prefer the market of developed countries, or so I thought.
Turns out there are plenty of institutional money in these 'emerging markets,' and their valuations are generally much higher than Singapore's. Especially Thailand. Against my own measurement, most of the stocks in Singapore are trading close to fair prices. The stocks in Thailand are mostly 3-5x, and some even 10x, what I think they are worth. Probably my ruler is broken. And probably also the reason why the Baht is so strong.
I have not looked at US or HK markets, because, well, time. But I think the delistings going on in the Singapore market should suggest that there is some bargain to be found here. It is not eye-poppingly cheap, but it is relatively cheaper than those found in the regional markets. Probably there are bargains to be found in US/HK markets, but then you'll have to be looking for them; they won't be your obvious/popular names.
Since there may be a chance that the Singapore market may weaken some time later, you might want to prepare by thinking about what stocks you would like to buy, and at what price, when the discounts start coming. After all, there is an added counterparty risk when buying overseas stocks, and not to mention that you will less likely have familiarity with their product/services, or the propensity to attend their AGM. I'm not saying that you cannot make money from overseas stocks. But if there are two similarly undervalued companies, why not buy the one on your home ground?
Turns out there are plenty of institutional money in these 'emerging markets,' and their valuations are generally much higher than Singapore's. Especially Thailand. Against my own measurement, most of the stocks in Singapore are trading close to fair prices. The stocks in Thailand are mostly 3-5x, and some even 10x, what I think they are worth. Probably my ruler is broken. And probably also the reason why the Baht is so strong.
I have not looked at US or HK markets, because, well, time. But I think the delistings going on in the Singapore market should suggest that there is some bargain to be found here. It is not eye-poppingly cheap, but it is relatively cheaper than those found in the regional markets. Probably there are bargains to be found in US/HK markets, but then you'll have to be looking for them; they won't be your obvious/popular names.
Since there may be a chance that the Singapore market may weaken some time later, you might want to prepare by thinking about what stocks you would like to buy, and at what price, when the discounts start coming. After all, there is an added counterparty risk when buying overseas stocks, and not to mention that you will less likely have familiarity with their product/services, or the propensity to attend their AGM. I'm not saying that you cannot make money from overseas stocks. But if there are two similarly undervalued companies, why not buy the one on your home ground?