*Official* General Market Chit Chat Thread

[ValueInvestor]

I dun think its still at the 2008 valuations bah, but relative to long term valuations its cheap yes. Now around 1 standard deviation below mean

Latest News, Corporate

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STI among the cheapest in the region, right time to stock up on blue-chips, says OCBC
By Kang Wan Chern / theedgemarkets.com | November 25, 2015 : 6:51 PM MYT
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SINGAPORE (Nov 25): The Singapore Straits Times Index is among the worst performing stock market indices in the world this year, with most major sectors like offshore and marine, commodities and property having taken a beating.

Valued at just 1.1 times price-to-book and 12.7 times price-to-earnings, the STI is now back down to levels last seen in 2008 and 2012, respectively, driven below its historical average by deteriorating earnings on the back of falling demand.

At these levels, the STI now carries a dividend yield of 4%, trumping other major indices like the S&P500 and the Hang Seng Index, which fetch yields of 2.1% and 3.5%, respectively.

That opens up an opportunity for value investors to pick up quality blue-chips between now and the end of 2015 as trading tapers off towards the year-end, Carmen Lee, head of research at OCBC Investment Research, told reporters at a press conference today.

“Even though earnings have deteriorated, the market has already priced in a lot of negativity at the STI’s current level,” Lee says.

OCBC forecasts that the Singapore economy could grow between 2% and 3% next year as demand improves and oil prices recover, leading to more interest in Singapore’s blue-chips and potential upside.

“This year has been punishing on the blue-chips and going into 2H2016 many funds and high-net-worth-investors are likely to take an interest in Singapore stocks,” says Lee.

She reckons the property and banking sectors might offer attractive gains in the year ahead and is bullish on CapitaLand, UOL and DBS Group Holdings.

 

[ValueInvestor]

safe to buy sti etf on margin using 20% of my sti etf portfolio?

Buy sti etf yes
On margin no

 

[thosai]

should buy now or wiat a few months later based on current stock market?

I looked at the daily chart for a few blue chip stocks, all are bearish. Its like they are synchronized for a decline.

 

[tiny]

should buy now or wiat a few months later based on current stock market?

Wait one more month for the SG50 festive mood to end. See if the music stops playing or not.

 

[Sinkie]

I looked at the daily chart for a few blue chip stocks, all are bearish. Its like they are synchronized for a decline.

That's why our sti buey kee

 

[disavowed]

Latest News, Corporate

Highlight

STI among the cheapest in the region, right time to stock up on blue-chips, says OCBC
By Kang Wan Chern / theedgemarkets.com | November 25, 2015 : 6:51 PM MYT
Printer-friendly versionSend by emailPDF version
Translated by Google Translator:
Select Language*▼
Share on facebook
Share on twitter

SINGAPORE (Nov 25): The Singapore Straits Times Index is among the worst performing stock market indices in the world this year, with most major sectors like offshore and marine, commodities and property having taken a beating.

Valued at just 1.1 times price-to-book and 12.7 times price-to-earnings, the STI is now back down to levels last seen in 2008 and 2012, respectively, driven below its historical average by deteriorating earnings on the back of falling demand.

At these levels, the STI now carries a dividend yield of 4%, trumping other major indices like the S&P500 and the Hang Seng Index, which fetch yields of 2.1% and 3.5%, respectively.

That opens up an opportunity for value investors to pick up quality blue-chips between now and the end of 2015 as trading tapers off towards the year-end, Carmen Lee, head of research at OCBC Investment Research, told reporters at a press conference today.

“Even though earnings have deteriorated, the market has already priced in a lot of negativity at the STI’s current level,” Lee says.

OCBC forecasts that the Singapore economy could grow between 2% and 3% next year as demand improves and oil prices recover, leading to more interest in Singapore’s blue-chips and potential upside.

“This year has been punishing on the blue-chips and going into 2H2016 many funds and high-net-worth-investors are likely to take an interest in Singapore stocks,” says Lee.

She reckons the property and banking sectors might offer attractive gains in the year ahead and is bullish on CapitaLand, UOL and DBS Group Holdings.

https://www.fool.sg/2015/08/24/wheres-the-bottom-for-stocks/

6 times earnings during 2008 GFC?

 

[disavowed]

should buy now or wiat a few months later based on current stock market?

Buy when it reaches the bottom lah, then sell when it reach the top

 

[ValueInvestor]

Buy when it reaches the bottom lah, then sell when it reach the top

how to be 100% sure when is bottom? lol

 

[ValueInvestor]

https://www.fool.sg/2015/08/24/wheres-the-bottom-for-stocks/

6 times earnings during 2008 GFC?

cannot imagine the STI going to 6 times earnings

that means the index is half of now, 2800 divide by 2 = 1400 levels leh...to become pe 6

the writer's numbers not accurate ba

I remember 2007 when i was in the market, STI fell to a low of 1500, that level cannot be PE 6 for sure..........

now 2015, 8 years has passed and earnings have gone up by much more....

if 2007 lows of STI 1500, if take the same PE ratio
would be today's STI at around 2000-2200 like that (as over the past 8 years, earnings has gone up by way more)


OCBC article took the 2008 levels, which the STI already bounce off from GFC lows I guess~
the fool.sg the articles.. not so professional de ba... just take it with a pinch of salt... those research reports by banks should be more accurate

STI today at 28xx is already lower valuations than the STI 2700 we saw in 2011 european crisis
over the past 4 years, earnings of banks have gone up sharply by around 5% per year

 

[ValueInvestor]

Wait one more month for the SG50 festive mood to end. See if the music stops playing or not.

i feel that if want to buy is this year liao hahaha

valuations just way too cheap

next year, I think probability of another 20% decline is very low

more likely 2016 is flat or go up

 

[Sinkie]

how to be 100% sure when is bottom? lol

When it is at new high. You will be 100% sure that was the bottom lo

 

[ValueInvestor]

When it is at new high. You will be 100% sure that was the bottom lo

hahahahaha very well said

anyway during 2007 GFC i remember that
banks were trading around around 6% dividend yield
and reits were around 10% with a few exception like suntec reit which was like 15% because they had some loan worries

if our local banks were to sell at 6% yield again... need to drop another 20% more.... very hard to imagine that
today is nothing like 2007 GFC in which companies were going bankrupt.... today's just weaker earnings... but not doom's day ba

 

[Sinkie]

hahahahaha very well said

anyway during 2007 GFC i remember that
banks were trading around around 6% dividend yield
and reits were around 10% with a few exception like suntec reit which was like 15% because they had some loan worries

if our local banks were to sell at 6% yield again... need to drop another 20% more.... very hard to imagine that
today is nothing like 2007 GFC in which companies were going bankrupt.... today's just weaker earnings... but not doom's day ba

Well, when market was rosy and bullish last time, nobody expected gfc to happen also

10 years cycle is coming, just got to see what is the next crisis. It should be something different this time

And when crisis come, we see who dare to kio

Then it will be either property or stocks for bargin hunting le

 

[ValueInvestor]

Well, when market was rosy and bullish last time, nobody expected gfc to happen also

10 years cycle is coming, just got to see what is the next crisis. It should be something different this time

And when crisis come, we see who dare to kio

Then it will be either property or stocks for bargin hunting le

ya really must see who dare to kio hahahaha

 

[Sinkie]

ya really must see who dare to kio hahahaha

Yeah, doubt not many here dare ba, bcos I don't see any one kioing noble or Genting lol

 

[ValueInvestor]

Yeah, doubt not many here dare ba, bcos I don't see any one kioing noble or Genting lol

those two really need big balls and big heart

i dont have

I hum ji style, stick to banks and telcos for safety hahahahaha

 

[Sinkie]

those two really need big balls and big heart

i dont have

I hum ji style, stick to banks and telcos for safety hahahahaha

Yeah lor, when crisis come, is really see who got the biggest ball to buy and hold one..

The biggest ball will usually be rewarded the most liaooo haha

 

[Sinkie]

The worst part is u got big ball go Kio then u need money urgently

U sell all of them at Lost and market rebounds to 4000

 

[Average]

bought dbs at 18.8 in august

nao 16.6

hong kan

I buy before OCBC at $10+ lor~ LOL

My avg price for ocbc is now 10.06 after comms and div... nv avg down before.

Much heal needed.
Sent from your gal next door using GAGT

 

[disavowed]

VI, moi is not arguing with you, just checking But looking at the valuations now must admit is decent. No harm picking some bit by bit, just always have that warchest ready for the big blow out. Discipline and commitment the way to go long term