ringledman
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i have been looking at japan as an investment for a while now any thoughts on etfs looked at some on ishares small cap and large obviously in for the long term as i am a novice investor.
Ringledman,
A certain number of American listed chinese companies (Chinese ADRs) are selling for a song at the moment. Though they are fierce volatile I reckon there is good long term value in them.
I am also looking at cyclical companies at or near a cyclical low. Shipping, both dry bulk and container are a good value bet at the moment providing you chose them well (avoid DRYS, ONAV, SBLK for example) and buy in at appropriate support points. Some pay a hefty dividend also which is an incentive to stay invested until the inevitable upturn comes. I think with the likes of shipping we will be waiting a couple of years to recover.
I am also looking at STEC, a NASDAQ listed California based SSD maker. It has been hammered by shorts of late but it is in a good sector IMO and is only selling for 7 times '10 earnings.
A little specific but a couple of little ideas. I am a value investor so any ideas are appreciated.
Dave
Hi Mark, Ringledman,
Mark, I take your point and no doubt shorts do tend to destroy a stock. That said however, shorts cannot stay on a stock forever and do not, they tend to move on once the ineveitable short squeeze occurs. To this end it may be worth look. That STEC stock that I mentioned earlier is being hammered in pre-market as I write this for reasons you will discover if you have a look. I do believe it is a good medium term buy and getting in in the single figures is a gift.
I would have to agree Ringledman, certain Russian equities have seriously outperformed there over the last 12 months. It is still a relatively undervalued market. Some of their ADR's are reasonably priced - VIP is a telecoms company, second largest to MBT (I think is the ticker). Its in the IBD 100 (not that that is a reason to buy - so was STEC and look what happened to it!). I bought MTL in the 7's. It has flown since then. Biggest miner in Russia. Very volatile though.
On the Chinese front, yes, small and medium caps are what I have been looking at and across different sectors. CSR is one that I do fancy for the medium term. It has pulled back significantly this past 4 weeks and may pull back more. FEED and SOL I feel may also be fairly priced. Problem with these stocks is you may get shaken out if your time horizon is too short. They are very volatile. APWR may be worth a look if the sector interests you.
Shipping stocks I look at, and unfortunately all of them, even those that have their rates locked in, follow the BDI. Some to a greater extent than others depending on the level of Capesize exposure they may have as this index seems to fluctuate more. I would be pretty conservative though as you could see consolidation in the next 2 years. Companies I have bought are liquid and are still paying a dividend. These are NM, PRGN, ESEA and NMM. NM is pricey, though I got in early last year, PRGN and ESEA I think are fairly priced. PRGN has its rates locked in and ESEA is a conservative family run dry bulk/container company with lots of cash on hand. It has also set up a joint venture with hedge funds to expand its fleet (would advise reasearching this as is complicated). NMM is a partner of NM run by the same CEO as NM. I do beleieve NM is the best run shipper in its class.
Finally I do think Dragon Oil is a good long term buy. I'll say no more about why as this is a more commonly known stock unlike the others mentioned above which do not trade in Europe (hence the reason I have provided more detail on them - apologies in advance if I cannot discuss any stock on the planet on this message board)
Dave
Ringledman,Hi Dave,
Otherwise I think there is decent value in large cap defensive global firms in telecomms, pharmaceutical, tobacco, insurance, oil&gas, etc. A lot are on a P/E of 8-12 and yield 4-5%. Not dirt cheap but fairly valued. The likes of Johnston & Johnstone, Vodafone, Tesco, Glaxosmithkline, etc.
Anyone else?
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