Tuesday, March 21, 2006
US-traded Asian stocks look cheap
There was a brilliant article in the recent Investor's Chronicle covering ADRs, American Depository Receipts, a mechanism that allows a synthetic replication of a foreign stock to trade on the New York Stock Exchange or the Nasdaq. This is a significant positive as trading on some foreign exchanges can be very expensive - a US listing allows investors to access these companies in a big, transparent and liquid market cost-efficiently.
Interest was piqued by the numbers for three of the large Taiwanese chip manufacturers. It appears, at first glance, that these shares are trading at a substantial discount to whereabouts I'd expect a UK-listed share to be trading.
three Taiwanese companies still stand out as exceptional value ... Taiwan SemiConductor Manufacturing (TSMC), SiliconWare and ChipMOS.
Taiwan Semiconductor acts as a specialist manufacturing outsourcing contractor to most of the world’s giant electronics companies ... So EPS growth next year should top 22 per cent, putting it on a forward PE ratio of just 13.8 – not bad for a company that has net operating margins of 32.8 per cent.
Siliconware Precision Industries is much smaller – its market cap is $3.2bn – which provides semiconductor packaging and testing services. A preferred supplier for Intel, Siliconware’s products are commonly used in PCs, cell phones, digital cameras and cable modems. It’s among the top five specialist vendors in the world, though well behind industry leaders such as Amkor and ASE. Still, it’s forward PE ratio is below 10, which seems a little miserly considering the 20 per cent growth in earnings every year expected by analysts over the next few years.
ChipMOS ... Earnings next year are expected to race ahead by 73 per cent and analysts reckon that its five-year EPS growth rate should be around 25 per cent. So, with its PE ratio likely to hit just 13.5 in 2006, ChipMOS is one of the cheapest, fastest-growing stocks in the industry, although its net margins are among the lowest, at just 4.2 per cent.
Of the three Silicon Precistion Industries looks the outstanding candidate but with these growth businesses trading on such low PEs for the growth rates expecteds all are worthy of further investigation. My challenge now is to get access to the real-time price and news sources that I enjoy for UK-stocks (MoneyAM and Investegate) for the US-listed Taiwanese.
If that didn't whet your appetite, there's more to the IC's article. Chinese telecoms firms look very cheap too.
That can be your homework for today, post back with comments on these Chinese titans: China Mobile, China Telecom and China Unicom.
The Artful Dodger
(0) comments
Interest was piqued by the numbers for three of the large Taiwanese chip manufacturers. It appears, at first glance, that these shares are trading at a substantial discount to whereabouts I'd expect a UK-listed share to be trading.
three Taiwanese companies still stand out as exceptional value ... Taiwan SemiConductor Manufacturing (TSMC), SiliconWare and ChipMOS.
Taiwan Semiconductor acts as a specialist manufacturing outsourcing contractor to most of the world’s giant electronics companies ... So EPS growth next year should top 22 per cent, putting it on a forward PE ratio of just 13.8 – not bad for a company that has net operating margins of 32.8 per cent.
Siliconware Precision Industries is much smaller – its market cap is $3.2bn – which provides semiconductor packaging and testing services. A preferred supplier for Intel, Siliconware’s products are commonly used in PCs, cell phones, digital cameras and cable modems. It’s among the top five specialist vendors in the world, though well behind industry leaders such as Amkor and ASE. Still, it’s forward PE ratio is below 10, which seems a little miserly considering the 20 per cent growth in earnings every year expected by analysts over the next few years.
ChipMOS ... Earnings next year are expected to race ahead by 73 per cent and analysts reckon that its five-year EPS growth rate should be around 25 per cent. So, with its PE ratio likely to hit just 13.5 in 2006, ChipMOS is one of the cheapest, fastest-growing stocks in the industry, although its net margins are among the lowest, at just 4.2 per cent.
Of the three Silicon Precistion Industries looks the outstanding candidate but with these growth businesses trading on such low PEs for the growth rates expecteds all are worthy of further investigation. My challenge now is to get access to the real-time price and news sources that I enjoy for UK-stocks (MoneyAM and Investegate) for the US-listed Taiwanese.
If that didn't whet your appetite, there's more to the IC's article. Chinese telecoms firms look very cheap too.
That can be your homework for today, post back with comments on these Chinese titans: China Mobile, China Telecom and China Unicom.
The Artful Dodger
Monday, March 20, 2006
Fayrewood continues to disappoint
Fayrewood announced full-year results on Wednesday. The shares today trade at around 105p to sell with earnings for the year coming in at just over 16p per share. That's very cheap indeed. The problem is, Fayrewood is operating in an unpopular industry sector that is currently struggling.
Not so Chaucer Holdings, my smallcap insurer which reported earnings on Friday. Insurers are back in fashion following hurricane Katrina as fears of a cyclical decline have been avoided - insurance premiums are expected to remain high.
Finally, SOCO International, my newest share purchase, is going great guns, with the shares today closing at 1040p to sell versus my purchase price of 869.5p only two weeks ago.
I recently enjoyed an epiphany in bed. Perusing the most recent Investor's Chronicle I was occasioned by the fundamental value in several US-traded Taiwanese stocks - it's times like last night that remind me just why I subscribe to the IC. I hope to write more about these unique opportunities shortly but money is tight so it's all kind of academic. Things are looking up however, and more cash will be arriving in my fighting fund soon. I shall need it as well, Invox is now massively underwater on my purchase price and the chance to buy at these prices may be too good to miss.
SOCO and Chaucer look to have saved my March.
The Artful Dodger
(0) comments
Not so Chaucer Holdings, my smallcap insurer which reported earnings on Friday. Insurers are back in fashion following hurricane Katrina as fears of a cyclical decline have been avoided - insurance premiums are expected to remain high.
Finally, SOCO International, my newest share purchase, is going great guns, with the shares today closing at 1040p to sell versus my purchase price of 869.5p only two weeks ago.
I recently enjoyed an epiphany in bed. Perusing the most recent Investor's Chronicle I was occasioned by the fundamental value in several US-traded Taiwanese stocks - it's times like last night that remind me just why I subscribe to the IC. I hope to write more about these unique opportunities shortly but money is tight so it's all kind of academic. Things are looking up however, and more cash will be arriving in my fighting fund soon. I shall need it as well, Invox is now massively underwater on my purchase price and the chance to buy at these prices may be too good to miss.
SOCO and Chaucer look to have saved my March.
The Artful Dodger
Tuesday, March 14, 2006
Storming SOCO + Fayrewood tomorrow
Today, shares in my latest purchase, SOCO International, rose almost 6% to 995p to sell versus my purchase price of 869.5p on Friday. This is like something out of a stock market investment holiday brochure. How big does my pool of assets look if I replicate these sorts of gains across my portfolio? How long will it take me to get to a sun-kissed beach if SOCO's rise continues at this pace for the rest of the week?
SOCO is fast-approaching the same size in my portfolio as Fayrewood. The difference is, Fayrewood is the lowest valued of the two and thus more likely to see a substantial rise from today's price. Who knows, despite my experience holding Fayrewood's shares being duller than a chimneysweep's cheeks, a solid result tomorrow, with a positive rise in dividend payments and a strong trading report could see the shares rise sharply as the rest of the market finally comes around to my way of thinking on this grossly unloved share.
7 a.m. tomorrow for Fayrewood and the same again on Friday for Chaucer.
The Artful Dodger
(0) comments
SOCO is fast-approaching the same size in my portfolio as Fayrewood. The difference is, Fayrewood is the lowest valued of the two and thus more likely to see a substantial rise from today's price. Who knows, despite my experience holding Fayrewood's shares being duller than a chimneysweep's cheeks, a solid result tomorrow, with a positive rise in dividend payments and a strong trading report could see the shares rise sharply as the rest of the market finally comes around to my way of thinking on this grossly unloved share.
7 a.m. tomorrow for Fayrewood and the same again on Friday for Chaucer.
The Artful Dodger
Monday, March 13, 2006
Stocking up with SOCO
Impressive full-year results on Thursday from oil explorer SOCO inspired me to buy the shares on Friday at a price of 869.5p. Remarkably, the shares have not looked back since my purchase and today closed at 932p to sell. I staked approximately 20% of my portfolio on SOCO and the return I've enjoyed on this share alone since Friday is already making a contribution to portfolio returns.
And a good job too! Invox continues its precipitous decline to 68p to sell versus my original buy price of 93p. Elsewhere, Fayrewood gives full-year results on Wednesday and Countrywide, the share I attempted to short with disasterous results in 2005, reports full-year numbers tomorrow at 7 a.m. after assuring the market at the end of last year that market expectations will be met. I'd like to see how they are going to achieve that.
The Artful Dodger
(0) comments
And a good job too! Invox continues its precipitous decline to 68p to sell versus my original buy price of 93p. Elsewhere, Fayrewood gives full-year results on Wednesday and Countrywide, the share I attempted to short with disasterous results in 2005, reports full-year numbers tomorrow at 7 a.m. after assuring the market at the end of last year that market expectations will be met. I'd like to see how they are going to achieve that.
The Artful Dodger
