Posted by kcchongnz > 2015-09-29 03:53 | Report Abuse

Posted by Simon Ngiaw Wei Si > Sep 29, 2015 03:21 AM | Report Abuse
where can you get the PE ratios for each industry?


You may be able to get from Reuters Financials, Bloomberg, Yahoo Finance etc. for some US benchmarks. For local companies, I am not sure where you can get, maybe ask your brokers.

Posted by anonboy > 2017-07-16 21:17 | Report Abuse

Good

Posted by stockraider > 2017-07-16 21:39 | Report Abuse

The above KC comment is shallow and miss some very important facts of PE investing loh...!!

Also KC comment of HEAD i wins and tail i don lose is highly misleading on users or PE investor loh...!!

KC cited counters like Xinguan, Msports agst Pe investment....but raider like to highlight if u take the test of xinguan on magic formula, Graham net net cash invesment and net net tangible assets...u also get the same positive results of positive buy loh...!!

Thus it is not a fair comment if u say Pe investor fail to detect a lemon when other value matrix also fail loh...!!

Why raider refute KC leh ??

Bcos this type comment...is very damaging to Ben Graham value investment theory of taking advantage of Mr market loh..!!

Posted by stockraider > 2017-07-16 21:52 | Report Abuse

Yes Pe investment has its drawback...but it has its advantage too loh....!!

Raider like says....the caution point is never never use...PE as a single basis of measurement loh...!!

U must supplement investment beside with Pe, cashflow, balance sheet, corporate governance etc loh...!!

Why china redchips stocks passed with flying colors on almost all fundamental test leh ??

Raider says if u faced with blatant extreme fraud and misrepresentation of the management who ignore any convention corporate governance and accounting & reporting standard and do not follow basic principle of ethic and law, how can u use any fundamental measurement like PE leh ??

The raider only see major fundamental investors did not buy into Xinguan, it is bcos of corporate governance and the company not consistently paying regular dividend despite of huge cash holding loh..!!

Posted by stockraider > 2017-07-16 21:58 | Report Abuse

In summary raider wants to reiterate PE is a good way of fundamental analysis, but it always read with other matrix including potential corporate governance.

In addition u also need to adjust the earnings to take into account of its exceptional and extraordinary items in order to derive its sustainable earnings mah...!!

Without normalising into sustainable earnings...u sometime get shock sendiri....wrong information loh...!!

Posted by kcchongnz > 2017-07-16 22:43 | Report Abuse

Thanks stockraider for your comments

I just write my reply in capital letters for the purpose of differentiating stockraider's comments and my comments.


Posted by stockraider > Jul 16, 2017 09:39 PM | Report Abuse

The above KC comment is shallow and miss some very important facts of PE investing loh...!!

Also KC comment of HEAD i wins and tail i don lose is highly misleading on users or PE investor loh...!!

THE ARTICLE IS ABOUT DESCRIBING INVESTING IN A BASKET OF LOW PE STOCKS AS A VIABLE INVESTING STRATEGY BASED ON STOCKS PUBLISHED IN A MAGAZINE 5 YEARS BEFORE THAT AS THE PORTFOLIO HAS HAD EXTRA-ORDINARY RETURN OVER THE BROAD MARKET. THERE WERE JUST FACTS. NOT SURE WHY YOU SAID MY COMMENT IS HIGHLY MISLEADING.

KC cited counters like Xinguan, Msports agst Pe investment....but raider like to highlight if u take the test of xinguan on magic formula, Graham net net cash invesment and net net tangible assets...u also get the same positive results of positive buy loh...!!

IN THE COMPUTATION OF RETURN OVER 5 YEARS, XINGGUAN, MSPORTS WERE IN NEGATIVE RETURN AND HENCE THE COMMENTS WERE, NOT ALL LOW PE RATIO STOCKS HAD GOOD RETURN, BUT SOME WERE BAD. THESE WERE FACTS AS COMPUTED BY ME, AND NOT MY COMMENTS.

Thus it is not a fair comment if u say Pe investor fail to detect a lemon when other value matrix also fail loh...!!

DID I SAY THIS?

Why raider refute KC leh ??

Bcos this type comment...is very damaging to Ben Graham value investment theory of taking advantage of Mr market loh..!!

ON THE CONTRARY, MY COMMENTS IN THE ARTICLE WERE

"This means you would have done very well investing in boring low PE stocks 5 years ago. The caveat is you must first avoid all red chips and companies with suspicious financial reports. One must know how to separate the chaff from the wheat, by close examination of the financial statements, especially the balance sheets and cash flow statements of those companies. Otherwise instead of making extra-ordinary return from investing in bursa, you end up losing your hard earned money speculating in lemons as shown in this link:"

Posted by stockraider > 2017-07-16 22:59 | Report Abuse

ON THE CONTRARY, MY COMMENTS IN THE ARTICLE WERE

"This means you would have done very well investing in boring low PE stocks 5 years ago. The caveat is you must first avoid all red chips and companies with suspicious financial reports. One must know how to separate the chaff from the wheat, by close examination of the financial statements, especially the balance sheets and cash flow statements of those companies. Otherwise instead of making extra-ordinary return from investing in bursa, you end up losing your hard earned money speculating in lemons.

XINGUAN...HAD A VERY STRONG BALANCE SHEET ON PAPER LOH...!!

"Raider says if u faced with blatant extreme fraud and misrepresentation of the management who ignore any convention corporate governance and accounting & reporting standard and do not follow basic principle of ethic and law, how can u use any fundamental measurement like PE leh ??"

IF THE XINGUAN MANAGEMENT...DECIDE TO MAKE UP THE FINANCIAL STATEMENT ON PAPER LOH..TO PASS ALL THE FINANCIAL TEST...EVEN MAGIC FORMULA...IT IS NOTHING WE CAN DO TO DETECT AND AVOID LOH...!!

THE KEY DEFENSE FOR RAIDER IS THE TEST ON CONSISTENT DIV AND CORPORATE GOVERNANCE LOH....!!

FINAL DEFENSE IS NEVER INVEST MORE THAN 10% ON ANY SINGLE COUNTER LOH..!! TO AVOID MAJOR BAD LUCK AND MISTAKE LOH...!!

Posted by kcchongnz > 2017-07-16 23:05 | Report Abuse

stockraider,

Isn't this statement in the article stated that one must avoid all red chip companies, despite of whatever they say in their financial statement?

"The caveat is you must first avoid all red chips and companies with suspicious financial reports."

Posted by stockraider > 2017-07-16 23:12 | Report Abuse

RAIDER SAY GIVEN THAT WE ARE LOOKING AT THE REAR MIRROR AFTER THE OCCURENCE OF EVENT...THUS EASILY WE CAN SAY AVOID ALL RED CHIPS LOH...!!

BUT WITHOUT HINDSIGHT HOW LEH ??

ONE GOOD CURRENT EXAMPLE OR TEST NOW....IS SHOULD WE INVEST IN HUGE UNDERVALUATION LOW PE STOCK LIKE HRC AND PETRON ??

IF U INVEST...U WORRY TOO GOOD TO BE TRUE SCENARIO...!!

IF U COMPLETELY AVOID...U MISS GREAT GOLDEN OPPORTUNITY LOH..!!

IT IS A DILEMA TO VALUE INVESTORS LOH..!!

THIS MAYBE A GOOD TEST LOH...!!

Posted by kcchongnz > 2017-07-16 23:29 | Report Abuse

The caveat of avoiding red chip listed in Bursa should be very clear now. It was already very clear to me a few years ago after the experience of Xingguan, HBGlobal, and many experiences in SGX and the US markets.

Just avoid and don't even look at their financial statement.

For other stocks, good to invest in low PE stocks, but if that is your strategy, invest in a basket of them. and like you have said, check with other things such as cash flows.

Posted by 3iii > 2017-07-17 13:34 | Report Abuse

Don't use the PE ratio.

PE has may pitfalls that can give investors a misleading view of how cheap or expensive some shares really are.

The EPS can be unreliable and you should not rely on PE alone.