Global Market Valuation
page is an excellent resource for investors to see the implied
future returns of some of the world's largest stock markets.
Using the measure that the
Oracle of Omaha
himself, considered as the best single measure of valuation at
any given moment, GuruFocus uses the percentage of total market
cap relative to the U.S. gross national product to make an
estimated projection of the stock market in the long term.
(Also view the other factors taken into consideration to
determine the results at
Where Are We with Market Valuations?
Currently, Singapore is displayed as the market with the largest
anticipated annual return for the developed markets group. With
17.3 percent in projected annual return, its gross domestic
product has grown at the annual rate of 7.94 percent over the
past eight years. Its current annual GDP is $255 billion in U.S.
Why the Singapore Stock Market May Deliver Better
Returns with Less Risk
, GuruFocus pointed out that Singapore appears to have a more
attractive market than the U.S., in terms of historical valuation
and dividend-paying stocks.
Below are three Singaporean stocks that some of the world's best
investing Gurus have bet on in most recent quarters.
Avago Technologies Ltd. (
Avago Technologies is a large supplier of analog semiconductor
devices, and has grown a portfolio of 6,500 products in three
primary markets: wireless communications, wired infrastructure,
and industrial and automotive electronics.
After acquiring the stock in the fourth quarter of 2010, Steven
Cohen has continuously increased his holding over the years,
making only one reduction thus far, which was during the end of
2011. Last September, Cohen reported to increasing his stake by
48.34 percent. He currently has 871,000 shares of Avago.
Other Gurus, such as Lee Ainslie and Jim Simons have larger
holdings; Ainslie reported 8.5 million shares of Avago as of the
third quarter of 2012, while Simons reported 2 million shares.
As a Singaporean entity, Avago's tax structure is attractive and
provides flexibility regarding movement of cash, according to
Avago's stock presentation. Its shareholders equity in the middle
of 2012 was $2.1 million, which increased from the previous
quarter, when the amount totaled $2 million.
Avago has a payout ratio of 0.249 and a yield of 1.9 percent. Its
five-year EBITDA growth rate is 50 percent, and its cash flow per
share is $2.7 million. Its stock is trading at $32.11.
View Avago's 10-Year Financials.
China Yuchai International Ltd. (
China Yuchai International is the automotive branch of industrial
conglomerate, Hong Leong Group. It manufactures and produces
diesel and natural gas for light, medium and heavy-duty vehicles,
generator sets, marine and other industrial applications. It also
supplies aftermarket diesel engine parts and remanufacturing
China Yuchai's parent company, Hong Leong Asia, started off as a
single building materials supplier in Singapore, but has since
then expanded to a great deal of other segments, such as consumer
appliances, climate control and packaging, in addition to the
automotive branch mentioned. It has dominated in the markets in
not only Singapore, but also Malaysia and China. More than 80
percent of its businesses span beyond Singapore.
Last June, investing Guru Jean-Marie Eveillard introduced China
Yuchai to his stock portfolio with 26,000 shares. He later grew
his holding in the following quarter by 111.54 percent.
Also in the third quarter, Charles Brandes reported a stake
increase of 20.72 percent, and Francis Chou reported a holding of
China Yuchai has a dividend yield of 3.2 percent and a payout
ratio of 0.16. It has an EBITDA growth rate of 12.5 percent in
the last 10 years, and 12.5 percent in the last 5 years. Its
stock is trading at �17.12.
View China Yuchai's 10-Year Financials.
Flextronics International Ltd. (
Flextronics International is an electronic manufacturing services
provider to various industries including aerospace and defense,
automotive, medical, energy, mobile and computing, to name a few.
Headquartered in Singapore, it has facilities in 30 countries in
Flextronics has captured the likes of several investing Gurus,
such as Ray Dalio, Steven Cohen and Jim Simons.
Both Larry Robbins and PRIMECAP Management own over 45 million
shares of Flextronics, the top holders of the stock on GuruFocus.
Flextronics remains Robbins' seventh largest holding.
Flextronics has a five-year EBITDA growth rate of 19.1 percent,
and a cash flow per share of $1.6 million. It is currently
trading at $6.27.
View Flextronics International's 10-Year Financials.About
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