atans1

S’pore stock mkt is value for money?

In Corporate governance, Financial competency on 07/11/2016 at 12:01 pm

Article talks of activist investors KPKBing

http://www.bloomberg.com/news/articles/2016-11-03/activist-investors-take-aim-at-singapore-buy-pray-hope-model

Funny the article doesn’t mention that lots of cos have a controlling shareholder that has more than 51% of the shares. Some of the riny ones even have a controlling shareholder with 75%. So there’s naturally a big discount to account for liquidity and governance issues.

 

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  1. The graphs are for micro-caps, basically penny stocks, so you’re dealing with illiquid and potentially very volatile stocks which also have very low shareholder fiduciary culture (apart from a few majority shareholders who happen to be relatives or close friends with the business owners).

    Even for large caps / blue chips on SGX, they’ve been stagnating or declining over the past 4 years. If you’re playing value & reversion to the mean, you need to be prepared to be stuck in value trap, and to also understand as goes China, so goes SGX.

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