timothy_wong_dbs
Timothy Wong, head of research, DBS Vickers. Photo by Leong Chan Teik

WHEN MIGHT a big buying opportunity present itself this year?

DBS Vickers’ head of research, Timothy Wong, told the current edition of The Edge weekly: “A selling climax of sorts could occur in 2Q2012. Focus is on the eurozone debt.”

February-April is when a large part of the debt matures, and the markets will be nervous, said Timothy.

The European Central Bank may have to take bolder steps than it has so far to address the issues.

In 1Q also, Singapore’s economy should bottom out and earnings downgrades subside.

Given the confluence of these 2 key scenarios, an inflection point in the market could be realized, according to Timothy.

For the house’s stock picks and more, which are presented in a full-page article, go buy The Edge which costs $3.80 at the news-stands.

Recent story: Should investors just forget about 2012?



In a full-page article on Monday (Jan 16), Business Times senior correspondent Teh Hooi Ling wrote that based on equity risk premium, the Singapore market is at its cheapest since 1999 with the exception of the period during the global financial crisis in 2008/2009.

Equity risk premium is a measure of the expected return of an equity investor over and above the risk-free rate.

She also considered other metrics: forecast PE for next year, historical PE, dividend yields and price-to-book ratios.

“Overall, the various metrics suggest that we should be putting some new money to work in the market but not to the extent of using up all of one’s cash. It is still advisable to keep some powder dry,” she wrote.

BT_tables
Stocks with highest div yield (market cap $50 m - $1 b)
BT_tables-001
Stocks with highest div yields and lowest P/B. (market cap $50 m - $1 b)

Comments  

0 #6 7645 2012-02-07 18:15
Meimei, now you have your answer- the market currently loves Qingmei...the metrics are a true reflection of the company's earning powerand confidence in its future
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0 #5 7557 2012-01-20 04:32
i am vested in Lee Metal group. Good dividend yield. stable share price. even with euro debt crisis, it did not drop that much.
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0 #4 World Citizen 2012-01-19 09:53
The consensus view is that the Euro crisis will peak in 1Q or 2Q, and markets will plunge, offering investors a big chance to buy cheap. The reality is turning out to be possibly different. In the last 3 weeks, the markets are recovering amid positive economic data. Even Greece is saying it expects to seal a deal with private creditors this weekend. With the landscape changing, many investors are gradually letting go of their risk aversion. If this continues, the rally could become explosive.
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0 #3 Innozek 2012-01-19 08:39
Innotek is shown in table as having historical yield of 13.7%. Today alone, the capital appreciation is 13.3% -- after stock has cheong-ed 5 cents to touch 42.5 cents. Still good if the 5-cent final dividend is repeated soon. Will it?
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0 #2 CTS 2012-01-19 05:39
These are historical numbers and are distorted by special payouts other than say Elek,UMS, GPI etc many of the rest may not be paying the same as the past year....should read all these pure statistical numbers with care and not follow blindly...
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0 #1 MeiMei 2012-01-19 04:24
LOL -- Qingmei shows up as a high div stock and the lowest P/B value play. So how come the market doesn't luv it? S-chips are in this quandary -- for us investors, it's a guessing game whether the metrics reflect reality. If they do, then we have the best bargains of the decade staring at us.
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