Faber, who resides in Chang Mai, Thailand often serves up a handful of unknown value stocks in Thailand, Singapore and Mongolia during the investment panel.
Although he doesn't think that markets in Asia are inexpensive there are still some attractive dividend paying stocks. Faber's recommendation was to assemble a basket of high paying Asian shares with dividend yields of 5% and a P/E [price/earnings ratio] of around 10 times earnings.
"I recently bought Chiang Mai Ram Medical [CMR.Thailand], a hospital-management company. Health-care expenditures per capita are around $7,000 in the U.S. In India they are less than $50, and in China they are around $80. It is a no-brainer that health-care expenditures will grow in the developing world, along with spending on pharmaceuticals.The P/E is about 12."
It should be noted that this stock pick is geared towards domestic growth in Thailand as
Chiang Mai Ram Medical is not focused on medical tourism.
Faber also recommended consumer-finance company AEON Thana Sinsap [AEONTS.Thailand], that has a P/E of 10 and a yield of 6%. This company is similar to Capital One Financial in the United States.
Faber continued on with two more picks, "MCOT [MCOT.Thailand] is a communications company, partly state-owned. It has a yield of around 5% and a P/E of 10. In Singapore there is Ascott Residence Trust [ART.Singapore]. If you are moving to Asia or within Asia, you can't find an apartment overnight, so you stuff your family into a residential hotel until you do. Ascott yields 5.6%."
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