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Marc Faber's Asian Stock Picks

January 14, 2012

Marc Faber, editor of the Gloom Boom Doom report revealed some of his Asian stock picks during the Barrons Roundtable.

"Because emerging markets saw big declines last year, you could also buy SATS[SATS.Singapore], in Singapore, which provides catering services to the airline industry and ports. It yields 5% and trades for 13 times earnings. I also like K REIT [KREIT.Singapore], a real-estate investment trust that yields 7%. The stock has fallen by about 50% and the dividend might be cut. But even if it is cut to 4%, this is an OK investment. These stocks won't go up right away, but reinvesting dividends will yield an adequate return over time. Starhub [STH.Singapore], the mobile-phone company, yields 6.9% and the P/E is 14."

Faber has previously said that he prefers Asian dividend stocks. It should be noted that Faber only recommends an allocation of 25% to stocks.

During the 2011 Barron's Roundtable Faber recommended a number of Thai and Singapore dividend stocks that had mixed results.

Faber continues to wait patiently for the bear market in emerging market stocks to end. He favors some of the beaten up emerging markets like Hong Kong and Singapore despite the fact that he expects China to slow markedly in 2012.

"The question is, to what extent has that been discounted already? They could fall another 20%, but a luxury-property developer like Wing Tai Holdings [WINGT.Singapore] already sells for half its book value. I am positive about Singapore in the long run because more Europeans are moving there, and to Hong Kong. Because of banking-secrecy laws it is probably safer to have a bank account in Singapore than Europe. The Hong Kong market was hit hard, and stocks haven't bottomed yet. But you can buy Sun Hung Kai Holdings[16.Hong Kong], with a P/E of five and a yield of 3.5%. Swire Pacific [19.Hong Kong] is a blue-chip, a well-managed conglomerate. It yields almost 5% and the P/E is 11. Hang Seng Bank [11.HK] yields 5.6% and trades for 11 times earnings. There isn't a huge risk in these stocks, but maybe I'm too bullish."

It is interesting to note that none of Faber's Roundtable recommendations can be found in Marc Faber's stock picks in August 2011. At the time he was bullish on Singapore REITS, Thai stocks and some Malaysian stocks. It appears that some of his enthusiasm for Singapore REITS has diminished in light of lacklustre performance in the second half of 2011.

Rating: 3.8/5 (11 votes)


Jean-Francois Nobert
Jean-Francois Nobert - 5 years ago    Report SPAM
One of the best value i found a good price is ticker:2020, Anta Sport. now trading at 8.49 15/01/2012.

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