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Topic: Investing in US stocks - Value Buys

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nav_1996
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Joined: 08/Sep/2006
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Topic: Investing in US stocks - Value Buys
Posted: 20/Nov/2010 at 10:55am

I read this article from Parag Parikh that Indian stocks have become pretty costly compared to developed world stocks. And I found it is true and there are some interesting stocks.

Pepsi: You get a company which is growing at about 12% at PE of 17. In India you have Dabur growing at 15 to 17% and PE of 38. Pepsi does 40% revenue from outside North America and will continue to grow. They are largest F&B company in India (they have overtaken Nestle).

MSFT: Available at PE of 11. Some no-descript IT companies are quoting at PE of 11 in India.

Exxon-Mobil: Available at PE of 12. You pay 17 for ONGC in India. Both growing similar rates and their earnings are tied to USD.

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bihisello
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Joined: 28/Apr/2010
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Posted: 20/Nov/2010 at 11:40am

The link:
http://www.thehindubusinessline.com/2010/11/20/stories/2010112052541100.htm

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chimak10
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Joined: 30/Aug/2007
Location: India
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Posts: 1540

Posted: 21/Nov/2010 at 4:26pm

Hmm very interesting.

Well hmm exxon looks good at PE of 12.........

Okay maybe not.................. if the figure on this site are true than it is at its Highest PE............

http://finapps.forbes.com/finapps/jsp/finance/compinfo/Ratios.jsp?tkr=xom

5-Year Avg. High P/E Ratio     13.7
5-Year Low P/E Ratio      6.5
5-Year Avg. Low P/E Ratio     9.7
5-Year Avg. P/E Ratio     12.1

So Highest PE it got was PE of 20 and then there was all hallbulla about extra tax on exxon in USofA.

What are the tax rate for LTCG on non indian stocks.

Oh never mind i am probably not going to invest ever outside of india for various reason ........money being one of them & i first have to learn investing.......

If looking for cheap PE then why not buy TIL.......products are good.........high return ration ........decent promoters...........30-40% growth..........available at trailing PE of 12 or so....

there could be like 20-50 stocks in india like TIL.

Edited by chimak10 - 21/Nov/2010 at 4:36pm

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Kabootar
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Joined: 12/Jul/2010
Location: India
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Posts: 461

Posted: 21/Nov/2010 at 5:43pm

an exxon would do extremely well with rising crude prices in the offing. other than IDR how can ordinary folks invest outside india?

Verbal diarrhoea! A most deadly disease.

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manishdave
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Joined: 05/Aug/2006
Location: India
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Posts: 1371

Posted: 21/Nov/2010 at 6:11pm

Originally posted by Kabootar

an exxon would do extremely well with rising crude prices in the offing. other than IDR how can ordinary folks invest outside india?

Rising oil price is good AND bad for exxon. They need to replace oil that they produce, and that becomes costlier. It is becoming extremely difficult for them to replace reserves. And whatever they replace, expensive to produce.

On US market, it is cheap bcoz gorwth is low or -ve. But companies like Apple or Chipotle are growing fast and not cheap.

Here even toothpase industry is groing and market pays for growth.

But in my sense convering investment in real estate is better idea. You can get apartment(flats) in florida for 25-30 lacs. Or even some houses(bunglows) for 35-40 lacs in cities with good size of land. Can not do it here.

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Monkey
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Joined: 21/Aug/2009
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Posts: 770

Posted: 21/Nov/2010 at 8:12pm

Manish sir,

Is there any way for indian investor to buy US properties?

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nav_1996
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Joined: 08/Sep/2006
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Posts: 803

Posted: 21/Nov/2010 at 8:56pm

US property may appear cheaper compared to India but challenge is that there is no appreciation and liquidity.

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excel_monkey
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Joined: 17/Nov/2009
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Posts: 1281

Posted: 21/Nov/2010 at 9:02pm

lot of liquidity
but ultimately overtime its value might fall in rupee terms

Originally posted by nav_1996

US property may appear cheaper compared to India but challenge is that there is no appreciation and liquidity.

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