Investing in US stocks - Value Buys
Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Stock Synopsis
Forum Discription: A bried discussion of companies on very specific matters. Normally this is the prelude for further research as always members would be discussing quality companies with good management only
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=3077
Printed Date: 21/Apr/2025 at 1:34am
Topic: Investing in US stocks - Value Buys
Posted By: nav_1996
Subject: Investing in US stocks - Value Buys
Date Posted: 20/Nov/2010 at 10:55am
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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. |
Replies:
Posted By: bihisello
Date Posted: 20/Nov/2010 at 11:40am
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The link:
http://www.thehindubusinessline.com/2010/11/20/stories/2010112052541100.htm |
Posted By: chimak10
Date Posted: 21/Nov/2010 at 4:26pm
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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 - 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. |
Posted By: Kabootar
Date Posted: 21/Nov/2010 at 5:43pm
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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. |
Posted By: manishdave
Date Posted: 21/Nov/2010 at 6:11pm
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. |
Posted By: Monkey
Date Posted: 21/Nov/2010 at 8:12pm
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Manish sir,
Is there any way for indian investor to buy US properties?
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Posted By: nav_1996
Date 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. |
Posted By: excel_monkey
Date Posted: 21/Nov/2010 at 9:02pm
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lot of liquidity
but ultimately overtime its value might fall in rupee terms
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Posted By: manishdave
Date Posted: 21/Nov/2010 at 9:23pm
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Indian investor can form a corporation and buy real estate in US. But then you need to do research and do leg work. Other way is to buy REIT company. Than can be done sitting here. But real bargains are foreclosures. I checked and even rental makes sense at current prices. There are willing buyer, only problem is getting loan is extremely difficult. They went from one extreme to another. Value of property won't fall in rupee terms. Even if USD cuts into half, property will double. It is hard asset and will appreciate if currency depreciates. Currency declined in Zimbabwe, but prices of hard things kept on going up. |
Posted By: chimak10
Date Posted: 21/Nov/2010 at 8:15am
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MSFT: Available at PE of 11. Some no-descript IT companies are quoting at PE of 11 in India. [/QUOTE] Steve ballmer sold something like 1 billion of stock for "TAX PURPOSE" 
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Posted By: chimak10
Date Posted: 21/Nov/2010 at 8:31am
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The thing i am interested in is turnaround of some of this
vishal retail, ratnamani metal, nitco, koutons, indage group................is there something worth looking in this companies????????????????????????????????? Could any of this company come up roaring. |
Posted By: subu76
Date Posted: 21/Nov/2010 at 8:44am
Steve ballmer sold something like 1 billion of stock for "TAX PURPOSE" [/QUOTE]
I think the $220 billion market cap is a big dead weight for MS.
And now Apple is at $281 billion mkt cap.
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Posted By: chimak10
Date Posted: 21/Nov/2010 at 9:28am
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pepsico EPS seems to be decreasing as per google stock screen...............don't know how authentic it is ..........or is it like moneycontrol with only standalone stuff.
Arrey bhai forget Parag bhai ........apni akkal ladaooo........ |
Posted By: manishdave
Date Posted: 22/Nov/2010 at 5:23pm
In turnaround case, Himatsinghka looks interesting.... |
Posted By: KetanAdmirer
Date Posted: 22/Nov/2010 at 10:52pm
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Koutons and Indage looks worth a bet... Note: I don't have any position in these stocks... ------------- Cheers Anand |
Posted By: srisaurabh2000
Date Posted: 23/Nov/2010 at 12:33pm
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The court last month had allowed Indage to sell their inventory of around 200+ cr. which was lying idle according to ET. Not sure if there was any progress on sales, will be visible only on their Dec. qtr numbers if they plan to report. |
Posted By: chimak10
Date Posted: 23/Nov/2010 at 12:59pm
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Old Wines gets pricers
Although i hate indage group..........i lost lots of money it indage viniters. |
Posted By: excel_monkey
Date Posted: 23/Nov/2010 at 6:11pm
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Chimak ji
How big is their total real real debt? Wockhardt has also been in the same situation and now is coming out if their core business is good they will bounce back
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Posted By: chimak10
Date Posted: 23/Nov/2010 at 6:21pm
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I have forgotten about the amount.
Now i hate the management cause i had sent them emails no response.......made calls to them i was just kept on hold.........even filed an complaint to sebi.........but no response...........zilch........i can understand the management going wrong in acquisition......but the way they treated the shareholders is the worst thing. |
Posted By: excel_monkey
Date Posted: 23/Nov/2010 at 7:26pm
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Chimak ji
most of the companies are like this why be too sensitive on this one
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Posted By: BenWilliams
Date Posted: 17/Jun/2011 at 10:35am
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If you think that you have a bright idea of trading US stocks in HK
while evading capital gains taxes in th US, you will likely get
yourself into some serious shit....especially over the pennies you have
to invest. Unless you're planning not to return to US, I would not
advise that course of action. Good Luck. ------------- http://www.hototc.com/ - Penny Stocks |
Posted By: Kautilya
Date Posted: 13/Aug/2011 at 7:55pm
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Johnson and Johnson is available at 15 times earnings. Some of these US stocks will remain cheap for sometime to come, but I think this is good time to buy into quality businesses for long term investment. ------------- My indecision is final. |
Posted By: patra04
Date Posted: 13/Aug/2011 at 6:13am
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Bank Of America looks very interesting at current levels. It has got really hammered since the big crash. ------------- An investment in knowledge pays the best interest. |
Posted By: gbhupesh
Date Posted: 14/Aug/2011 at 8:03pm
| AT&T is available at 6% dividend yield |