Seeking Alpha

Chris DeMuth Jr.'s  Instablog

Chris DeMuth Jr.
  • on Portfolio Strategy & Asset Allocation
Send Message
"It's not given to human beings to have such talent that they can just know everything about everything all the time. But it is given to human beings who work hard at it - who look and sift the world for a misplaced bet - that they can occasionally find one." - Charlie Munger I look... More
My blog:
Rangeley Capital on Harvest
My book:
Rangeley Capital Best Investment Ideas
View Chris DeMuth Jr.'s Instablogs on:
  • International Spotlight: Singapore

    Fundamentals

    Valuation Ratios in Equity Markets

    Country

    CAPE

    PE

    PC

    PB

    PS

    DY

    Singapore

    13.8

    15.7

    11.3

    1.4

    0.9

    3.2%

    World Average

    20.7

    18.8

    10.8

    2.1

    1.2

    2.3%

    Singapore's market is substantially cheaper than the world average. However, when corrected for sector exposure, the 44% discount shrinks to a 16% discount.

    Economic Freedom

    Singapore is the second freest country in the world. Its rating has strengthened through the years.

    2015 Index of Economic Freedom

    Modern Singapore's miraculous success is owed in large part to its founder, Lee Kuan Yew.

    We are ideology-free. Does it work? If it works, let's try it. If it's fine, let's continue it. If it doesn't work, toss it out, try another one.

    - Lee Kuan Yew

    Transparency

    Singapore is the seventh least corrupt country in the world. The government has no tolerance for corruption. The government is the best in the world at controlling corruption with consequences that include severe punishment.

    Discounted Exposure

    Aberdeen Singapore Fund, Inc (NYSE:SGF) currently trades at about a 12% discount to its NAV. That discount is greater than its 10 year, 5 year, and year to date average.

    Conclusion

    Singapore's equity market is inexpensive, especially for a country with one of the freest and most transparent economies in the world.

    Tags: SGF
    May 04 8:26 PM | Link | Comment!
  • International Spotlight: Taiwan

    Fundamentals

    Valuation Ratios in Equity Markets

    Country

    CAPE

    PE

    PC

    PB

    PS

    DY

    Taiwan

    21

    16

    9.9

    1.9

    1.0

    3.0%

    World

    21

    19

    10.8

    2.1

    1.2

    2.3%

    Taiwan's market is only slightly cheaper than the world average. When corrected for sector exposure, the 14% discount widens to a 20% discount.

    Economic Freedom

    Taiwan is ranked the 14th freest country in the world. Its rating has strengthened consistently over the last few years.

    2015 Index of Economic Freedom

    Prudent macroeconomic policy within a stable legal and monetary environment have driven the strong rise. In economic freedom, Taiwan is a model of success for mainland China.

    Transparency

    Out of 175 countries measured, Taiwan is ranked the 35th least corrupt. Taiwan's government has strong efforts towards controlling corruption.

    Discounted Exposure

    Taiwan Fund, Inc (NYSE:TWN) currently trades at about a 10% discount to its NAV. That discount is greater than its 10 year, 5 year, and year to date average.

    Conclusion

    Taiwan's market is moderately priced and TWN offers a moderate discount. While it is not one of the greatest international opportunities, it is one of many places in which to seek diversification away from the US market.

    Tags: TWN
    May 04 8:24 PM | Link | 2 Comments
  • International Spotlight: Israel

    Fundamentals

    Country

    CAPE

    PE

    PC

    PB

    PS

    DY

    Israel

    15.3

    17.2

    13.2

    1.7

    1.2

    3.0%

    World Average

    20.7

    18.8

    10.8

    2.1

    1.2

    2.3%

    United States

    28.8

    20.6

    12.0

    2.9

    1.7

    1.7%

    The cyclically adjusted Shiller-PE, CAPE, is based on average inflation-adjusted earnings from the previous ten years. Israel's CAPE is about half of the US'. Israel is less expensive on all fundamental metrics other than price to cash flow. Israel is substantially less expensive than the US on the basis of its price to book value. On the basis of book value, Israel is 19% less expensive than the world average. That discount grows to a 38% discount when corrected for its sector exposure.

    Economic Freedom

    Israel is ranked the 33rd freest country in the world. Its rating has strengthened over the last few years.

    2015 Index of Economic Freedom

    Improvements in property rights and the regulatory sectors have driven the rise. Israel is an outpost of the free market and democracy in the region.

    Transparency

    Out of 175 countries measured, Israel is ranked the 37th least corrupt. Israel is well-regarded in terms of its control of corruption. It is also good at its maintenance of financial secrecy. It maintains the rule of law and an independent judiciary.

    Discounted Exposure

    Aberdeen Israel Fund, Inc (NYSEMKT:ISL) currently trades at about a 15% discount to its NAV. That discount is greater than its 10 year, 5 year, and YTD average.

    Holdings

    Top sector exposures include healthcare, technology, and financials. One of their top holdings is Perrigo (NYSE:PRGO) which could benefit from a potential takeover attempt from Mylan (NASDAQ:MYL).

    Conclusion

    Israel has an attractive equity market compared to both the world on average and the US in particular. It's market is inexpensive, especially for a country with a free economy and a high level of transparency.

    Tags: ISL, PRGO, MYL
    May 04 6:00 PM | Link | 2 Comments
Full index of posts »
Latest Followers

StockTalks

  • Create Your Own Stock Market Narrative! http://www.stockcats.com
    about 3 hours ago
  • A Poker Champion Explains Why You Make Bad Business Decisions: http://onforb.es/1t3dvvo
    about 4 hours ago
  • "When someone doesn't want you to look at traditional metrics, it's a good time to look at traditional metrics" - David Einhorn 5/4/2015
    about 7 hours ago
More »

Latest Comments


Most Commented
  1. GCVRZ Forum Archive (1,000 Comments)
  2. GCVRZ Forum (853 Comments)
  3. Event Driven Q&A Forum (240 Comments)
  4. GPT Forum (132 Comments)
  5. Shorts Forum (125 Comments)
Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.