Hao Jin

EFA: Diversify Your Portfolio Outside the U.S.

Most companies’ forward P/E can be found in Yahoo Finance --> Company --> Key Statistics area. Or you can create a portfolio under “My Portfolios” tab, then go to “Edit Your View “and select “Price/EPS Next Year” from available fields. There is no forward P/E for ETFs such as EFA so I just calculated the top 15 holdings’ forward P/E and average.


On Nov 08 10:54 AM American in Paris wrote:

> Where do you get the forward looking PE ratios on Yahoo? I see only
> trailing twelve month figures.

What's the Fair Value for the Dow Jones Industrial Average?

Below was a comment from Instablog, which I deleted after article is published:

On Oct 31 04:04 PM Graham and Dodd Investor wrote:

> We agree with Bill Gross that the Dow is worth about 7000 (and may
> have foreshadowed his call).
>
> www.thestreet.com/p/rm...
>
> But we also believe that it could go as low as HALF our "investment
> value" calculation, as it did in 1932 and 1974.

19 Chinese Stocks That Are Relatively Cheap

Thanks Ricard. Sorry I didn’t disclose data source carefully. Below are full details:

1.I used to use Yahoo Finance only. But as Ricard mentioned, most of Chinese companies data are not ready available in Yahoo site.

2.Then I turned to Google Finance (www.google.com/finance...), which have all those companies’ P/E and market cap, etc.

3.Comparison metrics such as operating margin and debt/operating CF were manually calculated from each company’s financial statements (income statement, balance sheet and cash flow), also from Google Finance. I used Quarterly Data for the last 12 months if it is available. Otherwise used Annual Data instead.

4.ETF data ( such as net assets and P/E) are still from Yahoo Finance ETF center ( finance.yahoo.com/etf/...)


On Oct 11 11:27 PM Herewego wrote:

> I looked up several of the 19 Chinese stocks that you say are cheap
> based upon P/E ratios in Yahoo Finance, Google and MarketWatch and
> none of them had anywhere close to the P/E numbers that you claim.
> Where do you get your information?

Are High Dividends Sustainable?

Yes, I did read most of comments and I learned a lot, such as popularity of FCF/dividend growth and benefit of depreciation, etc. However, I usually didn’t answer questions to individuate stock or allocation, because that is not fair to my paid clients.

I did try to incorporate my responds into my future related articles. Actually this article is a lump/catch-all of my humble opinions to comments posted in my last weeks’ article.

I agree that FCF is one of the most important metric. But I prefer to use operation cash flow(#9 in last article), and I didn’t buy any stocks without looking at CF first.


On Oct 04 11:42 PM pablo256 wrote:

> Hao, I enjoyed your article. Do you read the comments? I have been
> making charts of dividend payers with as many relevant parameters
> as possible. I have heard that FCF is probably the most important
> parameter and it seems you did not consider in your article. I am
> looking at everything with yields between 4.63 and 18 or so. The
> ETF SDY pays 4.63 so I try not to bother with companies south of
> that. I dont see the point. Above that I am gathering the parameters,
> comparing and then researching and reading everything I can to narrow
> down the list for investing.

Which Dividend Stocks Are Relatively Safe?

Thanks everyone for great ideas and thoughts. I will try to respond to your questions in next week’s article/instablog, if they are not already answered by our knowledgeable readers.


On Sep 27 06:58 PM User 468561 wrote:

> Unless it has been overlooked, dividend growth does not appear to
> be one of your determinative criteria. Without historical dividend
> growth, wouldn't higher cash flow be found in preferred stocks?<br/>
>
> However I appreciate your work and extend my thanks.

30 Emerging Market ETFs - Risk vs. Reward

finance.yahoo.com/etf/...

P/E is in the 6th column. Earnings Growth is in the last column. PEG = PE/G. Please note those are historical data.



On Sep 14 12:41 PM Alan Young wrote:

> This is not at all clear. What time period are you using to compute
> P/EG? How do you measure "earnings" and cash flow of an ETF--from
> the earnings/CF of its component stocks? Most ETFs don't compile
> those figures, so I wonder how you got them. And of course, ETFs
> don't have "earnings" and "cash flow" separate from their holdings,
> or at least not in a way that's relevant to their investment thesis,
> so I don't know what else it could mean. If you compiled all this
> info by looking up hundreds of individual stocks yourself, that's
> a terrific contribution; but somehow I doubt that.
> So I'm just confused... please clarify.

Portfolio Diversification Is Key: Consider These ETFs

I downloaded daily data for each ETFs from Yahoo Finance, and then calculated correlation data by myself, using Microsoft Excel only.

On Jul 21 10:25 AM Living4Dividends wrote:

> Great article, Hao.
>
> One caveat: Because correlations change over time, it is a bit like
> comparing apples and oranges when you compare a fund that started
> in 98 against a fund that started in 06. Still, you have no choice
> because that is when the funds started.
>
> Question: from which website did you get your correlation data ??

TIP: The Best Fixed Income Investment, For Now

The short answer is that if the US Dollar de-valuates, TIP's price, along with all other treasures', will decrease. The reason is that investor requires higher return (yield) to be in US$ note/bond. But TIP will suffer much less than pure long-term bonds/treasures.

Nothing is for certain. The only free lunch is diversification. That's why I am still in TIP even though many people (including me) believe US Dollar might (might in italics) de-valuate in the near future.




On Jan 20 11:35 AM Teutonic Knight wrote:

> Quick question for the author and other readers if they could chip
> in:
>
> If the US Dollar indeed (indeed in italics) de-valuates in the near
> future as some economists suggest that it might happen in the next
> six months or so, what will happen to TIPS?
>
> I raised this question elsewhere but I guess the folks were too occupied
> to drop me a hint.
>
> Thanks for a good article, Mr. Hao Jin.

TIP: The Best Fixed Income Investment, For Now

In 2008, total dividend for LQD is $3.07 therefore dividend% is 3.03%. If you create a Portfolio in Yahoo Finance “My Portfolio” tab, add LQD, then “View Detailed”, it will show dividend% of 3.03%.

Also, dividend details are as follows, which is from Yahoo Finance Historical Prices tab (finance.yahoo.com/q/hp...)

12/29/08 $0.422
12/1/08 $0.452
11/3/08 $0.435
10/1/08 $0.405
8/1/08 $0.466
7/1/08 $0.434
5/1/08 $0.463

Beta of 2.12 is from Yahoo Finance summary tab lower-right corner (finance.yahoo.com/q?s=...)


On Jan 19 12:49 PM icandoitdon wrote:

> LQD does not yield 3.03%. it's closer to 5.4%. and where do you get
> a beta of 2.12?
>
> you need to do better research.