Entering text into the input field will update the search result below

Coronavirus Roundtable - Opportunities Around The World

SA Investing Groups profile picture
SA Investing Groups


  • We start a new round of roundtables by looking at global markets.
  • While the U.S. markets have maintained leadership through the downcycle, authors see a wide spread of opportunities.
  • They share what they're looking at both domestically and in other markets, and what safe havens or names they like.

Markets have settled and recovered from the initial shock of the coronavirus spread and the response of governments around the US and the world to lock down the economy. But while the major US indices have approached, if not quite matched, the fabled V-shaped recovery, there are still plenty of questions left for investors.

The disconnect between the markets and the economy has become a cliche, which doesn't change its validity. The size of stimulus in the US has been unprecedented. As governments start to reopen, it's to be seen whether we will see a second wave of cases. And we don't yet know how quickly people will go back to spending, and what the engine of the economy will be in this uncertain period.

To suss out all these uncertainties, we're starting a second round of our coronavirus roundtable series. We'll be looking at some of the major sectors of the market that are in the market, overall market and macro outlooks, and niches that may deserve investors' attention.

We start with a look at non U.S. markets. Whether the strength of the dollar, the Fed, or FAANG, US indices have become accustomed to leadership. We ask a panel of authors focused on other markets whether that is holding up in the current period, and what opportunities they see. Our panel:

Seeking Alpha questions are in header font. Author disclosures are available at the end of the article. Questions were sent out Tuesday, May 5, with answers being received by Thursday, May 7.

Set the table: which markets/countries do

This article was written by

SA Investing Groups profile picture
The Seeking Alpha Investing Groups is our platform for investing research and guidance. Services are led by individual authors and feature communities of investors with similar interests focused on a given investment style and approach. It enables investors to get guidance and ideas that suits their needs so they can take their investing to the next level. Contact us at marketplace@seekingalpha.com if you'd like to apply to launch an Investing Groups service. Interested in signing up for a Marketplace service? Check out all our services here. For any questions about SA's Investing Groups, contact subscriptions@seekingalpha.com. We'd be happy to hear from you.This account will be used to highlight these authors and offer insights into investing from the authors to any interested users. Follow this account if you'd like to hear what's going on with the SA Investing Groups!

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

The Value Pendulum is long Pico Far East Holdings [752:HK] (PCOFF). Mark Bern, CFA is long NFLX,LMT and VFIIX. Kevin George is long GILD. Tariq Dennison is long HNLGY and EWY

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given that any particular security, portfolio, transaction or investment strategy is suitable for any specific person. The author is not advising you personally concerning the nature, potential, value or suitability of any particular security or other matter. You alone are solely responsible for determining whether any investment, security or strategy, or any product or service, is appropriate or suitable for you based on your investment objectives and personal and financial situation. The author is an employee of Seeking Alpha. Any views or opinions expressed herein may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank.

Recommended For You

Comments (27)

Ruerd Heeg profile picture
My 3 picks since 8 May 2020:
Lukoil (LUKOY): 66.15 --> 79.12 USD, 20% return (at the moment 6.92% yield)
Emerson Radio Corp (MSN): 0.72 --> 1.09 USD, 51% return
Paul Mueller Co (MUEL): 26.75 to 44.85 USD, 68% return

46% on average (S&P 500: 40%).

Paul Mueller Co is still a good stock in my ranked list of US-listed low EV/EBIT + quality stocks (my version of Quantitative Value).
BeaBaggage profile picture
a little late to this discussion.. but I have many foreign stocks on my watch list radar..
$CKISY, $HLDCY, $JMHLY in HK , $ZIJMY in CN... then some RU stocks like Gazprom, Norlisk, Sberbank, and RU gold miners.. my perview never extended much beyond Canada but I find this is changing. The only foreign stock I own now is AUS miner Newcrest, $NCMGY in a starter position. Adding $HNLGY to the list for due dilegence f/up.. Bea
Bhughes7918 profile picture
these are deep value sock s I like today

My Mother Is Smarter Than Warren
May 5, 2020 7:14 PM ET|1 comment |About: Arrow Financial Corporation (AROW), Includes: OPY
She says "without your health you got nothing"
She says " All Things In Moderation."
She buys stocks and almost never sells them.
My mother always said health is the most important thing over and over "without your health you have nothing" she said this over and over growing up. Today at 89 she still swims walks 3 miles a day. She eats almost anything she wants like a Warren. But always drank lots of cold water my cousin was a doctor and he always said drink 8 cold glasses a day, not sure why cold, but common sense says it cleaner then and tastes better cold for sure.
He died in this eighties but was always in great health and in great shape as a surgeon you had to be.anyway, she always said do things in moderation, anything you want and you will be fine. She always read books like Warren, always investing in stocks like warren and usually never sold like Warren. She always bought value and held for the long - term out running in the woods today I saw the most people I have in 25 years, people of all ages no one running like me but at all hiking, it has been building the past month but today was crazy, so I think this virus will in the long run probably save 1,000,000 lives or more, people are so out of shape in the USA it is not funny you see kids in high school walking the track for their mile run day with sandals on if that was my kid I would have a heart attack, some schools no gym now, just crazy people get out there get in shape today period, no more excuses. Get out there today, stay healthy, and stay alive.
But what really strikes me is people this weekend most driving in their cars by themselves all wearing masks today. But at the parks by me at least almost nobody has them on. So we really as a country we have lost our way.
Airlines want you to wear a mask know, as things open up, how was this not mandatory or not being done the past 45 days. Everything is done backward, sideways, everybody has a different opinion. I have never seen something that seems simple, use common sense wear masks period if you go out. Yet our leaders don't wear them in hospitals, I really not sure what all this means yet other than massive USA debt for all.
Even Warren Buffet said last night he has no idea how this will end but it probably won't be good he said. So, in fact, he sold stocks last quarter and bought none. Even his stock was much higher last quarter when he bought but he did nothing with this time, which means he likes cash more today. That is a statement itself.
But there are always good values he said, so if you stay in your lane, don't buy on margin and buy when things are 30%-50% below tangible book, and the business is doing good, you should do more than fine.
Remember what you pay is almost always the most important factor for your risk-reward and returns, but also so you don't get shaken out if you buy too high and it gets hit, usually, you get shaken out. You must stick to what you know and buy heavily when the time is right which is usually once every 5 or ten years.
Right now the values are in the Smaller bank stocks and there are plenty, even Warren owns mostly banks, even thou they are the bigger ones, if he could he would be buying the smaller ones hand over fist today. Not all but just the select few names with the strong asset quality that have around been around 150 years like, AROW under $22 if it gets back there and OPY under $18.50 it is $18 today. OPY is 33% under tangible book value earning 10% return a year on its capital and they bought 409,000 shares back at $20.60 in march so in May they will buy many more. AROW, is just over the tangible book but earning like a 12% return on capital on a consistent basis for 100 years plus. These two are as safe as it gets at today's levels in an over-all high priced stock market.
Douglas Hughes
11146471 profile picture
Another "crazy" opportunity is Emperor Entertainment Hotel (HK:296) with NET cash position ca. $300M and market cap ca. $130M (!), This one is ebitda positive as well with ca. $40M ebitda per annum... It has some casino/hotels in the city of Macau PRC. It also offer near 10% consistent dividend about 500% covered from FCF (!!) Link: https://www.emp296.com/eng/

All in all Asia is incredibly cheap to the eyes of a western investor, problem is many of Asian stocks keep falling year after year...a matter of corporate governance? A matter of perception? Culture? I dunno...
Ruerd Heeg profile picture
Twice a month I run an algorithm ranking all low EV/EBIT stocks on several criteria. Emperor Entertainment Hotel had a great ranking last time I ran my algo (at share price 1.16 HKD): position 40 among 2167 other low EV/EBIT stocks.

In November 2017 I looked into this stock in more detail, so quite some time ago. You can view it if you take a free trial: seekingalpha.com/...

This is a Macau casino stock. I think casinos in Macau are now closed or have hardly any visitors because of the coronavirus. Based on his tweets I suppose Jim Chanos is short some US-listed casino stocks, including those with casinos in Macau.

That said this stock is certainly cheap. A basket of 20-40 of such extremely cheap stocks will bring you high returns, but for individual stocks there are no guarantees on good returns.
Ruerd Heeg profile picture
With Hong Kong listed stocks governance is on average not as good as with US-listed stocks. My impression from the last couple of years is governance in Hong Kong has improved somewhat, maybe because of activism of David Webb, and governance with many US-based stocks has worsened.

For many companies traded in Japan and Hong Kong asset allocation is not great either. There are higher barriers for an acquirer to buy another public companies in both countries. So asset allocation won't get better any time soon.

That said also in Hong Kong and Japan are great asset allocators with good governance. Again take a free trial to learn more: seekingalpha.com/...

As I wrote in the article above another reason Asian stocks are so cheap is that they seem to be part of a momentum rotation cycle. I think this crisis will end this momentum cycle that caused so much momentum for US-based stocks. I suppose Hong Kong/Japanese stocks will benefit from the end of this momentum cycle.
The Value Pendulum profile picture
Hi 11146471, there are both structural and stock-specific reasons for anything that is cheap now in Asia. I will just discuss the structural factors here.

In the past few years or even a decade, there has been a shift from deep value/cyclical names to bond-like stocks which are either rate-sensitive steady dividend payers or fast-growers with earnings growth certainity. This meant that the tech sector is a big winner which has been positive for FANG in the US and BAT in China; and REIT, utilities or any stocks with bond-like characteristics have basically out-performed their peers.

In the decade starting 2000, when emerging markets and Asian markets were out-performing their US counterparts, investors were eager to cheer on the rise of BRICs and others of the like. US markets might continue to out-performance, given that FANG is a critical part of the digital revolution, but this by no means guaranteed.

I recently came across research by GMO that indicates how cheap emerging markets are now relative to the US, which you and other readers might find worth reading about.
11146471 profile picture
Since we are talking random international opportunities here take a look at a toy/figures manufacturing company in HK which has a much smaller market cap than it's NET cash position: Playmates Toys Limited (HK:869) https://playmatestoys.com

Their net cash position is ca. $100M and their mcap is ca. $35M.

I would to hear @The Value Pendulum opinion on this.
11146471 profile picture
BTW I like your Pico "pick" a lot and I might give it a "shot". I was looking for some "covid come back" games in Asia...
Ruerd Heeg profile picture
Playmates Toys is a net-net. Twice a month I run an algorithm ranking all net-nets on several criteria. This one had a good ranking last time I ran my algo (at share price 0.295 HKD): position 52 among 404 other net-nets.
The Value Pendulum profile picture
Thanks, 11146471. Please feel free to share your thoughts on Pico, after you have taken a closer look at the name.
Your articles are very informative. Thank's.
pat45 profile picture
when the FED money stops, so will the huge rise....too much negative esp overseas that is not held up by their feds...and then there is the debt
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!


SymbolLast Price% Chg
Div Rate (TTM)
Yield (TTM)
Short Interest
Market Cap
Compare to Peers

More on HLPPF

Related Stocks

SymbolLast Price% Chg
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.