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TMFMmbop (40.38)

UPDATE: The World's Cheapest Stocks

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June 12, 2009 – Comments (5)

Our crack Global Gains analyst Nate "The Snake" Weisshaar ran the numbers again this week on where you can find the world's cheapest stocks, and we've seen some changes in the numbers given the market's recent run-up. Take a look:



A new name jumps out at me...India. Your thoughts?

5 Comments – Post Your Own

#1) On June 12, 2009 at 1:15 PM, russiangambit (29.39) wrote:

I know Russian stocks are the cheapest , but what good is it if nobody buys them anyway?

India - if  I could get good information on their companies, I would consider it. But they such serious infrustructure and corruption problems, I don't know if they can overcome them. I'd buy russian oil producers any time over indian IT companies. It seems every year there is a scandal with an Indian company cooking books.

I personally like prospects of Russia, Turkey, Israel, Brazil and China.

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#2) On June 12, 2009 at 3:22 PM, TMFMmbop (40.38) wrote:

Russia is tough given the Putin factor, and their energy infrastructure is also pretty outdated. I saw a Lukoil investment in NYC that was shocking re: their inability to reinvest in the business because whenever they get money, they are taxed to high heaven.

Given that India toots its horn as a democracy, you're right that it's tough to access that market. The economy is very closed and protected. In fact, American investors have access to fewer than 50 Indian stocks on our exchanges.

Brazil? Yup. Indonesia, too, if you think natural resource prices are going to rebound.

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#3) On June 12, 2009 at 3:33 PM, russiangambit (29.39) wrote:

> Russia is tough given the Putin factor, and their energy infrastructure is also pretty outdated. I saw a Lukoil investment in NYC that was shocking re: their inability to reinvest in the business because whenever they get money, they are taxed to high heaven.

That is true. This is how Russia finances its social programs. But I think when oil was expensive last year they finally made some changes to the tax legislation, allowing tax breaks on exploration of new fields. Actually, it is not much different from China. China Petroleum is also expected to subsidize the consumers when oil is too high.

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#4) On June 12, 2009 at 4:09 PM, vitrified (95.88) wrote:

Very interesting.  Tim, I get the sense that you normally look first at EV/EBITDA as perhaps the most important measure of value.  Is that right?

By any measure, South Africa looks to me like it may offer one of the best bargains across the range of indicia (recognizing their challenges brought on largely by Mbeki's past wrong-headed policies).  And I was surprised at how comparatively expensive China looks (recognizing still that it offers the greatest growth prospects), as well as how cheap India looks, as you mentioned.  I'll have to keep looking at Turkey, as well.

I remember several years ago when India was viewed as a real rival to China among emerging giants; clearly China won decisively in the battle for investor attention (while recognizing that the Indian market is less accessible, which doesn't help, as you noted in your comment, above).

After reading and discussing Investment Biker via Global Gains, I would be hard-pressed to find a reason to foresee sustainable growth (outside perhaps a continued rise in oil prices--though I wouldn't have any confidence that I would be treated fairly as an investor on that front) in Russia.  My impressions, though, are just based on what I have read (as well as their unfavorable demographics).

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#5) On June 17, 2009 at 9:46 PM, RuleBreakerGoog (97.86) wrote:

India huh?  Just saw a bit of interesting news surrounding SeaChange (SEAC) and their move into India via IPTV.

June 17, 2009 10:03 AM EDT

LONDON--(BUSINESS WIRE)-- Smart Digivision and SeaChange International (Nasdaq: SEAC) have been honored for their consumer service innovation on the breakthrough MyWay IPTV service at this year's Global Telecoms Business Innovation Awards. Rolling out across India with a world-class offering of on-demand and personal television applications, Smart Digivision's MyWay takes full advantage of SeaChange middleware, digital video systems and professional services.

By taking advantage of SeaChange's TV Navigator middleware, electronic program guide, video-on-demand systems and set top box applications, SmartDigivision aims to bring MyWay IPTV to over three million subscribers throughout India on broadband networks of telco operators BSNL and MTNL. As the principal integrator, SeaChange is orchestrating the rollout of MyWay, which will encompass pause live TV; convergence services for integrated email; an on-demand library of DVDs, music and games; and over 150 broadcast TV channels.

Full link: http://www.streetinsider.com/Press+Releases/Smart+Digivision+and+SeaChange+Win+Innovation+Award+for+MyWay+IPTV+Service/4737473.html

Is 3 million a big deal in a country of 1 billion?  Good starting point, I would say.  Apparently they already have some market share there and are expanding it; they also are the provider of On Demand solutions for Comcast here in the states.  This company seems to be generating a lot of interest globally in their systems and software.

 I have 125 shares of this stock in my wife's IRA.

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