Eight Cheapest Stocks in Hang Seng Index

Original Article from Seeking Alpha Long Investment

Value Expectations submits:

One of the key benefits of using The Applied Finance Group’s (AFG’s) Economic Margin Framework is that it provides a systematic approach to converting as-reported accounting data into a performance metric that is comparable across time, peers, industries and even countries while eliminating many of the accounting distortions inherent in GAAP. The ability to understand the true economic profitability and the underlying intrinsic value of a company using one consistent method is why AFG expanded its framework internationally. Now investors all over the globe can take advantage of the same institutional quality research and investment tools that AFG’s U.S. clients have been using since 1996 to better understand the expectations embedded in security prices and take advantage of mispriced securities in the market.

AFG uses proven proprietary criteria to identify firms that are more likely to outperform their benchmarks, and filter out those that are least attractive. These criteria include variables such as management quality score, earnings quality, firm valuation and economic performance metrics.

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Five Most Attractive Stocks in Hang Seng Index

Original Article from Seeking Alpha Long Investment

Value Expectations submits:

Since 1996, The Applied Finance Group has excelled at identifying mispriced securities and helping our clients take advantage of such mispricings within the US markets. Over the last few years, AFG has been working on expanding our framework internationally to help our clients identify solid long-term equity investment opportunities on a global scale. Our global research site, AFGViewGlobal.com has coverage on over 30,000 companies with back-test results proving that the same group of variables that have proven successful on a domestic level are quite successful at identifying winners and losers all over the world.

The key benefit of using The Applied Finance Group’s (AFG’s) Economic Margin Framework is that it provides a systematic approach to converting as-reported accounting data into a performance metric that is comparable across time, peers, industries and even countries while eliminating many of the accounting distortions inherent in GAAP. The ability to understand the true economic profitability and the underlying intrinsic value of a company using one consistent method is why AFG expanded its framework internationally. Now investors all over the globe can take advantage of the same institutional quality research and investment tools that AFG’s U.S. clients have been using since 1996 to better understand the expectations embedded in security prices and take advantage of mispriced securities in the market.

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Hang Seng Index: To Infinity and Beyond

Original Article from Seeking Alpha Dollar Currencies

Nemo Incognito submits:

Like most people who take an interest in macro and/or macroeconomics I find this all a bit nuts but that in no way whatsoever means this madness is going to stop anytime soon. Insane price action across the board right now is probably going to force policy makers’ hands sooner rather than later not least of all because of popular unrest at the policy mix right now.

Most people of my background spend their lives studying industries, long term trends, deep value etc etc. This market has NOTHING to do with that. Unless we are seeing our dollar crisis early (and the bond market doesn’t think so) then this too will pass.

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HK Hot Stocks-Standard Chartered, China Southern fall

HONG KONG, Jan 15 (Reuters) – By 0245 GMT the Hang Seng Index .HSI had fallen 4.4 percent to 13,098.05.
Concerns over steep losses this year and signs of a mounting recession beat down stocks across the board, with only 49 of the total 1,097 issues traded higher in Thursday morning trade.
The China Enterprises Index .HSCE of top locally listed mainland firms had fallen 4.4 percent to 6,901.05.
Here are some of the stocks on the move in early trade-
* Shares in London-based lender Standard Chartered (2888.HK) (STAN.L) dived 6.6 percent on Wednesday, underperforming other regional banking stocks after Mervyn Davies stepped down as chairman of the Asia-focused bank.
The stock fell to HK$90.60, recovering slightly from the day’s low of HK$88.5.
Davies, who led the bank as chief executive from 2001 to 2006 and is credited with playing an important role in restructuring the bank following the setbacks it suffered during the Asian financial crises of 1997-1998, will take up a role as British minister for trade and investment.
“…this is nonetheless an unexpected if not unwelcome development, amidst unsettled markets and uncertain macro outlooks for several of Standard Chartered’s key markets,” said Goldman Sachs analyst Roy Ramos.
* China Southern Airlines (600029.SS), the country’s largest carrier by fleet size, sank 6.2 percent after the air carrier said it estimated it would report a loss for 2008.
The airline blamed its poor performance on the slowdowns in the global and Chinese economies, which cut its passenger volume growth to single digits for the first time in five years, as well as high domestic fuel prices during the year.
In 2007, China Southern posted a net profit of 1.85 billion yuan ($271 million). It is due to release its 2008 earnings report in mid-April. (Reporting by Parvathy Ullatil; Editing by Clarence Fernandez) (parvathy.ullatil@thomsonreuters.com; +852 2843-6415))
ASIA-PACIFIC STOCK MARKETS: Pan-Asia……[STXNEWS/AS] Japan……..[.T] S.Korea….[.KS] S.E. Asia…………[.SO] Hong Kong…[.HK] Taiwan…..[.TW] Australia/NZ………[.AX] India…….[.BO] China……[.SS]
OTHER MARKETS: Wall Street………..[.N] Gold………[GOL/] Currency..[FRX/] Eurostocks………..[.EU] Oil………..[O/R] JP bonds…[JP/] ADR Report……….[ADR/] LME metals..[MET/L] US bonds…[US/] Stocks News US…[STXNEWS/US] Stocks News Europe…[STXNEWS/EU]
DIARIES & DATA: IPO diary & data Asia earnings diary [ASIA/EQTY] U.S. earnings diary [RESF/US] European diary
[WEU/EQTY] Taiwan diary [TW/DIARY] Wall Street Week Ahead [.N/O] Eurostocks Week Ahead [.EU/O] World forecasts EQUITYPOLL1
TOP NEWS
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HK shares to open down 4.2 pct at 7-week low

HONG KONG, Jan 15 (Reuters) – Hong Kong shares will open 4.2 percent lower at a seven-week low on Thursday with concerns over earnings at banks slamming heavyweight HSBC (0005.HK) again after the stock hit a seven-year low the previous session.
HSBC is set to open 5 percent lower at HK$66.50, still reeling from a Morgan Stanley report that cut its earnings estimates and target price and warned that the UK-based lender may need $20 billion to $30 billion to shore up its capital.
The Hang Seng Index .HSI will open 568.38 points lower at 13,136.23.
Concerns over steep losses this year and signs of a mounting recession beat down stocks across the board with only 11 of the total 1,097 issues traded set to open higher on Thursday.
China Enterprises Index .HSCE of top locally listed mainland firms is indicated to open down 5 percent at 6,860.98. (Reporting by Parvathy Ullatil; Editing by Nick Macfie) (parvathy.ullatil@thomsonreuters.com; +852 2843-6415))
ASIA-PACIFIC STOCK MARKETS: Pan-Asia……[STXNEWS/AS] Japan……..[.T] S.Korea….[.KS] S.E. Asia…………[.SO] Hong Kong…[.HK] Taiwan…..[.TW] Australia/NZ………[.AX] India…….[.BO] China……[.SS]
OTHER MARKETS: Wall Street………..[.N] Gold………[GOL/] Currency..[FRX/] Eurostocks………..[.EU] Oil………..[O/R] JP bonds…[JP/] ADR Report……….[ADR/] LME metals..[MET/L] US bonds…[US/] Stocks News US…[STXNEWS/US] Stocks News Europe…[STXNEWS/EU]
DIARIES & DATA: IPO diary & data Asia earnings diary [ASIA/EQTY] U.S. earnings diary [RESF/US] European diary
[WEU/EQTY] Taiwan diary [TW/DIARY] Wall Street Week Ahead [.N/O] Eurostocks Week Ahead [.EU/O] World forecasts EQUITYPOLL1
TOP NEWS:
For top Asian company news, double click on: [nTOPEQA] U.S. company news [TOP/EQU] European company news [TOP/EQE] Forex news [TOP/FRX] Global Economy news [TOP/MACRO] Technology news [TOP/TECH] Telecoms news [TOP/TELCO] Media news [TOP/MEDIA] Banking news [TOP/FIN] Politics/General news [TOP/G] Asia Macro data ASIATODAY A multimedia version of Reuters Top News is available at:
LIVE PRICES & DATA: World Stocks <0#.INDEX> Currency rates Dow Jones/NASDAQ .DJI .IXIC Nikkei .N225 FTSE 100 .FTSE Debt <0#USBMK=> EURIBOR Hong Kong Dollar LME price overview
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HK shares seen lower on earnings worries; autos eyed

HONG KONG, Jan 15 (Reuters) - Hong Kong shares are seen
lower on Thursday with concerns over earnings at banks driving
down HSBC (0005.HK) again after the stock hit a seven-year low
in the previous session.

A Morgan Stanley earnings downgrade sent HSBC shares
tumbling 4.1 percent in Hong Kong and 8 percent in London. The
U.S. investment house said the UK-based lender may need $20
billion to $30 billion to shore up its capital.

Worries about steep losses at banks worldwide and poor
retail sales data also sent U.S. stocks to six-week lows on
Wednesday.

Investors will watch refinery stocks after China, in a
surprise move, decided to trim gasoline and diesel prices by a
few percent on Thursday. This is the first adjustment since
bringing in a new fuel price system last month, a reform that
could see pump prices change much more frequently.

The latest change will cut gasoline price ceilings by 140
yuan ($20.48) per tonne and diesel price ceilings by 160 yuan
($23.41) per tonne from midnight on Wednesday.

The Hang Seng Index .HSI ended Wednesday 0.3 percent
higher at 13,704.61, snapping a six-day slide that wiped out
gains made in its year-end rally.

STOCKS TO WATCH

* Chinese automobile stocks will be eyed after China
unveiled a wide-ranging plan to boost the domestic auto
industry, including halving the sales tax on small cars and
subsidies to encourage car owners to trade their old models for
newer, fuel-efficient ones.

The government said it favoured consolidation of the
sprawling industry and would promote mass production of
electric-powered vehicles.

* Pou Sheng International, a sportswear retailing arm of
Yue Yuen Industrial (0551.HK), said on Thursday it planned to
expand its store network in China via a deal worth about HK$793
million ($101.7 million).

Pou Sheng (3813.HK) said it would buy the 70 percent of
Farsighted International Ltd (FIL) not already owned by the
firm for HK$428.6 million in cash and the issue of 393.6
million new shares at HK$0.925 each.

* China Southern Airlines (600029.SS), the country's
largest carrier by fleet size, estimated on Wednesday that it
would report a loss for 2008.

In a brief statement, the airline cited the slowdowns in
the global and Chinese economies, which cut traffic demand, as
well as high domestic fuel prices during the year.

China Southern, which posted net profit of 1.85 billion
yuan ($271 million) in 2007, will release 2008 earnings in
mid-April. -------------MARKET SNAPSHOT @ 00:11 GMT
-----------------------

INSTRUMENT   LAST     PCT CH GNET CHG

S&P 500           .SPX       842.62  -3.35%  -29.170

USD/JPY                  89.16    0.17%   0.150

10-YR US TSY YLD    2.206    --      0.000

SPOT GOLD                $812.45  0.23%   1.900

US CRUDE          CLc1       $37.23  -0.13%  -0.050

DOW JONES         .DJI       8200.14 -2.94%  -248.42

ASIA ADRS         .BKAS      87.99   -3.22%  -2.93
 -------------------------------------------------------------
> Wall Street falls on bank anxiety, Apple down after bell
[.N] > Oil falls on U.S. stock build, weak demand
 [O/R] > TREASURIES-Prices up as weak retail sales send stocks
down[US/] > Euro down on Greece downgrade, risk appetite fades

[USD/] > Gold falls on weak demand, dollar rise; ECB eyed

[GOL/]
 (Reporting by Parvathy Ullatil; Editing by Clarence
Fernandez)
 (parvathy.ullatil@thomsonreuters.com; +852 2843-6415))

ASIA-PACIFIC STOCK MARKETS:
 Pan-Asia......[STXNEWS/AS]  Japan........[.T]
S.Korea....[.KS]
 S.E. Asia............[.SO]  Hong Kong...[.HK]
Taiwan.....[.TW]
 Australia/NZ.........[.AX]  India.......[.BO] China......[.SS]

OTHER MARKETS:
 Wall Street...........[.N] Gold.........[GOL/]
Currency..[FRX/] Eurostocks...........[.EU] Oil...........[O/R]
JP bonds...[JP/]
 ADR Report..........[ADR/] LME metals..[MET/L] US
bonds...[US/] Stocks News US...[STXNEWS/US] Stocks News
Europe...[STXNEWS/EU]

DIARIES & DATA: IPO diary & data    Asia
earnings diary [ASIA/EQTY] U.S. earnings diary  [RESF/US]
 European diary

[WEU/EQTY]
 Taiwan diary        [TW/DIARY]  Wall Street Week Ahead
[.N/O]
 Eurostocks Week Ahead  [.EU/O]  World forecasts  EQUITYPOLL1

TOP NEWS:

For top Asian company news, double click on:
[nTOPEQA]
 U.S. company news    [TOP/EQU]  European company news
[TOP/EQE]
 Forex news           [TOP/FRX]  Global Economy news
[TOP/MACRO]
 Technology news     [TOP/TECH]  Telecoms news
[TOP/TELCO]
 Media news         [TOP/MEDIA]  Banking news
[TOP/FIN]
 Politics/General news  [TOP/G]  Asia Macro data
ASIATODAY

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HK shares snap 6-day slump but HSBC weighs down index

* HK shares turn course after six-day slide
* China banks recover after RBS sells stake in BOC
* HSBC drops after broker cuts profit estimate,target price
(Updates to close)
By Parvathy Ullatil
HONG KONG, Jan 14 (Reuters) – Hong Kong shares pared early gains to finish 0.3 percent higher after a sharply lowered target price and earnings estimates on HSBC Holdings sent shares in Europe’s top bank to their lowest in more than seven years.
Index heavyweight HSBC (0005.HK) tanked 4.1 percent to HK$70, even slipping below that level at one point earlier Wednesday, after Morgan Stanley cut its target price by 31 percent to HK$52.
The U.S. investment bank cut its profit estimate for the British-based lender by 17 percent for 2008 and 39 percent for 2009 and expects the bank to halve its dividend. Morgan Stanley also predicts a $20 billion to $30 billion capital need at HCBC.
“If HSBC cut its dividend by half, its dividend yield will fall to 5 percent from 10 percent and given the bank’s huge exposure to UK and U.S. market, 5 percent yield is not attractive any more,” said Steven Leung, director with UOB Kay Hian.
“If the stock can’t recover to HK$72 or HK$73 by tomorrow the situation can get pretty ugly.”
Slumping HSBC shares offset gains in Chinese banking counters after the third equity selldown in a major lender this year eliminated some of the overhang on the sector. [ID:nHKF079859]
The benchmark Hang Seng Index .HSI closed 36.56 points higher at 13,704.61, snapping a six-day slide, its longest since September 2008.
But the index finished well off its early highs as HSBC extended losses in the afternoon session, dragging down with it shares in local arm Hang Seng Bank (0011.HK) which fell 4 percent.
Mainboard turnover rose to HK$66.2 billion ($8.5 billion) from HK$47.3 billion on Tuesday. The China Enterprises Index .HSCE of top mainland firms outperformed, climbing 2 percent to 7,219.04.
CHINA BANKS OUTPERFORM
(3988.H Beijing-controlled Bank of China K) rose 2.7 percent after Royal Bank of Scotland (RBS.L) sold $2.4 billion worth of shares, its entire holding in China’s No.2 lender
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HK shares snap six days slump; China banks rally

* HK shares turn course after six day slide
* China banks recover after RBS sells stake in BOC
* HSBc drops after broker cuts profit estimate,target price
(Updates to midday)
By Parvathy Ullatil
HONG KONG, Jan 14 (Reuters) – Hong Kong shares were on course to end a six-day losing spell on Wednesday, rising 1.4 percent, with Chinese banks outperforming after an equity selldown in Bank of China (3988.HK) eliminated an overhang on the sector.
However index heavyweight HSBC Holdings (0005.HK) fell 2.3 percent to HK$71.3, its lowest level since after the September 11, 2001 attacks on the United States, following a Morgan Stanley report that slashed its target price to HK$52.
The U.S. investment bank cut its profit estimate for the UK-based lender by 17 percent for 2008 and 39 percent for 2009 and said HSBC may have to raise $20 billion to $30 billion to shore up its capital.
The benchmark Hang Seng Index .HSI ended the morning session 194.99 points higher at 13,863.04 after a six day slide, its longest since September, 2008.
Mainboard turnover rose to HK$43.8 billion ($5.6 billion) as compared with HK$25 billion by midday Tuesday.
“Most markets in Asia Pacific have moved up today on hopes that Tuesday’s mixed performance on Wall Street indicates the market has hit a bottom after a five day fall,” said Andrew To, sales director with Taifook Securities.
“If the HSI can hold above 13,800 points for a few days, it should form a good support and trigger short covering. We may rechallenge 15,000 points around Chinese New Year,” he said.
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