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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (3028)	1/14/1998 11:56:00 AM
From: Jyoti sharma	Respond to of 78625

Paul, Thank you for your contrary opinion. Here is my reasoning: Asia was booming earlier thanks to easy money provided by foreigners. Now that spigot is turned off Asia is not going to disappear from the face of the earth. Asians will learn the lesson and survive. As far as corruption and croynism it may be more overt but is probably not much more than here. As you rightly point out things are more sophisticated here. Blue chip stock is a relative term. I respectfully disagree that blue chips exist only in blue chip cointries like USA. My best investment was a Mexican Telephone company( now Telmex) purchased 17 years ago for fifty cents on a tip from John Tempelton.(on WSW). Blue chip IMHO is a large financially strong company with a dominant market share. The company should have in addition a superior track record. I perceive the risk to be less because of the valuation of the companies selected. They are all trading 1/3 rd to 1/4 th from their highs. They are financially very strong with below average debt ratios. Even Bangkok bank is expected to pick up market share due to closing of finance companies in Thailand. Siam Darby is a very old company with hundreds of subsidiaries. All these companies with revenue stream in billions are household names in their countries. I never cared to invest in Asia earlier because of high valuation. To me Asia was high risk with unreal curriences and very high levels of stock markets. Right now most Asian countries have a P/E below 10 compared to average P/E here of over 20. One of the reasons I am investing 10% of my assets in Asia now because I think US market will finally correct over 20% this year. In addition I like to buy things on sale in my personal life as well as in my investment portfolio. I do understand Asia a little better than an average investor. I was born in India lived 6 years in Germany and have travelled a lot all over the world. I think USA is the best country to live and provides the best quality of life in this world. Ofcourse all parts of USA are not as good as norhern NJ Best wishes and regards. Jyoti