Weekend random thoughts

My random thoughts for this weekend

ADR
ADR has finally began trading. Some market watchers said the volume is disappointing. Every journey starts with first step right? I think it is a good move. Slowly more will be buying and selling the ADR, SGX stands to gain and also investor stand to gain from saving the custody fee.

My favourite will be two - China Mobile and Ctrip.com. I am not sure whether I will start buying China Mobile, but the valuation looks cheap. Selling at PE of 10+, with dominant China market share. It will be a good stock for long run. Ctrip is not so straight forward. The valuation is a bit too high. Although at times, analyst will argue that its forward earning is this and that, therefore justify the high price. I just feel too risky to go in at this level. However, the future will be very bright for online travel booking. I hope it will come down soon.

Nation of gambler
I read the Saturday's newspaper report about the type of patron for RWS and Marina Sands. I pity them. Many of them are with weak self control. That's why they stuck with the habit for a long time and lose all the money.

If they gamble in stock market, will the outcome be different? Buying stock also needs a lot of self control. Not to get carried away by short term success or failure.

Road ahead
US has announced plan for QE2 (Quantitative easing 2). Market will be flushed with liquidity and hot money will have to find a home. Stock market will just go higher and higher. Looking at cause and effect. Printing more money, money will have to find a place to go, stock market will go higher. Just be careful don't get stuck with no chair when the music stops.

I am still bullish with local stocks, especially the valuation is not excessive. Small and mid cap still selling at single digit PE, I hope the market will recognise their value and re-rate them.

Mapletree Industrial Trust being chased up like hot stock during debut. I was interested in buying but only realised I missed the cut off date. Looking at current price and consider the forecast yield, MIT is less attractive now.

The Edge highlighted
A-Reit @2.08 Forecast DPU 14.7 cts. Yield 7%
MIT @1.11 Forecast DPU 7.46 cts. Yield 6.7%

If you want an industrial reit, you may be better of buying A-Reit.