Happy New Year! 1-2-2011

With regards to my last post:
http://theamazingchart.blogspot.com/2011/12/korea-hongkong-china-australia-germany.html

We were discussing that 2012 may not be a good year in terms of earnings, and P/E ratio WAS still good as a healthy market last few weeks.

Last weeks post:
Korea - 13 P/E
Hong Kong - 8 P/E
China - 12 P/E
Australia - 13.5 P/E
Germany - 10.5 P/E
London - 10.5 P/E

Updated P/E ratio that includes WEAK Q4 2011:
Bad Earnings all over the world, weak and no clear statement how to solve EUR Crisis now starting to take effect all over the Globe. As of now, only Korea and Philippines were able to release its early earnings and had a drastic drag to its Index from Netural to Overvalued territory (Korea).

Korea - 18 P/E (UPDATED Q3 2011 year), an unexpected jump from 13 to 18. Which makes the market overvalued at current price. Samsung Electronics missed their target, as P/E ratio moved from 8 to 10 P/E ratio at a price of 1,070,000 Won (near its All Time High of 1.09M, and may not break out of its range if earnings stall). Other companies' earnings went down as well.

Philippines - 10 P/E Ratio (Updated Q3 2011 Year) (1-2-2011 2pm SGT - I doubt the 10 P/E Ratio,upon checking the top 30,almost 8 are above 20 P/E, must have been some error in Bloomberg). Philippines went to good earnings from 13.5 P/E ratio last quarter. This does not mean we have a BUY Rating on Philippines, we are still on a Stay Cash recommendation. The decrease of P/E ratio is due to re-calculation of the Top 30 PSE Companies. Including CEB (5 P/E), AP (9 P/E), MEG (8 P/E). Which had a good earnings for 2011. Still be picky on individual stocks who can outperform, as we dont know if they can continue their strong profit Quarter by Quarter. Stay defensive on High Dividend Stocks.

The FF. below are still waiting for the results, and if it is as bad as Korea, it could shoot up the 2011 P/E ratio to above 15 as well. Which means things in the background are taking effect leaning to bad corporate results. If these happens quarter by quarter. Recession may be just around the corner.

Hong Kong - 8 P/E
China - 12 P/E
Australia - 13.5 P/E
Germany - 10.5 P/E
London - 10.5 P/E

Recommendation Guide of Price / Earnings Ratio:
UnderValued - 10 Below
Fairly Valued - 12-15
Over Valued - 15 Above
Exaggeratedly Valued - 20 Above

Source of P/E estimates: Bloomberg