Institutional Investor (August Issue)
“Facing an image problem,” many Chinese companies are retreating from U.S. exchanges. “Frustrated by low valuations and investor skepticism, Chinese companies are increasingly considering delisting from U.S. stock exchanges.” Since 2009, 24 Chinese companies have delisted, often going private, from the NYSE and Nasdaq. Much investor skepticism is directed at companies that utilized reverse mergers to attain their listing, thereby avoiding the scrutiny that would accompany a normal IPO, but the skepticism has tainted even Chinese companies with solid financials.
Tags: China, Companies, Delisting, Image, Investors, IPO, Listing, Nasdaq, NYSE, Private, Reverse mergers, Scrutiny, Skepticism, Stock exchanges, U.S., Valuations
Bloomberg (February 8, 2012)
Larry Fink, the CEO of the world’s largest asset manager, BlackRock Inc. (BLK), has provocative advice for investors. He’s bullish on the economic outlook and urges investors to take advantage of ultra-low equity valuations. According to Bloomberg, Fink believes “investors should have 100 percent of investments in equities because of valuations and higher returns than bonds.”
Tags: BlackRock, Bonds, Bullish, Equities, Larry Fink, Outlook, Valuations
Wall Street Journal (August 8)
The sky is not falling according to Burton G. Malkiel, a former Princeton professor and author of “A Random Walk Down Wall Street.” In the U.S., “the headwinds restraining the economy are many” and further complications arise because “Europe has not really fixed its economic problems.” Still, Malkiel doesn’t believe this is a good time to sell. Valuations are likely to climb in the future. Stocks are currently cheap in terms of P/E ratios and the results of many U.S. corporations are driven less by what happens in Japan, Europe and the U.S., than by sales in emerging markets. “My advice for investors is to stay the course.”
