'Stat' stocks threaten allure of 'Fang' rivals

31 October 2016 - 09:34 By ©The Sunday Telegraph

Many investors have profited hugely from the US's booming tech industry - but should they now switch their money to Asia? Investors have flocked to Facebook, Amazon, Netflix and Google (now traded under parent company Alphabet), profiting from the enormous rise in the value of these companies.The stocks now have their own acronym: "Fang".But some investment professionals now say their Asian equivalents could deliver far higher returns in the near future. Asia's "Stat" stocks - Samsung, the phone and electronics company, Tencent, a Chinese internet firm, Alibaba, China's biggest online retailer, and Taiwan Semiconductor, an electronics company - are being tipped as likely to grow faster and for longer than their US equivalents."The companies in China are basically shaping up as the global rivals to the US-centred internet companies," said Walter Price, a San Francisco fund manager at Allianz Global Investors.Tencent in particular has had huge growth: its share price has risen by 5000% in the past 10 years and it recently became the most valuable company in Asia.James Yardley, a senior research analyst at Chelsea Financial Services, said Tencent, with a market value of around $250-billion, was now "rivalling Google and Apple as the biggest company in the world".But, despite this impressive growth, these firms have further to go, Yardley said."Some of these companies have really good technology, in some cases better than the West," he said."And there is more growth potential - they have the emerging middle classes in Asia to sell to, whereas Western markets are more mature."Samsung might seem like an unlikely company to appear on the list, considering the recent high-profile problems it has had with its defective Note 7 cellphone.However, Price said, only half of its earnings come from the cellphone business, the rest from electronic components. ..

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