Category: Money Tips Date: 2007-01-18
Source: Securities Market Weekly Red Author: Linyuan
I am often asked whether there any special stock picking skills? In fact, in the column, I also published some of the points in succession, this time taking advantage of the National Day holiday, I have carefully compiled a relatively more comprehensive and more complete way of thinking.
1, numbers speak. Specifically from the following six perspectives: 1. Price-earnings ratio and growth relationship. I chose the standard is: If I choose the stock price-earnings ratio is 20 times, if I can determine the next three years, the Unit for more than 20% compound growth, under normal circumstances I would consider buying. The price-earnings ratio multiple of = the next three years, the minimum percentage of the number of compound growth. 2. Over the next three-year compound annual growth rate greater than 18% of the company to select. Earnings growth is the rising stock price momentum. If there is no profit growth, will be a lack of investors to buy power. Even if the stock price is low, we can only count on its shares have resumed their rise, but not continue to rise. 3. Select Product gross margin at 20% of the enterprises. Product gross margin as high as possible, but in the past three years, the product should be stability in the face of rising gross profit margin can not be a downward trend. 4. In a large number of profitable companies to the election. Such as China Merchants Bank, Maotai, Wuliangye, Shanghai airport, copper is copper, the total number of those who only a few hundred million in profits the company not to vote for. 5. Cash flow the better. I like to make more profits, cash flow a good company, with the "rich" companies to deal with wrong, it is necessary hanging around "moneyed." Because such a company can always make use of their "cash" things that "accidents." Such as Guizhou Maotai, Wuliangye, Yunnanbaiyao .6. Select the amount of dividends over the years than the large capitalization companies. This company is not fake, very "tough." Such as Yunnan Baiyao.
Second, high-profit enterprises to select well-known brands. Most people only get recognition, stock prices in order to "continue to rise," but we all know that brand choice can save time for publicity, but also most likely to form all at the same time optimistic about the situation, so can "lock" A lot of shares, so that Shares continued to rise more easily. Such as China Merchants Bank, Maotai, Wuliangye.
Third, from the "giant" of the brand, "baby" of the share capital to the election. In general, equity smaller companies will enable us to share the double dividend, that is, corporate profits to expand their earnings and equity returns and the big brands also be able to guarantee its expansion drive. Such as Yunnan Baiyao, Huangshan travel, Rebecca, daughter of medicine, Lijiang tour, Jiang Chinese medicine, Ma Ying-long, Tong Ren Tang.
4, select the "bottom" can be seen companies. If the stock price to see the most "bad" results, then we can be "no risk" arbitrage, such as 102 yuan convertible bonds when the China Merchants Bank, 13.6 yuan in Shanghai Airport.
5, select the Do you think that 10 years later, still be able to "exist" business. Including the "old" series, non-competing enterprises, such as airports, highways and terminals
6, turning point in the industry choose to corporate profits. The current performance of the banking and tourism have appeared in more than 30% of high growth, such as China Merchants Bank, Huangshan Tourism.
Asset Allocation: Portfolio has not changed this week
As of Friday, the combined total assets of 1,451,271.05 yuan, 233.99 yuan in cash available. To March 21 the principal amount of dollars invested one million yuan, profit rate of 45.13%, Shanghai Composite Index rose 38.3% over the same period. After the holiday, the stock market indeed ushered in the sunshine, but in the 1800-point barrier, the attitude of investors, a clear differentiation. It is this attitude changes, the broader market continued to shock a week. Stocks in high shock, no one fear, but the problem is that no one knows their short positions after the broader market will really get down. Seeing the price of oil all the way down, the global stock market stacked high, the external environment is very compatible with; look at the bond market, continuing a month to triumph, there is no nonstop mean a lack of funds does not seem to. So we are most concerned about the issue and listing of ICBC, or the impact of issues, ranging from dwindling trading volume can be seen that such worries. Under the influence of a number of concerns in the broader market, there was greater intraday volatility, a variety of popular varieties has shown a significant callbacks. Aerospace military plates to adjust the most intense of the two lower limit Hongdu Aviation to the market with a strong shock, the shock of the financial sector more visible to suppress the broad market running, but the Hong Kong stock market and bond market momentum, such as rainbow makes A shares can not fall. It seems not only increases the need courage, in certain circumstances, down need courage. It was in this dilemma against the backdrop of the upper and lower, the market started brewing a new hot spot.
Iron and steel shares, power shares into the market this week, the biggest hot spots, while the other hot spots, although there are often limit-stock, but little impact on the market. These two types of stocks rose both factors that enhance the economy, but also the subject of industry consolidation, but the most important thing is, they are not up the stock for one year. The rise of these two plates, it should be a big change positions funds act, it is estimated Quotes will be extended longer. In addition to the power plate to start by the performance impact of recovery and, more importantly, industry consolidation and assets into the subject matter, while the State Grid Corporation of China to the society on the sale of "920 assets" of the notice, then became Quotes of the fuse, and the the beginning of this dark horse-related stocks. The new hot spots have begun to emerge and the old hot spots last callback, which run the trend will continue for some time. Despite the apparent rebound in the weekend the military section, but in view of the plate Kongpan high proportion of retail investors is wiser to keep away. The real estate subject to political factors, the cumulative adjustment is the largest apparent that the market overreacted, and now the basic access to safe area. On the whole market is concerned, I am more concerned about the movement of electricity and steel, in particular the valuation of the power industry restructuring both advantages and themes advantage of greater flexibility in operation, more prone to outbreaks of Quotes.
