Category: Money tips Release Date: 2007-01-10
In China the stock market, it is now the most talked about is the "growth" is used. So, what is the growth stocks?
By the end of January 1990, Coca-Cola company's share price was 5.63 U.S. dollars, when the dynamic price-earnings ratio at about 20 times that by the end of January 2004, Coca-Cola's shares rose to 49.55 U.S. dollars, the stock rose 7.8 times, while at the same time, Coca-Cola Company's net profit , from 1990 to 535 million U.S. dollars up to 2004, 4.847 billion U.S. dollars, net profit rose 8.05 times, the dynamic price-earnings ratio of 22.5 times.
Data show that from 1978 to 1987, 10 years, Coca-Cola Company's equity returns averaged 20.4%, which is a typical growth stock.
Our long-term profitable growth of the business is defined as growth companies, but what kind of company profits in order to "long-term" growth?
We can be growth drivers for the company noted in its brief is divided into three categories:
The first category is the bulk consumer goods.
The second category is transportation, services.
The third category is technology-based enterprises, monopoly core technology.
Here, I focus on the first class enterprise, these enterprises produce fast moving consumer goods, products, welcomed by the public, such as milk, white wine, rice wine, etc. They are characterized by a continuous growth in annual production and net profit growth of fast, high value-added products Some enterprises have a unique formula and process, difficult to imitate others, for several consecutive years of net capital gains rate to 15%, and net profit of some 50%. In my opinion, this is the growth companies.
We can find such companies in the Shang Zhengbao up.
