Category: Money tips Release Date: 2007-02-28
A recent stock market volatility wide trend, and the A-share market may be related to the level of valuation, there are policy analysts report that if the forecast of 2006 earnings projections, then in Shanghai and Shenzhen 300 average price-earnings ratio has reached 26 times, although the 2245 compared with 2001, when the high point of more than 60 times the price-earnings ratio is not high in comparison, but A-share market shares of large state-owned enterprises such as Sinopec, China Life Insurance, Bank of China, Industrial and Commercial Bank of China and so on, the valuation has been greater than the H shares premium.
However, the market's overvalued does not mean that the overestimation of all stocks early this year not bullish for the market B-Unit, last Thursday, appeared last Friday blowout market, COSCO Shipping, China Air and other shipping stocks also recently of the strong, why not? Is mainly because the market of new information shows the valuation of such stocks have clearly underestimated. Therefore, in the current disk, the overestimation of the market or be overvalued compared with H shares market, there are still a lot of undervalued stocks, which is an important haven for Gulf market participants.
H-shares over the weekend due to the decline stopped and stabilized, as well as the disk over the weekend did not appear the more deterioration in fundamentals, this week's A-share market is likely rebound trend, while the valuation of stocks with low prices is expected to stabilize as the index of the The sharp rebound. To explore these stocks, I believe that so two main paths:
First, from the private placement and other public information to look for in 2007 brought rapid growth performance of the low valuation of stock prices, such as Zinc Industry orientation of its total share capital after the issuance of 141,013 shares, but also in 2007 earnings per share were 0.51 yuan and the current stock price but only 5.95 yuan. Similar to the stocks are still S Sky, cloud-dimensional shares, textile city, your research platinum industry, to public information both on the 2007 forecast, or promise the performance information, the current stock price is still undervalued enacted.
The second is the secondary market price significantly undervalued species. Such as the recent sharp rally in Shaanxi emancipation, with industry analysts studies have reported that the revaluation of assets valued at more than 20 RMB / Unit, in 2007 a reasonable position at 11 yuan in 2008 a reasonable position at 13 yuan, while the current share price is only 7.78 yuan . For another example, some high-quality B shares are still significantly undervalued, such as the East Electric B shares, Metro B shares, etc., in which the pre-Metro B receivables and other financial data show that the performance of the Unit in 2007, a sharp increase in B shares is expected to become the new Quote of the leading stocks. Alternatively, you can take an active interest Jinyu Group, Chengxing shares, Sunward Intelligent and so in 2007 the relative performance of growth stocks significantly.
