Category: Money tips Release Date: 2006-12-18
Source: Zhou Yan Bohai Investment
The Shanghai Composite Index in the 3000-point level is not due to difficulties before, making the market in 2007's A-share market trends have produced a certain uneasy feeling, combined with the current A-share market of the point position has been at record highs, many good stocks are also at at historical highs, as investors felt that investment in 2007 is not easy. In addition, investors in this year's A-share market operations will face last year has not encountered difficulties and challenges: First, the many varieties of financial derivatives investment philosophy brought about by the impact, as well as the temptation of short-term profiteering opportunities; second is a lot of industrial policy industry policy changes on the profitability of listed companies related to the impact; Third, after last year's surge after the stock prices of listed companies have more than doubled or even several times, in the context of the securities market wide shocks, how to select investment opportunities will be more complicated.
But no matter how the market transformation, value investing is always the same truth, therefore, rational investors will choose those who insist on a reasonable but the future of the current valuation of the expected rapid growth of the stock, making a reasonable valuation of the current rapidly becoming undervalued up, this is the investment opportunities.
Here, we recommend investors to choose from two ideas of the value of the future growth stocks: First, the connotation of the cost of down-style development of individual stocks. Because from the perspective of corporate management, corporate profit growth in both the main business lies in the expansion of the scale, but also a decrease in cost. The decline in the cost of both external and internal, and external such as oil prices fall, shipping, shipping companies like cost reduction factor, for example, through internal cost savings, reduce costs, the cost of managing access to declined, while the declining cost of external factors are often not controlled by the listed company, there is a certain degree of chance, not easy to grasp. But for internal cost control is easy to grasp, which includes upstream and downstream industry chain open up stocks as well as through the application of new technologies to obtain lower costs for individual stocks, the former special forces such as the United Kingdom of calcium carbide, electric, PVC industry chain, and then say Shenhuo Share of coal, electricity, aluminum industrial chain. The latter, such as double-loop technology, Liu shares of coal gasification technology the cost has dropped significantly.
2 is the dominant product market space for the continuously expanding volume stocks. Industrial business of the investors did understand that a market capacity and expanding industries are often able to birth more growth potential listed companies. Because the market volume continued to expand, will help create a more competitive environment of tolerance, the performance of listed companies will be more easy growth path. However, if little change or contraction of market capacity, it means that the market continued to shrink and cake, the new entrants to gain market share, the stock of other companies will be invaded and occupied the market share, resulting in severe competition, the profitability of listed companies will be tested . So, in 2007, the operation, the constant and significant expansion of market capacity for a sunrise industry will be crucial, for now, especially for the consumer mass consumer brands, including cars, flat-panel TVs, gold jewelry, Travel , hotel and other related companies will get a higher valuation premium. At the same time, for environmental protection, energy conservation and other related companies will also face a larger room for growth, Luyang shares, Linkage optoelectronics, confidence Electric, Aetna should focus on science and technology varieties.
Of course, the net profit growth of listed companies is not only reflected in the growth of existing assets, is also reflected in the introduction of the new funding growth path, the principal refers to the implementation of the overall market is expected to inject quality assets or stocks, especially those faced with stock reform test and the controlling shareholders have high-quality assets in stocks, such as modern pharmaceuticals, gold fruit industry and so on. In addition, the existing or acquire quality assets into the Zinc Industry, your research Platinum, cloud-dimensional stock, S Sky and other firms are also expected to get faster in 2007 net profit growth in the current valuation to be underestimated, it is worth closer concern.
