Category: Money tips Release Date: 2006-09-12
With the split share structure reform program implementation, the market is coming full circulation in this period of time before we can call to greet the new era of pre-transition period.
Changed by the impact of last year's stock, value investing concepts are being challenged, the concepts and themes prevalent on the market speculation. Such speculation is the rise of the terrible consequences of them are baffling down. With the full circulation time approaches, the concept of value investing is bound to re-establish a dominant position. Therefore, during the transition period, a strong investor can still insist on the value of the first principle, but the main points in specific aspects of stock selection should be emphasized.
Stock picking points 1: The Future tradable little pressure. From the stock reform to the present, the market is still in the pursuit of a high proportion of the price of stocks, this is a special time of the effective strategies. But in the long run, the bid was often means companies with higher proportion of non-tradable shares would be relatively high, so the pressure will be the next full circulation is relatively large. On the contrary, for those who simply Jiusong Major Holders little or no shares of the company, we have to be treated differently. If the controlling shareholder equity ratio was relatively low, then the pressure will be the next full circulation is quite small. Therefore, we should be carefully analyzed in picking shareholding structure, but also should pay attention to the major shareholder of the share reform of the position. Broad market decline in recent years is the expected result of full circulation, now at the transition period, so a future without full circulation pressure stocks should be able to reflect their earlier value.
Stock picking two points: the controlling shareholder of a private good background. Maybe we still do not trust the private enterprises, but from a development perspective, in addition to a significant impact on the industry outside of China's future will be dominated by private enterprises, of which the outstanding enterprises will debut in the stock market. Although there are many private enterprises listed on the purpose is to "grabbing the money," but as long as it benefits the firm, "means for misappropriating" is not a bad thing. So the long term, the controlling shareholder has a better background in private companies should be cause for concern, but this type of major shareholder of the general equity ratio will be relatively low, the pressure is not tradable.
Stock picking three points: the absolute low returns. When we selected 10 will significantly increase the performance of companies, we must consider the current absolute gains to choose the absolute low-income shares.
In fact, even if the choice of companies with low returns in the coming era of full circulation is an important point. Has been proved by the fact that stocks which have emerged from the underperformance of many large black horse, I have also been raised repeatedly in this column in the ST dark horse among the selection point of view.
Stock picking point 4: The focus in a year. The present study is really not the same as with the previous, and predicted performance of listed companies and even as far away as the next three years. But the vast majority of our investment in one year as a friend or customary rounds, so stock selection in the second year when the focus. If the rapid performance reflected in the third or even fourth, then we can track, but there is no need flew to participate.
Stock picking five main points: the future price-earnings ratio. The second year with the current share price and earnings per share is expected to calculate the future price-earnings ratio that is the second year. If it is the higher the company's future earnings should be 10 times the price-earnings ratio, if the underperformance of 15 times the companies. Too high, the indicator of stock prices ahead of schedule reflects the growth of future performance, and not equipped to participate in the value.
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