Category: Money tips Release Date: 2006-11-06
Maiduhaizhu story, is often used analogy of those concerned with the nature of representation and ignore people. The reason why the traders could have made this mistake is that they are doing deals without paying any intrinsic value of goods, but was a number of important external factors confused. Today, when we observe a time when capital markets are still often find that many investors, "jewelry" in the real value of turning a blind eye, but spared no expense to buy a fine appearance alone is a "wooden casket." Listed companies compared to the real business situation and sustainable development capacity of this nature, attractive themes, compelling concepts and realistic appearance of the growth of the myth, and so did more attractive to the market's attention. For a large number of individual investors, they pay real money to buy when the shares of listed companies, including how many people can really know their beads to buy the casket or do?
I thus think of the recent share-trading reform, all kinds of pilot programs going all out to compensate for the amount of the outstanding shares of the shareholders as its main selling point, the investing public's attention was also drawn to a different share-trading terms of pros and cons of the reform program comparison. However, I believe that the split share structure reform is essential for shareholders in terms of circulation, but a "non-recurring gains and losses," and making it the primary basis for investment, while ignoring the real texture of a listed company and growth prospects, the expense of listing in-depth analysis of company fundamentals is obviously guilty of Zheng with Maiduhuanzhu like mistakes.
Non-tradable shares of listed company shares in circulation to get the rights, needs to pay a certain cost, this cost is known as the "right price." Meanwhile, the outstanding shares of the outstanding shares of the additional supply for the potential impact on the share price, thereby affecting the current holders of the outstanding shares of the interests of the shareholders of the outstanding shares of a potential compensation for those who have been. After the stock market has undergone many transactions, so at this stage to be implemented on the price to pay has been unable to trace the history of the circulation of non-tradable shareholders, the shareholders of listed companies on the price of payment and the historical prices and historical contributions of shareholders in fact can not be established between the a link. The author believes that the decision "right price" factors are mainly two aspects: First, ownership structure of listed companies in the two types of shareholders equity ratio; two non-tradable shareholders get the right flow of the potential benefits and share-trading reform to bring the current flow of shareholders contrast between the potential impact.
Speaking of split share structure reform is essential for the impact of stock prices, I believe that investors need to look at differences between different types of listed companies. For those poor quality, poor prospects for the development of listed companies, major shareholders eager to cash, will result in a sharp increase in the supply of tradable shares, while shares in circulation will continue to demand is low, so the split share structure reform, implementation of the program would most likely have to guide their stock prices continued to fall. For these companies, even if the flow through the pilot program to be shareholders more equity or cash compensation, they are just meant to get more of the shares on behalf of low-quality assets, or just a little concession, it may still be difficult to make up their investment losses, If you choose a long-term holdings, losses are more likely to continue to expand. Other hand, a number of asset quality, the development of promising large-scale blue-chip companies such as Baosteel, Yangtze Power and so on, even by international standards, the valuation has also been closer to a reasonable level. As the major shareholder of the same optimistic about the company's growth prospects, these high-quality non-tradable shares of the company's right of access to the circulation after, and will not bring about a marked increase in the supply of outstanding shares, shares the impact of the circulation is relatively small, so its valuation is not easy to see obvious changes.
It is precisely because of differences in firm texture, different types of listed companies tradable share reform program in terms of attitudes and is likely to have significant difference. Underperformance of non-tradable shareholders of the company's reduction of the wishes of a strong, access to the circulation of the right to a higher potential gains, so willing to shareholders of tradable shares on the program to make more concessions in order to achieve the purpose of reduction as soon as possible. Large blue-chip companies and some non-tradable shareholders virtually no reduction of motivation, the right of access to the potential gains in circulation less, while its stock price is likely to have at the investment area, non-tradable shares in circulation on the stock price impact is quite limited, Nature in the reform program given the "right price" will be relatively low, so the surface of such company's program may seem less attractive. Clearly, if the market is only focused their attention on the program itself the "right price" the amount of the expense of the company's intrinsic value and long-term growth prospects of the judge, then the real value of listed companies with investment but will be cold, and its program will also be difficult to obtain the outstanding shares of shareholders.
There is no doubt that the basis for the sustainable development of China's stock market is to a large group of blue-chip companies continued development, and growth equity investments ultimately depends on the continued profitability of listed companies. In the split share structure reform process, investors need to see through the appearance of nature, should be in-depth analysis of the fundamentals of listed companies. "Buy casket" or "buy a Pearl," should not be upside down.
