Category: Money tips Release Date: 2007-01-23
Mr Cheung is a university teacher in Shanghai, he said that there are many teachers engage in research time. He was into the stock market in 1993, in the Tuition FAQ at the same time, he also part-time firms now offer stock trading research. Its own funds currently account for two (one A share, a B shares), and the other person entrusted with managing the accounts of seven funds total nearly one million. In recent years, he has bought about 10 stocks, half of the stock earnings, his style of play the stock market is very special, not the message sent is also non-technical camp, can be described as the company sent.
Mr. Zhang told reporters that investing in stocks is not the most essential investment in financial derivatives, but the same as many institutional investors to invest in a company, therefore, how to choose a company with development potential is the key to choosing good stocks.
First, he would say that the company's value is very important, and can be price-earnings ratio to assess a company's value, price-earnings ratio is too low on the behalf of the company are undervalued, this is his most important criterion for stock picking. The general election, he is only 10 times price-earnings ratio below the stock, if the industry has great development prospects, price-earnings ratio can be relaxed to a maximum of 20 times.
Secondly, depending on the company's operating capacity. The company's operating capacity to contain a lot of factors. Mr Cheung said that the ability to judge a company's most important tool is the company's financial statements. Mr. Zhang told the reporters concerned, many stocks of people simply do not know how to read financial statements or, worse, while others simply did not see the financial statements. Blindly through the message to the stocks, how can that does not lose money then? The financial statements to determine the company's financial indicators are an important indicator of development status. If the company's net return on assets, operation and development capacity, profit of main business gross profit as a proportion of the number of non-recurring gains and losses, cash flow adequacy.
Company's management also affect the company's business management skills, ability to be an important factor. Bad companies have bad reasons, but the good companies generally have a good business management. Now many investors are making use of information in stock trading, information disclosure is very important. Good management of information disclosure will definitely be honest.
Good management and investor relations will also attach great importance to pay attention to returns to shareholders, a modest dividend Major Holders can also be revealed with the pros and cons of management and business trends. Mr. Zhang said with a smile, and now everything emphasis on interaction, the stock is the same, to give investors the sweetness of the company to find a loyal investors.
In addition, companies in this industry depends on whether a monopoly status? Monopolistic position of the company has strong pricing power, lower cost than others, especially those in the international monopoly companies. If the company is still in the upper reaches of the industrial chain would be better, generally in the upper reaches of the industry is less subject to market price fluctuations.
Do not pay attention to innovative companies, there is no potential for development. Therefore, depends on whether the company emphasis on technology research and development. R & D investment decisions of the company's future growth potential, R & D investment should not fall below 10% of their total income.
In addition to the driving force within the company, but also the company's prospects for the industry.
Whether the industry should be concerned about the new technological breakthrough? No master new technologies, without timely follow-up of new technology businesses, their fate is obvious. Revolutionary new technologies inevitably reflected in the stock market.
A stable industrial markets, in order to enable enterprises to maintain a stable market growth. Mr. Zhang said, according to his experience, generally with growth potential market, annual market growth should be above 30%.
