Category: Money tips Release Date: 2007-07-28
First half of 2005, in the macro-control will continue to expectations in the face of the overall performance of listed companies, the trend of decline in growth, many institutional investors adopted a defensive strategy, focus and gradually shift to non-cycle stocks, it is still very much difficult to circumvent the broader market decline caused by systemic risk. For example, in the Shanghai Composite dropped since the beginning of the process of Zhu Bo, many Awkwardness of Fund would be difficult to avoid the ups and downs to follow the broader market.
In the above context, we found that the use of "cash support rate" a selection of the stock has obvious defensive. In April of this year, we use the "cash support rate" elected by the Zhejiang sunshine, Hisense Electric, Jinlong car, shares of four stocks in the Czech Republic, as of August 4, Zhejiang sunshine, Hisense Electric, Jinlong car's overall gains are the leading benchmark Shanghai Composite Index 10% -20%, in the Czech Republic shares (including the right of not considering the impact of reform) the leading benchmark Shanghai Composite Index more than 60%, the four movements of the stock is also much stronger than a quarter of the fund's top 50 overall trend of Awkwardness. Can be seen that support the proper use of the cash rate, the better to resist both broad market decline brought about systemic risk, but also to capture medium and long term excess profits.
We propose the rate of cash support for the "new index" is a Peter Lynch-based companies listed on the cash value assessment method of analysis theory. Clearly, the macro-control to bring the long credit crunch caused by the listed company's funds generally face the impact of tightening, the mainland listed companies have plenty of cash if there is a strong practical significance, especially in the RMB exchange rate are conducting market adjustment of the macro-environment, short-term pressure for devaluation of the yuan is small, the yuan has ample liquidity of the significance of listed companies is very conspicuous.
Cash support rate is not specifically listed company's net operating cash flow statement cash flow, the specific formula should be: with cash and short-term investments minus the sum of all short-term liabilities (if it can continue to keep improving, then subtract long-term liabilities), the results with the latest market value of listed companies divided to arrive is the ratio of the rate of cash support. Obviously, under normal circumstances, the cash support for the high rate of listed companies, whose share price can be cash-class assets, strong support, the valuation more secure.
In addition, investors should refer to other indicators to further filter the target company, such as reference to a listed company's main business revenue, profit growth rate of main business categories of indicators such as growth, return on equity rate of return, book value, price-earnings ratio, etc. valuation indicators, and operating cash flow and other indicators of the level of comprehensive consideration. It is noteworthy that, as many mainland companies listed on existence of a security such as "contingent liability", but not these "contingent liability" included in the balance sheet, so the situation on the cash target rate of support we can only ignored.
At the same time, through the analysis of macroeconomic and sectoral policies, I believe that the current cycle, from trade goods and type of investment goods, investment opportunities in various sectors is very difficult to select. Therefore, support in the application of the cash target rate, investors should try to avoid the risk of structured adjustment.
