Category: Money Tips Date: 2007-04-16
Investment Strategy
Reveal the secret of high-growth
Stock of the rich-poor divide in society between rich and poor differentiation than worse, performance, growth, space is still up one after the electrical limit-stop, pre-drop Changchun Gas, after the lower limit is still down non-stop, or even extremely bright performance G-Baosteel holdings of major shareholders took out a large amount of money can not afford to continue to prop up stock prices, resulting in differences between rich and poor stocks of the main reasons so much, in fact differences in growth, high-growth stocks on the high-rise buildings alone ignore the broader market, while the loss of growth Gas stocks are like the star had no "fan" of the pursuit. So, how to identify whether or growth stocks? Growth stocks whether the secret? How do I search for new growth stock?
In identifying individual stocks in terms of growth, the main there are three indicators: First, EPS growth rate, second, PEG, three sales revenue growth, which is testing whether the growth of the touchstone of individual stocks, but also organizations in general to measure growth in individual stocks the three core indicators.
EPS growth rate: changes in a company's earnings per share level, usually displayed as a percentage, commonly used is the estimated EPS growth rate, or the average EPS growth rate over the past few years. The higher EPS growth rates, the company's future earnings growth in the more optimistic about the use of methods are: the company's EPS growth rate and compare the whole market; and comparison of other companies in the same industry; and the company's own historical EPS growth rate of the comparison; to EPS growth and sales revenue growth compared to measure the company's future growth potential. In general, EPS growth should be accompanied by revenue growth, or may simply be to cut costs or one-time gains and other factors can not be sustained. Recent Niugu Space appliances (002,025 market, information, advice, more) in the first three quarters year on year net profit increased by 200% -230%. We expect EPS more than 1.1 yuan this year, EPS growth of more than 150%, and the three-year EPS compound annual growth rate reached 120%, indicating growth of the company's tremendous growth continued strong. The G Baosteel (600019 market, information, advice, more) this year EPS forecast for the next three years was 0.8 yuan, 0.79 yuan, 0.77 yuan, while still the blue-chip stocks, but is actually a negative EPS growth, old and useless, was reasonable that the agency abandoned.
PEG: estimated price-earnings ratio divided by the ratio of expected EPS growth rate, that is a reasonable growth in prices, a reasonable PEG should be less than 1. As with the single EPS growth rate as a higher risk of investment decisions, growth rates and price-earnings ratio will be considered together to eliminate high or low price-earnings ratio as the only criteria for judging the shortcomings applied in high-growth companies, such as the high-tech stocks for future growth high, PE is also a high absolute value will lead to investors are deterred from visiting, if PEG as a judge pointer, then the high price-earnings ratio, high growth rate of investment in stocks will also become a target. Use, can be the target company's PEG with the overall market, compared to other companies in the same industry, to measure the investment in a particular point in time the possible risks and rewards. For example, last year's Wangfujing (600,859 market, information, advice, more) of the EPS was 0.03 yuan, this year's forecast EPS of 0.15 yuan, is forecast PE of 40.6 times (to October 21 6.09 Element Method), PE growth rate was 400%, it seems PE is expected to remain high, but the PEG is only 0.10, in the broader market, as well as with the entire business section in all at very low levels, therefore, can be found quite good growth stock. Sales revenue growth: a company a certain period of time, changes in revenue levels, commonly used is the estimated sales growth, or the average over the past few years, sales revenue growth. Usually the higher sales growth, on behalf of the company to increase product sales, market share expansion is also more optimistic about future growth, such as the Po peptide shares (600,456 market, information, advice, and more) of the expected sales revenue this year, a growth rate of 80 %, while the industry average of 25% forecast for this year EPS was 0.80 yuan, while EPS growth rate of 135%, indicating the unit EPS growth, is inextricably linked to the increase of sales, growth has a solid foundation for
According to this line of thought, the following several typical growth stock is worth close attention, their EPS growth rate, PEG, and sales growth rates are as follows: Shen Tong MTR (600,834 market, information, advice, more) 55.7%, 0.31, 50%; Xi'an Aircraft International (000,768 market, information, advice, more) 95%, 0.60,60%, Shanxi Fenjiu (600,809 market, information, advice, more) 60%, 0.58,65%, growth in their respective industries are more outstanding.
