Experts teach you six-step invest in stocks Money Tips

Category: Money Tips Date: 2006-11-04

Preface: the first several issues of "financial class", we have invited a variety of experts to share their stock investment experience, on how to refer to the company's financial statements, to determine price-earnings ratio, but also some technical K-line transactions and so on. In the end of the year is approaching the 12, we have specially invited WU Nan teacher for our stock-picking comb before the six-step knowledge of ------ indispensable, but only as a reference element of the stock options, only the organic these factors together, we can do the whole process is aimed wise stock investment.

Experts Guide language: a clear direction for the stock is always important than the election

Each person should be clear before buying the shares themselves whether to invest or want to speculation; how much money they have to hope that how much income can cope with the loss. To elect our own, is always better than the stock selection important, because only the identification of these factors, in order to have the right investment decisions. If you choose to invest in, then you need to note the following to say a number of areas, if you choose to speculation, then you need to focus on the even more numerous, such as the K line of the short-term trends, a variety of hot topics, and even a variety of positive and negative messages and large collective flow of funds. Of course, to choose their own may not necessarily be fixed, you can also take into account speculation and investment, as long as you can a firm implementation of their own choice, there will be a greater likelihood of success, so believe in yourself and to rationally plan and firm to implement its own plan, not greedy rash, or holding back. In determining their own investment objectives, investment means less attention to the market only after the need to go. When you are concerned about the market when there are many factors that we need to understand, and among these factors are inter-influential.

To determine the prospects for the industry with investments in

Each industry has its own creation, development, maturity and decline of the process, for example, the U.S. stock market, the establishment of the early rise in rail stocks are a wonderful period of time, the railway and rail-related stocks, as well as iron and steel stocks are all in a rapidly rise period, while gradually with the establishment of the railway network, profitability began to decrease, people's expectations have also started to fall. As a further maturing of the U.S. highway network, railway stock is gradually fading out of people's attention. While in previous years, ". Com" companies have sprung up everywhere, causing any of the companies and network detached explosive growth has created numerous billionaires, until now, Internet companies are still hot, this is the historical development opportunities. Therefore, the master development of the industry's pulse, is an important condition for the value of investments, so we can get the first one conclusion a reasonable period of investment is to follow are on the rise, or together with the development of mature businesses.

For example now the media stocks, Gehua (600,037), as an emerging industry, in the stock market the most depressed years (April 2005 to the present), still retains its strong growth, see after the resumption of the right graphics, as long as accompanied by the development of the Chinese media, we can continue to access to over benchmark yield.

Performance of the company stock is the basis for supporting

Statements of the company's performance is to choose an important condition for the stock. Investment in a continuous loss-making companies, or that you want to buy a reorganization of the dark horse, or that you are feeling too much money can be profligate. This time, your investment philosophy will be to enlarge the difference. Because the changes in a company's performance, if you are speculative, very simple, performance increases can do more, performance can fall short without much analysis, only need to pay close attention.

For example, Nanning Sugar Industry and Guangzhou Shipyard International, they had to appropriate to the outbreak of the performance-based growth in the short term continuous pulled up. But for an investor, it may just concerned about this level is not enough. You must also be noted that the reasons for substantial increase in performance and performance growth is sustainable.

Behind the growth of Nanning Sugar: sugar prices soar

Sugar prices improve, Nanning Sugar Industry from January to September this year, net profit grew 142 times from January to September this year, earnings per share reached 0.51 yuan, is expected to 2006 increased by 300% over the year. One mechanism for the company's main profit source of sugar, raw sugar futures rose in New York Quotes driven, and continued the second half of 2005 the rising trend of sugar prices, sugar prices from the beginning of 4400 yuan / ton in February rose to up to 5600 yuan / ton, brought enormous profits to the company. But did not last long, the international raw sugar prices to decline significantly after a relatively, together with relevant government departments issued a reserve of 1.2 million tons of sugar put in the auction market in order to stabilize sugar prices in the news, while the present price of sugar has dropped to 4400 yuan / t is about three quarter performance in early-warning that earnings per share -0.16 yuan, down 900 percent; rate of return on net assets -3.45%. If sugar prices continue to fall, then the company's net profit will be affected next year, a sharp shock.

GSI behind the international growth: steady growth in earnings

The GSI is more complex, multi-year shipbuilding orders, in addition to the full start outside of a stable income outside of the main business, but also because the company owned by a huge piece of land valuation, it may bring about far more than the company expected an additional earnings, the market offers unparalleled broad room for imagination. We need to consider is whether such growth can be sustained from each quarter earnings, profits or assets of the cases are rising momentum, and may provide a number of reasons for the growth.

Can not just look at profit and loss

Similarly, in turn, a loss must analyze why should there be such a loss, if a company has maintained a stable profit level, just because the money does not withdraw an amount of orders due to loss, not terrible, terrible the system customary nature of loss and loss. Haci Group, once all-powerful, but because of products are no longer marketable, the company has not changed in the market when the appropriate response, as reflected in the stock price is way down, and eventually enter the Third Market.

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In fact, a simple look at company performance data is also quite reasonable, we should also look at company performance and capital growth in the ratio of the rate of expansion. For example (600.32 thousand quotes, information, reviews, search) Zhenhua Port Machinery, which from 2002 to 2005 the growth rate is far greater than the performance of the total capital growth rate, and has been taking delivery policy, so the total capital has been expanding, but the absorption The funding has not increased profit growth rate and growth rate of the total capital ratio of 03 and 05 are close to 2,04 years, there are about 1.6. But also endogenous growth, that growth through the enterprise's own produce, such as in-house technical innovations, raw materials prices, production efficiency, etc., does not lie in the expansion of capital, etc., so the stock price is rational support The.

Another example is the Hong Kong Group, January to October of this year's performance although greatly improved, but due to its overall market, the amount of total capital increased very fast, so get the ratio is not high, this stock will theoretically increase the speed of slower. The reason for this phenomenon is that the issue of capital utilization. In economics, marginal effectiveness, when relying on the expansion of capital, profit growth rate faster than the time of each capital gains will drop, without considering other factors, the growth rate of stock price-earnings ratio will decline , then the stock price growth rate will fall.

Business growth

The same trends in the industry, each enterprise's development situation and business prospects, there will be differences in the production of the most homogeneous product market conditions, iron and steel stocks pages, their stage of development is also a big gap. Every enterprise because of its own position is different from the historical conditions are different in different geographical conditions, policies, conditions are different and even careful to product capabilities, the different R & D capabilities, will lead the next stock price volatility. For example, Baosteel can be vertical and horizontal capital markets, continuous small iron and steel enterprises in China issued a takeover offer, each offer will cause huge fluctuations in the capital markets, but also on behalf of all of China's steel companies and iron ore companies to negotiate. Similarly, as the iron and steel enterprises Bayi Iron & Steel has always been a takeover target.

The prospect from the product, the production of H-steel, Maanshan Iron and Steel on the railways because of the country for investment in fixed assets of more than 100% of the growth of higher earnings. Level in the country's leading Baosteel cold-rolled steel sheet can help the growth of automobile production and sales to improve their earnings. This is the relative homogeneity in the product areas of serious steel. So we got another one conclusion should invest in a policy bias, the product long-term bullish, there is comparative advantage of stock.

The level of market valuation

Even the best stocks are up and down, there is no stock can only rise and not fall, nor did the stock is only down not up. No matter how good a business, profitability of ability, you may also have been overestimated. For example, in the first half of Hongdu Aviation, the stock fundamentals are good, profitability is guaranteed, aviation unit, military themes, and the future is also substantial. But it is precisely because of its unanimous bullish, the market price in October let blindness sought after up to 35 yuan, while its profitability is impossible to support such a high stock price, the market calmed down after the discovery of its stock price overestimated, its price-earnings ratio (PE = 190 times) has been far more than all the other airline stocks price-earnings ratio (PE about 50 times), so, their stock prices began to adjust. After the share reform, its earnings did not meet people's expectations, its "policy dividend" has not been widely recognized by the market, in October, becoming broader market higher, it has not high, but heavy volume down. Therefore, a reasonable valuation is also very important. Conversely, Hongdu Aviation experiencing this time, after the adjustment (after the share reform to the recent), the valuation after the handover, whether it is reasonable also need to market test. In fact, as long as a good enterprises, profitability of the business, always be the will be found, such as the recent rapid rise of steel is the value of the return process, on a market anywhere in the world, PE is equal to 5, Steel Forum is being seriously underestimated. So from the beginning by the end of October, steel stocks started the valuation of the return trip, but to this day is not over yet.

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Volume of a stock market advance, and all the things that actually happened, although the impact on stock prices will, but it's not the main reason for the volatility. The main reason is apparent that the uncertainty. It can be said, funds love Dream, a variety of subject matter is a another beautiful blueprint, and we do not just listen to someone else we describe the beautiful dream, but also analyze the possibility of this dream come true. For example, the enterprise Siyuan Electric, in the last year, has described the national power grids, the beauty of their vision: first, the starting point is to build a conservation-oriented society, to transform the agricultural city of electricity and electricity network, and from which they can share. This year's investment in fixed assets subject to significant regulation at the time, power grid construction did show a significant upward trend, while the stock of the enterprise, from the beginning by the end of 2004, double the price it can be said has been in the right to increase access, it is because we have all begun was purely a belief that a dream is now acceptable to all of their blueprint to begin to identify growth, the bubble is really a dream become a reality, but more importantly is that its orders had come in 2008, the dream could continue, even more stories far more to say, and to ensure that the growth of for quite some time. Low-risk and the potential earnings are high, so that the subject matter of natural resources will be sought after.

Of course, not every such stories can be successful, if unsuccessful, to compile all of the fantastic price, will be back in situ. So, blowing bubbles, many people will, to see they can not be filled bubbles. For example, some time ago has been speculation the brokerage violence backdoor concept stocks, such as Shanghai Jinling (600,621), the National Day holiday starting from the people will have heard the news about this storm fried, continuous daily limit is a reflection of the market, while the factual circumstances that the development and people's expectations After the departure took place, the price will soon fall into the dream started ahead, wake up, so many people's hearts are broken.

Management's philosophy and level of

We are here not to discuss the management of ethical standards, while our existing management system is not a perfect system, but should be able to prevent the emergence of a second Guangxia. In the assumption that all listed companies are just the premise of leadership, some business leaders is the ability to make you feel overwhelmed and even admire, such as ambitious, there are entrepreneurial spirit, sense of innovation. Such enterprises reassuring, growth there is a certain guarantee.

On the other hand, some time ago there was a survey among managers in the Fund, of which question is: "The existing listed companies, the most respected leader in people?" As a result the answer is Vanke A, and China Merchants Bank's leadership layer is the most respected leadership, so they led the company's stock will have far better than other similar stocks trend. Reason is very simple, the stock market, who get more money recognition, he will a good price. Make a lot of investors, particularly fund managers admired companies, and its stock is not good, it really go wrong.

Everyone has their own way, someone else's way is not necessarily suitable for you, but as long as they insist on reason, it will certainly have their own in the stock market where shares in love. Find a suitable for their own shares, and sometimes just like to find an intimate friend, that familiar feeling, so you kind.

Note: This information only on behalf of individual experts point of view is for reference only, whereby investment risk.

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