Category: Money tips Release Date: 2006-05-29
The economy is a cycle; industry, there is a cycle; Quotes is a cycle. Then, the operation must also be a cycle. Cycle offers opportunities and risks arising.
The trend of the stock market is now entering a new active period; the market has begun to enter the annual disclosure period; operation into the New Year's leave before the holding cash at hand, or holding a "trance period"; part of the early involvement of investors to enter the harvest period; the other part has been hesitant investors have entered the "regret period."
Unilateral do more of the market, ideas and vision can only ever be backward-looking. Backward looking, how can we secure the premise of the comparison step down after the investment strategy of choice? How to seek new investment opportunities? Around the Spring Festival of the stock market since there are so many of the "cycle", it indicates that the strategy, the opportunity to seize on the cyclical factors is very important.
There are cycles in the futures market arbitrage trading rules. Similarly, in the stock market if the variety and point the right choices, but also a very low risk opportunity for periodic profit-driven. For example, when the stock market flat, often at the end of the month will produce a wave of 11,12 of the stock market closed-end funds, it is because the high-worse resale values can withstand market risk, based on a high after the low price discount as an investment The acquisition cost of the annual dividend rate of return is much higher than the entire year's money market yields, as well as bank interest rate of return. Therefore, the end of the year on the eve of the fine performance of closed-end funds are often subject to the cyclical nature of huge amounts of capital to patronize: either to obtain funds gathered high in worse resale values investment income convergence in the capital, but also to obtain a higher proportion of dividend yields achieved by one!
With such ideas, with such interest demands, in order to secure the principle strategies, in the stocks also can get periodic investment opportunities. For example, the Shanghai and Shenzhen stock of steel, in the third quarter of last year, the average earnings per share reached 0.40 yuan, much higher than other industries stock at an average price-earnings ratio is only 6.77 times more dynamic. The average net assets per share was 3.74 yuan, with an average book value is 0.965 times the discount has already entered the state as a whole. Of which more than 48.30% of the iron and steel stocks have been "broken net" discount, if the combination of the current stock price change factors, there will be 96% of the iron and steel stocks will enter the "broken net" discount status. The current average price for all iron and steel stocks is 3.61 yuan, down from an average price of 5.16 yuan for all A share of 42.94%. December 5 last year, has an average gain was 15.64%, and 16.03% less than the broader market's gains.
Although the market has always been discrimination in the steel stocks, but the iron and steel stocks in all industries share in dividend rate is highest in the year-end 2004, the average dividend yield of more than 5%, which is more than double the bank interest. Change according to stock when the dividend commitment, Angang New Steel, Wuhan Steel shares, Baosteel and other stock dividend rate for 2005 will reach over 10%.
In addition, stock change, asset replacement, discount state of mergers and acquisitions, the overall listing, repurchase, warrants and other steel shares of the stock market can be created to promote trade-related opportunities. These break the net discount, oversold stock, trading opportunities can pose a risk of sexual defense functions. On this basis, with the annual period of the advent of the disclosure of year-end distribution of the program out the door, iron and steel stocks high dividend yield implied "rate of return market" constitutes a very low risk of cyclical investment opportunities.
