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New Perspective Of Stock Selection: Valuation + Catalyst

2011/8/1 15:36:00 28

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Because of the appreciation of the renminbi and the growth of the performance of the listed companies, it is beyond the expectation of the market.

A shares

The market once again formed a new impetus to make the Shanghai Composite Index gradually out of the shadow of the previous crash, and continued to rise again and again. There is a tendency to recapture three thousand points of land lost.

In the process, a number of second tier blue chips with reasonable valuations have been rising, which seems to be the new cheese for many new capital positions.

Some public utility stocks, such as expressways, port airports and other industries, are more concerned by some new funds.

The reason is that the A share market has undergone tremendous changes in the past one or two years, especially after the share reform. The role of controlling shareholders has changed radically, and the attitude of the listed companies has also changed greatly. Therefore, it is more inclined to inject high-quality assets into the listed companies.

Because of the strong profitability of high quality assets of public utilities, the net asset yield often exceeds the existing stock assets of listed companies. Therefore, when quality assets enter the listed companies, they often bring about a sharp rise in performance, so that new stock price catalysts are injected into second tier blue chips with reasonable valuation, and the stock price trend of the two tier markets soar naturally, so is the stocks of Yantian port, Tianjin port and Shanghai airport.

It is worth pointing out that the share price of the A share market is worth noting.

Catalyzer

In fact, there are two categories: one is the rapid growth of the performance that has been injected into high-quality assets.

According to the insiders, the growth of listed companies mainly consists of two paths: epitaxial growth and connotative growth. The growth brought about by the injection of high-quality assets is epitaxial growth, which can be summed up as an endogenous growth path through the development of new projects or the improvement of profitability through self financing.

Therefore, once the second tier blue chips, such as utility stocks and other reasonable valuations, meet the growth in the performance of the acquisition of high-quality assets or through the raising of capital projects, the stock price trend of the two tier market will be quickly aroused, thereby bringing the stock price up.

Another is the subject matter expectation.

speculation

Because in the bull market, the popularity is more intense and the association is more abundant, so it is easy to produce many subject anticipation.

Moreover, if some listed companies' foreign equity investment assets conform to the mainstream hot spot of the current A share market, they will also generate strong stock price to do more power, which is reflected in the current stock market, that is, share broker, equity bank, equity insurance company and so on, and the share price of the listed company that owns these financial shares also ushered in the catalyst of the stock price. The reasonable valuation will provide enough stock price margin for the new funds, and the stock price catalyst provides the stock price imagination space.

According to this idea, the author suggests that investors should focus on two types of stocks, one is the current valuation stocks that are reasonable and have expected new projects in the future, including Shenzhen airport, Xiamen airport, Xiamen port, Tianjin port, Shandong Expressway and many other high-quality blue chips.

Two is the current stock valuation reasonable and future has certain subject anticipation stock.

Such as Jiangxi Guangdong high-speed, the acquisition of assets will gradually contribute to profits, growth expectations are acceptable.

At the same time, the company also has stock market catalyst for participating securities companies and future asset injection. Therefore, the prospect of the stock market is worth looking forward to, and it is suggested that investors pay close attention to it.