As we are not registered members of Hong Kong Securities and Futures Commission, so we cannot provide an investment suggestion for you, but we can share my views on a stock - Zijin Mining Group Co., Ltd (紫金礦業, 2899)
Profit Increase
In the Annual Report of Zijin Mining Group Co., Ltd, their profit had increased about 20% to 3.06 billians in 2008. It shows that they have good strategies for their business in the gold industry. During the period of economic recession and financial tsunami, Zijin still gains 20% profits; while the economy is recovering, we expect Zijin would have profits this year, it will surely affect the stock price directly.
More Than the Market Return
When we choose a stock for investment, we need to know that we need to get more return but higher risk, or get less return with lower risk and more stable. For me, I am aggressive for my investment portfolio, so i will choose stocks which are having higher beta with the market. Beta is a measure of relationship between stock and market, for example, the beta of Zijin is 1.165, that mean this stock's price will increase 116.5% when the market return increase 100%.
Quantitative Easing (量化寬鬆貨幣政策)
The US Federal Reserve announced that they will buy as much as $300 billion of long-term Treasuries within six months and more than double of its mortgage-debt and corporate debt purchases. For basic analysis, the market predict this action of US Federal Reserve will produce more and more US Dollars to satisfy their policies. It will stimulate the inflation, then it will increase the demand of gold in the world as gold is an asset which can safe from the inflation. The price of gold will increase when the demand of gold increase, and then the price of gold will affect the profit of Zijin as their business is in gold industry.
Conclusion
After my analysis, I think Zijin will have a large potential of profit increase in the future. Therefore, I think target price of Zijin in short term is $6.5 , and the cut-loss price is $ 4.7 . For the year end in 2009, it may become $7.5 to $8 .
Reference:
Foundational Information of Zijin
[http://www.aastocks.com/eng/fundamental/ma.asp?symbol=02899&funda=1]
Annual report of Zijin
[http://www.zjky.cn/Portals/0/%E5%85%AC%E5%91%8A(0)/LTN20090323002_C.pdf ]
Quantitative Easing
[http://enews.nobleapex.com/eNewsLetter/files/E-Newsletter/index.htm#2]
Profit Increase
In the Annual Report of Zijin Mining Group Co., Ltd, their profit had increased about 20% to 3.06 billians in 2008. It shows that they have good strategies for their business in the gold industry. During the period of economic recession and financial tsunami, Zijin still gains 20% profits; while the economy is recovering, we expect Zijin would have profits this year, it will surely affect the stock price directly.
More Than the Market Return
When we choose a stock for investment, we need to know that we need to get more return but higher risk, or get less return with lower risk and more stable. For me, I am aggressive for my investment portfolio, so i will choose stocks which are having higher beta with the market. Beta is a measure of relationship between stock and market, for example, the beta of Zijin is 1.165, that mean this stock's price will increase 116.5% when the market return increase 100%.
Quantitative Easing (量化寬鬆貨幣政策)
The US Federal Reserve announced that they will buy as much as $300 billion of long-term Treasuries within six months and more than double of its mortgage-debt and corporate debt purchases. For basic analysis, the market predict this action of US Federal Reserve will produce more and more US Dollars to satisfy their policies. It will stimulate the inflation, then it will increase the demand of gold in the world as gold is an asset which can safe from the inflation. The price of gold will increase when the demand of gold increase, and then the price of gold will affect the profit of Zijin as their business is in gold industry.
Conclusion
After my analysis, I think Zijin will have a large potential of profit increase in the future. Therefore, I think target price of Zijin in short term is $6.5 , and the cut-loss price is $ 4.7 . For the year end in 2009, it may become $7.5 to $8 .
Reference:
Foundational Information of Zijin
[http://www.aastocks.com/eng/fundamental/ma.asp?symbol=02899&funda=1]
Annual report of Zijin
[http://www.zjky.cn/Portals/0/%E5%85%AC%E5%91%8A(0)/LTN20090323002_C.pdf ]
Quantitative Easing
[http://enews.nobleapex.com/eNewsLetter/files/E-Newsletter/index.htm#2]
http://www.businesspundit.com/wp-content/uploads/2008/09/gold.jpg
As Marcus suggested, your blog needs further changes (design and layout)
ReplyDeleteAnd consider to "connect" and link up the sections (weekly posting). It seems that the topics discussed are fragmented.
will you consider to discuss HOW a fresh graduate can manage his / her assets effectively? e.g., how to allocate his / her salary as such he / she can accumulate the$$ for further studies?
ReplyDeleteAnd pls update more frequently with your rich ideas!!
I agree that this stocke looks worth to buy but their price in the market is $5.27 right now and it had never been $6.5. Why do u think it had that talent?
ReplyDeleteAnd other question is, are you the stockholder?
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