Reasons For Recommended Stock

Published Date: 02 Nov 2017

Student Name:Yangzhengda

Student ID: 1007007115

Matriculation No. : 20048154

Date : 15April,2013

Word Count : 1500

Table of contents

1

Introduction

3

2

Stock performance

4-5

3

Comparison Stock

6

4

Better choice, learning focus

6-7

5

Reasons for recommended stock

7-8

6

Summary

8

7

List of Reference

9

1. Introduction

The first part is introduced initially selected 10 stocks, Calculate the profit / loss of these stocks, Analysis of why these stocks up or down .The second part I will analysis my selection do better or worse against group selections.The third part I will analyze the stock of own choice which one can replace the stock in the group. And Introduce what I learned. The last part is why I will choose those two stock recommendations to the group.

2. Stock performance

Action

Entry of date

Stock

Share price

No. of shares

Total of cost

Present date

Stock price

Market value

Profit/loss

Buy

March,12,2013

OCBC

10.29

971,817

10,000,000

April 8 2013

10.58

10,281,823

281,823

Buy

March,12,2013

Itech

0.143

69,930,069

10,000,000

April 8 2013

0.112

7,832,167

-2,167,833

Buy

March,12,2013

GP hotels

0.27

37,037,037

10,000,000

April 8 2013

0.275

10,185,185

185,185

Buy

March,12,2013

multichem

0.14

71,428,571

10,000,000

April 8 2013

0.144

10,285,714

285,714

Buy

March,12,2013

FEOrchard

2.07

4,830,917

10,000,000

April 8 2013

2.13

10,289,853

289,853

Buy

March,12,2013

ChipEngs

0.74

13,513,513

10,000,000

April 8 2013

0.795

10,743,242

743,242

Buy

March,12,2013

UIC

2.9

3,448,275

10,000,000

April 8 2013

3.05

10,517,238

571,238

Buy

March,12,2013

M1

2.86

3,496,503

10,000,000

April 8 2013

2.99

10,454,543

454,543

Buy

March,12,2013

BH global

0.175

57,142,857

10,000,000

April 8 2013

0.163

9,314,285

-685,715

Buy

March,12,2013

UE

3.15

3,174,603

10,000,000

April 8 2013

3.1

9,841,269

-158,731

-254,681

Profit over 4 weeks =(-254,681/100000000)*100%=-0.25%

Annualised profit =(1+(-0.25))13 -1=-0.98%

Although the stock I bought seven shares are earned, but I still lose money because itechgrp lose too much money ,reason for choosing the stock, I think Internet technology has great prospects for development in the future, so the stock has good potential. The last price is $0.143, and the benefit rate is 24.5, this means that the investment value of the stock is very good. The PE ratio was 3.9, the stock of low-risk, high-income. But I did not expect the latest status of the stock is not good, but still is the potential of a stock. I am very optimistic about the OCBC, the stock did not let me down, I think this is the best one bank shares, it is suitable for investors to buy, and bank shares are very stable, although the profit is not much, but continued to benefit from a very long time.(shares investment,2013)

The other stocks like multichem,GP hotels,FE orchard,Chipengs,UIC.M1, They are stable increase in the investment risk is very small, that’s why I choose them.BH global and UE Although the drop in price, but little loss. I think after a while they will rise back.

3. Comparison Stock

Our group chose Boustead, Gems TV,OCBC,Itechgrp, InnoTek, Macqinfra, Capitaland, Capitalmall Asia. I chose stocks are OCBC,Itechgrp,GP hotels, multichem, FEOrchard, ChipEngs,UIC,M1,BH global,UE.

Stock in the manufacturing industry, I think multichem(M06) is better than InnoTek, , I think the stock has potential, 89.6% of this stock turnover in IT, As we all know, IT industry there is a big market in the future.And the multichem PE ratio was 9.4,but the innotek was 157.5. The innotek Price in decline, In my opinion the stock is no potential, worse than multichem. (Multichem,2013)

In the service industry stocks, The Boustead is good stock low PE ratio, stock prices have been rising, but GP hotels is not bad,I made money from this stock. Can not say which stocks are good, I think both of them are flat.

In real estate stocks, I choose FEorchard, my group choose capitaland. When I bought the stock the price is 2.07$,now is 2.13, This is a very stable stock, although the income is not high. The capitaland purchase price is 3.4$,now is 3.5$,but the capitaland PE ratio is higher than PEorchard. However, these two stocks are profitable and capitaland earn more.So I think capitaland better than FEorchard.

Gems TV I think is a bad choice, no earning, I think M1 can instead it.

Compare with other construction stock, I think ChipEngs is better, high benefit rate (5.4),low PE ratio(4.0), and the company is financially strong..

The Macqinfra price has been on the rise,PE ratio is low , High value of the investment risk is small. Because the company has a good business in the world, So I am very optimistic about the stock.

4. Better choice, learning focus

First of all, I think that Innotek not a good choice. Multichem can replace it.Innotek PE ratio was 157.5, and earnings per share was -0.075, I do not recommend investors to buy. Multichem although the profit is not high, but stable upward trend,

And I think the stock has potential, 89.6% of this stock turnover in IT, As we all know, IT industry there is a big market in the future. So this stock is undervalued. So I think Multichem can replace Innotek.(innotek 2013)

For Gems TV, The stock recently are not profitable, Stocks in the same industry FEOrchard is a good recommendation.FEorchard earning per sharing rate higher than gems TV 0.505$.And Gems TV the company’s business not like M1 famous and success. On this side, I think M1 can instead it.(Feorchard,2013)

OCBC is very recommended. MacqIntInfra I am not optimistic about the stock .The OCBC help me earning much moneys, But my teammates Select the the stock has been losing money. The reason is very simple.OCBC is a good financial stock, Investment risk is small, but there is a good yield, so I think OCBC can instead Macqlntinfra.

Through this research, I learned how to choose a good stock. Select a stock must first understand the background of the stock company, check the company's business and results in the analysis of the stock by the PE ratio and earnings per share ratio. But to buy stocks only to select these points is not allowed, Through analysis, interact with others, in order to decide how to choose. To minimize the error, you cannot put all their eggs in one basket. By practice. Summing up experience in order to become a successful investor.( Stocks wisdom,2002)

5. Reasons for recommended stock

In the financial industry, I recommend OCBC(O39) to my group, The last price is $10.29,and the earning per share is $1.164. The earning per share price is higher than other financial stock, like SPRE(S49).The PE ratio is 8.8, it means this stock is undervalued. I think the stock can be steady growth, bring great profit to the buyer.- On an investor's perspective, the company's core non-interest income growth of 31% year-on-year, while the largest wealth management revenue growth of 43%, 28% of the Group's total revenue contribution(shares investment,454). Looking to the future will be better, so I recommend the purchase of the stock.

For the other stock is Itechgrp, Internet technology has great prospects for development in the future, so the stock has good potential. The last price is $0.143, and the benefit rate is 24.5, This means that the investment value of the stock is very good. The PE ratio was 3.9, The stock of low-risk, high-income. But I am still very optimistic; after all, the high-tech stock is very promising.

6. Summary

This assignment I analyzed my own stock and group choose stocks, analysis these stocks, explain why I choose these stocks, to elaborate my learning point. This assignment is helpful, help us learn how to analysis stocks and choose stocks.