Tuesday 7 August 2012

Does Mr Fong Siling Agrees with ICBC

ICBC


Why Mr Fong Siling think reading annual reports is the key of success in stock investment? Does the same goes to ICBC, HK . Mr Fong Siling said...


Read the annual report is an important item in my investment career. Read the annual report, can enhance the understanding of the listed companies. All listed companies must comply with the Listing Rules to publish an annual report within the prescribed period, report to the shareholders of the past year the company's business situation.
Listing Rules, the provisions of the Annual Report, the report projects the annual report, each company are the same. Of course, the contents of the report due to vary.The purpose of the annual report is to make a comprehensive understanding of the shareholders of the company's business.
The company are the shareholders, the shareholder is the owner of the company.
Shareholders own the company, the shares of the assets of the shareholders, as a listed company, the shareholders have the right to decide to continue to hold or sell off his shares, the decision must be made according to the company's performance; read the Annual Report is to understand the performance of the company's most direct and simple way.
Each stock investors must read his holdings of the company's annual report, and then made the decision to continue to invest in, or withdrawal, according to the annual report.
To provide additional information
Many good company's annual report, in addition to the provisions of the Listing Rules to publish projects, but also provide additional information to help shareholders or investors, and understand all of their company.
Some of the company's annual report, further comprehensive report on the trades, to enable shareholders to make more informed decisions.
Malaysia Smelting (MSC, 5916, industrial products, shares) in the annual report is a good example. In addition to the company's business, the company's Annual Report on the World Tin made an in-depth and comprehensive coverage, is simply a mini World Tin encyclopedia.
From the annual report, you will find that Malaysia Smelting has a high-quality management, which is the company's most important and most valuable intangible assets.Read the Annual Report, you can often find investors to ignore the information in order to catch other investors can not be caught.
Read annual reports, and make you a better understanding of the companies you invest, thereby increasing your confidence in your company. Confident that before long-term investment; only long-term investment, you be possible to obtain huge profits; only get huge profits, in order to get rich.
Conclusion:
⑴ to read the annual report to help to explore the treasures.
⑵ as long as earnings continue to rise, long-term hold on.
⑶ performance to reverse the valuation is too high, should be withdrawal.
⑷ stock investment, the need to regulate.
If good stocks are cheap to buy, as long as earnings continue to rise, it should continue to hold, do not ignore the short-term stock price volatility.



so, after reading Mr Fong Siling's way of investment...
Let 's us ponder, why the ICBC the 5 star blue chip bank in HK , China drop from sky since May 2012?
- China government's policy to reduce the interest rates by 2 times which reduce the EPS of the bank?
- Europe sentiment and ongoing volatility of the share markets?
- China economy slow down?

But, i think that this is the time for us to invest in this company... at almost year low. Reasons?
-From TA point of view, it turns from the bottom to higher high, higher low. Good signs definately! 
-From FA point of view, 
P/E Ratio6.19
Yield5.46%
5 star bank with PE of 6? and Dividend yield of 5.46 % ( higher than the fix deposit)
Bear in mind that ICBC is one of the biggest bank in China, if the economy starts to recover, don't you think that the bank will lead the Hang Seng Index to the sky?

Let 's us see whether it will rise from the close today at HK  4.58? 
Just have a look at the earning of the company, http://www.aastocks.com/EN/Stock/CompanyFundamental.aspx?CFType=8&symbol=01398
What do you think?



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