The hottest paper stocks will encounter hot money

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Paper stocks will encounter the hot money limit attack

the market has been rising sharply for three consecutive trading days. The Shanghai stock index has successfully stood at 1500 points, and the short market has triggered a continuous surge of super bull stocks. The company has also recently made comments on G Minmetals, G copper capital, G Lantai, G zinc, etc., which have seen a sharp upward trend. In terms of the cooperation of hot spots, against the background of the continuous influx of long funds, the trading volume of the two markets continued to create a sky high volume, and the trading volume of the Shanghai stock market reached 36.7 billion on Tuesday. Tens of billions of hot money began to be raised crazily. After the hot spots turn up, investors must keep a clear head. Relative to the hot market, the paper stocks only showed a benign trend of moderate rise. Affected by the appreciation of the RMB and the continuous search for fighters for short-term funds, short-term paper stocks are about to encounter the limit attack of hot money in the market

the RMB closed at 8.0070 yuan against the US dollar on the first trading day of the May Day holiday, up from 8.0140 yuan the previous day. The main reason is that the US dollar was weak during the May Day holiday, and there was a make-up trend when the RMB transaction resumed. It is expected that the RMB exchange rate will still be on the high line in the short term, which is expected to hit the integer level of 8.00 yuan. Since the G7 meeting, the risk of China being identified as a currency manipulator has greatly increased. If the United States really takes this action, it will further increase the expectation of RMB appreciation. Goldman Sachs, a major international bank, expects the dollar to fall below 8 against the RMB this week, with a three-month target of 7.85 and a six-month target of 7.67. Due to the strong expectation of RMB appreciation, the impact of relevant industries, especially the paper industry, will still be far-reaching. Moreover, the recent rise of paper stocks is generally small, so it is easy to become the object of institutional funds

on the other hand, from the perspective of the industry, the anti-dumping measures of the Ministry of Commerce of China have basically covered the main categories of the entire paper industry. Under the protection of this policy, the paper industry will obtain a relatively loose competitive environment, and some paper listed companies with resources and scale advantages. 4. The operating environment of equipment is also a point of concern. The company is expected to continue to obtain high-speed growth space. From the perspective of the overall development of the domestic paper industry, the demand growth of paper products will keep pace with the development of the national economy in the next few years. If enterprises can make a difference in improving the technical content of products and replacing imported high-end paper products, they will achieve super rapid development. According to the prediction of the paper industry association, the output of paper and paperboard in China in the next few years is: 38million to 50million tons in 2005, reaching a per capita consumption of 35 kg. The commissioning of hydraulic universal material testing machine is 8kg, which is the current average consumption level in Asia that can not be destroyed by hammering. To reach the current world average consumption level, China will consume more than 80million tons in 2015. It can be seen that China's paper industry is currently in the channel of rapid development, and the growth of the paper industry has been very prominent

the price earnings ratio of domestic A-share companies related to the paper industry is relatively low due to the impact of the bear market in previous years. For the more mature Hong Kong market, such as Liwen paper, pe16.9 times in 2005 was used as the comparison standard, while the average p/E ratios of dominant A-share paper companies were about 10 times, and the phenomenon of undervaluation of stock prices was very prominent. It is precisely because of such a large underestimate that the crazy scramble for hot money has been prompted. For G Chenming (this part of consumer demand shows rigidity 000488), which has the characteristics of industry leader, due to the prominent fundamentals, the technical side is also gradually turning around, and a round of attack will soon start

as a leader in the paper industry with high growth, the current share price of the company is significantly undervalued. From the stock control situation, the top ten circulating shareholders are fund and institutional investors, which further indicates that its undervalued value is being deeply explored by the main force. With the rush of the market, the time has come for G Chenming with leading potential to attack the daily limit. Once an attack is launched, driven by its seriously undervalued value and multiple positive themes, the stock is likely to become the leader of the next round of gains and the new leader of RMB appreciation, which investors can pay close attention to

source: Zhejiang Lijie

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