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Taiwan Training Trip Sharing. Experience from Taiwan apply for Equity Investment in Vietnam. Investment Department May 2012. Outline:. Three steps for stock investment Macro Analysis Sector Analysis Company Analysis. Three steps for Stock Investment. Economy Analysis.
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Taiwan Training Trip Sharing Experience from Taiwan apply for Equity Investment in Vietnam Investment Department May 2012
Outline: • Three steps for stock investment • Macro Analysis • Sector Analysis • Company Analysis
Three steps for Stock Investment Economy Analysis Sector Analysis Stocks Analysis
Step 1: Economy Analysis 1. Economy trend, cycle 2. Inflation Trend, Cycle GDP yoy %CPI yoy High Low • Experience from Cathay TW: • When GDP is at bottom, or • Lower Government target • => Time for Stock Investment • Inflation is on down trend • (comparison with three consecutive mths) • Government think that Inflation is already down
Step 1: Economy Analysis 3. Others investment channel: 4. Stock Index: %Government Bond yield Resistance line • Deposit, bonds, … is at low level • Stock index is at cheap price • (refer to latest bottom)
Step 2: Sector analysis Advise from Cathay Taiwan: choose sectors connect to GDP => Financials, Consumer
Step 3: Company analysis Others Large Stock Weight 8 Largest companies dominated the market (Cathay Taiwan advise we should choose some largest companies)
Step 3: Company Analysis Things to Consider RISKY Stock SAFETY Stock BVH AAM Decide Investment Method (as advised, we should choose safety stock for first time investment )
Step 3: Company Analysis 3 Rules for Investment Decision RULE # 1: For downward trend price, BUY when volume increase BCI DAS Price chart Price chart Volume Volume
Step 3: Company Analysis 3 Rules for Investment Decision RULE # 2: BUY if Stock is sideway for longtime but suddenly increase both price and volume VE9 PHR Price chart Price chart Volume Volume
Step 3: Company Analysis 3 Rules for Investment Decision RULE # 3: SELL when stock at high price and volume increase: KMR SDD Price chart Price chart Volume Volume
Step 3: Company Analysis Valuation: P/E ratio analysis: Expensive price Cheap price
Step 3: Company Analysis Broker views:
Step 3: Company Analysis Financial analysis: FA Criteria's: • Should based on 5 years • Audit report from big four company • Financial report should be released on time • Company plan in the next five years
Step 3: Company Analysis How to get information?
Step 3: Company Analysis How to get information?