is PRC consumer fashion apparel a good sector to be in?
The good sector - China govt now want to support
1. agriculture technology
2. the arts (such as media companies and publishers)
3. logistics (tax exemption benefits)
The bad
1. real estate govt want to curb speculation
2. companies will find it hard to obtain credit financing, min wages will rise, also got power shortage
3. Rmb appreciation is a long term reality that will eventually slow down export growth
4. white goods no more subsidy for rural people
Hi Observer 2 – Your views are candid and balanced. I agree that blue chips will lead a market recovery as penny stocks are usually held by weak retail investors, some even buy on margin . In a market downturn, these investors do not have the holding power and are forced to sell at substantial losses. Quite often you’d need to wait for the selling to stop but it’s difficult to know when ? Hence investors who buy beaten down undervalued penny stocks must have the holding power to ride out the storm and hopefully collect some dividends along the way.
The link below shows the ST Index component stocks comprising mostly blue chips.
www.sharesinv.com/prices/index-sti/
As the STI is an indicator tracking market movement, it therefore follows that a recovery of the STI is also indicative of most blue chips leading the market up in a recovery phase. Don’t you think so, Yeh?
Yes, many penny stocks do participate (but not always) in a market rally and these are often confined to “situational” stocks & sometimes stocks that syndicates “pump & dump”. As I have stated earlier, the risks of investing in penny stocks is much higher during the bear market than in a bull market
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[yeh 27-01-2012]:
The Internet has made all the difference, observer2. It's probably less true now that blue chips will lead the market up in a recovery phase. In the past, as institutional investors rushed back into the market, newspaper headlines would report the progress of the market -- and then gradually, retail investors would come in to buy the small + mid-caps.
With the Internet, the retail investors are fast to latch on to a nascent recovery market -- like in the past few weeks. U see in the top vol today are lots of small caps. Anecdotally, we all know many of our favourite small caps which have made double digit % gains.
Hi Guys i am very interested in Zhen Yun. Where can I get financial details or annual reports or research of this company, other than the 3 articles in this website? Pls advise. There isn't an English website that offers financial details
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