Experience from Taiwan apply for Equity Investment in Vietnam Investment Department May 2012 Taiwan Training Trip Sharing.

Experience from Taiwan apply for Equity

Investment in Vietnam

Investment Department May 2012

Taiwan Training Trip Sharing

Outline:

Three steps for stock investment

Macro Analysis

Sector Analysis

Company Analysis

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Three steps for Stock Investment

Economy Analysis

Sector Analysis

Stocks Analysis

Step 1: Economy Analysis

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1. Economy trend, cycle

GDP yoy

2. Inflation Trend, Cycle

%CPI yoy

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

High

Low

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3. Others investment channel:

Step 1: Economy Analysis

%Government Bond yield

4. Stock Index:

Deposit, bonds, … is at low level

Stock index is at cheap price(refer to latest bottom)

Resistance line

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Step 2: Sector analysis

Advise from Cathay Taiwan: choose sectors connect to GDP=> Financials, Consumer

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Large Stock

Weight

Others

8 Largest companies dominated the market(Cathay Taiwan advise we should choose some largest companies)

Step 3: Company analysis

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BVH AAM

Decide Investment Method (as advised, we should choose safety stock for first time investment )

RISKY Stock SAFETY Stock

Things to ConsiderStep 3: Company Analysis

3 Rules for Investment Decision

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BCI DAS

RULE # 1: For downward trend price, BUY when volume increase

Price chart

Volume

Price chart

Volume

Step 3: Company Analysis

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VE9 PHR

RULE # 2: BUY if Stock is sideway for longtime but suddenly increase both price and volume

3 Rules for Investment Decision

Price chart Price chart

Volume Volume

Step 3: Company Analysis

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SDD KMRPrice chart

Price chart

Volume Volume

RULE # 3: SELL when stock at high price and volume increase:

3 Rules for Investment Decision Step 3: Company Analysis

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P/E ratio analysis:

Valuation:Step 3: Company Analysis

Expensive price

Cheap price

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Broker views: Step 3: Company Analysis

Financial analysis:

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- 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

FA Criteria's:

How to get information?

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Step 3: Company Analysis

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How to get information?Step 3: Company Analysis

Thank you

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