Written by Tang Zuyi
Taiwan stocks have rebounded since seeing a low of 13,928 in mid-July. Although the negative market continues, they have risen by a thousand points. The three value investors are cautiously optimistic about the outlook for Taiwan stocks and provide long-term bullish targets.
From the Russian-Ukrainian war, soaring US inflation, interest rate hikes, balance sheet reduction, economic recession, and China’s recent large-scale military exercises against Taiwan, Taiwan stocks this year can be said to be “a combination of thousands of negatives”, which has severely hit investors. Confidence, looking at the ten-year line under the index, the voice of breaking 10,000 points is endless. However, in the concept of value investors, the index position is not the focus. Buying companies with investment value and holding them for a long time is the main axis of investment.
Financial blogger share fish
Starting from the stock price net value is more likely to counterattack
Three well-known value investors: Guyu, Lei Haosi, and Xie Shiying, from different perspectives, will take you to discover the undervalued high-quality potential stocks.
Darenguyu, who actively advocates value investment and stock deposit, reviewed the negative outlook on the domestic and foreign prosperity since the beginning of this year, and believes that most of them have been reflected in the falling index or stock price; coupled with the continued strength of US stocks and the blessing of the National Security Fund, at least there will be more to come. A rebound can be expected.
“Of course, there may be black swans running out at any time in the future.” In this regard, Guyu suggested investors to further distinguish whether it is a non-economic factor, such as the recent Chinese military exercise, or it may be negative but not fall, such as MediaTek’s recent According to the law, there will be a lot of bad news, but the stock price will not fall but rise the next day. “These black swans provide an opportunity to get on the bus.”
Experience the baptism of shorts and find out the investment attribute operation
However, Taiwan stocks have experienced a rare short-sale trend over the years. Stockfish believes that it is not a bad thing. He said that investors always have to experience the baptism of shorts before they can really know what kind of investment attribute they are. In the past two years, many people made money no matter how they bought and what they bought. They were not worried even if they fell back slightly, and they bravely increased the price and evened it out. However, this method was seriously injured in the first half of this year.
Therefore, if it is the kind of investor who cannot eat well or sleep well in the face of a sharp decline, Guyu recommends looking for stocks that are defensive, people’s livelihood-related or unique niche stocks for long-term holding at this stage. He said that such stocks have low volatility, high stability, and good dividends every year, making them good stock options. For example, natural gas and telecommunications stocks in utilities, or customs and China-Philippines with special niches, can be considered.
Investors who can bear greater risks and believe in “seeking for wealth and wealth” suggest that they can go to the hardest-hit areas to dig for treasures. For example, semiconductors, and even IC design stocks named by the market with excessive inventory or overcapacity, after falling sharply in the first half of the year, actually have opportunities for a deep rebound.
Guyu takes the panel driver IC that suffered the worst disaster as an example. Taiwan-related Novatek, Duntai, and Tianyu have all suffered their fate from falling from the beginning of the year to the lowest price recently. The net profit after tax (EPS) amounted to 32.25 yuan, and it was estimated that it was still at least 50 yuan for the whole year, which did not help. However, Guyu pointed out that Novatek has experienced many cycles of industrial prosperity, and even in the event of a financial tsunami, its share price-to-book value ratio has never fallen below twice.
Source: “Today Weekly” No. 1338
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