The cash flow of F0 investors consecutively poured into the stock market helped many stock groups set new highs. However, the psychology of investment according to the “trend” makes many stocks of enterprises operate stably, with regular dividends being “forgotten”.
At the end of the first quarter of 2021, Vn-Index recorded an increase of 7.9% compared to the beginning of the year thanks to expectations for the recovery of macroeconomics as well as the enduring strength of domestic cash flow. Not only that, the index also surpassed its historic peak in the first session of April – reaching 1,216.10 points, and moving to a new peak of 1,268.28 points on April 20, up 15% from the beginning of the year.
Market liquidity also showed new strength when the average trading value per session in the first quarter reached VND 15,684.69 billion / session – the highest in history. Even in the April sessions, the transaction value continued to accelerate with many sessions of over 20,000 billion VND appearing.
Cash flow was engrossed in “trend”
In fact, the general trading picture of the market is positive with scores and liquidity, bringing attractive rates of return for many investors, but is quite differentiated when focusing almost exclusively on stocks of “hot” industry groups.
For example, Rong Viet Securities Company (VDSC, code: VDS) is just an average listed company with a charter capital of 1,000 billion VND and low stock liquidity in the last year and the other year.
Many good stocks are being forgotten by investors.
At the time of closing the list to participate in the Annual General Meeting of Shareholders in 2021, VDSC had only about 900 shareholders, but in just 2 weeks Vn-Index was strongly volatile on the eve of the meeting, the number of shareholders tripled to 2,670 (according to the Securities Depository).
These fluctuations occurred in the context that the group of listed securities companies are expected to benefit the most when the stock market is sublimated. This is also reflected in the business results of the first quarter of 2021 when most of the companies reported strong profits.
Or as in the case of Sacombank (code: STB), the number of shareholders also soared from 86,000 to 95,000 after just a few months. This “expansion” of bank shareholders probably has not stopped when setting a record of 100 million shares matching at the end of March, the market price of shares has also increased strongly.
Not only STB, as recorded by VnBusiness, just recently, many banking codes like VIB, VPB, and SHB… also continued to rise. Even some banks have just been listed, stocks have hit the ceiling for many consecutive sessions or have fluctuated strongly when there is information about human resources and business activities such as SSB (SeABank), KLB (Kienlongbank).
Not only stocks, banks, or a few stocks in the pillar group received great attention from the cash flow, but even stocks for a long time were still known as “junk goods” on the stock market. Securities also stand out thanks to their own stories.
For example, FLC share of FLC Group JSC increased from the price range of 5,000 dong / share at the beginning of the year to 13,850 dong / share on April 16, equivalent to an increase of 177%. Currently, FLC has been adjusted to more than 11,000 dong, but it still has more than 2 times higher than the beginning of the year.
Notably, the liquidity of this stock also soared when appearing more than the sessions with matching volume of more than 50 million shares.
Because there is no private story?
The reason for saying that the cash flow is “engrossed” is running “trend” is because for a long time, the positive comments about the group of banking stocks, securities … have been continuously made, making the expectation of the The capital investors got even bigger in these stocks.
Or as for speculative stocks with a market price of VND 3,000-4,000 per share along with loss-making, un-profitable business activities but stimulating the “fruiting” mentality of investors with their own stories and speculations.
Meanwhile, managing a portfolio, holding less risky stocks will also make it easier to invest than buying high-priced stocks or buying multiple stocks and using financial leverage.
Currently, on the floor there are still quite a lot of groups of stocks “hidden” are small and medium enterprises, stable operations and regular dividends to shareholders, waiting for the discovery of the cash flow.
Typically, the market price of CCI shares of Cu Chi Industrial and Commercial Development Joint Stock Company in the past 3 years has always been sideways with low matching volume. However, the business results of the business are stable with after-tax profit of 29 billion VND per year and regular cash dividend payment of 12-14%, the company has absolutely no debt.
Similarly, the group of construction companies of Vinaconex (code: VCG), Licogi, Lilama machine assembly (code: L35), Petrolimex transport service companies such as PTS Hai Phong (code: PTS) … are all has a history of paying cash dividends much higher than bank savings interest rates, but stocks on the floor have almost stood on the sidelines of the market’s rise in recent years.
Vinacomin coal mining companies are listed on the HNX such as Deo Nai Coal (code: TDN), Than Ha Tu (code: THT), Vang Danh Coal (code: TVD), Than Ha Lam (code: THL) , Co Sau Coal (code: TC6) … is also assessed to have a fairly healthy business situation, although coal prices have declined over the past year due to the influence of Covid-19 translation. These businesses every year pay regular cash dividends of 8-10% / year, the book value of coal stocks is also high, with stocks reaching 14,500 dong like THT. However, the market price of TDN, THT, TVD … is only around 8,000 dong / share with profit (EPS) of about 1,500 dong / share.
Source: stockbiz.vn – Translated by fintel.vn