How to Use PEG Ratios to Calculate Earnings Multiples
While using the PE Model to value shares is both easy and intuitive, there are a number of flaws with it. The most notable of these flaws is that many people value a share’s PE to an index or competitor’s PE. While this is useful for relative valuations and seeking relative value, the fact that [...]
Chinese backlash on US currency stance could be detrimental
Photo Credit: Time, Inc.
Though China has been relatively untouched as it pertains to politics, the hefty Chinese trade surplus with the United States is slowly being challenged by more and more politicians. Recently, both Obama and McCain have touched on Chinese currency issues and the large trade surplus with two different points of view.
Obama [...]
China to try its luck with own economic stimulus
Photo Credit: China Daily
With its stock market absolutely tanking, the Chinese government shall attempt its own economic stimulus – both in its equity markets and perhaps in its tightened monetary policy. Traders are expecting that China will support the market by pumping money into the exchange, and the government might even lower interest rates or [...]
China forces consumers to think small cars
Photo Credit: The Boston Globe
New taxes on large engined cars are in the mix for Chinese consumers. China will double the tax for cars with engines larger than four liters starting September 1 of this year to 40% of the purchase price. Other taxes on slightly smaller engines will jump as well; taxes on engines [...]
Falling commodity prices will likely slow interest rate hikes
Photo Credit: Bloomberg
In the last month, Ben Bernanke must have undergone significant stress regarding the decision for interest rate policy. Since Ben Bernanke kept rates at 2%, the US markets have favored decently, while the commodities markets have dropped considerably – which is just the kind of response the Fed board would love to see [...]
China’s stock market should rally on inflation
Photo Credit: Reuters
Though China is currently waging a war on rapid inflation, the stock market continues to tank, even though the inflationary factors are nothing but positive. It is important to note that the Chinese inflation problems aren’t from internal inflation, but rather from its huge foreign cash reserves as a result of a large [...]
Chinese retail sales rise by 23.3 percent
Photo Credit: YourBusinessInChina.com
Though the Chinese government is worried about inflation, Chinese consumers are happy to spend the excess money they’ve been finding. With a government reported inflation rate of 6.3% and consumer spending growing by 23.3%, there is still plenty of health in the Chinese economy, regardless of what the stock markets and analysts may [...]
China showing true meaning of capitalism
Photo Credit: Cartoon Stock
The Chinese economy is still doing very well, regardless of what their financial markets are saying. While the Chinese stock markets are well off their highs, this dynamic is likely the result of a busted bubble rather than a fundamental breakdown. It’s obvious that speculators were simply paying too much for Chinese [...]
China South Locomotive on track with big IPO
Photo Credit: China Commodity Net
China South Locomotive reached a boom with a recent IPO. The company was looking to sell 3 billion new shares for a price of 2.18 yuan each, but when it went to make the sale, the company received offers totaling 2.27 trillion yuan for only 6.54 billion yuan in new stock. [...]
The long-term case for Yahoo stock
Photo Credit: EIBT24
Yahoo has been in the news more than any other corporation; the soap opera drama that exists with the corporate few and investor Carl Icahn was more than enough to fuel headlines. Now that the deal is finalized with Icahn giving up his proxy vote to overthrow the board and eventually sell out [...]
