Sunday, June 11, 2017

BUYING INTO THIS MEGA-TREND


China Aviation Oil
Dear readers, to be frank, investing is never easy. Of all the many investors out there, there is only a fraction of consistent and profitable investors. When I first entered into the investing world, I also made a lot of investing mistakes and it was through these mistakes and experiences that I honed my investing skills.
Mega-trends are some of the techniques investors use to ensure a certain degree of success. Mega-trends in the past include the US dollar quantitative easing and recently, low oil prices and for the future, mega-trends highlighted include artificial intelligence, clean energy and smart cities. Stocks which are beneficiaries of mega-trends should generally rise in their valuation and stock prices given the company’s fundamentals remain sound.

One mega-trend includes the continuous rise of China on the global stage and the opportunities accompanied by its continuous urbanization of its cities. Recently, the “One Belt and One Road” initiative by China is noteworthy to investors as they seek out opportunities which will benefit from this initiative.

In a 9 Jun 2017 report by CIMB, the analyst firm stated that China’s “One Belt and One Road” initiative will further boost ongoing developments in the country’s international air routes. The firm is maintaining its “add” rating on China Aviation Oil as the firm believes China Aviation Oil will benefits from the aforementioned development.

China Aviation oil stock currently trades at 2.63% dividend yields at $1.66 per share. The consensus target price on SGX website for China Aviation oil stock is $2.042 while CIMB’s price target is $2.20, suggesting a potential upside of at least 23%. Join the emailing list to receive regular Financial and Singapore stocks newsletters too! Like" me on Singapore Stocks Investing Facebook page to receive all posts on your Facebook as well as read more articles. Follow me on Twitter too.

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