China OTC Stock Buy Hold or Sell Recommendation

CIHHF
 Stock
  

USD 5.30  0.00  0.00%   

Assuming the 90 days horizon and your below-average risk tolerance, our recommendation regarding China Merchants Bank is 'Strong Sell'. Macroaxis provides China Merchants buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding CIHHF positions. The advice algorithm takes into account all of China Merchants' available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from China Merchants' buy-and-hold perspective. Continue to China Merchants Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as China and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards China Merchants Bank.

Execute China Merchants Buy or Sell Advice

The China recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on China Merchants Bank. Macroaxis does not own or have any residual interests in China Merchants Bank or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute China Merchants' advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell China MerchantsBuy China Merchants
Strong Sell

Volatility

Details

Hype Condition

Details

Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

Not Available
Details

Reporting Quality (M-Score)

Details
For the selected time horizon China Merchants Bank has a Mean Deviation of 1.39, Standard Deviation of 3.44 and Variance of 11.84
We provide trade advice to complement the prevailing expert consensus on China Merchants Bank. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time. To make sure China Merchants is not overpriced, please confirm all China Merchants Bank fundamentals, including its gross profit, cash flow from operations, and the relationship between the price to book and cash per share . Given that China Merchants Bank has a shares owned by institutions of 43.29 %, we suggest you to validate China Merchants Bank market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

China Merchants Trading Alerts and Improvement Suggestions

China Merchants Bank has very high historical volatility over the last 90 days
About 18.0% of the company shares are held by company insiders
Latest headline from www.forbes.com: Mainland Moves As Apple Ecosystem Flies And Hong Kong Shorts Scramble - Forbes

China Merchants Returns Distribution Density

The distribution of China Merchants' historical returns is an attempt to chart the uncertainty of China Merchants' future price movements. The chart of the probability distribution of China Merchants stock daily returns describes the distribution of returns around its average expected value. We use China Merchants Bank price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of China Merchants returns is essential to provide solid investment advice for China Merchants.
Mean Return0.16Value At Risk-1.75
Potential Upside7.95Standard Deviation3.44
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of China Merchants historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

China Merchants Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to China Merchants or Financial Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that China Merchants' price will be affected by overall otc stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a China otc's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
0.17
β
Beta against DOW-0.17
σ
Overall volatility
3.43
Ir
Information ratio 0.0131

China Merchants Volatility Alert

China Merchants Bank exhibits very low volatility with skewness of -1.67 and kurtosis of 9.98. However, we advise investors to further study China Merchants Bank technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure China Merchants' otc stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact China Merchants' otc stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

China Merchants Fundamentals Vs Peers

Comparing China Merchants' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze China Merchants' direct or indirect competition across all of the common fundamentals between China Merchants and the related equities. This way, we can detect undervalued stocks with similar characteristics as China Merchants or determine the otc stocks which would be an excellent addition to an existing portfolio. Peer analysis of China Merchants' fundamental indicators could also be used in its relative valuation, which is a method of valuing China Merchants by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare China Merchants to competition
FundamentalsChina MerchantsPeer Average
Return On Equity15.02 %(0.31) %
Return On Asset1.38 %(0.14) %
Profit Margin45.64 %(1.27) %
Operating Margin56.11 %(5.51) %
Current Valuation100.65 B16.62 B
Shares Outstanding4.59 B571.82 M
Shares Owned by Insiders17.57 %10.09 %
Shares Owned by Institutions43.29 %39.21 %
Price to Earning7.46 X28.72 X
Price to Book0.16 X9.51 X
Price to Sales0.48 X11.42 X
Revenue271.54 B9.43 B
Gross Profit265.29 B27.38 B
Net Income120.32 B570.98 M
Cash and Equivalents944.09 B2.7 B
Cash per Share37.43 X5.01 X
Total Debt869.77 B5.32 B
Book Value Per Share34.08 X1.93 K
Cash Flow from Operations269.54 B971.22 M
Earnings Per Share0.71 X3.12 X
Number of Employees103.67 K18.84 K
Beta0.91-0.15
Market Capitalization129.49 B19.03 B
Total Asset5563.99 B29.47 B
Retained Earnings296.72 B9.33 B
Working Capital(3376.44 B)1.48 B
Current Asset1056.46 B9.34 B
Current Liabilities4432.9 B7.9 B
Last Dividend Paid0.23

About China Merchants Buy or Sell Advice

When is the right time to buy or sell China Merchants Bank? Buying financial instruments such as China OTC Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

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In addition to having China Merchants in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Tobacco Products
Tobacco Products Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Tobacco Products theme has 9 constituents at this time.
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Continue to China Merchants Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the China Merchants Bank information on this page should be used as a complementary analysis to other China Merchants' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try ETF Directory module to find actively traded Exchange Traded Funds (ETF) from around the world.

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When running China Merchants Bank price analysis, check to measure China Merchants' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy China Merchants is operating at the current time. Most of China Merchants' value examination focuses on studying past and present price action to predict the probability of China Merchants' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move China Merchants' price. Additionally, you may evaluate how the addition of China Merchants to your portfolios can decrease your overall portfolio volatility.
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Is China Merchants' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of China Merchants. If investors know China will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about China Merchants listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.13
Market Capitalization
127 B
Quarterly Revenue Growth YOY
0.098
Return On Assets
0.0138
Return On Equity
0.15
The market value of China Merchants Bank is measured differently than its book value, which is the value of China that is recorded on the company's balance sheet. Investors also form their own opinion of China Merchants' value that differs from its market value or its book value, called intrinsic value, which is China Merchants' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because China Merchants' market value can be influenced by many factors that don't directly affect China Merchants' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between China Merchants' value and its price as these two are different measures arrived at by different means. Investors typically determine China Merchants value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, China Merchants' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.