China OTC Stock Buy Hold or Sell Recommendation

CIHKY
 Stock
  

USD 26.08  0.17  0.65%   

Assuming the 90 days horizon and your above-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 CIHKY 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 1.81, Semi Deviation of 2.06, Standard Deviation of 2.47, Variance of 6.11, Downside Variance of 4.66 and Semi Variance of 4.25
Our investment recommendation module complements current analysts and expert consensus on China Merchants. It analyzes the firm potential to grow using all fundamental, technical, and market related data available at the time. To make sure China Merchants is not overpriced, please confirm all China Merchants Bank fundamentals, including its total debt, and the relationship between the price to sales and market capitalization . Given that China Merchants Bank has a price to earning of 7.42 X, 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 generated a negative expected return over the last 90 days
China Merchants Bank has high likelihood to experience some financial distress in the next 2 years
On 6th of July 2022 China Merchants paid $ 1.142 per share dividend to its current shareholders
Latest headline from www.marketscreener.com: Atai Life Sciences N Company Presentation August 2022 - Marketscreener.com

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 Return0.034Value At Risk-3.07
Potential Upside3.95Standard Deviation2.47
   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 Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as China Merchants is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading China Merchants Bank backward and forwards among themselves. China Merchants' institutional investor refers to the entity that pools money to purchase China Merchants' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Thomas White International LtdCommon Shares92.1 K3.1 M
Henry James International Management IncCommon Shares9.4 K318 K
Pnc Financial Services Group IncCommon Shares1.2 K39 K
Private Capital Group LlcCommon Shares31.01000
Thomas White International LtdCommon Shares112.6 K4.4 M
Ativo Capital Management LlcCommon Shares38.3 K1.5 M
Pnc Financial Services Group IncCommon Shares52521 K
Note, although China Merchants' institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

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
0.05
β
Beta against DOW-0.25
σ
Overall volatility
2.29
Ir
Information ratio -0.03

China Merchants Volatility Alert

China Merchants Bank currently demonstrates below-average downside deviation. It has Information Ratio of -0.03 and Jensen Alpha of 0.05. However, we advise investors to further question China Merchants Bank expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. 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 Valuation98.18 B16.62 B
Shares Outstanding5.04 B571.82 M
Shares Owned by Institutions0.01 %39.21 %
Price to Earning7.42 X28.72 X
Price to Book0.15 X9.51 X
Price to Sales0.49 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 Share187.17 X5.01 X
Total Debt869.77 B5.32 B
Book Value Per Share170.38 X1.93 K
Cash Flow from Operations269.54 B971.22 M
Earnings Per Share3.54 X3.12 X
Number of Employees103.67 K18.84 K
Beta0.91-0.15
Market Capitalization132.4 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
Five Year Return2.78 %
Last Dividend Paid1.14

China Merchants Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as China . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
Accumulation Distribution364.45
Daily Balance Of Power(0.74)
Rate Of Daily Change0.99
Day Median Price26.16
Day Typical Price26.13
Market Facilitation Index0.0
Price Action Indicator(0.16)

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.

Use Investing Ideas to Build Portfolios

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.

Did You Try This Idea?

Run Petroleum and Natural Thematic Idea Now

Petroleum and Natural
Petroleum and Natural Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Petroleum and Natural theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Petroleum and Natural Theme or any other thematic opportunities.
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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 Price Transformation module to use Price Transformation models to analyze depth of different equity instruments across global markets.

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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
132.6 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.