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Buy businesses that sticks for lifeIf you examine the type of stocks to buy from the perspective of marketing, then it becomes much more interesting. This Covid-19 has been a game changer for many industries but the few that sticks to consumers, good times or bad times, recession or not, they were always be there. The vices industry like alcohol, tobacco are going to be there no matter how much lobby there going to be or more reports on how it can cause cancer. Also, there is gaming, one of the shiny stars now that are leading many stock markets to a new high. We have heard of people who died while playing games. (see articles here , here and here ). If you are a gamer, please hydrate, look at some green plants every 30 mins or so and remember to stretch. I made my kids do that now. The more it sticks with the group (ie. smokers, drinkers or gamers), the more depth and breadth the market will be (ie. more people smoke, drink and play games and smoke, drink and play more frequent which helps to increase the revenue). With the entertainment places like bars, night clubs closed for now, where do the party-goers drink ? They have to drink at home and perhaps buy more different varieties from duty free shops or order online to try. Or smokers who get more bored cooping up at home and problems might be exacerbated if he/she is stressed out from being retrenched, unemployed or having a wage cut. Gaming is more pervasive than the other two - you can play on your mobile phone anywhere while you are on the move or while queuing to make payment, etc. Smoking has more restrictions and government also ban alcohol buying for certain age limit and after certain hours. to curb excessive drinking. Without going too far, I take a simplistic view of the chart comparing 3 companies, one in each of these sectors - drinks (Kweichou Moutai), tobacco (Phillip Morris) and gaming (Tencent). Assuming you bought one or three of them from 2 Jan 2019 and hold till now, the ROI would be 210% , 85% and 332% respectively. What other sticky business can you think of ? Please share in the comments below. If you like my trading ideas, please share with your friends and remember to follow me. Feel free to let me know what stocks, commodities, forex, indices ,etc that you would like me to help you analyse. As you know, I am more of a technical person, looking 80% from charts to trade/invest leaving 20% to fundamentals. Trade safely and take care !
SSE:600519Long
by dchua1969
601216:SSE - INNER MONGOLIA JUNZHENG ENERGY & CHEMICAL GROUPUp 200% since mid June, Inner Mongolia Junzheng Energy & Chemical Group engages in the manufacture of chemical raw materials and products. RSI looks a bit high so could be over priced, but I figure if China is trying to stimulate their economy through building works, then companies like these could be worth a look. Its business activities include cement manufacturing, coal mining, electric power generation, and ferroalloy smelting industries; and commercial trading services. Its products include substrate, cement clinker, polyvinyl chloride, calcium carbide, and ferroalloy products. (Source: Trading View)
SSE:601216Long
by zAngus
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