The chairman of a securities company also had to “give up” and exclaimed “it’s too difficult” to value 2 hot real estate stocks CEO and DIG!
Real estate is an industry that has never ceased to be hot on the stock market. Whether this is a safe-haven industry group in the current context of strong market volatility and world political instability is a topic of interest to many securities investors.
Sharing at talkshow “Order Matching” on March 15, Mr. Nguyen Hoang Giang, Chairman of DNSE Securities Joint Stock Company, said that real estate is a highly speculative industry. The nature of this industry, according to Mr. Giang, belongs to the financial industry segment and it takes a long time when a business implements a project. Currently, Mr. Giang believes that real estate prices are at a high level, but liquidity is not high. This means that the number of home buyers is not good.
“I think it’s important to be careful with this industry because the information given is often net worth, which means you multiply the land by what percentage it sells, then discount it and give you a valuation. While in fact there are many problems, whether the project can be implemented or not, the interest rate increases, the profit margin of the real estate business decreases.“, said Mr. Giang.
In addition, the process of implementing a project usually takes from 2.5 to 3 years, so investors must clearly see whether the cash flow of the business is growing steadily or not. Therefore Mr. Giang believes that real estate is not a safe haven in unstable conditions. Because in unstable conditions, real estate will first be affected by interest rates and other issues.
“If you buy a house and buy land, it’s ok because you’re sheltering with real assets, which is different from buying real estate stocks. Personally, I find the valuation of real estate companies high in this period, there are many units with unreasonable valuations. The project is not yet available, just applied for the policy, but the information is also included in the business valuation. Even if the project has not yet been delivered to the enterprise, this is the point of absurdity of investment. That’s what investors must keep in mind”, said the Chairman of DNSE.
Of course, Mr. Giang thinks that reputable units like Dat Xanh, Vinhomes can consider and believe that they will be able to deploy projects in the future. But smaller units or units that have only implemented 1-2 projects or acquired and merged with other units are very risky stories.
“What do you think about stocks like DIG or CEO?“, Editor Tai Phan asked Mr. Giang a question.
“Rising stocks are stocks that give you the opportunity to make money. As for the story now whether to buy or not, we have to look at whether the business has any good stories in the future or not. The share price may increase because shareholders want to raise more capital and issue more to implement the project.
Personally, I don’t like these stocks. It’s too hard to judge when pricing as if you have implemented all the projects in 1 year. After finishing the project, what will happen? What else to do because in fact now buying land to deploy new projects is also through M&A much and will be more difficult.“, Chairman Nguyen Hoang Giang assessed.
Mr. Giang also said that he personally does not like these stocks. This expert also said that he “suffers” and is “too difficult” when asked about the valuation of DIG or CEO, fundamental analysis also “don’t know”.
“Land may be spacious, but can it be sold to anyone and at what price? In essence, when you go out to Phan Thiet or Vung Tau, you can’t see that ordinary people can’t buy it. The price is too expensive and the use value is also limited. I have concerns“, Chairman Nguyen Hoang Giang concluded.
By Business and Marketing
at Blogtuan.info – Source: cafebiz.vn – Read the original article here
