Finance Tips

Investing in small-cap stocks generally relies on fundamental analysis instead of technical analysis. Technical analysis, which relies on charts and graphs of previous company data to draw patterns, generally doesn’t have the necessary data to draw conclusions. Small cap companies also don’t have the stability of larger companies, and their stock and skyrocket or fall like crazy at a moment’s notice.

Instead, small-cap investors use fundamental analysis to determine how sound the business’s core principles are. A fundamentally sound business is much more likely to succeed than a fundamentally weak business. By analyzing the business’s management, business plan, and financials, a fundamental analyst can form a pretty good idea of whether or not to invest in this company.

Small-cap stocks are generally short term investments. Instead of purchasing a stock and waiting years for fruitation, small-cap investors generally buy their stocks in hopes that the stock will jump in price, netting them a nice sum of cash.

Investing in small-cap stocks is generally a more advanced tactic. New investors should stay away from risky investments like these, and instead focus on learning and applying a proven system. Once a novice investor has some experience under his belt, and a successful system to fall back on, then he can start dabbling in riskier methods of trading.

Small cap stocks are usually the ones that go on to make the enormous gains. It stands to reason it is much easier for a small cap stock to move up easier then an enormous blue chip stock. Most of the stock markets golden stocks were small caps. When they are “Blue chip” it’s time to look elsewhere.

HC plastic mesh News: First, the market review
4 dated 1 New York Mercantile Exchange crude oil futures continue upward, now Europe and the United States and China announced the manufacturing purchasing managers index (PMI) index are in more than 50, especially the U.S. manufacturing index in six years the highest level of Expectations Economy Recovery of crude oil will continue to drive demand. Asian ethylene prices were flat, as naphtha prices continued consolidation of domestic Plastic The overall trend to stabilize the main raw materials, petrochemical manufacturers today offer a smooth, market price Yindie again and again, tired not changed.

Second, fundamental analysis 1. National Bureau of Statistics, China Federation of Logistics and Purchasing released a report, in March the National Manufacturing Purchasing Managers Index (PMI) was 55.1% higher last month and 3.1 percentage points. The report stresses, PMI has been a continuous 10 months of economic expansion and contraction at the critical point?? 50%, indicating that the overall manufacturing economy to continue our growth, growth speed, a good momentum of economic recovery to strengthen further.

2. Germany to the latest Labor Department data showed a seasonally adjusted March unemployment in Germany unexpectedly fell 3.1 million, down 338 million people. It is learned that this result was better than economists had made 7,000 the number of unemployed will increase the forecast. According to reports, the German economy is expected to grow in the first quarter of this year, recently announced business sentiment and manufacturing data was better than economists expected. Therefore, the labor market improved in March mainly affected by the economic situation improved. In February China

3.2010 PE Production of 72.2 million tons, compared with same period last year (61.7 tons) increased 105,000 tons, an increase of 17%. 1-2 months total 1.42 million tons, up last year (1.225 million tons) increased 195,000 tons, an increase of 15.9%. 2010 January-February, Plastic Products Industry output value reached double-digit growth, exports maintained a rapid growth. Plastic Products Industry Industry Sell Output in February up by 22.6% cumulative increase of 32.75%; plastic products industry in February sales rate of 97.72 percent, up 0.99%, total sales rate of 97.71%, up 0.43%; plastic products industry export delivery value in February year on year increase 16.2% cumulative increase of 21.78%. Plastic products industry production in February increased 12.1% year on year, the cumulative increase of 17.4%.

4. Continued drought, Southwest rising electricity demand. SAC in 29 press briefing on the disaster-relief work, China Southern Power Grid and Guodian person said that the drought-induced reduction of southwest hydropower, thermal power generation Despite the increase, but there are still power gap southwest end, the South electricity grid and other central enterprises will continue to reduction in power transmission, etc., reduce the region’s electricity gap. According to estimates, the reasons for drought, Yunnan, Guizhou and Guangxi Provinces of China Southern Power Grid to increase the electricity load is about one million kilowatts, the power consumption double vacancy in March, the biggest gap in more than five million kilowatts electricity.

5. Thurs Asian ethylene market stable, CFR price of Northeast Asia, to close at 1149.25-1151.25 USD / tonne, CFR Southeast Asia, the price to close at 1121.25-1123.25 USD / ton. Some market researchers believe that increasing the market supply, while the lower reaches of weak demand, next week may slow down the price of ethylene. Downstream Polyethylene Support to the limited market, but the seller before the offer still persist. Northeast Asian market, as South Korea’s LG Chemical’s cracker will restart, the market supply will increase dramatically. The device in the March 3 incident, restart the program on April 5. During the stop, the devices will raise its production capacity to 1 million tons of ethylene and propylene production capacity increased to 550,000 tons.

6. Petrochemical industrialists, after yesterday Qilu Petrochemical, Zhongyuan Ethylene, Tianjin, and other manufacturers combined, after the sharp increase in ex-factory price, various petrochemical manufacturers today offer a smooth, mainstream ex-factory price at 11,100 yuan / ton? 11,300 yuan / ton, price adjustment later manufacturers are not up there with potential.

HC plastic mesh News: First, the market review
Crude oil futures extended gains in Asia held steady ethylene quote quote, petrochemical manufacturers cut prices after another settlement, the spot market price correction-based, less volatile.

Second, fundamental analysis 1. As the U.S. housing Sell Upturn helped boost stock prices, coupled with a weaker dollar, and Greece Friday formally launched 45 billion euros of the European Union and the International Monetary Fund (InternationalMonetaryFund) joint relief mechanism of the request, to placate the Financial Market sentiment, crude oil futures prices closed higher. U.S. Department of Commerce (CommerceDepartment) Friday (April 23) announced that the U.S. March new home sales increase over the preceding year for the past 5 years increased the most, mainly because buyers compete to qualify for government purchase shot refund policy. U.S. stocks rebound, boosted oil prices extended gains. Asia Economy Growing body Oil Demand to support prices, but with the arrival of Q2, agriculture and transport sectors will be gradually increased seasonal demand.

2. Friday Asian ethylene market held steady, CFR Northeast Asia, the price to close at 1269.25-1271.25 USD / tonne, CFR Southeast Asia, the price to close at 1224.25-1226.25 USD / ton. As downstream demand remained weak, the market yesterday to maintain stability in Northeast Asia. While Japan as Mitsui Chemicals unit supply problems lead to market (this week plans to restart), South Korea and Taiwan, the supply of the same tight spot, but the overall poor downstream performance.

3. Petrochemical manufacturers, the Daqing Petrochemical, Jilin Petrochemical, Yangzi Petrochemical, Guangzhou Petrochemical, Maoming Petrochemical, Qilu Petrochemical, etc. to maintain the same ex-factory price, offer Shanghai SECCO down 200 yuan / tons, CNPC has also lowered prices to the Northeast 11,000 yuan / ton lower, although the main ex-factory price in 11300-11400 yuan / ton, this week, and various other petrochemical manufacturers estimate is also planning to cut prices.

4.2010 automotive plastic parts in China will exceed the demand expected to more than 260 million tons, the development of automobile industry with the development of the plastics industry are inextricably linked. It is understood that the present development of international Automotive Plastics The use of plastics accounts for 8-10% of total consumption in the developed countries average car with a plastic volume 100-130 kg / vehicle, accounting for about 10% of vehicle curb mass. In recent years, the largest automotive plastic variety – Polypropylene Annually to the rapid growth of 2.2-2.8%. And with the rising Chinese automotive production, automotive plastics industry has developed rapidly. In 2009, with the domestic automobile production exceeded 13 million of the scale, domestic car prices on the demand for plastic parts has improved significantly, the domestic buyers in 2009 published by K-car network platform over 1256 plastic parts procurement frequency, compared to 2007 of 426 frequencies and a near 200% growth.

5. Ministry of Industry and Information Technology Operation Monitoring and Coordination Bureau Xinguo Bin 23, said the first quarter of this year, the petrochemical industry realized profits of 91.6 billion, up 1.8 times. On the issue of the petrochemical industry, Xin Guobin, said the first quarter of this year, the overall growth rate is faster, because I remember it was this year, an increase of about 15.9%. Production growth is not only faster, more cost-effective situation was fairly good. Petrochemical industry in the first quarter profit of 91.6 billion, an increase of 1.8 times. 1-2 month last year, the decrease in relatively large, a decrease of 57.3%; not only speed recovery, and results would be better. Xin Guobin said that, overall operation of the petrochemical industry in the first quarter, or more normal, more stable, with the whole environment, the operational state of the industrial economy is essentially coincide.

6.2010 on April 14, Ministry of Industry and Information Technology issued a “Circular on Further Strengthening SME guidance for energy conservation work.” View that small and medium enterprises to fully understand the importance and urgency of energy saving, we present the goal of energy saving measures.