JD and Bidu are near key fundamental values- tangible book
Tangible book value is the total of all physical assets minus liabilities. Its useful as a potential support level because this value is shows whats on the accounting books and implies what the liquidation value of a company might be if all things go sour. Its not a perfect value for liquidation because the market price of assets may actually vary from what the book value shows.
Jd and Bidu are chinese stocks that could be trading near support or will have limited downside based on the the value of tangible book assets net of debt. Falling below this value would mean that the stock is trading below the value of the assets inside the company.
Capital intensive companies are companies sensitive to economic cycles can trade above or below this level depending on the markets risk appetite or perception of future conditions. Auto manufacturers and banks are examples of companies that tend to trade near and around tangible book value. They trade above in good times, and below in bad times.
Chinese stocks are currently deep into a downtrend, so will be interesting to cherry pick opportunities that may become de risked or deep value.
If tangible book value fails to hold, the next significant metric could be net current assets which is a more conservative balance sheet figure of very liquid assets on the books.
Trading view it makes it easy to tracks these metrics as overlays on a chart. Definitively worth having for a quick look at balance sheet metrics.
enjoy.
Jd and Bidu are chinese stocks that could be trading near support or will have limited downside based on the the value of tangible book assets net of debt. Falling below this value would mean that the stock is trading below the value of the assets inside the company.
Capital intensive companies are companies sensitive to economic cycles can trade above or below this level depending on the markets risk appetite or perception of future conditions. Auto manufacturers and banks are examples of companies that tend to trade near and around tangible book value. They trade above in good times, and below in bad times.
Chinese stocks are currently deep into a downtrend, so will be interesting to cherry pick opportunities that may become de risked or deep value.
If tangible book value fails to hold, the next significant metric could be net current assets which is a more conservative balance sheet figure of very liquid assets on the books.
Trading view it makes it easy to tracks these metrics as overlays on a chart. Definitively worth having for a quick look at balance sheet metrics.
enjoy.