Sector Insights_Ceramic Tiles, The Forgotten Sector_20160406_EN

Cycle and Stock Market
In general, the cyclical nature can be seen everywhere: from the enormous movement
of the Earth around the Sun to tiny movement of the atoms, or from weather changes
between 4 seasons to the tune of music. The stock market is where the cyclical nature
shows the most. Stock price can drop to a value of a few coins or it could move up to a
millions of VND. As long as business core returns, stock rebinding back after the end of
gloomy business cycle is not rare.

Stocks and a tiny coin
Stocks have high cyclical move that is often classified as a note by the biggest
opportunity often occurs when there is a phase difference between fundamentals and
market prices. Usually there is a certain delay when business activities of enterprises
have actually restored but stocks price often doesn’t fully reflect (and vice versa). A lot
of stocks in the Vietnam market in recent years has started to price in a glass of iced tea
and no one cares. Surely investors don’t forget the typical turnaround case of Vietnam
stock market as TCM of 2013, HT1 of 2014 or the most recent is TMT of 2015. Usually
the story doesn’t end in a particular stock, but it also expands in this sector that makes
up the battle of life be told to later generations investors.