Background:
- I’m a product manager (by trained) with enterprise SaaS focus (by trade).
- This note is under the scope of Vietnam stock market
- This is for me to then go back in time and see whether my research is correct or not (aka for fun)
Strategy:
My strategy is rather simple, I use Peter Lynch ‘s suggestion to pick stocks in one of these categories
- fast grower — average profit growth of 20% for 3 years
- cyclical — predictable rise or fall based on economic cycles
(I am not doing turn-around and asset-play as those in Viet Nam either do not have substantial data points or fuse with mis-led information)
Going into 2022:
As Vietnam just passed the Covid-19 lockdown period in Q4 2021, it is assumed that the economy will bounce back strongly
- paused manufacture and construction resume/restart
- transportation and travel are easier
- real estate can be sold/rent again
- all above need capital, which means bank will have a busy year
With that said, the idea is to choose a fast growers, which can fall into one of the cyclical categories above.
- April 22, 2022 — purchase OCB @ ATC (24k VND)
OCB is among 3 smallest bank in Vietnam stock market. It has ~50% profit growth rate between 2003–2021, never less than 20% since 2016. This bank ‘s main competitive advantages are the low interest rate tailored for SMEs.
P/B 1.5 (vs sector average of 2.0), NIM 3.6 (equal to sector average) and only just listed for 1 year without much attention, OCB is definitely an interesting pick.
— to be updated
