Potential Investment Opportunities Research Articles

ANALYSIS OF MAGIC FORMULA FOR INVESTMENT RETURN IN INDIAN STOCK

Magic Formula Investing, popularized by Joel Greenblatt, is a strategy that focuses on selecting stocks based on two main criteria: high earnings yield and high return on capital. Earnings yield is the ratio of a company's earnings per share to its stock price, indicating how much profit a company is generating relative to its price. Return on capital, on the other hand, measures how efficiently a company is using its capital to generate profits. The goal of this strategy is to identify undervalued companies that exhibit strong financial performance. By targeting stocks with high earnings yield and return on capital, investors aim to uncover hidden gems in the stock market that may be overlooked by others. This methodical approach to value investing has garnered attention for its relative simplicity and effectiveness in outperforming the market. One of the key advantages of the Magic Formula is its straightforward nature, which makes it accessible to a wide range of investors. Unlike more complex investment strategies that require in-depth financial analysis, the Magic Formula provides a clear and systematic way to identify potential investment opportunities. Overall, Magic Formula Investing offers investors a disciplined and rules-based approach to stock selection, with the aim of achieving superior returns compared to the broader market. While past performance is not indicative of future results, the Magic Formula's track record

A Study on Technical Analaysis of Indian FMCG Sector

The Indian fast-moving consumer goods (FMCG) sector plays a crucial role in the country's economy, experiencing strong growth and catering to the needs of its vast population. This research aims to conduct a close examination of the Indian FMCG sector using technical analysis techniques in order to identify patterns, trends, and potential investment opportunities. Using a quantitative approach, this study employs various technical indicators and chart patterns to assess the price and volume movements of FMCG sector stocks listed on Indian stock exchanges. Historical price data and trading volumes are collected and analyzed to identify recurring patterns and trends that can assist investors in making well-informed decisions. The study covers a time period between 26/04/2021 to 02/06/2021, allowing for a comprehensive evaluation of the FMCG sector's performance and behaviour. Few technical analysis tools such as moving averages convergence and divergence (MACD), relative strength index (RSI), on balance volume (OBV), and trendlines are utilized. By applying these techniques, the study aims to identify potential signals for buying and selling, levels of support and resistance, and price targets within the Indian FMCG sector. Additionally, the research explores the impact of market trends, economic factors, and industry-specific events on the sector's performance. The findings of this study contribute to the existing knowledge in technical analysis and provide valuable insights for investors and traders interested in the Indian FMCG sector. The results enhance understanding of the sector's price movements, volatility, and potential investment opportunities, enabling market participants to develop effective trading strategies and risk management approaches. It is important to note that this study solely focuses on the technical analysis of the Indian FMCG sector and does not consider fundamental analysis or qualitative factors that may influence investment decisions. Therefore, readers are encouraged to combine the findings of this study with additional research and analysis before making investment choices.

Stock Valuation Analysis of PT Sinar Mas Agro Resources and Technology Tbk Using Free Cash Flow to The Firm and Relative Valuation

Indonesia is the world's top producer and exporter of palm oil, generating 46 million tonnes of crude palm oil. PT SMART Tbk (SMAR) is one of Indonesia's big palm oil companies, with a plantation area of 136,402 hectares. The Indonesian government implemented the B35 biodiesel policy in February 2023, indicating there is potential for growth in the increased use of palm oil as a biodiesel blend. The positive sentiment from the B35 program, which will continue into the B40 program, is expected to boost domestic market demand for biodiesel, consequently impacting SMAR's sales revenue. The study aims to evaluate SMAR's business performance, intrinsic value, and propose solutions to close the value discrepancy gap. The study adopts a quantitative approach for stock valuation calculations and a qualitative approach for underlying assumptions. The analysis covers financial statement analysis, financial ratio analysis, PESTLE analysis, Porter’s five forces analysis, absolute valuation and relative valuation methods. Based on the FCFF analysis, SMAR's intrinsic value is Rp 8,609 while the market price is Rp 5,200, indicating that SMAR is undervalued. The relative valuation analysis using PER, PBV, and EV/EBITDA also indicates that SMAR is undervalued compared to similar companies in the palm oil industry. Overall, this indicates a potential investment opportunity for investors in SMAR shares.

Measuring the Influence of Financial Literation and Inclusion on Investment Interest with Social Background as Moderating Variables

The lack of Sharia financial literacy leads to a lack of understanding among the public regarding the potential investment opportunities available in the Sharia financial system, causing them to be reluctant to invest. Furthermore, limited Sharia financial inclusion also hinders the increase in investment interest. Limited access to Sharia financial products and services, such as Sharia banking accounts, sharia insurance or sukuk, makes it difficult for the public to engage in investments that align with Sharia principles. This research aims to measure the influence of Sharia financial literacy, Sharia financial inclusion, and social background on the investment interest of Sharia Economics students at IAIN Syekh Nurjati Cirebon. The research population consists of students from the Economics Study Program. A quantitative approach is used in this study. The research sample consists of 88 randomly selected respondents from the population. The results of the analysis show that Sharia financial literacy has a positive and significant influence on the investment interest of Sharia Economics students. Similarly, Sharia financial inclusion also has a positive and significant influence on investment interest. Additionally, both Sharia financial literacy and Sharia financial inclusion have a simultaneous positive and significant influence on investment interest. However, the social background variable does not moderate the relationship between Sharia financial literacy, Sharia financial inclusion, and investment interest.

Crypto Analysis and Growth

Abstract: Cryptocurrencies have emerged as a significant asset class with unprecedented growth and market volatility. This paper presents an analysis of the growth patterns and market dynamics of specific cryptocurrencies, examining their historical performance, weekly top gainers and losers, and trading volumes. The study leverages comprehensive data sets and employs statistical analysis techniques to evaluate the growth trajectories of selected cryptocurrencies. By analyzing historical price data and market indicators, we assess the overall growth patterns, identify market trends, and highlight the most prominent gainers and losers within weekly intervals. This analysis provides valuable insights for investors, traders, and researchers seeking to understand the market dynamics and make informed decisions. Furthermore, the study investigates the trading volumes of cryptocurrencies, as volume plays a crucial role in assessing market liquidity and investor participation. We explore the relationship between trading volumes and price movements, examining whether higher volumes correlate with increased price volatility or stability. These insights contribute to a deeper understanding of market behavior and provide a foundation for developing trading strategies and risk management techniques. The findings of this research shed light on the performance and market dynamics of specific cryptocurrencies, enhancing our understanding of their growth patterns and investor sentiment. Analysis serves as a valuable resource for market participants, enabling them to identify potential investment opportunities, evaluate market trends, and manage risk effectively.

Investigation on the Investment Value of LVMH Moet Hennessy Louis Vuitton Company

The investment value of a company is an essential aspect that is considered by investors before making investment decisions. This analysis focuses on the investment value of LVMH Company, a French indulgence goods multinational corporation. Factors that influence the investment value of a company are examined which include financial performance, market position, management quality, and external environmental factors such as regulatory and economic conditions. The analysis also explores different investment approaches, such as fundamental analysis, technical analysis, and quantitative analysis, and how they can be used to evaluate a company's investment value. The analysis examines various factors that affect LVMH's investment value, including financial performance, market position, brand strength, management quality, and external environmental factors such as economic and regulatory conditions. The analysis also explores the company's growth strategy, including its focus on expanding in emerging markets and through acquisitions. Furthermore, the analysis assesses LVMH's valuation based on different investment approaches, such as fundamental analysis, technical analysis, and quantitative analysis. Additionally, the potential risks and challenges faced by LVMH are discussed, including the impact of global economic conditions, the competitive landscape, and geopolitical risks. Overall, this analysis aims to provide investors with a comprehensive understanding of LVMH's investment value and potential investment opportunities and risks associated with the company. The paper will analyze the company's investment value by conducting a financial valuation analysis, SWOT analysis, and a competitive landscape. The analysis will also emphasize the significance of thorough research and analysis in making informed investment decisions.

The Status Quo and Development Countermeasures of Venture Capital in the New Energy Economy Based on Big Data Analysis

The advent of the era of big data not only enables us to have more information that we can use, but also creates conditions for us to create and disseminate information in a timely manner. This article systematically sorts out and analyzes the overall development and investment of new energy in China, as well as the current new energy incentive policies implemented, and points out the problems in the development of new energy. On this basis, the technical risks, policy risks, and market risks faced by this new energy investment are analyzed, and a risk evaluation model based on DHGF and entropy technology is established. It can help investors identify potential investment opportunities. Investors can use the option of investment projects granted by real options to reduce the impact of uncertainty, thereby increasing the value of the company, and making more scientific and reasonable investment decisions. The experimental results of this article show that since 2009, stock market financing has become a financing channel favored by developers.

Using neighborhood characteristics to predict vacancy types: Comparing multi-scale conditions surrounding existing vacant lots.

Vacant and abandoned land can be public eyesores that can potentially result in neighborhood distress in the long term. In some cases, the contextual conditions of a neighborhood have been shown to have more of a negative effect on communities than the vacant property itself. Maximum opportunities to actually reuse vacant and abandoned land is known to primarily exist in cases where the surrounding area has locational benefits or when local economic conditions are hopeful. This study examines and compares neighborhood socioeconomic characteristics around vacant lots in Minneapolis, Minnesota, USA, to identify spatial heterogeneity within vacancy types and neighborhood characteristics. Specifically, we examine 1) if the socioeconomic characteristics of a neighborhood can predict existing vacant lots and 2) what neighborhood characteristics are associated with certain vacant lot types. Three logistic regressions were tested with different buffers around each vacant lot, and a total of eighteen regressions were performed to capture the effects on six vacancy types. Results suggest that there are various types of vacancies interacting differently at the neighborhood scale, and that a large-scale neighborhood context matters when predicting vacancy types. The results also indicate three salient points. First, minority populations are a strong predictor of residential and commercial vacancies. Second, high-income areas tend to predict vacancies with potential investment opportunities or vacancies as a part of an existing park or recreational system. Third, vacant properties designated for institutional land uses tend to be found in lower-income areas, yet, not necessarily in areas with high minority populations. Managing and repurposing vacant and abandoned land should be handled more progressively with a better understanding of the socioeconomic characteristics of neighborhoods. Further, examining vacancy types by community can be a way to diagnose potential neighborhood risks associated with vacant and abandoned land.

ВЛИЯНИЕ ДЕМОГРАФИЧЕСКИХ ПРОЦЕССОВ НА РАЗВИТИЕ ЛОКАЛЬНЫХ РЫНКОВ ЖИЛОЙ НЕДВИЖИМОСТИ

The development of the residential real estate market is determined by the macroeconomic situation, the level of uncertainty in the industry, its potential profitability, investment opportunities and many other factors. At the same time, demographic processes taking place in urban settlements significantly influence the prospects for the development of local housing markets. This article analyses the impact of natural and migration flows on the price situation and the structure of supply and demand in local residential real estate markets on the exampleof a "growing city" (Krasnodar) and a "shrinking city" (Bratsk). Particular attention is paid to the study of the relationship between the structural gender and age changes in the population of the cities and their agglomeration development, as well as the assessment of the preconditions for the explosive growth of demand in the local housing markets. In addition, it was found that macro fac-tors are dominant in local residential real estate markets, while demographic factors are of a lower order, which is evi-dent in periods of uncertainty and increased risks in the economy. It has been noted that the average family size of cities practically does not influence the structure of supply on the primary housing market: thus, despite the ongoing govern-ment policyaimed at increasing the housing availability of the population and increasing the share of families with one or more children, the flat design of new residential complexes on the primary property markets is transformed today mainly due to the growing share of studios and one-room small-sized flats. This trend on the market is only intensifying, as de-velopers seek to maximise their profits by offering the market liquid residential properties in an affordable price range, while buyers, in turn, are limited in their financial capabilities.

Reasonable management and utilization of natural resources in the existing innovation and development of tier-four cities in Vietnam today

Urban planning and smart cities with smart, friendly, and reasonable infrastructure and institutional design suitable to people’s living standards. In Vietnam, urban planning and cities are now facing the risk the existing urban ecological land space and the available natural resources. Environmental problems and green cities are facing many difficulties. Therefore, Vietnam’s state administration has formulated policies to encourage investment, construction, and urban renovation. Reasonable management and utilization of natural resources in the existing innovation and development of tier-four cities have become a matter that needs to be researched and discussed. In this article, the author makes an assessment and comments on the reasonable management and utilization of natural resources in the existing innovation and development of tier-four cities in Vietnam. One of the challenges Vietnam’s state administration faces today is the available and potential investment opportunities of urban areas and cities.

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The article explores investment opportunities available for entrepreneurs who wish to start a business in Ukraine despite the ongoing conflict in the country. The authors discuss the challenges faced by startups and investors in the context of war and the instability of the economic sector, such as access to financing, infrastructure, and talent. The study examines potential investment sectors in Ukraine and key legal aspects relevant to investing in the country. The aim of the research is to highlight and understand the peculiarities, challenges, and opportunities that arise for businesses during a military conflict and in the post-conflict period. To achieve this goal, the authors have formulated the following objectives: to study the characteristics of the war and post-war state and their impact on the business environment, markets, and investment climate; to identify potential investment opportunities for businesses in the context of the war and post-war state, including infrastructure restoration, economic recovery, development of new markets, etc.; to identify key risks and obstacles that affect the investment process and business development in the conditions of war and post-war state. Ukraine offers a range of investment opportunities for both local and international investors. An important factor is its strategic location between Europe and Asia, a market full of potential, and abundant natural resources, which makes it highly attractive for investment. The country also has a robust IT sector and a highly skilled workforce with technical and innovative knowledge to create and develop a favorable economic environment. The Ukrainian startup ecosystem is prepared to address challenges and enhance the opportunities that have been gained. A scientific article on this topic can become a valuable source of knowledge and information for researchers, business leaders, investors, and policymakers who are interested in understanding and utilizing investment opportunities in times of war and post-war conditions. Key words: management, business, investments, opportunities, war state, post-war state.

The Potential of Sukuk for Financing Oil and Gas Sector in Nigeria

Nigeria has promising investment opportunities in the up and downstream sectors of the oil and gas industry that need financing. In the upstream, there are an estimated 37.2 Billion proven oil reserves and 182 Trillion cubic feet of natural gas. New investment opportunities are being developed, and individual and organizational investors need to finance their activities by purchasing drilling equipment and financing their infrastructures and storage facilities. Sukuk financing became a potential investment opportunity that could significantly address the upstream and downstream oil and gas sector and restore the glory of refineries in the country. There are currently three petroleum refineries in Nigeria with a stated capacity of 438 750. Perhaps the refineries are obsolete and bedeviled by poor management and turnaround maintenance due to the lack of funding. The study examines the potential of Sukuk financing oil and gas in the sector in Nigeria. The study employed Structural Equation Modeling to test the respondents' perspectives on the proposed model. Findings predict that the government may diversify and look for an alternative for funding that attracts more investors to participate in Sukuk financing. Future research is encouraged to use quantitative assessment methods to assess funding priorities between the Upstream, middle and downstream petroleum sectors.

The Problem and Methodology of Studying the Diaspora Armenians’ Entrepreneurship Motives in Homeland

The paper is devoted to the problem of studying the entrepreneurship motives of Diaspora Armenians in their homeland. This term in the article refers to investment activities of Diaspora Armenians in Armenia, which are aimed at creating conditions for the resource provision of employment for the population and its social growth. Particular attention is paid to the ethnic component of the diaspora representatives’ investment activities in Armenia. The tasks set in the paper are based on the analytical materials of sociological studies in Armenia, conducted in 1980, 1993, 2007 and 2021-2022, as well as the results of the studies of ten Armenian diaspora communities in different countries during 2012-20211. The research was carried out by the method of stand-ardized interviews, indepth interviews with experts and case studies of entrepreneurs Economic ties stand out among the multilateral ties of the Motherland and the Diaspora for their strength and long-term nature. In particular, among the peoples with a larger quantity of dias-poras outside their ethnic homeland, the features of these ties are more pronounced. A diaspora with a significant potential and great investment opportunities can create favorable conditions for diasporic business circles to carry out entrepreneurial activities in the ethnic homeland.

Exploring the state of solar photovoltaic decentralization in Ghana: trends and success factors

This research explores the trends of photovoltaic (PV) decentralization in Ghana and provides an updated illuminating insight into the sector. A literature review was carried out to understand and map out the trends, risks, and success factors. Additionally, time-series analysis was used to explore the installation trends from 2013 to 2019. A one-sample t-test was used to test the significance of each of the underlying indicators. The study identifies 2015 and 2018 as the years with the highest PV installations. On regional distribution, the research identified Central (63.25%), Greater Accra (26.44%), and Upper East (3.99%) as areas with the highest cumulative rate of a PV installation, respectively. This research raises awareness on the emerging perspectives on PV investment risk decisions and success criteria in Ghana. Considerations for potential investment opportunities and the stage of PV installations are expounded. It brings to light the geographical spread of installation that will aid critical policy decisions. Findings would be invaluable in making profound changes in the state’s policy formulation around PV. The study provides a sound basis for further research, to be directed towards complementing this work by focusing on the social impacts and further engagement of end-users with solar PV.

Study on the Behavioral Intention to use Cryptocurrency Market among Non-State University Students in Sri Lanka

The rise of cryptocurrency in the modern digital economy is relatively new and evolving rapidly. Due to the intricate structure and insufficient knowledge about cryptocurrencies, it's use is limited to industrialized countries. The study consists of four independent variables: awareness, trust, ease of use, and risk. The dependent variable is cryptocurrency behavioral intention. A survey of 380 undergraduates is undertaken to get information on respondents' perceptions of cryptocurrency's attributes and their intention to invest in it in the future. Pearson Correlation analysis is being utilized to study the relationship between awareness, trust, ease of use, risk, and behavioral intention of cryptocurrencies as the major purpose. The dependent variable and Cryptocurrency Factors have a positive relationship, with a 0.01 level of significance for correlation. We adopted snowball sampling technique as the survey's sample design based on survey's results. Furthermore, the data is analyzed for reliability and validity using AMOS statistical software. Two of the four hypotheses were not supported while the other two were significantly supported. The study's findings enhance to undergraduates' potential investment opportunities in cryptocurrency and validate the level of accuracy of cryptocurrency knowledge among undergraduates in developing countries. By studying human behavior, researchers can better predict the prospects for future cryptocurrency adoption and success.

Effect of Financial Structure on Financial Performance of Firms in the Construction and Allied Industry Listed at the Nairobi Securities Exchange in Kenya

Purpose : This study sought to establish the effect of financial structure on financial performance of firms in the construction and allied industry listed at the Nairobi Securities Exchange in Kenya. Equally important was to establish the effect of ordinary share capital, determine the effect of retained earnings, examine the effect of long term debts, and establish the effect of short term debts listed at the Nairobi Securities Exchange in Kenya. Materials and Methods: The study adopted a Census Research Design. The target population of the study was all the 5 firms’ listed under the Construction and Allied Sector of NSE. Therefore, a census method was adopted for this study where all the 5 firms listed under the Construction and Allied Sector of the NSE will participate in the study. Secondary data was used in the study and data collection instrument was used. Quantitative data analysis methods which are descriptive analysis method and inferential analysis method were used. The data collected was analysed using Stata version 13. To ascertain the relationship between financial structure and financial performance, a multivariate regression analysis was adopted on all the variables. Results: The study found that share capital, retained earnings and short term debts significantly affected the financial performance of listed construction and allied firm in Kenya while long term debt had a negative and insignificant effect on ROE. Only retained earnings positively affected ROE of listed construction firms in Kenya. The study concluded that financial structure is very critical to the financial performance of firms, therefore at every stage firms must determine the mode of financing that will have the highest effect on financial performance. Recommendations : The study recommends that management of listed construction and allied firms should not rely predominantly on ordinary share capital as the main source of financing. On retained earnings, the study recommends that management of listed firms should consider retained earnings as the first priority in their financing structure. On long term debts, the study recommend that management of listed firms should least prioritize long terms debts since it is expensive form of financing and should only be considered as a last resort or for high potential investment opportunities. On short term debt, it is imperative for management of firms to keep their short term debts as low as possible since these debts negatively affect the performance. Keywords: Retained Earnings, Share Capital, Short Term Debt, Long Term Debt, and financial performance. DOI: 10.7176/RJFA/12-18-04 Publication date: September 30 th 2021

Sustainability with high-speed rails: The effects of transportation infrastructure development on firms’ CSR performance

By using the unbalanced data of 1,433 listed firms from 2008 to 2018, this paper examines the relationship between high-speed rails (HSRs) and corporate social responsibility (CSR) in China. Building on institution theory and resource dependency theory, we argue that the development of HSRs can accelerate information flow and human mobility, thus improving the CSR performance of firms. The underlying mechanisms include public pressure and potential investment opportunities, which are associated with the intention to engage in CSR practices, and the diffusion of managerial practice, which is associated with the capability of implementing CSR practices. The relationship is moderated by resource dependence on external stakeholders. Specifically, when a firm perceives that it has strong capabilities and does not need to rely heavily on external stakeholders, the relationship between HSRs and CSR will be weakened. Moreover, when a firm operates in an uncertain and competitive environment, the positive impacts of HSRs on CSR implementation will be enhanced. Supplementary analyses based on firms’ sensitivity to public pressure, investment opportunities and diffusion of managerial practice also indicate that the HSR-effects in consumer-sensitive firms, younger firms, and firms with interlock board members are stronger.

Volatility Modeling: An Overview of Equity Markets in the Euro Area during COVID-19 Pandemic

Volatility is the most widespread measure of risk. Volatility modeling allows investors to capture potential losses and investment opportunities. This work aims to examine the impact of the two waves of COVID-19 infections on the return and volatility of the stock market indices of the euro area countries. The study also focuses on other important aspects such as time-varying risk premium and leverage effect. This investigation employed the Threshold GARCH(1,1)-in-Mean model with exogenous dummy variables. Daily returns of the euro area stock markets indices from 4 January 2016 to 31 December 2020 has been used for the analysis. The results reveal that euro area stock markets respond differently to the COVID-19 pandemic. Specifically, the first wave of COVID-19 infections had a notable impact on stock market volatility of euro area countries with middle-large financial centres while the second wave had a significant impact only on stock market volatility of Belgium.

Changes in the DJIA: Market Reactions and Impact of Estimation Window

Changes in the DJIA from 1929-2019 are examined to evaluate the immediate and long-term market reaction after a component change in the DJIA. Using multiple event study methodologies, there is a clear increase in wealth when a firm is added to the DJIA and a decrease in wealth around the time of deletion from the DJIA. Additions earn positive abnormal returns regardless of estimation window. The choice of estimation window is critical for deletions as we show that this is the reason for the difference in results in the literature. Using a post-estimation window, deletions have a more significant negative wealth effect. Using pre-estimation window, returns are negative post announcement, but not at the announcement. Long term, firms added to the DJIA have positive abnormal returns in the second year after inclusion. Deletions from the DJIA after the Great Depression have negative returns three years after removal thus implying a potential investment opportunity upon DJIA changes.

Major Shareholders' Investment Background and Corporate Investment Behavior — Based on Evidence from China's Private Listed Companies

Investment behavior is one of the three major financial decisions of a company. Based on this, this paper takes China's private listed enterprises from 2004 to 2017 as samples, and through literature review and empirical analysis, studies the influence of the major shareholder's investment background on the company's investment behavior. It is found that the investment background of the major shareholder is positively correlated with the cash outflow from the company. At the same time, the major shareholders with investment experience tend to choose the pyramid shareholding structure with financing advantages. After the introduction of shareholding structure, the above positive relationship has a significant change: the internal capital market brought by the pyramid shareholding structure can promote the major shareholder with investment background to find more potential investment opportunities and promote the scale of cash outflow from the company's investment, while the direct shareholding structure can inhibit the promotion effect. To sum up, the investment background provides the major shareholder with subjective motivation and ability to conduct investment, while the pyramid shareholding structure creates objective conditions for him to some extent. The research conclusion of this paper enriches the theoretical research on the high-level echelon theory and the motivation of the existing corporate investment behavior, and provides some reference significance for the investors in the capital market to judge the investment decisions of the company and identify the sustainable development and expansion ability of the company.