New Deal stimulates real estate stock market, concept stocks generally rise

March 31, SouFun (NYSE: SFUN) Monday share price rose 6.54%, closed at 6.35 U.S. dollars, mainly by the Monday government issued a housing deal stimulus.

In the Monday, the concept of "stock House" was active, the SouFun Rose 6.5%, the Le Habitat Rose 7.1%, and the Chinese rose 7.8%.
Central Bank, the Ministry of Housing construction, the Banking Regulatory Commission issued a circular yesterday, to have a housing and the corresponding home purchase loans are not settled residential families to buy two suites, the lowest first payment ratio adjusted to no less than 40%. At the same time, the Ministry of Finance, the State administration of Taxation issued jointly said second-hand housing business tax exemption period from 5 years to 2 years. "The dollar may have become" too strong, "said Zhou Xiaochuan, governor of the People's Bank of China, at the Boao Forum held in Sunday, leading to capital outflows in the country and other countries. He also said monetary easing by the world's major central banks was one reason for pushing up the dollar. He added that if China's economy remains weak and inflation continues to fall, there is "greater scope" for further easing of policy.
In addition, Zhou also warned that the Chinese economy could face a deflationary threat, as the slowing trend in consumer price index (CPI) growth was slightly too fast.
The analyst team of TheStreet Fitch, a leading U.S. financial website TheStreet, rated the SouFun stock as "buy" and rated "B". "We rated SouFun's stock as ' buy ' because it had some obvious strengths," said the
analyst. We believe that the impact of these strengths is greater than any weakness, and should provide investors with a better opportunity to achieve the investment performance of the majority of the stocks we have tracked. The company's strengths are reflected in a number of areas, such as revenue growth, attractive valuations, rising profit margins, a largely solid financial position, and a more reasonable level of debt in most indicators, as well as spectacular returns on equity. These strengths, we believe, overwhelm the fact that the company's earnings per share is somewhat weaker in some ways.
The following is an analysis of the TheStreet Fitch Analyst team:
-SouFun's revenue growth rate is lower than the industry average of 18.6%. SouFun's quarterly revenues rose slightly, by 2.7%, compared with the same period last year. Revenue growth failed to penetrate the company's earnings, showing a year-on-year decline in earnings per share.
-SouFun's gross profit margin is now at an extremely high level, reaching 82.22%. Although its gross profit margin is higher, it has declined compared with the same period last year. Gross profit margins are mixed, while a 37% net profit margin is well above the industry average.
-SouFun's debt equity ratio is 0.92, overall at a relatively low level, but relatively high compared to the industry average, indicating that its management of debt levels should be further assessed. Despite the mixed performance of the SouFun debt equity ratio, the 2.20 per cent rate is higherLevel, showing a strong fluidity.
-SouFun's return on equity is well below the same period last year, suggesting a major weakness within the company. SouFun's return on equity is well above the industry average and the S & P 500 index compared to other companies in the Internet software and service industries, as well as the overall market. (Snow)