Category: Money tips Release Date: 2006-12-30
Analysis from the market, the SME board stocks shares sexually very active, as opposed to more boring board in terms of individual stocks movements, vibration amplitude and profitability opportunities for greater attractiveness of the market consisted of funds. Stock picking can refer to money, concepts and price three factors.
"There incremental funding intervention" is a candidate standard, the performance of such stocks is in the disk on a moderate volume gradually enlarge the bottom of the gradual elevation, the main collection of signs clearly, has formed an independent movement of the stocks, it may be as an investment the focus to look at; however, the involvement of incremental funding must be in a moderate state, while share price gains can not be too large. If the stock price rose too fast or too high, and the rapid amplification volume, investors should not be easily chase. Because the trend of the SME board is an active more than individual stocks, but not strong continuity. Investors can choose the current price is not high, but changed hands more positive, the difference between short-term buy low sell high, the more obvious opportunities for investing in individual stocks.
Concept is crucial in terms of a stock, it often shares rose "effective excuse", so to observe whether they have gained the concept of target stocks, but also one of the methods, you can choose the following methods: growth and innovation in law type concept.
Concerned about the company's growth, high growth companies will have a "high growth" premiums. Statistics show that a number of foreign markets to invest in small-cap stocks in the proceeds of economic growth period and the bull market is higher than the overall market average, but also long-term average returns are much higher than the large capitalization stocks, such as the United States from 1927 to 2001 small The average annual rate of return the stock market value of about 20%, while large cap value stocks average return rate was only 11.7%. So, when the SME board reached a mature market, investors should adhere to growth in investment philosophy, choose those with growth and investment value of companies to invest.
Factors, the so-called innovative individual stocks is often said that the "new concept", these innovations factors that ultimately will be reflected in company products, such as: technological innovation, management innovation, market innovation and organizational system innovations. Innovation is not only the basic functions of entrepreneurs and unique tool, and is just the essence of corporate profits.
Investment in the SME board, the traditional valuation methods have been the company does not apply, through the evaluation of innovation capability of enterprises is to avoid the shortcomings of financial analysis, can better assess the capacity of sustainable growth in emerging businesses. Innovative evaluation method is to invest in the SME board on GEM and the basic method, from a large number of emerging companies found to have the ability to innovate, especially industry, innovative companies will get excess returns.
What are stock prices so low?
Although China's stock market more than ten years of development history, but never shares individual stocks to achieve complete polarization. No matter how a number of blue chip stocks have investment value, as long as the rose to a certain height would be difficult to continue to rise, do not follow the trend set in the case of the main capital stock will be pulled into Zitanzichang or embarrassing situations. On the contrary, a number of underperformance after the stock fell to a certain low level, will not continue to fall, and will also attract a large number of speculative bargain-hunting money.
The first way is to judge - stock.
At this stage, the absolute price level is still an important factor affecting individual stocks, one of Quotes. For the small panel stocks share price up 30 yuan or more as long as is necessary to remain vigilant. As for the stock between 10 yuan to 20 yuan, and not far from the issue price of shares can be regarded as an absolute low price varieties, usually means there is a certain short-term profit opportunities, investors can have a choice involved.
The second criterion is - judged that the absolute size of gains.
To make the right judgments need to be strong at that time the level and nature of Quotes to decide. In a mid-Quotes, the stock rose more than 50% or more means that the risks have been pooled, investors should not chase again.
If it is a super bull market, then if the stock price rose more than doubled, to illustrate how the market over-pursuit, with a great non-rational element of risk inherent in the stock at this time is high, it is recommended to wait and see the measures. Investors try to select some stocks or not big, but money is involved in the potential of stocks, often a better grasp of investment opportunities.
All the practical need to give priority to the data support, therefore, take price-earnings ratio to measure, you can also find undervalued stocks.
Usually under the same conditions, the stock position of small plate dishes than big stocks, while the speculative small-cap stocks will definitely stronger than the stock same type on the motherboard. Therefore, the SME board shares the average price-earnings ratio should be higher than the average market price-earnings ratio motherboard.
Please note that a high level, is not unlimited, and if the average price-earnings ratio stocks small plate overestimated, then the return must face value, investors must remain vigilant. If the average price-earnings ratio of 35 times less, it means that there is a good short-term profit opportunities.
