Category: Money tips Release Date: 2006-03-13
There is a distinctive feature of the recent stock market: in the forefront of stock gains, the majority of the outstanding capital stock is four digits, for example: Thursday or just the top 20 only four companies in the circulation of capital more than 100 million shares, or before the Friday 20, only six companies share capital of more than 100 million shares in circulation. At present, Shanghai and Shenzhen stock market, Liu Tongpan more than 100 million shares of listed companies in more than 650, close to half of the total number of listed companies. This fully shows that turnover in the current market decline, watching the atmosphere heavier when Liu Tongpan smaller stocks more susceptible to the main financing concerns.
Small-cap stocks, the biggest investment advantage of easy to make institutional investors, in which a certain control, coupled with flexible properties, the price easily lead to relatively large fluctuations, once the institutional forces play a leading role, in which the time can often reap abnormal profits. Quotes investors participating in small-cap stocks, you need to note the following investment ideas:
First, the idea of value investing as an investment fundamental.
Investors that the fundamentals of small-cap stocks are usually poor, speculative. Overall, small-cap stocks did slightly below the average market fundamentals, the level of quality, but if we suffer from the small-cap stocks will be removed, you can find small-cap stocks have a lot of high-quality stocks. We are a time when small-cap stocks in the selection must be based on value investing, focusing on a better growth, company performance have faster growth potential small-cap stocks.
Second, the control risk as an investment thinking trunk.
Small-cap stocks are also some negative aspects. As the circulation of small-scale small-cap stocks, it is difficult to accommodate large scale of capital, when there is a certain difficulty in the realization. And there are many small-cap stocks is in a growth stage, the small-cap stocks of the business risks and market risks than other products in the mature businesses. Therefore, small-cap stocks produce more easily lead to substantial price fluctuations. These factors not only increased the small-cap stocks the investment risk has also increased the investment opportunities in small-cap stocks, which investors should be noted.
Third, the investment approach of the branches and leaves as an investment ideas.
Involved in small-cap stocks Quotes Do not over-concerned about the index up or down, that focus on opportunities for individual stocks. Quotes of the small cap index was less dependent small-cap stocks and blue chip Quotes Quote of different large-cap stocks, which tend to directly stimulate the index up or down, but the small-cap stocks go up or down little impact on the index, in the small-cap stock market conditions prevailing in the index tend to increase not much seems to be very calm could be investment opportunities in small-cap stocks are not as much. The current market is this.
Select small-cap stocks when the share capital of not only pay attention to the number of individual stocks, but also note that the plate number of the size of the overall equity. In contrast, the number of small plates equity small-cap stocks are more vulnerable to a market capitalization of all ages.
