Category: Money tips Release Date: 2007-03-15
Recent Quotes known as the "share Quotes reform" without exaggeration. After a month or so of operation, Hu Zhi-point upside from 1000 to 1200 points, the high points, or maximum of 20% or so. The second batch of pilot companies to change the performance of shares of the good money effect, attract outside funds have continued to enter the court, as the recent Quotes of the most prominent feature, the market started to change around the stock a "treasure hunt game" fund recount separate ways, most notably is the local small-cap stocks in Shanghai and Shenzhen speculation to an extreme, as in the chlor-alkali chemicals, tire rubber as the representatives of the pocket of the outstanding shares rose to 150% or so. Extremes meet, excessive speculation is not necessarily conducive to the smooth functioning of markets, volatility of these stocks also increased volatility in the market. How in the future to better grasp the "G encounter" and avoid the risks of investing, I think they should pay attention to three aspects.
First, note that shares of the company's fundamentals change. Although the stock price change during the course of the level in the short term a greater impact on stock prices, but the share reform of listed companies is difficult in the short term to change the basic business situation, we decided a long time the direction of a listed company is still operating performance of enterprises, so the profitability of enterprises and the growth is still an important indicator of investor interest. With the value investing philosophy gradually enjoys popular support, in order to look at value investing stock investment opportunities should be changed to be of concern to investors. If there are no fundamentals to support, it may appear in public after the share reform program but drop in its stock price. Recently, some individual stocks over-hype, it is because there is no fundamental support, the result can only be dropped to correct. Therefore, investors should choose those with strong profitability and high growth of the share reform in order to be assured of investment types, and may have a better profit opportunities.
Second, pay attention to whether stock prices reflect the stock in advance positive change. In the focus on the future shares of the company's investment opportunities to change, we must focus on whether stock prices reflect the stock in advance positive change. The reason why the recent stock reform pilot stocks have better performance, with their stock before the price change does not reflect the share reform ahead of a greater good relationship. Measured by a simple standard to be seen whether the stock price rose more than the proportion of shares to pay the rate change, such as the non-tradable shares to tradable shares to pay right price ratio of three shares for every 10 shares to send, if the initial stock price is up more than 30%, then When intervention is necessary to carefully assess risk. After some speculative stocks sharply due to overdraft of the share reform of the good, continue to be involved will have a greater risk.
Third, pay attention to the impact of weakening effect of share reform. The current market, "treasure hunt" will bring a better investment opportunities in individual stocks and stock change of "scarcity" has a larger relationship. The future, as split share structure reform overall progress of the share reform a substantial increase in the number of companies, the current share reform theme of "scarcity" will be gradually weakened, the demand for investment opportunities in stock reform will be more rational. Therefore, concern about stock investment opportunities brought about by reform, the first to share reform companies for investment opportunities are often greater than the company after the share reform. Investors are advised to take a timely manner to change the initial stock market opportunities, and as a substantial increase in the number of share reform, this time the main operation should be careful.
In order to encourage listed companies to actively share-trading reform, regulators will give preference to change the company financing, innovation and other aspects of active policy support, they could not implement reform of the company's stock may have further been "marginalized" trend, therefore, around the theme of the next stock reform of the stock market will generate is expected to continue, this will produce more "G encounter." Should be pointed out that the share reform program is good or bad will determine the share of short-term trend of individual stocks change, but decided to share long-term trend of individual stocks change, is still the fundamentals of individual stocks. Only an excellent performance, growth a better company through the share reform, the future will have a better opportunity.
