Category: Money Tips Date: 2006-03-06
Recently, the China Petrochemical, Wuhan Iron and Steel shares represented by the blue chips continued strong, broad market rally that drove the backbone, but also to lead the popular weathervane. Li Qing, director of the planning committee of the SFC, the former on "accounting for 60% -70% total market value of the two or three hundred companies immediately after the completion of share reform to launch a new old" argument, including blue chips, including a number of major market shares of the company to accelerate reform can be expected. Thus, in stock selection and operational aspects, investors may wish to refer to the value on the basis of factors and encounter great.
Let us look at large cap value stocks, especially blue chips. According to "Securities Times" Ministry of Information and Statistics, as of July 25, ranked by total market value of the first 200 stocks, the total aggregate market value of 1.96 billion yuan, accounting for 64% of total market capitalization of the two cities. The above-mentioned stocks, more than half are blue-chip blue-chip or quasi. Look at blue chip companies focused on the SSE 50 constituent stocks, not only covers the total market value of the top 10, but there are 47 stocks ranked in this list, only three stocks exception. The broad market rally on the cards since the 50ETF strong performance, fully demonstrated the charm of blue chip companies. Is well known blue chip market, a good image, anti-risk ability, of which, such as iron and steel, petrochemicals, finance and other sectors of stocks, even from the international comparisons, there are also quite attractive. Taking into account the flow of stock reform, when shareholders will receive some compensation, can be said that some of the stock significantly undervalued. For this reason, blue chip companies has been the fund, QFII institutions such as a favorite. The latest semi-annual report of listed companies shows that many blue chips Chixinbugai institutions, should be aimed at long-term. As for the small-cap stocks, especially small-cap underperformance shares, if shares previously due to ease of manipulation sexually active and there is a premium flow, then the stock and comprehensively push forward the reform of the occasion, its poor fundamentals will be difficult to resist the full circulation of the valuation of pressure, its value will be long and winding road.
And encounter great meaning of the two is to strive to seize the great opportunity to give up a small chance. As the shares of listed companies is the only way to reform is expected to lead to complete share reform of the stock easier to produce a big opportunity. The reason is that foreign investors are gradually entering the context of share reform is completed, these companies may face more industry consolidation, mergers and acquisitions and other restructuring opportunities, if opportunity to become bigger and stronger, then the stock long period can be expected, which is obviously part of great opportunity, after the so-called "Microsoft concept" repeatedly by large fry special fry, that is, a preview of these Quotes. Some companies may be due to shareholder equity has been frozen, non-tradable shareholders, and other reasons can not be difficult to reconcile in time to start share reform program, drag the new from the old once, after its shares can only wait passively tradable shares with a par with the plates, individual junk bond because no one is interested and may even gradually into the ranks of penny stocks. Maybe this will be a strong rebound after the stock fallen too far, but experience has proven its sustainability and operability are very poor at the slightest mistake could be the deep cover of them, Bo such stocks rebound, should belong to the small window of opportunity.
Of course, the value of the stock level can not be equated with the size of dinner plates, small plates, such as the vanguard of reform as a stock, do not rule out the future emerged in the possibility of large capitalization blue chip, market opportunities, the same is not small. The current large cap blue chips may also be reduced due to poor operation of junk stocks. Therefore, when we should seize the opportunity to carry out individual stocks value investing ideas and capabilities from the company's sustainable development and growth of a comprehensive measure of the angle. However, in the implementation of the new from the old prior to the blue chip stocks as represented by the trend to change the company is expected to receive the first, the market is relatively more.
