Category: Money tips Release Date: 2007-02-09
Tuesday tape near the mark again in 1000 to obtain support, and pulled out a large Yang Xian, which indicates that the current pressure on the stock is supported under the shock correction market, this market is more conducive to investors swap operation , then the convertible investors should pay attention to what work? which stocks should be the preferred species?
First of all, the long-term fundamentals are poor must be resolutely clean out Bear shares, because in the context of broad market weakness, even if favorable to the price of its launch the program may not be able to prevent it continued to fall, because if the backlog and business, a number of institutions once cash in the opportunity, they will keep selling pressure out, causing stock prices continue to hit a new low. This applies to individual stocks, "flesh therapy," not only make their own flesh and timely market continued to shrink.
Secondly, to avoid stocks in the homogeneous convertible. The so-called "homogeneous" means the board, industry, subject matter close to the stocks, which stocks tend to trend in a strong linkage between them, the overall trend is consistent, the different rate of speed may be just the difference of assets shrink just for some sort of relief or profits not very helpful, this convertible is hard to say was a success. (Attention: the adjustment plate leader!)
Again, in the current market volatility in individual stocks investors should seize opportunities to rebound in time out rallies, but do not immediately buy the new varieties, can wait for a callback to the box below the index and then choose the right eyes on bargain-hunting potential varieties.
Investors in the swap, we should bear in mind the following points: First, do not blindly chasing hot, because hot Ruoshi generally sustained is not strong; 2 is not to be easily changed into defensive stocks, strong Zhuanggu, because in today's Ruoshi defensive stocks, strong Zhuanggu likely to become tomorrow's diving star; third Ruoshi is no lack of good selling points, to learn to wait for short positions. Finally, in the convertible when the priority should be given with a high growth, small cap, low-cost, sub-new capital expansion capability, subject matter and other conditions of abundant stocks. Quotes start or come once the bull market in stocks with these conditions tend to become the new money preferred Jiancang species, not only can significantly outperform, but the probability of a large black horse is very high.
