GEM Stocks And Other Three Stocks Are Facing Greater Adjustment Risk.

In June, the Shanghai Shanghai A share market was more volatile. Last week, the total volume of yin and Zhou spanactions was 720 billion 560 million yuan, a sharp drop of 26.5% compared with 911 billion 750 million yuan last week. In June 4th, the volume of trading in Shanghai stock market was only 61 billion 720 million yuan, creating a new volume in the past 17 months.

Judging from historical experience, shrinkage, especially the occurrence of phased volume, is often the time concentration point for the outbreak of varieties. If a big trend does not change, its shrinking operation, no matter how it bounces or falls, will eventually run according to the trend. From the historical characteristics of the market, this stage of investment usually has the characteristics that the overall risk is greater than the opportunity and the trend is greater than the valuation. From the perspective of market operation, it is preferable to adopt a strategy of avoiding risk stocks and paying attention to high quality potential stocks.

Three kinds of varieties face greater risks

First of all, the valuation is still hundreds of times or even thousands of times PE theme stocks, loss stocks. The continuous adjustment of the Shanghai Shanghai A share market has made many stock valuations go down this year. But by observing the current A share market, we find that some varieties are still hundreds of times or even thousands of times of PE's share price. In view of its industry, there are many similar companies appearing in the IPO, and the competition pattern of their industries has also entered a heated competition. Similar varieties of stock, we believe that the performance of such enterprises will be difficult to change, and on the contrary, long-term performance or decline will continue. For example, an electronic software company listed last year lost its operating performance last year, but lost again in the first quarter, but its share price was near 30 yuan. While similar electronic software companies continued to list, competitors increased and financial support was strong, such a company had stock prices continuing to fall sharply, and its investment risks were self-evident.

Second is the gem and some small and medium-sized board stocks. According to the latest statistics of the Shenzhen Stock Exchange, the average PE of the gem has reached 65.94 times. According to the statistics of Thomson Reuters of international agencies, the overall static PE of the US Nasdaq market closed in June 4, 2010 was only 19.38 times, the dynamic PE was 15.56 times, and the market rate was 2.79 times. Therefore, after the launch of China's gem index, its cumulative risk of bubbles may lead to a sharp fall in the index.

Finally, it is the varieties that have been traced back to law after reorganization. The study found that in May this year, the Supreme Court promulgated a number of legal retroactive policies, many of which involved securities markets, such as insider trading and operation market. Recently, Zhongshan public insider trading case surfaced, leading to a sharp decline in share prices. Therefore, for the high priced speculation stocks in history, if the traceability law appears on a stock variety, it may lead to the fall of the stock price institutions, which will result in a heavy setback. Therefore, avoiding similar stocks is a pressing matter of the moment.

Three kinds of potential varieties need attention

First, after adjustment, the valuation is between 5-15 times PE of the continued growth of shares. From the perspective of stock investment, value investing is a better strategy to resist risks in the medium and long term. Judging from the current A share market in Shenzhen and Shanghai, after adjusting some varieties, there has been a valuation of 5-15 times PE. These varieties need investors' serious concern. Through screening, we think that the stocks that meet the undervalued value need to be treated differently. It can continue to increase in the medium term performance, and the better varieties with historical returns will be the key concern. Some of the stocks with low valuation at present are low, but the future performance or industry may continue to descend.

The two is that the theme investment still has the following policies. From the point of view of theme investment, we believe that there are still some potential varieties that are still facing the prospect of policy support in the future. Before the end of the profit forecast, we will still be able to seek low volatility and volatility in the market adjustment process, such as the rare resources in the new energy industry. For many of the plate stocks that have already been fulfilled and will soon be fulfilled, the stock price will have to be abandoned.

Three, public utility stocks with reasonable valuation and stable performance. According to the study, utility stocks are better defensive varieties against inflation cycle and market risk. From the current A share market, some of the high quality companies engaged in natural gas, water supply, electricity and energy supply are also at a reasonable level, such as Shaanxi natural gas, Shenneng shares, Shenzhen energy and so on. The overall valuation of these varieties is between 9-15 times. Considering the future development of China's energy strategy, they all have the expectation of continuing to raise prices, and their performance guarantee coefficient is relatively high. In the context of the overall market risk, paying attention to high-quality varieties in public utilities is a good choice for strategic investment. "PE"