Listing Day Became "Hold Up Day" &Nbsp; Gem More Than 30% Companies Break

In April 26th, Heng Shun Electric (300208), Tian Ze information (300209) and Sen yuan share (300210) three companies landed.

The Shenzhen Stock Exchange's 26 day data showed that the average price earnings ratio of the gem reached 49.28 times.

Even in July 2, 2010, when the gem set a record low, the average price earnings ratio of GEM companies was 55.65 times.

Analysts believe that the "avalanche" of gem is caused by many factors such as market style conversion, overvaluation, and poor performance growth. However, high risk, high growth and high yield are the characteristics of GEM companies at home and abroad. Excellent companies will still stand out and bring opportunities to investors after the wave of sand storms.

"Star stocks" have been sacked.

75 companies broke out.

Wind data show that as of 26 April, there were 209 GEM listed on the market, of which 168 GEM companies share prices dropped to varying degrees on the day, accounting for 80%.

The stock price of 95 companies hit a new low since the listing date, accounting for 45%.

In these falling stocks, the day's listed information was ranked first in the 11.79% decline, followed by Kang Zhi Pharmaceutical (300086), or 9.67%, close to the limit.

Data show that a total of 21 companies fell by more than 5% on a single day.

There are only 32 GEM companies that have risen.

Among them, the stock market listed in April 26th was the best, and the first day rose by 22.7%, while the increase of second was 300014, and the increase was 4.4%.

In addition to these two stocks, Yu diamond (300064), sunflower (300111), Chenguang biologic (300138) three stocks rose more than 3%.

In the early days of the crash, the "star share" attracted much attention at the beginning of the listing.

For example, the first price earnings ratio (diluted) is 131.49 times higher than that of Lehman Optoelectronics (300162), which has dropped 21.87% compared to the issue price, and the first price earnings ratio (diluted) has reached 115.29 times (300146).

However, there is no connection between breakage and high price earnings ratio.

The new research stock (300159), which is ranked first in the GEM market at 150.82 times price earnings ratio, has shrunk by nearly 30% compared with the highest price, but it is still 20% higher than the issue price. The Xinghe (300143), which is 138.46 times earnings, has shrunk by about 30% compared with the highest price, and is not 50% higher than the issue price.

Judging from the trend, since the launch of the gem in June 1, 2010, there has been a roller coaster market.

At the beginning of its launch, it deviated from the Shanghai Composite Index Trend and rose continuously, but it soon began to drop sharply, and hit a low of 832.62 points in July 2, 2010.

Subsequently, the gem and concussion upward, and in December 20th last year, hit a record high of 1239.6 points, and then began to flow.

Since January 25th this year, the Shanghai Composite Index has risen from 2677.43 points to three thousand points, and the gem has been on the decline since mid March until the new low this year.

75 companies broke out.

Wind data show that since March this year, a total of 26 GEM companies have been listed, of which 12 have broken out on the first day of listing, accounting for 46%, causing another round of breakup.

In April 26th, the biggest drop in recent days was the 11.79% day's first day decline.

Some new shares breaking down on the first day also showed a downward trend. For example, Tongyu heavy industry (300185), which was listed in March 8th, has a cumulative decline of 19.2% compared to the issue price.

Some of the outstanding new stock offerings on the first day also broke down recently. For example, Coase Wood (300192), which rose more than 22% on the day of listing in March 22nd, is now less than 10.17% of the issue price.

If investors catch up with buying on the first day of their listing, then just more than 20 trading days have shrunk by about 30%, becoming a real "hang up".

Compared to the first two times of the gem, this is more intense.

Wind data showed that the first day of the first day of GEM Listing broke out in May 2010.

In May 20, 2010, oak shares (300082) and Jinsheng shares (300083) fell below the issue price on the day of listing, followed by the Kang Zhi pharmaceutical company, which was listed in May 26th.

In June 25th, new Daxin wood (300080) broke out on the first day.

In July 8th, the National League Fisheries (300094) broke the first day.

In January of this year, Anju Bao (300155) also detonated the first day of the first day of the second round of the gem, but the break only lasted for less than a month, and there were about 7 companies.

But this round of GEM has become more and more violent. It involves more companies and longer duration.

It is especially necessary to point out that the price earnings ratio of GEM companies has dropped sharply before the outbreak.

In January of this year, the breakup of the stock market in December 2010 of this year showed that the average price earnings ratio (diluted) of the new shares listed before December 2010 was 92 times higher than that of the listed companies in December 2010. In March, the price earnings ratio of the listed companies in February dropped to an average of 65 times. The price earnings ratio of the companies listed on March remained at this level, while the average price earnings ratio of the companies listed in April dropped to 59 times.

Data also showed that as of the end of April 26th, according to the statistics of the post resumption stock price, a total of 75 GEM companies broke out, accounting for 35.9% of the total number of GEM companies.

Netac Technology (300042) ranked first in terms of 38.55% below the issue price, followed by Hengxin mobile (300081), which was 37.4% lower than the issue price, and maitno (300038) ranked third, with a break rate exceeding 30%.

In addition to the three companies falling by more than 30%, there are 11 companies whose share price has fallen by more than 20% compared with the issue price, and 33 companies have fallen by more than 10%.

Multiple factors lead to downturn

Many of the industry analysts believe that the gem has been on the decline for many years.

Since the beginning of this year, there has been a significant pformation of style in the market, and capital inflows into the blue chips that have been in the doldrums for a long time, resulting in "loss of blood" in small and medium sized boards and gem.

In addition, the gem has long been valued at a high level. Recently, many companies disclosed the 2010 annual report and the 2011 one quarterly report, which were far from satisfactory, far below market expectations.

Coupled with the growth rate of the growth enterprise market, the market supply has been effectively enlarged, resulting in a sharp decline in sentiment.

For example, Lehman photoelectric's net profit increased by 81.94% in 2010, but the quarterly report released in 2011 showed that the net profit of the company dropped 38.23% in the first quarter.

The magnitude and speed of the performance turned many investors off guard, resulting in a continuous fall after the crash.

The Shenzhen Stock Exchange has always been prompted by the high risk of GEM companies.

In November last year, when the gem pointed out that all the way forward, an article published by the investor education center of the Shenzhen Stock Exchange pointed out that we should pay attention to avoiding the technological risks of the gem.

Compared with ordinary manufacturing or other relatively mature and stable industries, high-tech enterprises face greater uncertainty and unpredictability.

If SMEs encounter major technological risks, whether they can have the strength and time to survive the severe winter and find another way out is a big unknown.

Therefore, high tech enterprises that invest in gem need to emphasize professional research and diversify investment so as to avoid risks.

In this painful downturn, many analysts pointed out that the GEM companies should not be overly pessimistic.

They believe that most GEM companies are industries that are newly supported by the state and have good growth.

Some GEM companies are gradually releasing the capacity of fund-raising projects, which will usher in a broad space for development.

Investors should be calm and pay attention to screening so as to find investment opportunities in the fall.