Farewell To "Gem Overdraft"

The first trading day of May,

Although GEM companies

Insiders say that although some GEM companies are of good quality and have certain growth potential, the fact that their issuing price is too high has led to the overdraft of their shares in the coming years.

Statistics show that the average IPO price earnings ratio (diluted) of GEM stocks is 70 times higher than that of the listed companies. If the Commission estimates the average annual growth rate of operating income of the GEM listed companies by 30%, its PEG will reach 2.5.

That is to say, the high growth of GEM companies has been overdrawn at the beginning of the listing.

Insiders say that the performance of gem in the two tier market is generally not satisfactory, which is far different from the 500% increase in the SME board index over the past two years.

Statistics show that the average price earnings ratio of the first 100 enterprises listed on the SME board is only 21.15 times.

The gem index must go through the process of digesting the overvalued issue, and the length of the process depends more on the growth of the company itself, and the differentiation of different companies will also gradually increase.

Besides performance differentiation, GEM companies also appear over financing.

Statistics show that the first batch of GEM companies is over doubled.

Up to now, most companies have not announced the use of over raised funds.

Analysts pointed out that the purpose of the planned fund-raising is usually arranged before the offer, and whether such a large amount of funds raised will be used by listed companies, and whether the source of future profits will be formed will vary from company to company.

In the absence of overbooking, investors vote with feet, giving the GEM companies a heavy blow in valuations.

A brokerage investment bank said that the recent decline in share prices of gem and small and medium-sized board companies has brought variables to the future pricing of similar enterprises.

The big group that landed on the SSE in April 28th was a big break on the first day of listing, which dropped 23.16% compared with the issue price.

On the one hand, the cold performance of the listed companies on the gem is greatly changed, while the other side is the excessive fund-raising brought by the hot listing of the company, and the massive selling of the original shareholders of the company.

Some analysts say that the recent decline in the share price of the gem is essentially a "repayment of debt" to the issuance of high prices and the profiteering of the original shareholders.

The issuance of high priced prices has also caused the current stock breaking to a certain extent.

Analysts pointed out that the recent breakup of gem is mainly caused by excessive issue price. Although GEM companies still have high growth expectations, some companies have overdrawn their future performance, so investors should be cautious.

"Stock market is risky". This sentence is familiar to us. For gem, its risk is bigger than that of main board and small and medium-sized board.

Therefore, we must be rational when investing in the growth enterprise market.

"Not that GEM companies are all good.

Recently, the gem index is far behind other indices. Investors who are not able to choose high-quality or undervalued growth stocks are still far away from the gem.

The source said.

According to the 2010 survey of individual investor status released by Shenzhen Stock Exchange, in terms of investors' basic situation, trading habits and risk awareness, the gem investor group has begun to show some notable characteristics compared with non GEM investors.

For example, the GEM investors are mostly experienced investors with relatively long investment years, relatively strong financial strength, and relatively strong awareness of taking the initiative to assess risk tolerance. They are more closely related to the strength of investment advisors and other professionals, and are more active in their investment.

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.

Although some GEM companies may have high growth potential, stock prices have also plummeted and created investment opportunities in the market situation of mud and sand, but analysts have reminded investors that in this wave of decline, some stocks still need to be released.

First of all, the valuation level of some stocks is still high; secondly, companies whose performance often "turn their faces" or companies that are obviously down are doubtful of future growth; if they are not pferred after they are pferred to the stock market, they may not be able to fill in the right. Finally, the post market "quick break" stock market is not necessarily optimistic.

The industry also reminds us that if we want to invest in the two tier market of gem, but we do not have enough research strength or time resources to do the research of the company, and do not feel that we have the ability to judge the long-term trend of the market with Buffett, nor do we believe that we have an investor who has a lot of luck, then it is better to wait patiently for the market to return to reason and to underestimate the value.