The Gem Lows The "Expensive Head" &Nbsp; Has It Reached The Bottom?

Editor's note: for a long time, it has been "high above" for a long time.

Gem is indeed experiencing a long way to go froth and return to value.

Is it time to "copy the bottom"?

In the second half of April, the growth enterprise market was on the decline. Some people thought that at the time of "bottom hunting", some people thought the future was unpredictable.

How about the valuation bubble of gem?

How much of the average price earnings ratio is relatively safe?

The industry gave a different view.

Guosheng

However, some market participants believe that the gem has not fallen.

Analysts point out that performance "face change", executive cash flow and IPO speed increase are the main reasons for the slumping growth of the gem.

The first quarter results of some listed companies have changed "face". With the lagging effect of monetary tightening policy gradually showing, the two quarter performance is even more optimistic.

The lack of high performance and high growth is the risk of overvaluation of gem and small board.

In the future, the "bubble squeeze" of gem will be a long-term process. The adjustment of the GEM may not be in place yet.

At the early stage of the listing, the valuation of the gem which was overpriced and overpriced was a regression process, but the small retail investors were "losing money".

And as investors return from the impulse, the "naked swimmer" in the rational gem company will be eliminated.

At the same time, analysts say that the gem has made high performance and wants to raise more funds in the first year of listing, so the first year of listing needs to make the company's performance solid.

The gem fund raising project will be put into operation in the next two years, which will also release the company's performance.

Despite the test of performance change and stock price drop, according to a quarterly report of gem, it has always been regarded as a "foresight" social security fund, such as the new social states, Rui Ling shares, Hong RI pharmaceutical, Hai Lanxin, Orbit, silicon technology, and Jinsheng shares.

The proportion of the social security fund's additional shares in the listed companies accounted for 4.26%, 4.02%, 1.43%, 1.39%, 1.01%, 0.68% and 0.60% respectively.

According to the report of the first quarter of 2011, the 602 National Social Security Fund (NSSF), as the 1 million 149 thousand and 547 largest shareholder of the social security fund in the 2010 annual report, has become the largest shareholder in the stock market at 6.11% stake.

The public information of Rui Ling shares is also the 602 combination of the social security fund. In the first quarter, it added 500 thousand shares to 2.86% of the company's circulation shares. Meanwhile, the 504 of the national social security fund as the new fund increased 700 thousand shares, which accounted for 2.50% of the shares.

Last year, big market stocks were poor, and gem and small and medium sized boards made a lot of gains.

However, due to lower performance than expected, the gem has been substantially adjusted this year.

Wang Yawei, a fund manager of Huaxia Fund Company, has said that the gem will go through the process of foam.

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

They believe that most GEM companies belong to the new industries supported by the state and have good growth.

Some GEM companies' fund-raising projects are beginning to gradually release capacity and 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.

At the same time, insiders say that although GEM companies have risks in operation, technology and standard operation, their scale is relatively small, and the impact of the market is relatively large.

But in the context of China's sustained economic growth, we have reason to believe that the gem will eventually produce individual Chinese Microsoft and Google.

However, it is necessary to find out that Microsoft and Google in the growth enterprise market should have the ability of Buffett to judge the long-term potential of the investment target company and grasp the long-term trend of the market.