Gem Executives Reverse Market &Nbsp; High P / E Brings Huge Benefits.

Reporters learned from the Shenzhen Stock Exchange, as of 20 days, a total of 65 GEM companies have been reduced by 105 executives.

With the end of last year's annual report and a quarterly report this year, the impulses of gem executives are even more inhibited.

Statistics show that since May, gem executives have reduced at least 23 million 536 thousand and 989 shares.

According to the number of shares, the reduction in May has hit a new high this month.

Contrary to executive impulse reduction, the overall performance of gem is poor.

The reporter noted that last week, the gem composite index fell for five consecutive days, and the 24 day intraday hit a low of 828.50.

At the same time, as of 24 days closing, 218 GEM companies, the average price earnings ratio was 44.72, compared with 80.01 in January 4th, the highest, or 44.11%.

Frequent group cash flow

In contrast to the reduction in the number of executives and the trend of the gem, the reporter found a strange phenomenon: even if the stock fell, the executives were busy "running".

In the first two months of this year, the gem composite index was basically over 1000 points, and the number of executives reduced by net shares was 3 million 745 thousand and 747 shares and 461 thousand and 830 shares, with the reduction amount of 105 million 200 thousand yuan and 103 million 500 thousand yuan respectively.

However, as the disclosure of a quarterly report approached, the share price of gem began to dive in late March, and the number of net holdings decreased sharply to 20 million 410 thousand and 584 shares in that month, and the amount of cash in circulation reached an astonishing 624 million yuan, which was 3 times the total in the first two months.

Entering the April, the GEM board continued to focus on 1000 points of turbulence. The net reduction of executives was only 798 thousand and 570 shares.

And in May, the gem index has fallen below 900 points.

By contrast, executives' net holdings also hit a new high in the year.

The "high price earnings ratio" issue has resulted in a reduction in the number of restricted shareholders (including venture capital and financial investors) after the lifting of the ban.

Xu Zelin, general manager of Shenzhen zhe Ling Cci Capital Ltd, said that the high earnings of high price earnings ratio made executives ignore the loss of share prices.

It is worth noting that the reduction of executives has certain "collectivism" characteristics.

Huayi Brothers (300027) was reduced by 191 billion 502 million shares in May.

Among them, Alibaba group board chairman and chief executive officer Ma Yun reduced the number of shares to 110 billion 916 million shares, cash 306 million 400 thousand yuan.

Meanwhile, Huayi Brothers supervisor Yu Feng sold 4 million 458 thousand and 600 shares and cash 71 million 340 thousand yuan; Wang Yulian (Yu Feng's mother) sold 3 million 600 thousand shares and cash 57 million 600 thousand yuan.

Da Yu water saving (300021) since the lifting of the ban in November last year, 9 "Dong Gao Gao" accumulated 30 times of reduction, of which, the largest reduction of 1 million 500 thousand shares, at least 700 shares reduction, in addition to not holding the independent director and the actual controller is still in the ban period, almost everyone is involved in the sell-off.

The collective throwing of shares has also led many investors to wonder whether they are not optimistic about the company's future.

The stock price is dropping.

This year, gem has become the hardest hit in the stock market.

If the performance is calculated in the year, the gem index will fall by 22.81% compared with the beginning of the year, compared with the decline of 1.85% for the small and medium-sized board, and 1.79% for the Shanghai Composite Index.

"Falling" has become the key word of gem's overall performance.

This year, in the process of continuous adjustment, more than half of the GEM stocks fell below the issue price, a large number of gem stock prices hit a new low, and the two tier market performance of GEM stocks is too horrible.

Up to now, 115 stock prices in gem have fallen by more than 20% during the year, and 9 have fallen by more than 40%.

Among them, the main business crisis of Kang Zhi Pharmaceutical (300086) the biggest decline, the share price has been "cut."

At the same time, the performance of GEM companies has also been significantly differentiated.

WIND data show that the statistics of 215 GEM companies, the first quarter net profit negative growth of 48, accounting for 22%, of which 10 companies fell more than 50% over the same period, down 18 over the same period last year.

There are only 106 GEM companies that actually increase net profit by more than 30%.

Of the 56 GEM companies listed this year, there were 12 net profit declines in the first quarter.

In fact, it is an indisputable fact that the growth of growth rate of GEM companies is slowing down.

And this phenomenon is likely to be enlarged this year.

It is worth mentioning that in the performance report of Listed Companies in 2010, the interest income of new listed companies generally increased substantially compared with that before the listing, and contributed greatly to the profits of the company during the current year.

In the first half of 2010, there were 54 new companies listed on GEM, and 42 companies had relevant data to analyze.

Statistics show that the 42 companies achieved an average interest income of 9 million 940 thousand yuan in 2010, far higher than the 560 thousand yuan before the listing.

Gloomy is not accidental.

GEM listed companies are mostly new industries supported by national policies. Why are they so bleak?

"Faced with inflationary pressures, small and medium enterprises will face serious challenges in crossing the border.

Recently, the growth enterprise market index has been innovating low. In addition to the problems caused by its own institutional reasons, its risk appetite is also poor.

Wang Chen, director of the Shandong center of the international financial management association, believes that the essence of gem is to absorb high-tech enterprises with high growth. However, due to scale constraints, the products of gem enterprises are relatively simple. Once they are affected by factors such as regulatory policies and rising costs, their performance will easily decline.

In addition, the performance of listed companies is lower than expected, which is related to the excessive packaging of some companies before listing.

"Although the gem has started valuing regression at the end of last year, the current downward trend has not changed. The decline in concern will be the norm for the small cap stocks in the coming period."

Guihao Ming, director of Market Research of Shenyang Wanguo Securities Research Institute, believes that the GEM listed companies are mainly distributed in the emerging industries, and may be the leading industry in their own, but their positions are often not stable, and their industry is leading, most of them have not yet stood the test of time.

If the industry is very general, or is going downhill, or the position of the company in the industry is challenged by the latecomers, the performance will be changed greatly.