The Top Three Pressure Screens Of Gem Are &Nbsp;

The end of May is undoubtedly black.

As of May 30th, the Shanghai Composite Index fell 7.05%.

The influencing factors are manifold, such as the uncertainty of the global economic situation, high prices, tight capital market and so on.

First, the gem is still facing high valuation pressure which does not match its growth.

Although the gem has experienced a sharp decline, as of May 30th, according to Wind information statistics, the overall static price earnings ratio of the gem is still 45.59 times higher than that of the A stock market, and the highest static price earnings ratio of the SME board is 36.78 times. The overall static P / E level of the lowest Shanghai A shares in the main market segment is only 15.19 times.

At the same time, it is important to note that the high valuation of gem is far from high growth.

We can see that the net profit of GEM companies increased by 25.99% in the first quarter of 2011 compared with that of the GEM companies, which is only slightly higher than the 24.83% growth rate of the A shares of the Shanghai Stock Exchange, which is also lower than the 29.33% growth of the small and medium-sized boards.

It is also worth noting that compared with the 4 quarter of 2011, the net profit level of GEM companies in the first quarter of the year fell by 31.62% compared with the previous quarter.

As a result, the growth of mismatch with its overvalued value will make gem still face the valuation callback.

Second, the growth enterprise market is facing enormous pressure of expansion.

Gem only had 153 companies in December 31, 2010, and since 2011 to May 30th, the new GEM listed companies have been ranked 300222 from Anju Bao (300155) to the current HKUST (300222), which has increased by 68 companies and expanded about 45% in just 5 months.

From the current issuance situation, there is no sign of slowing down in the expansion of the growth enterprise market.

What we can foresee is that at this rate, the number of gem listing will increase to more than 300 at the end of 2011, and the expansion will reach 100%.

Such a rapid expansion, coupled with the large number of private equity investment funds, the size of the lifting of the ban, making the gem new chips need funds at least 4 times more than last year, in the current overall market liquidity is less, the direct result is the share price down.

Third, the gem is also facing the policy pressure of direct delisting.

As a new thing, the gem has taken into account the differences between the main board and the prohibition of shell buying and reorganization, and the stricter direct delisting system.

This makes the stock market of gem probably do not have the value of "shell resources" which has been formed for a long time by the listed companies of the main board. If the gem fails to operate continuously, the market value of the gem will be directly returned to zero.

At present, the management of the gem's direct delisting system is still in a methodical design and discussion, and its policy pressure also makes it necessary to consider the gem valuation system.

Generally speaking, the market has listed gem, small and medium board, concept stocks and sub shares as "four black swans".

The typical characteristics of these four plates are: overvalued, small cap stocks, and last year being fried, technology or concepts.

Especially in the context of the gem, in the context of economic slowdown and lack of liquidity, these four plates have become the "land mines" sector this year. The recent decline in the growth and decline of the growth enterprise market objectively reflects this situation.

But as an important supplement and part of China's capital market, the development of gem should be viewed dialectically.

While promoting the effective and rational allocation of social capital, gem also has its own bright spots: first, there are many technology companies that represent the forefront of the economy; the two is that some high quality companies are growing very fast even though the plates are still small; three, after the recent downturn, some growth oriented technology stocks with good quality have fallen out of value.

So how do we dig up the gem?

We believe that investors can choose from the following aspects: first, the high-quality technology stocks representing the economic frontier; two, the quarterly profit year-on-year and the increase in the annulus ratio; three, the companies that are still raising the gross profit and market position; four, the companies that grow faster than the current valuation level; and five, the PB whose market value is below 6 and the market capitalization is less than 5 billion yuan.

The stocks with the above five conditions are not afraid to adjust, but on the contrary, when the market appears cheap chips, it is still a good opportunity to copy the bottom.

On the other hand, if the five conditions do not exist, even if it has been substantially adjusted, we should be cautious and not blindly intervene.