Look At Performance Jump Growth Stock Selection

We analyzed two ways to increase the company's performance: one is the growth of the main business (static growth), one is the growth of new projects (dynamic growth). This new project is not the original main business, but another new business. This growth mode is characterized by its main business.

If the original main business is greatly reduced or simply withdrawn altogether, the growth of the company's future performance will depend entirely on the new business, which can be called jump growth in performance.

judge

1, the correlation between new and old businesses is low or even irrelevant, and there is no variability in performance before and after.

2, the revenue of new business is much higher than that of old business.

3, the company has reasonable reasons for business pformation.

For example, a company is on the brink of a continuous loss and then replaced by a new asset. As long as new assets are in a better level, a jump in performance is formed. This type often occurs in ST companies.

Because the company is different from before and after, so long as the company's future performance has a jump growth, we can buy in advance, equivalent to holding another company in the future, and we can get the difference between the two different location companies.

Such companies

Because these companies generally have the experience of ST, their stock prices are relatively low, and the future rise is much larger.

Another important reason is that few big investment institutions, such as funds, rarely buy ST stocks, though their researchers know about it.

So, stock price.

There is another point to remember: when jump growth is completed, the company's performance will probably not increase again.