Stock Market Prospects: Does Gem Stock Still Play?

In 2015, it was the year when the growth enterprise market began to boom and fall.

In September 2, 2015, the gem index set a new low position 1779.18 points since the current round of adjustment.

If calculated from the highest 4037.96 index of the gem index in June 5th this year, the total decline of the index will be as high as 55.9% in less than three months.

However, as of September 21st this year, the gem index rose by only 41.26% during the year, which has shrunk considerably from the year's highest.

Specifically, on the one hand, under the background of a sudden drop in the overall market valuation level, the leading stock of new gem, which is dominated by computers and high-end machines, will gradually get the renewed attention of market funds after the value is returned to rationality. On the other hand, it will be a chance for the GEM stocks with better valuation advantages, especially those whose valuation level is far lower than the average valuation in the same field.

At the same time, for outstanding, brand influential or charismatic GEM stocks, they will gradually move out of the slow moving trend and lead the healthy growth of outstanding stock market.

However, it is important to note that for some GEM stocks that were previously hyped up and lacked essential support, their return to value has just begun, and such stocks have long been in a long way.

Therefore, for this type of stock, investors need to stay away from them as far as possible.

In fact, after the recent three months of downward trend, the overall risk of the gem has also been greatly reduced.

However, from the relevant data analysis, the overall investment advantage of the GEM market is still not obvious.

Among them, the dynamic price earnings ratio of the whole growth enterprise market is analyzed.

Up to now, the Shanghai and Shenzhen two cities as a whole

About 15.81 times.

Among them, the overall price earnings ratio of the Shanghai and Shenzhen 300 index is about 11.07 times, while the overall price earnings ratio of the gem index is about 67.79 times.

For the gem index, although the overall valuation of the market index has been largely slippery, compared with the corresponding valuation level in July 14, the overall valuation of the gem index is still high.

Among them, according to the statistics of institutional statistics, before and after July 2014, the overall price earnings ratio of the gem index is only 41.73 times.

As for the dynamic earnings level of stocks in the growth enterprise market, there is a clear pattern of differentiation.

Among them, as of September 21st closing, in the growth enterprise market, less than 30 times dynamic

There are 17 GEM stocks.

But at the same time, the dynamic P / E is more than 100 times, and the number of GEM stocks including losses is up to 213.

Thus, judging from the specific gem stock valuation level, there are still many high valuation stocks.

The author thinks that "becoming a capital and losing money" is a real portrayal of the GEM market in recent years.

Indeed, for the growth enterprise market, it is basically driven by capital.

In this regard, in the early stage of the public offering fund and the private placement fund's centralization, even the "hug and keep warm" environment has created favorable conditions for the continuous growth of the growth enterprise market.

However, when the high valuation bubble of the gem is broken, both the private equity fund and the listed companies themselves will have a fatal impact.

Obviously, in the face of the "cut in" trend of the growth enterprise market, it has also attracted the attention of all parties in the market.

The author thinks that in the early growth enterprise market, the earnings per share of the GEM market is also overdrawn by the high price earnings ratio.

Obviously, under the high valuation, its fundamentals have been unable to sustain such a valuation level.

As a result, in the process of continuing irrational growth in the growth enterprise market, it has gradually evolved into a game of "beating drums and spreading flowers".

In fact, for gem stock, because of its high growth and low circulation market value and other advantages, in fact, it means that the conventional index such as P / E ratio is not the only indicator to evaluate the investment value of gem.

Now, in

Under the background of a sudden drop in the overall market valuation pressure, the GEM market will inevitably generate differentiation trend.

At this point, investors also need to take a rational view of investment opportunities in the growth enterprise market. They should not be blindly optimistic or pessimistic.

Looking forward to the future direction of the growth enterprise market, I believe that the "capital driven" characteristics of the growth enterprise market will remain unchanged, and the direction of the future growth enterprise market will also depend on the willingness of the OTC capital to enter the market and the change of policy environment in the future growth enterprise market.

However, for the GEM market, the future growth enterprise market will usher in a pattern of stock differentiation.

In short, excellent GEM stocks and stocks with considerable growth valuation will gradually come out of the low price. As for those GEM stocks that lack basic support and suffer from early speculation, they will fall into a long-term downturn.