What are the characteristics of a good stock? In short, a good stock is a strong stock.
Such stocks generally have the following characteristics:
- High gross profit and low net profit. Such stocks tend to contain many opportunities. High gross profit means that the company has good potential, natural beauty, low cost, high selling price, and a competitive advantage. The net profit is low. In the context of the company’s high gross profit, there are also cases of low net profit, indicating that the intermediate costs are too high.
- Expect high growth. The most typical example is the stocks of GEM-related companies. Before the crash, the average PE was close to 150 times, and now it is close to 90 times.
- Anticipate a market reversal. The most obvious performance of such characteristics is cyclical stocks, the most typical is the big bull market in 2007, the most intense is the wave bull market, and the most exciting is the non-ferrous metals. I remember that Chihong Zinc had the highest share price at that time, and the price-earnings ratio was ten times. above. However, if you are buying because of a low P/E ratio. It is precisely because of the soaring prices of non-ferrous metals and coal that the related industries are severely overcapacity. We have to wait until the next cycle, don’t know when.
Characteristics of stocks that are prone to rise:
- The relative spatiotemporal position is at a lower level.
- The oscillating range between the highest point and the lowest point on the opening day of the main market is better than 4.5%, preferably above 6.2%.
- On the opening day of the main market, the emergency response of transaction and turnover rate exceeds at least 3%, preferably 4.5%, and preferably more than 6.2%.
- It is best to break through the neckline or panel when the main force first starts to market, or break through the previous high point or even just hit a new high, so that it is easier to have a big market.
- Stocks that are not hyped, or stocks that are hyped, and stocks that have lost all profits, are best owned by the sector. In extreme cases, this market hot spot, or even the leader in the hot spot, is more likely to have a big market.
- Small caps are more likely to have large markets. For example, stocks with a market value of less than 80 million yuan in circulation or stocks with a circulation of less than 10 billion yuan are more likely to have a big market.
- In the context of rising markets, individual stocks are more likely to make big moves. So entering the market is best to cooperate with the market.