Four principles of low-price stock selection

Source: http://www.gpcankao.cn/xuangu/nsxg/287.htm

 

Recently, at the control of high-price blue chips, Hong Kong stock congestion bureaus have not changed. However, low-price stocks have all been fired into the "Flying sand Walking stone" because the market funds are bored with high-price stocks and are beginning to sell low-price stocks. However, when the speculation is hot, Sir should remind investors to be more careful. Some low-price stocks that lack strength may be caught off guard. If investors leave behind, they will inevitably suffer losses.

The advantages and disadvantages of low-price stock selection are traceable. As long as investors pay more attention, it is not difficult to find some high-quality shares. The following four principles can be used for your reference:

(1) stable profitability.
I just mentioned that some low-price stocks have suffered losses for years. The only exception to this kind of stocks is that some low-price stocks are about to turn into profits and the future profit prospects are very high. This is a different theory, it can even be regarded as a hyping factor.

(2) Special business.
Not everyone can participate. If everyone can do it, there will be great competition in the future.

(3) The entry threshold is high.
This is somewhat similar to the one mentioned earlier, but here it means that some majors cannot be replaced, and they may not be able to enter this industry even if they have money.

(4) The market potential is extremely high.
If there is a limited space for the future development of an industry, even if the above three conditions are attached, it cannot be regarded as a worthwhile stock, because the future profit is very limited. If the above four conditions are met, this kind of low-price stock will be "money" in the future.