In The Fall, The Sand And The Sand Are Falling Down &Nbsp;

The rivers flowing down are not only sediment, but also "gold sand". The stock market has been slumped, not only the stocks that have been overheated, but also the growth stocks with steady growth. The former can be regarded as a return of value, while the latter is called "wrong killing". The "wrong killing" is like the "golden sand" flowing down the river. No matter how far or how deep it is, it can not erase its value. When the stock market is full of mud and sand, it is a good opportunity for investors to search for gold.

　　 Kill fall Mud and sand everywhere

The Shanghai Composite Index fell to more than 450 points, or 14.88%, from 3067.46 in April 18th to 2610.99 in June 20th. Especially in May 23rd, after breaking through the 2800 point finishing platform, a sudden drop of 8.66% has scared many panic plates. Many low valuation industries and stocks have been cleared by institutions and retail investors.

According to the author's statistics, in the fall from April 18th to May 20th, 4 industries, such as non-ferrous metals, transportation equipment, machinery and building materials, fell more than 7.07% falls in the 23 first class industries of Shin Wan, and 5 sectors of public utilities, food and beverage, pharmaceutical and biological, household appliances, commercial trade and so on were even uptrend. In the first wave of decline in May 23rd, except for household appliances, real estate, food and beverage and comprehensive industries, the rest of the market lost more than the big market. The most obvious ones were food and tourism, utilities, information equipment, transportation, machinery, light manufacturing, financial services and ferrous metals. After this wave of slam, the valuation of the industry dropped further, for example, the price earnings ratio of the financial services industry dropped from 24 times in mid April to 21 times in mid June, which has been below the 1664 level in October 2008.

From the performance of A shares this year, in May 23rd, the stock market dropped more than 1496 stocks in the market, and 211 fell by more than 20%. Among them, there were both high valuations and larger stocks in the early stage, but there were also a few stocks that were not high in valuation and early or small. In addition, some of the 2011 stock market earnings forecasts below 10 times less than the stock market also fell by more than 10%. Among those stocks, who can deny the existence of "killing the stock by mistake"?

"Three tactics"

If we want to dig the gold and kill the stock wrongly, we can start from the following three aspects.

First, from industry Start with the industry boom or policy oriented stock selection. If the industry boom is better, or the industry is actively supported by policies, it will provide a good space for the development of Listed Companies in the industry. As long as they are able to take steps in the development of the industry and have a certain market competitiveness and market share, they will generally achieve good results. From promoting the outline of industrial development to the "12th Five-Year plan" and promoting the development of new industries, the government has launched a lot of supporting policies in recent years, and relevant sectors and listed companies have also performed. In this wave of falling prices, many industries and stocks have been valued and repaired. As the development of the industry is a long-term and continuous task, the performance of related sectors and listed companies will also be long-term and continuous. In short, in the process of looking for the wrong killing stocks, we can find out the industry that is wrongly killed and have clear prospects for development from the perspective of industry, and then choose the gold stocks that are wrongly killed in the industry.

Two, proceed from the fundamentals of the company. achievement Growth prospects stock selection. Investing in stocks and investing is the future of listed companies. Only companies with stable growth performance are good investment targets. Even in industries that are in a stagnant economy, there will still be companies coming out of the market to break through their own market and get lucrative profits. Therefore, the wrong stocks can also be found in stocks that are larger in value, lower in valuation and in the performance growth. For example, at the time of the disclosure of the interim report, nearly 80% companies have announced the announcement of good news, and the increase in the performance of machinery, chemical, pharmaceutical and new energy companies is more eye-catching. Investors may focus on the stocks whose main business growth is clear and the growth trend of the growth trend is better.

Three, starting from the market performance, we choose the stocks that are out of stock. In bull market, the behavior of companies such as high delivery and transfer will bring the stock price to a higher level, while the bear market will become the best time for shipment. The IPO market is also similar, bull market is booming, bear market "break". And these stocks are not all defective products, some of them belong to the nature of being mistaken. When the market is better, salty fish will turn over. Investors can take advantage of it to pick up a bargain.