First, huge losses come from impairment provision. It was originally profitable, and the provision for impairment was made, and the loss was decisive. This kind of thunder is actually quite a lot. However, it should be noted that most of these companies are actually doing performance washing. In preparation for the Shanghai Stock Exchange, the performance may continue to strengthen. Moreover, this kind of thunder has a large short-term decline, and it is actually a particularly good opportunity after several down limits. The more losses in the stock market, the faster the stock rises, which can only be regarded as an example, and this is only the result of human manipulation. In the end, it will only fall to the stock price, falling endlessly, and even withdrawing from the historical stage.
Second, the cycle factor. It is normal for cyclical stocks to lose money at the bottom of a weak cycle, with a loss of 1-2 years or even 3 years. But this kind of stock can be bought above 1 yuan, which is basically profitable. The strong cycle has come, and the income has doubled to five times. Even if the strong cycle of delisting comes to continue to make profits, the resumption of trading is several times the increase. Profitable companies, especially those with stable profit growth, are basically industry leaders, with large market value, many institutions stationed, and hot money is not easy to touch and rarely rises and falls.
In the stock market, due to the poor performance of listed companies, the share price has generally experienced a long decline, the absolute share price has been at a low level, and often the negative interest has been exhausted. The company's operating conditions are gradually improving, and the company is concerned by some funds, and its share price will slowly rise. In addition, some hot money likes to speculate on junk stocks. Therefore, we will see that the share price of loss-making companies is rising faster and faster, and individual investors should avoid it.