Yunnan Baiyao, Pien Tze Huang, Luzhou Laojiao, Zhangjiang Hi-Tech, Yuyuan Mall, Changyuan Shares... a long list of big bull stocks. After years of giving out dividends and repeatedly filling in rights, the real stock prices have been It has increased by ten times or even dozens of times. They have one thing in common: small plates!
A company that is truly in a high-growth period must be small in scale. Those large-scale companies are close to the industry ceiling, with good profitability but low growth capabilities.
At some point, due to the grouping of institutions, large-cap stocks will have a good rise. However, doubling the price is already a luxury. At this time, I am afraid it will take a few years to wait for a wave. Institutions group together large-cap stocks, and small-cap stocks will inevitably fall continuously due to blood loss. What they want is to make you desperate to cut them off. After they pick up enough bloody small-cap stocks, they will push them up in a wave, leaving investors who cut small-cap stocks to chase large-cap stocks and get slapped on both sides!
Large-cap stocks such as Sinopec, PetroChina, China Unicom, China Railway Construction... Have you ever seen them rise tenfold?
Large-cap stocks such as banks have indeed increased more than ten times since their listing, such as Shenzhen Development Bank and China Merchants Bank. However, when they were first listed, they were also medium-sized stocks and were not large-cap stocks. After years of development, their current market value A big increase, but it seems to be pessimistic!
To win big in the stock market, you can only choose small-cap stocks and carefully study the company's operating conditions (inventory, receivables, advances, goodwill, guarantees, cash flow, RoE and other indicators), as well as its location Industry development prospects (AI, Internet of Things, new energy, blockchain...the development direction of human society) must be among the top three in the industry, with patented technology and innovation capabilities.
Pick one or two of each new industry, buy in batches without chasing highs, form your own combination of skills and capital, and then do whatever you want. Emerging industries are close to the development trend of mankind. If you want to invest in small-cap stocks, It’s hard not to get rich!
Small-cap stocks are valuable investments, but the number is very small. Many companies are listed for the purpose of listing, and most small and medium-cap stocks are listed for cash.
Why do you say this? This is because:
1. Most of them are listed for the purpose of cashing out
Due to institutional problems in the primary and secondary markets, A-share companies are listed for the purpose of cashing out and reducing their holdings. They are listed for the sake of listing. .
In the primary market, one share is about one yuan, but in the secondary market, it is tens of yuan, or even higher.
Therefore, many companies go public not to develop their business, but to find ways to raise their stock prices and then sell them in a liquidation sale. In the end, all shareholders are billionaires, and most companies are about to be delisted.
This has led to a large number of companies trying to find ways to go public, and the IPO speed has accelerated, but there are still queues waiting outside.
The CEO of a certain clothing brand said that after decades of running a physical business, he has not made as much money as he has in a few years in the capital market. Think about it, who doesn’t want to go public?
2. A few leading stocks developed from small and medium-cap stocks
Not all small- and medium-cap stocks cannot develop. Currently, some leading stocks have developed from small- and medium-cap stocks. Leading stocks, but the number is too small.
In addition to capital operations, coupled with good opportunities for domestic economic development, these stocks have now become leading stocks.
As economic growth slows down and the monopoly of large companies gradually increases, it will become less and less likely for small-cap stocks to become leading stocks in the future.
Therefore, the value of small-cap stocks will become smaller and smaller, which is also the main reason why institutions currently form groups.
3. The data of small-cap stocks is too watery
It is precisely because the purpose of listing is not pure, so in order to go public, these small and medium-cap stocks will undergo various frauds, etc. The data is too watery Big.
Some stocks have suffered losses only half a year after they were listed. I don’t know how these stocks were listed?
There are also some stocks that performed very well before going public, but after going public, their performance got worse and worse. Then they spent all day riding on the popularity, concepts, etc., and ended up with nothing.
There are also some stocks that make some incredible jokes, such as pigs starving to death, scallops running away, etc. How do you want everyone to invest in these stocks?
In short, there will be fewer and fewer small-cap stocks with value. In the future, there will be a large number of penny stocks with no trading volume. There will even be more small-cap stocks delisted, and there will only be more.
Personal opinions, for reference only!
It’s not that small-cap stocks have no investment value, it’s that the farmers have no votes. In the bull market that started in 2015, most of the small-cap stocks were snapped up by stockholders who were on guard, and it took a long time for the chips to loosen; similarly, the value of stocks in the hands of farmers needs to be recognized and accepted by the market, which also requires a process. So Crop investors are running a marathon.