I recently reviewed several ten-fold stocks in the history of A-shares . I would like to share my experience. I hope it will inspire us to look at the market now .
Ten times stocks, most of them have doubled their valuations and 4-6 times their performance. Performance is still the main contribution. Big bull stocks that have really been maintained for several years rarely rely on multiple valuations.
I have to say that the timing of the shot is very important.
In the early stage of the rise of ten-fold stocks, the performance recovery doubles the profit, doubles the price, and the valuation will also be doubled at this time. Because everyone found that the uncertainty is eliminated. It rose from 1 yuan to 4 yuan, and in fact later it rose from 4 to 8, and even rose to 10 yuan. This stock must be a market star, and many people are afraid to buy it.
The performance growth of bull stocks in this process may not be expected before, and may even be a merger or acquisition, or a one-time profit or loss. A cyclical profit high, and the predictability of post-performance growth is also less.
To put it simply, most people dare to participate from 1 yuan to 4 yuan, because the increase is small. Later, it rose from 4 to 10 yuan, which is more than double the space. Even if it is a ten-fold stock, it is extremely difficult for ordinary people to participate. When it rises to 4 yuan, you are facing a company that has quadrupled and its valuation can go up or down by 20-30%.
In reality, ten-fold stocks often have a profit growth of more than 50% for several consecutive years, and some years return to 70% or even double. In the past few years, the profit has grown rapidly to five or six times the level at the beginning of the start, and the stock price has also reached the peak. Then, finally one year, this year, the company's profits did not increase. For example, his profit ranged from 100 million to 500 million, and the year after the 500 million profit was realized, his profit fell to 450 million.
Just slipped a little bit. What do you think will happen? It must not be that the stock price fell by 15%-20%. Often the stock price is cut in half, or even 70%. Because the valuation has also begun to kill, and it has killed badly. Because in the past few years, everyone has always expected him to have a high growth rate.
Having said so much, the central idea I want to say is: When the market is in a downturn, it is the hotbed of big bull stocks.
You may have heard this sentence often, but if you look at this ten-fold stock example, you will have a deeper understanding- when the market is in a downturn, it is easier to seize opportunities.
In the end, it is impossible for most companies to be ten-fold stocks, but at least the market has given enough margin of safety and has a psychological advantage.
From this point of view, although there are still various things that are unclear in the market at the moment, it is true that we should be more confident and do more research.
Add
