The market can think of all kinds of “Mao” collective rebound, BYD, Ningde Times, China and other stocks have soared. By the end of the morning, the three major A-share indexes rose, with A net inflow of 4.947 billion yuan in northbound funds.
Source: the Wind
All kinds of MAO bounced back
After the Spring Festival by the “dragon” change “worm” industry leading shares, this morning ushered in a collective rebound.
Known by the market as the most miserable “Mao” medical policy, this morning trading limit. The stock in February 22 – March 9 adjustment period, the cumulative decline of 45.8 percent.
Tongce medical recent trend chart
Source: the Wind
The Wind Mau Index rose 3.68%. Among its constituents, apart from Tongce Medical, which rose by the daily limit, Aier Ophthalmology, WuXi AppTec and China Immunotherapy also saw significant gains. ChiNext market capitalization “elder brother” Ningde Times rose 6.53%, the second market capitalization Mindray Medical rose 7.23%.
Some of the index’s top performers
Source: the Wind
Meanwhile, Kweichow Moutai rose 2.45 percent to 1,984.5 yuan. The shares traded as low as $1, 00.18 yesterday. Baijiu plate, Shanxi Fenjiu trading limit, Luzhou Laojiao, alcoholic wine rose more than 6%.
Copy bottom white horse share win rate is not high?
In the past two years of the structure of the market, “white horse stocks do not set people” this view is deeply rooted in the hearts of the people, the stage of a 20%-30% callback, after the event are on the car opportunity.
However, open source securities has given a different judgment from the “common sense” of the market, its latest strategy weekly pointed out that the historical experience of bottom-hunting “white horse stocks” shows that the winning rate is not high, but the opportunity cost is high. Be a friend of time, not all can “create brilliance again”.
The firm combs through 466 stocks that have historically been heavily held by institutions. Only 208 of them have returned to their previous highs after the biggest pullback, and 258 of them have become ‘former white horses’ after the biggest pullback.
Historically, the probability of a short-term rebound in white horse stocks after a rapid pullback of more than 20% is not impressive. Within two weeks, the average rise or decline was only -0.51%, and the proportion of stopping the decline and rebounding was less than 50%. The average gain or loss in a month was just 0.88%. Most of the industry’s white horse stocks after a large short-term correction (more than 20%), bet on a steady rebound in the next two weeks and a month is not a good chance of winning.
Based on this, open source securities said investors actually have a choice, in other assets to find gains to cover losses. Investors are advised to pay attention to the divergence of core asset prices based on PEG and return to ROE.
Institutions began to look around
Recently more than open source securities an institution, a number of securities companies began to recommend based on PEG stock investment logic.
The PEG index, carried forward by legendary American fund manager Peter Lynch, has gradually become a widely used important index, which is of great significance for measuring the valuation of growth stocks.
PEG is a measure of a company’s price-earnings ratio (PE) divided by the company’s compound growth rate of earnings per share over the next three or five years. When PEG is equal to 1, it indicates that the valuation given by the market can fully reflect the growth of the stock’s future performance. If it is greater than 1, the stock may be overvalued, or the market may believe that the company will grow more than the market expects. Anything less than 1 means that the market is either undervaluing the stock, or that the market thinks its earnings growth may be worse than expected.
In the past, the main reason for the market to chase white horse stocks was the certainty of performance. Founder Securities said, in the epidemic gradually under control, the global economy gradually return to normal, internal and external uncertainties dust settled under the circumstances, the market risk appetite is expected to pick up, certainty will no longer become the only criteria for stock selection. Under the condition that the growth style is expected to revive again, the modified PEG model will be more able to find targets with excess returns.
State gold securities said the focus on mid-cap stock investment opportunities. Under the global economic recovery, on the one hand, the performance growth advantage of CSI 300 and other large-cap constituent stocks is not strong, while the medium-cap constituent stocks have stronger growth. On the other hand, under the background of tighter liquidity and rising interest rates, some large-cap stocks with high valuations face greater valuation adjustment pressure, and the safety margin of mid-cap indexes such as CSI 500 and CSI 1000 is highlighted.