The market continued to adjust. The net breaking stocks represented by bank stocks showed obvious resistance to decline, and even some stocks rose against the trend. The biggest reason is that these stocks have a high margin of safety.
For a long time, bank stocks have been favored by investors because of their high yield and low P / E ratio. When most stocks fall, net breaking stocks have become a safe haven for investors. This is because investors will also consider risk avoidance when there are no obvious investment opportunities in other stocks. After all, holding stocks can not only obtain new qualifications, At the same time, it can also obtain the investment income of the annual report performance wave under the good performance expectation of net breaking stocks, so net breaking stocks have become the focus of investors’ attention in the near future.
Net breaking stocks are mainly divided into three categories. First, bank stocks whose share price is lower than net assets are characterized by huge circulation and lack of the concept of speculation. Supporting the stock price mainly depends on real performance and cash dividends. Bank stocks generally do not carry out high transfer operation. Therefore, the funds holding bank stocks are mainly long-term investment institutions, which directly leads to the inactivity of bank stocks. However, the yield is very high. Generally, the dividend rate of bank shares can far exceed the interest rate of one-year time deposits of banks. At the same time, it can also be comparable to all kinds of “treasure”. Therefore, some investors also enjoy interest income by holding broken net bank shares for a long time. Of course, the decline risk of broken net bank stocks whose share price is far lower than net assets is relatively small, which is also an important factor to attract investors.
The second category is the net breaking cycle stocks represented by steel and coal. The share prices of such companies do not break the net for a long time. When the industry is in the business cycle, their share prices may rise sharply. However, when the industry is in the trough, their performance will decline, the price earnings ratio will rise, and the share price will fall below the net assets. At this time, if investors adopt the bottom reading strategy, they may also prevent the decline of the share price, It also has the function of hedging. After all, they are also valuable companies.
The third type is the net breaking stock with price comparison similar to China Telecom Corporation Limited(601728) . If there is no price comparison effect of Hong Kong stocks, their relative price in A-Shares is still relatively low. However, due to the existence of Hong Kong stocks, their share prices look a little expensive. These companies are affected by price comparison factors and good performance. Their share prices hover near net assets, and it is not easy to rise or fall, so they also have certain advantages in risk avoidance. When there is an adjustment demand in the stock market, these three types of net breaking stocks can be taken care of by funds and become a safe haven during the adjustment.
In fact, not only in the adjustment period, but also in ordinary times, risk averse investors will pay more attention to such broken net stocks. After all, if the share price of a company is lower than the net assets per share, its security is still very good. If it is still a large enterprise and there is no problem with its performance and growth, such a company is worthy of long-term holding by investors.
According to the rough statistics in this column, if investors “fool” buy Industrial And Commercial Bank Of China Limited(601398) and hold it for a long time, in the past many years, investors can not only obtain high dividend income every year, but also the stock price has not fallen. Although the stock price of Industrial And Commercial Bank Of China Limited(601398) looks very cheap now, investors holding shares can still obtain satisfactory investment income.
