Since late November, the market style has changed greatly compared with that before. Some low-cost and low market value companies have doubled in more than a month, Andon Health Co.Ltd(002432) , Beijing Jingcheng Machinery Electric Company Limited(600860) , Shaanxi Jinye Science Technology And Education Group Co.Ltd(000812) , Col Digital Publishing Group Co.Ltd(300364) and other companies have increased by more than 200%. When the index increase is less than 5%, low-cost stocks generally outperform the index.
On the whole, the market style in the first 11 months of this year is highly biased towards mid market, high priced and high valued enterprises. These companies generally have a 40% or even higher increase, far stronger than the index performance, but the profit growth of such companies is far behind their share price gains. Therefore, after months of sharp rise, the adjustment pressure is gradually increasing. Although the profit growth data of low-cost and undervalued companies are not good, their previous performance is too poor. With the price fluctuation, their cost performance is gradually stronger than the above-mentioned companies, and the funds also begin to flow into such companies. After losing the average market increase for nearly a year in a row, the reversal effect began to work. This performance may last for some time. Before the spring offensive finds a new main logic, companies with low price, low market value and undervalued value may receive continuous attention from market funds.
According to this idea, we selected some companies whose share price was less than 10 yuan, total market value was less than 5 billion yuan, P / E ratio was between 0-20 times, P / B ratio was between 0-2 times, cumulative increase this year was not more than 30% and increase in December was not more than 10% for investors’ reference.
Risk tip: the re switching of market style leads to poor performance of the three low varieties, lower than expected economic growth outside China, higher than expected deterioration risk of epidemic situation, sharp decline in the performance of relevant companies, systemic risks in foreign markets, etc.
