Chapter 110 Stock Selection Logic

"We should pay equal attention to short-term speculation and long-term speculation." Su Yu said, "We must have an institutional mindset and a hot-money operation level. In other words, if we want to achieve brilliant results in the short term, we must not only compete with institutions for chips, but also We must compete with hot money and guide market concepts to speculate on the market.”

"The funds are divided into two parts..."

"Part of it is long-term investment, choosing high-quality stocks with huge potential for explosive performance."

"With this part of the funds, after buying the chips, as long as the fundamentals are not realized, no matter whether the stock rises or falls, it will stick to it. During this period, traders can be used to perform intraday operations, appropriately reduce the retracement between positions, and train transactions. The player’s trading sense and trading execution principles.”

"I have decided that you will be responsible for this part of the financial operations."

"The other part of the funds is set aside for radical short-term speculation and emotional investment. I am responsible for this part."

"The net value of short-term speculation will fluctuate greatly, but the net value of long-term holdings will be relatively stable. The two are compatible, and it should look better in terms of risk retracement and net value trends."

"But whether it's short-term speculation or long-term holding."

“The investment strategy around the main line of ‘mobile Internet’ remains unchanged.”

"Yes!" Li Meng replied, "As long as it is conducive to the growth of the fund's net worth, I think it doesn't matter whether it is a long-term holding strategy or a short-term speculation strategy."

"Since there is no objection to the operational strategy..."

Su Yu opened the door and walked into the room, changed his shoes, and said with a smile: "Then let's discuss the selection of individual stock targets under the main line investment strategy."

With that said, Su Yu didn't wait for Li Meng to respond.

I walked into the bedroom, changed my clothes, and then came to the living room with my laptop in my arms.

Li Meng changed into slightly looser pajamas, then tidied up in the bathroom for a while, then came to the living room, turned on his computer, and showed Su Yu the proposed investment targets he had selected.

Su Yu glanced at the stocks she had chosen before.

I saw that they are mainly distributed in white goods, medicine, electronic information, and mobile Internet sectors. There are stable stocks and radical stocks.

The ones that are stable and have excellent historical performance are mainly Midea, Gree, Fuxing Medicine, and Changchun High-tech.

Relatively radical ones include Goertek and OFILM, which have entered the Apple industry chain, as well as Flush and Oriental Fortune in the field of mobile Internet finance.

“White household appliances and pharmaceuticals are the long-term bull sectors in the bull-bear market.”

As Su Yu checked his stock selection plan, Li Meng explained the logic on the side: "Moreover, the cyclicality of these two industries is not obvious, and both are still growing in the industry. The market share of excellent companies has further penetrated, and their performance and During a period when the scale of the industry is growing simultaneously.”

"Gree has taken an absolute leadership position in the field of air conditioners, with significant technology and brand moats, and... I heard that its subsequent product lines will also expand into the mobile phone field, and its dividends and historical performance are both excellent. , comprehensively weighing it, in the entire A-share market, it should be difficult to find a stock with better fundamentals than it."

"As for Midea...the brand effect and the market penetration rate of its main products are further improving, and its product line expansion and category expansion are more radical than Gree. In the white goods industry, which continues to grow and has thick snow roads, Here, I think Beagley’s potential for continued growth is comparable.”

"Fuxing Medicine has excellent performance. Whether it is its research and development capabilities, generic drug market production, sales capabilities, or its expansion capabilities, it is considered an evergreen tree in the domestic pharmaceutical industry. The room for continued growth is unknown, but downwards There is basically no room for growth, and it can be considered a fairly stable growth stock.”

"After Changchun High-tech was merged with Kinsey Pharmaceuticals, its fundamentals have undergone fundamental changes. In the field of growth hormone, in terms of market share, it is basically a separate business with a monopoly nature, and from its history In terms of performance growth, although everyone may say they don't care about the issue of height, they actually do care about it. The explosive performance growth potential of this stock may not be high, but the potential for sustained growth is considerable. Strong."

“The logic of GoerTek and OFILM is naturally the ‘iPhone’.”

"There is no doubt about the sales of iPhone products. The two companies are on Apple's list, and they are still in the big wave of 'comprehensive upgrading of smartphones'. Their performance has the potential to continue to explode, which is quite huge, and these two Although this stock has gone through one or two rounds of market speculation, the overall valuation level is not too high, so it can be selected as an offensive investment target."

“Flush and Oriental Fortune…”

"I made my choice based on the main line of 'Internet finance' you mentioned."

"You and I are both people in the securities industry. We usually use these two platform software to check information and trade. Although their current profit model relies entirely on advertising revenue and information value-added services, the user's monetization ability Not too strong."

“But with the express train of ‘mobile Internet’, the number of users is constantly accumulating.”

"As long as we find any new monetization point, our performance will explode several times, and the potential is still huge."

Su Yu listened to Li Meng's logical explanation, nodded slightly, and said: "Logically speaking, there is no big problem with your previous stock selection strategy. Seeking progress while maintaining stability is also like your style."

"But now we have decided to start with 'mobile Internet' as the core line."

"And there is an urgent need to improve performance."

"Then the few solid stocks you have chosen must be shelved."

"It is true that Gree, Midea, Fuxing Pharmaceutical, and Changchun High-tech are all excellent stocks and companies that can survive the bulls and bears and are on the snowy road of sustained growth."

"But just because the entire market knows they are excellent companies."

"So, in terms of expectations, it is difficult to have performance that exceeds expectations, and naturally it is difficult to have stock price performance that exceeds market expectations."

"Yeah!" Li Meng nodded, not refuting this point.

Glutinous rice

Indeed, when everyone knows that this is an excellent company, then they will naturally have enough expectations for its performance, and the current stock price has naturally fully reflected the current market expectations. It is difficult to predict What excess return on investment is obtained.

This is like the top students in a class.

Everyone knows that he can score 90 or above in normal exams, so when the results come out and he scores 92, naturally no one will be surprised.

But if a student who usually only scores 50 or 60 points suddenly scores 92 points.

Although grades are equivalent to eugenics.

But everyone's reaction is completely different, and the degree of praise received will naturally be different.

This is why in the market, sometimes excellent stocks do not rise, while stocks with average fundamentals soar. This is because in essence, the logic of stock price rises and falls is based on expectations, not fundamentals.

Clinging to the fundamentals of stock trading, ignoring the logic of expectations.

If you feel that stocks with excellent fundamentals and excellent historical performance should rise, stocks that feel that fundamentals are rubbish should fall. I am afraid that it will be difficult to make money from the beginning to the end.

"What about the target you chose?" Li Meng pondered for a moment and asked curiously.

Su Yu turned the computer screen to her...

Li Meng took a serious look and saw that the stocks selected by Su Yu basically revolved around the core theme of 'mobile Internet', but the individual stocks were distributed in different subdivisions.

"Fenda Technology, Internet Speed ​​Technology, Huaqingbao, LeTV..."

Li Meng looked all the way and found that except for the two stocks of 'Flush and Oriental Fortune', there was no similarity in other stocks.

"Funda Technology, Internet Speed ​​Technology, Huaqingbao, and LeTV have all basically increased at least double from the bottom up!" Li Meng said with some surprise, "And to be honest, currently... these Although the market is very enthusiastic about the potential of ticket sales, it may be difficult to realize it in the end.”

"There is no need for final performance to be realized, only logical realization and expected realization are enough." Su Yu said, "No one can say how far the future performance explosion will be, even the most professional investment research institution in the world. Even the company itself has no way of knowing its performance two or three years from now.”

"So, we only need to look at the tickets with the broadest market expectations within a year."

"After all, stock prices are based on performance expectations, not performance."

"Judging from current market expectations..."

"Fenda Technology has obtained Apple's technical certification and entered the wearable market. While the wearable market is still in a hazy state of development, everyone's expectations for it are obviously much greater than those of mobile phone industry chain stocks that are simply reported on Apple's stock. And its performance also has enough room to fulfill expectations and imagination."

"Netspeed Technology occupies the important juncture of 'network acceleration node'."

"In the future, people will become more and more dependent on the Internet, and the demand for browsing will become higher and higher. Backed by the explosion of 'mobile Internet' user growth, its market expectations and performance imagination are extremely strong. .”

“Hua Qingbao, as the only company with full qualifications and licenses in online games, stands at the forefront of the explosion of mobile games. That is to seize the first-mover advantage. If we hold it, we can expand stably and at will, and enjoy sufficient dividends. opportunity and seize the opportunity in the development time of the industry."

"No matter whether it can really grow under the favorable innate conditions."

"At least in the current market expectations, it has become the stock with the strongest expectations and the largest future expectations in the 'mobile game' line. Of course, when its first-mover advantage gradually loses, its own basic If there is still no fundamental change in terms of appearance and performance.”

"Then the expected logic will naturally collapse, and it's time to leave."

"As for LeTV..."

"Under the operation of Boss Jia, it is no longer just a video website. After the 'Super TV' strategy was proposed, the market is very optimistic about its entry into the 'smart TV equipment' field, and its own video content production and user volume , are currently in the stage of rapid growth. According to Boss Jia’s words, what he wants to build is an ecological platform, not a simple video website platform. Although we cannot be sure whether this is true or false, we cannot be sure whether this strategy can be completed. But at least according to current market expectations, it has the potential to become a giant company in the future 'mobile Internet' era, and this... is enough."

"You just said the logic of Flush and Oriental Wealth, and I agree with it."

"These two checks are essentially closely related to market sentiment and traditional brokerage business."

"We are optimistic about the future of the market, so under the emerging theme of 'Internet Finance', these two enterprise platforms, as stock trading auxiliary software and information channels used by most investors in the market, are naturally not to be missed, and can It is foreseen that as market investment sentiment improves and as mobile smart terminals gradually replace PC terminals, the investor base will expand to a greater extent."

"The user groups of these two platforms will definitely see a huge jump in the future."

"In my opinion..." Su Yu finished talking about the logic of the stocks he chose, paused, and continued, "Investment is a knockout from virtual to real."

"No one can predict which company or enterprise will be able to perfectly fulfill expectations in the future."

“What we can do is to invest according to our own cognition, the choice of market funds and logical expectations, and follow the trend on the premise that it is in line with the maximum expected space of the current market.”

"And then along the way, as stock prices and expectations change."

“Gradually weed out the stocks that don’t live up to your expectations and then... make your next selection.”

"I don't like falling in love with stocks."

"Because in my opinion, no matter how good a company is, its performance will sometimes fall short of expectations, because no company... can continue to grow."

PS: The logic in the article, personal opinions, please don’t take your different opinions seriously, just take it as a joke, thank you!