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How To Analyze The Investment Value Of Listed Companies?

2011/4/11 10:08:00 34

The Investment Value Of The Listed Company'S Prospectus New Shares

Generally speaking, in the company's

Prospectus

There will be commentary on the development process and competition pattern, the company's industry status and the competitive advantage of the company, and these are often the most direct reference for investors to judge the texture and investment value of the listed companies.

Listed company

The quality of the texture often determines the value of its investment, and the investment value is also an important factor affecting the two level market trend of the stock. Therefore, we must attach great importance to the content of the competitive advantage and position analysis of the listed companies in the prospectus, and study it carefully.

Generally speaking, the listed companies will introduce the overall situation and development prospects of the company. Such as industry history, industry structure, industry policy and industry prospect, investors can understand the overall situation of the listed companies based on this, especially judging the industry prosperity cycle and development prospects accordingly.

We can take a look at this example. Siyuan electric (002028) mentioned in its prospectus that many factors including domestic demand for electricity, the development of urban rail pit and electrified railway, and the direct demand for new pmission and distribution equipment promoted the rapid growth of the pmission and distribution equipment manufacturing industry, and the domestic pmission and pformation industry has just entered the golden cycle of rapid growth in the past two years.

If investors make investment decisions based on the industry analysis content in the prospectus, it will be easy to determine the value of the IPO investment.

In addition to industry status and development prospects, listed companies will generally introduce their competitive advantages and industry status (including the main competitors in the industry) in the prospectus, etc. Generally speaking, listed companies will highlight their competitive advantages as much as possible, and often take advantage of their weaknesses, and investors are often confused by the appearance of listed companies, leading to misjudgement.

For example, Xin Fu shares (002019) once introduced the company's huge capacity and market share in the prospectus, but did not mention the continued decline in the market prices of the major products of the company. After the company's listing, along with the continuous decline of the company's performance, the trend of the two market is also extremely weak.

We believe that in judging the listing

Investment value of new shares

Investors must combine the competitive advantage of listed companies and the growth cycle of their industries to make a comprehensive judgement. If the enterprises are in the rising boom cycle, they will often become the focus of the mainstream market funds, thus forming a typical long-term upward trend, such as Suning Appliance, Poly Real Estate and so on. After their listing, they will go out of the running pattern of the rising shock.

Only by carefully distinguishing the fundamentals of new shares, can investors avoid potential risks and effectively grasp the investment opportunities of IPO.