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How to choose profitable stocks?
First, the company name sounds boring, even if it sounds ridiculous, it is better.

The perfect stock should belong to the perfect company. The perfect company must run a very simple business and have a boring name.

The Shenzhen Stock Exchange clearly stipulates that listed companies should carefully change their company names according to the actual operating conditions and shall not change them at will. The changed company name shall match the company's main business, and shall not affect the company's share price or mislead investors by changing the name. Therefore, if you choose stocks from the perspective of company names, you should actually choose those company names that know what the company's main business is and what products or services it has, such as "Boss Electric Appliances" and "Tong Ren Tang".

Second, the company's business is boring.

If a company has a high profit level, stable balance sheet and boring business, then you have enough time to buy the company's shares at a lower price. Then, when it becomes the investment object that investors are eager to pursue, and its price is overvalued, you can sell it to those investors who like to follow suit.

Third, the company's business is disgusting

When a company's business makes people shrug their shoulders to express doubt and contempt, avoid it or be disgusting, then this company needs us to study deeply.

We can count the distribution of brokerage research reports in various industries or sectors. Concepts such as new materials, new technologies and xiong'an new area should be the most concentrated sections in recent research reports of securities firms. In the sunset industry, steel, coal, paper, and oil, salt, sauce and vinegar used in the kitchen (most ordinary investors think so), few people specialize in it except industry researchers who regularly publish industry research reports. However, when the profitability of companies in these industries has been greatly improved, and the stock prices have gone out of the downturn or even increased to a certain extent, researchers began to pay attention, and their attention further pushed up the stock prices.

Fourth, the company is spun off from the parent company.

The spin-off and listing of a company's branches or part of its business into an independent and free economic entity will often bring returns to investors and investment opportunities to managers. Large parent companies don't want to see the split subsidiary in trouble, because it may have a very adverse public impact on this subsidiary, which in turn will have an adverse impact on the parent company.

5. Institutions do not hold shares, and analysts do not follow them.

If you find a stock with little or no institutional ownership, you will find a potential stock that is likely to make a lot of money. If you find a company, neither a stock analyst has been there nor a stock analyst says that he knows the company well, then your chances of making money will double. At the same time, it is also worthy of our attention to those stocks that were once in the limelight and were later ignored by professionals, such as those sold by institutional investors when the stock price fell to a low point.

In fact, the stock price rise depends on two factors, one is the company's profit, and the other is the capital promotion. For companies that are not owned by institutions and are not tracked by analysts, if their profits can continue to grow, it is only a matter of time before they are concerned by market funds, and the gradual inflow of market funds will further push up the stock price.

6. The company is surrounded by rumors: it is said to be related to toxic garbage or mafia.

Companies surrounded by rumors tend to see their share prices fall sharply. The reason is simple: new investors are reluctant to enter the market, while old "retail investors" are more willing to leave because of rumors. This time is often a good opportunity to find gold.

Seven, the company's business makes people feel a little depressed.

For those businesses that make people feel depressed, not only researchers are unwilling to do in-depth research, but even the competition in the whole industry will be less than those that are "high". The gross profit margin of these "depressed" industries is scary. The gross profit margin of funeral services is as high as 80%, far exceeding most traditional industries.

Eight, the company is in a zero-growth industry.

A company can constantly strive for a larger market share in a stagnant market, which is far better than another company trying to ensure a shrinking market share in a fast-growing market.

Growth investment is to invest in the rapid growth of the industry, in which the related companies grow rapidly, the cake gets bigger and bigger, and each participant gets more points. In depressed industries, the output value or product demand is fixed, and fewer and fewer companies are engaged in this industry.

Nine, the company's favorable base

A perfect company must be profitable. In the niche market, some market segments or niche markets ignored by market rulers/enterprises with absolute advantages, enterprises choose a small product or service field, concentrate on entering and becoming leaders, from local markets to the whole country and then to the whole world, and at the same time establish various barriers to gradually form a lasting competitive advantage. (For example, Ping An Securities' live video investment consultant)

People should continue to buy the company's products.

The rice, oil, salt, sauce and vinegar tea in the kitchen is as small as you can imagine, and what you can see every day often contains huge investment opportunities. Hengshun Vinegar Industry, Lotus Health, Angel Yeast, Black Cattle Food, Weiwei Shares, Wang Xi Food, Haitian Ye Wei, Yili Shares, Bright Dairy, Fuling mustard tuber, Beinmei, Sanquan Food, Keming Noodle Industry, qiaqia Food ~ ~ ~

If we look back at their historical trend, we will find that every lunar structure is a structure whose center of gravity keeps moving up or keeps a fixed slope upward. If we buy after the stock market crash and hold it for a long time, we will get a lot of income, even more than the difference we keep earning after buying technology stocks.

XI。 The company is a user of high-tech products.

High-tech companies are often sought after by market funds for a simple reason: technology creates value! When too much money is chasing these high-tech industries, it will lead to "quantity increase and price decrease".

For those companies that make full use of these high-tech, high-tech technologies, the technology has improved, the price has come down again, and the company's profits have naturally increased. It is a very good choice for us to pay attention to the relevant downstream enterprises that benefit from the development of high technology at the same time.

12. Company insiders are buying shares of their own company.

From the historical data, the increase of major shareholders' holdings is regarded as an important manifestation of confidence. The number of shares held is an important indicator to consider its future performance. Those large-scale continuous holdings often show an attitude of shareholders: the company's share price is indeed undervalued and optimistic about the future development prospects.

Thirteen, the company is buying back shares.

Once the company buys back a large number of shares, the result will inevitably be a decrease in the number of shares circulating outside. Assuming that the repurchase will not affect the company's profit, the earnings per share of the remaining shares will rise, so the stock price per share will also rise (net profit 654.38 billion yuan/654.38 billion shares = earnings per share 654.38+0 yuan). 654.38 billion yuan net profit/50 million shares = earnings per share 2 yuan).

Disclaimer:

The information in this information comes from open sources, and our company does not guarantee the accuracy and completeness of this information. The contents and opinions in the information are for reference only and do not constitute investment advice. Ping An Securities will not be responsible for the property losses caused by investors' reliance on this report for investment decisions.