To understand what a net break is, you must first understand the price-to-book ratio (PB). Price-to-book ratio refers to the ratio of the stock price per share to the net assets per share, and is also one of the commonly used indicators to evaluate a company's valuation. Generally speaking, the lower the price-to-book ratio, the higher the investment value. It is especially suitable for enterprises with high risk and large amounts of physical assets, such as steel and coal.
The so-called net-breaking stock, even if the stock price falls below the net assets, it is the price-to-book ratio of 1. If the stock is broken, it may be because the external environment is bad and the economic downward pressure is high. It may also be because the industry is in which the competition is relatively fierce, resulting in slow development of enterprises. Of course, there is also the potential for investors to be optimistic about the company's growth
There are also good investment opportunities in stocks that break the net, especially when the market continues to weaken and break the net stocks, break the net stocks often become the focus of market funds. Because at this time, it often means that the market is about to bottom out. From a long-term perspective, many stocks with broken net prices have relatively low valuations and a lot of room for investment returns.
Northbound funds are called the smartest funds and are very good at grasping some low-level high-quality stocks with explosive potential during the sharp drop. At present, many stocks have relatively cheap chips. At this time, northbound funds increased their holdings and broke the net stocks, not only because of their low valuations, but also because they are optimistic about the growth of these companies. Careful research on these companies may bring us good investment inspiration.
Finally, I used a chart to issue the latest net-breaking shares with significantly increased holdings of northbound funds. The list is for reference only and is not used as a basis for any recommendation. Please pay attention to investment risks and combine them with your own cognitive judgment. If you think it is useful, remember to like, follow, and forward it, as it will bring more investment information later.
