The new coronavirus infection will be subject to "Class B and B control". The new crown drug sector saw a big plunge at the opening of on December 27. stocks in the sector collectively fell sharply, and the withdrawal of capital has begun. This column believes that there is a high probability that new coronavirus drugs will enter a long and bearish road in the future, market hot spots will change, and the concept of post-epidemic recovery may become mainstream.
Screenshot from Oriental Fortune Data
The trading market shows that on December 27, the new crown drug concept stock opened diving , and the popular stocks in the sector Hanyu Pharmaceutical , Xinhua Pharmaceutical and Yiling Pharmaceutical fell sharply. Among them, Hanyu Pharmaceutical's "20CM" fell to the limit, Xinhua Pharmaceutical, Menohua , Zhongsheng Pharmaceutical and many other stocks also fell to the limit and closed. The star stock Yiling Pharmaceutical closed sharply down 7.69%. In addition, Tuoxin Pharmaceutical, Panlong Pharmaceutical, China Resources Shuanghe, etc. within the sector also fell by more than 8%.
screenshots from Oriental Fortune Data
screenshots from Oriental Fortune Data
From the market point of view, the era of new crown concept stocks has passed. Whether it is the nucleic acid detection concept or the vaccine concept or the concept of new crown treatment drugs, the attractiveness of capital has dropped significantly.
Judging from the current stock prices of these new coronavirus drug concept stocks, they are not low. In this case, new funds are unwilling to enter, and funds on the market are also looking for ways to withdraw. Strictly speaking, the funds currently spent on selling new coronavirus drug concept stocks are an afterthought.
So what is the nature of the funds you are still holding? According to the speculation of this column, most of the funds still holding new crown drug concept stocks are retail investors. The biggest characteristic of retail investors is that they are unwilling to cut their flesh. After buying new crown concept stocks at high prices and encountering price adjustments, they always hope that the stock price will rebound, and then unwind and sell.
However, it is often difficult for retail investors to get out of the trap after being trapped. What makes retail investors more seriously injured is to cover their positions at low prices and spread the cost. It is also the behavior of trapped investors to cover their positions at low prices, which has become the last opportunity for funds on the market to continue to withdraw. After these funds to cover their positions, there is a high probability that there will be no large-scale funds to buy the new coronavirus drug concept stocks that have entered the downward channel, and new funds and new speculative retail investors will begin to pay attention to new market hot spots and enter a new round of speculation cycle.
So what are the new market hot spots now? They are obviously post-epidemic recovery concept stocks such as tourism and hotels. Although from the perspective of value investment, these companies do not have too high investment value, but their advantage is that the stock price is at the bottom. Just because the stock price is low, a simple good news can drive the stock price to rise continuously, giving these low-priced stocks the opportunity to resume their rise. But investors must also clearly know that if the stock prices of these companies increase too much, there will be obvious bubbles. At this time, if investors chase the high price and buy, they will also run the risk of being trapped.
Therefore, this column says that the COVID-19 drug market should come to an end, but other speculative markets also have risks. Investors should still adhere to the concept of value investment and look for high-quality stocks with good fundamentals to buy at low prices. High-quality companies not only have good main businesses, but also have good social responsibilities.
It can be said that value investing is still the only stable and profitable investment method in the market. However, if a company's stock price rises too high in the short term or even goes out of the monster stock market, investors should be vigilant at this time and beware of the risk of excessive chasing.
Finally, this column would like to remind investors that for investors who are currently holding new crown concept stocks, the risk of covering up their positions at low prices and spreading low costs is extremely high, and they should still operate with caution.
text/Beijing Business Daily commentator Zhou Kejing
