Author: Yang Lei Editor: Xiaoshimei
daily limit - approaching lower limit - red - diving , Three Gorges Energy played an exciting game with investors today.
Flush data shows that after a brief pause in the opening of China Three Gorges Energy , it was hit by funds. Within 10 minutes of the opening, the company's stock price experienced a surge of 9%, a plunge of 9%, a rise and a plunge, etc., attracting the market's attention.
At the close, short finally won. Three Gorges Energy fell 8.39%, and its market value fell below 210 billion.
Today’s transaction volume of Three Gorges Energy reached 27.698 billion yuan, ranking at the forefront of the A-share market. The turnover rate of and reached 50.61%, which means that half of the circulating share chips were traded. It is worth mentioning that Flush data shows that there was a net outflow of 4.9 billion main funds today.
Who is buying and who is selling?
The dragon and tiger list shows that the seats with the most transactions today are Oriental Fortune Lhasa East Ring Road First Securities Sales Department, Lhasa Tuanjie Road Second Securities Sales Department, Lhasa Tuanjie Road First Securities Sales Department, etc. These seats are named after Retail investors and hot money are the majority, and today's stock price fluctuations may be related to them.
As the stock price exploded and huge transactions appeared, everyone was curious, has the company's stock price peaked?
Currently, Three Gorges Energy's static price-to-earnings ratio exceeds 57 times, and its dynamic price-to-earnings ratio exceeds 34 times, which far exceeds the industry price-to-earnings ratio average, which means that Three Gorges Energy's valuation is already very high.
Judging from the increase, since the launch of Three Gorges Energy, the company has increased by more than 50%. It has accumulated a lot of profits after speculation by hot money and retail investors. Judging from the K-line shape, Three Gorges Energy has a large negative column at a high level, which may be a signal for a short-term correction in the stock price. Comparing
with some sub-new bull stocks in the history of A shares , investors can also see some similar patterns.
Company 1: Baofeng Technology (300431)
In 2015, Baofeng Technology, which was listed on the concept of virtual reality and media, had a stock price of more than 20 consecutive boards. After the market opened, Baofeng's stock price continued to be speculated, rising to a maximum of 123.828 yuan.
Due to the inflated valuation, Baofeng Technology’s stock price is difficult to support. As performance losses and the criminal detention of the actual controller came to light, Baofeng Technology's stock price fell by more than 99%.
Company 2: COSCO SHIPPING Holdings (601919)
COSCO SHIPPING Holdings was also very prosperous when it was listed. It had outstanding performance and was the leader in shipping. After the stock price opened, there was also a round of speculation.
However, due to the declining prosperity of the shipping industry, COSCO Shipping Holdings began a long decline that lasted for more than ten years. It was not until last year that the epidemic spurred a surge in shipping prices, and the company's stock price began a bull market.
It should be noted that the above cases do not mean that Three Gorges Energy’s stock price will definitely be the same as them in the future. However, judging from the history of new stock speculation, if a company's valuation is over-hyped, no matter how good its performance is and how large the industry's growth space is, the room for stock price growth will be overdrawn in the short term.
Experienced investors often say that the criteria for stock selection are good industry, good company, and good price. If a company has good performance and good industry but does not have a suitable price, it is not suitable for investment. Can Three Gorges Energy support its current stock price?
Disclaimer
This article involves content about listed companies and is the author’s personal analysis and judgment based on the information publicly disclosed by listed companies in accordance with their legal obligations (including but not limited to temporary announcements, periodic reports and official interactive platforms, etc.); the content in the article The information or opinions do not constitute any investment or other business advice and Market Cap Watch disclaims any liability for any actions resulting from this article.
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