Three Secrets Of Growing Bull Stock

Miracle secret: net assets growth rate of more than 20%, an average annual expansion of 1-2 times.

As long as it is a truly high growth company, it is not too late to follow up the first round of equity expansion after the listing.

We should not be excited about the growth enterprise market. It is not a gold mine, but a grave. If we face it, we can put a long-term perspective on it. As for the way we look at it concretely, let us give you some reference here.

Three secrets of growing Bull Stock

Here's the first thing to talk about.

There are three varieties that have undergone market inspection, followed by Yunnan Baiyao (000538), Hua Lan (002007) and small commodity city (600415). The varieties here can come all the way and belong to the absolute type in the market.

Of course, there are similarities and differences, so we may as well gradually uncover their secrets and summarize the secrets of growth.

(1) the "sustainability" of high return on assets is crucial.

Unsustainable high growth is a very unstable development.

The higher growth rate of net asset yield will ultimately be the rarity of bull stocks. The above three contrasting varieties can fully illustrate this problem.

(2) the growth rate of net assets not less than 8% is suitable for high growth, and the high growth rate of over 20% will bring a miracle variety.

What kind of net asset growth rate is suitable for high growth?

What kind of situation can bring the biggest growth space of choice species?

By comparing the above three varieties, I can see: first, the lowest growth rate of Yunnan Baiyao net assets is more than 8% points, the highest is close to 30%, and after 2000, most of them reach more than 20%.

Second, the lowest growth rate of Hua Lan biology is more than 8% points, the highest is more than 30%, but overall, over 20% years of continuity is obviously worse than Yunnan Baiyao.

Third, the lowest growth rate of Small Commodity City reached 10% points, the highest 26% or so, the total number of more than 20% years is rare, most of them are between 10% and 20%.

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Yunnan Baiyao and Hua Lan creatures are cumulative varieties that are larger than small commodity cities. This shows that 8% such growth will not hinder growth. Here we might as well regard 8% as the lowest threshold for high growth rate.

The growth rate of Hua Lan is more than 30%, but its average cumulative increase is lower than that of Yunnan Baiyao. This indicates that the extremely high rate of growth is not the most important factor affecting the increase.

Finally, we might as well focus on more than 20% sustainability to make a comparison. It is easy to see that Yunnan Baiyao is the best, followed by Hua Lan and the worst of small commodity cities.

I understand at once that, yes, sustained high growth, and if the high growth reaches over 20%, then it is possible to have a long-term bull like share like Yunnan Baiyao.

And I also found 20% growth rate.

(3) the average rate of "circulation stock expansion" is between 1 and 2 times, which is the ideal speed.

As long as the high-speed growth, high-speed development of enterprises, it has the capital of rapid expansion of capital stock, and now is actually a derivative comparison index of asset yield, that is, "the expansion rate of tradable shares".

Comparing the above three varieties, it can be found that Yunnan Baiyao developed from 19 million 800 thousand of the circulation shares in July 1994 to 484 million of the circulation stocks in September 2009, and the growth rate in the 15 years exceeded 24 times, and the annual growth rate was 1.6 times.

From 33 million circulation shares in June 2005 to 360 million circulation shares in September 2009, Hua Lan has increased by more than 10 times over 4 years, with an average annual growth of nearly 2 times.

The small commodity city has developed from 50 million 90 thousand circulation shares in January 2003 to 301 million circulation shares in September 2009, increasing 6 times in 6 years and 1 times in average.

Through the above comparison, we can find that the Yunnan Baiyao, the most profitable one, is not the fastest growing enterprise with the fastest expansion of circulating capital, and the fastest one is Hua Lan.

This shows that there is no essential link between the rate of increase and the speed of expansion.

However, all three share a common feature, that is, there is a clear increase in the circulation stocks, with an average annual growth rate of not less than 1 times.

Therefore, can we understand that the faster the expansion of capital stock does not mean that the cumulative increase will be the largest, and the average annual expansion rate of capital stock is no less than 1 times that is the key to growth. Further more, the average annual growth rate of equity between 1 and 2 is the most suitable growth rate. After all, the average speed of capital expansion will inevitably affect the performance tension of stock prices.

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I operate the five yardstick of the gem.

Here is also a revelation of my gem ideas.

First, pay attention to entrepreneurship. The greatest opportunity lies in

In the first batch of companies to purchase, honestly, I haven't really excited my company.

Second, the ability to take risks is the first. The price earnings ratio of gem will easily exceed 100 times. It is unthinkable that there is no huge growth as support.

This is a market that is either crazy or not, because the gem has introduced a delisting mechanism, so don't be surprised if there are "penny stocks" in the future.

Third, do not do well. If you do not even know the profit mode and industry status of the listed companies of gem, then even a good company will not recommend investment.

Fourth, look for "sustainability" varieties.

Fifth, don't worry, it's not too late to follow up after the first round of equity expansion.

We are all aware that the growth of many listed companies is necessarily accompanied by the continuous expansion of capital stock, such as the original motherboard of Yunnan Baiyao and the small and medium-sized board of Hua Lan biology.

In this case, we may as well wait patiently for the opportunity to expand after the first round of capital expansion after listing. After all, at that time, if it can make the first expansion of capital stock, at least two points: one is survival, and the two is a more solid foundation.

Of course, at this time, the opportunity cost involved may be improved, but at least the risk of enterprise has been greatly reduced. In the long run, as long as it is a real high growth enterprise, it is not too late to follow up the first round of equity expansion after the listing.