When stocks with "dark horse potential" are discovered, they are often like pearls in the sea, buried among numerous stocks. However, when the potential of "dark horse" listed companies is revealed, the stock price often increases several times, even more than ten times.
How to find a 'potential dark horse'? It has at least the following characteristics:
1. The company's main business is outstanding.
The company concentrates its funds on specialized markets, specialized products, or providing special services and technologies. And this type of product and technology is basically monopolized by the company, making it difficult for other companies to get involved. Those products and technologies are not highly competitive in the market, with scattered funds and a tendency to invest in products that make money. Listed companies with no unique characteristics and unable to monopolize their products and technologies are unlikely to become the "stars of tomorrow".
2. The market for the company's products and technology investment has a promising future.
Of course, it is essential for investors to have a forward-looking assessment of the market's prospects. For example, the huge demand in the world computer market made American stocks "IBM" and "Apple" the "stars of tomorrow" at that time; Due to the large population and limited land in Hong Kong, coupled with the foresight of real estate developers, the profits and stock prices of listed real estate companies have increased several times.
3. The company has a small scale and a strong major shareholder.
Due to the small share capital and strong demand for expansion, it is possible to allocate a large proportion of shares for distribution, which may result in ex rights after the stock price rises. After ex rights, the rights can be filled in and preparations can be made for the next distribution. This cycle repeats itself, and although the stock price may not seem high, it has already multiplied several times. And the major shareholder is relatively stable and strong, which has a promoting effect on the company's development and may even bring high-quality assets.
4. The industry in which the company operates is not easily affected by economic cycles.
The company can not only maintain a high growth rate in the context of economic growth, but also not be easily eliminated due to macroeconomic recession.
5. The company operates flexibly.
The company's production process is constantly innovating, especially in the high-tech field. The company has superior production skills compared to other companies, making it easy to adapt to the impact of social changes.
6. The company is constantly researching and innovating new technologies.
The company is willing to spend money or has the ability to continuously develop new products, always placing research and development of new technologies and products in an important position. Only in this way can the company have the ability to resist potential competitors and constantly update its products to stand invincible.
7. The company's profits are relatively high or not very high at the moment, but due to the promising development prospects, it may bring potential profits with high growth potential.
This is very important for discovering the "stars of tomorrow" because profit growth is more important than the reality of high profits, and the continuous decrease in dynamic P/E ratio is more attractive than the P/E ratio of low enterprises.
8. The company is still not recognized by most people and its stock price is not high.
Most investors are not yet familiar with the company's equity structure, potential, business practices, production techniques, and profit potential, so the stock price is not very high. Listed companies that are too well-known or widely known by investors, with already high stock prices, face significant psychological pressure from rising from tens of yuan to hundreds of yuan. Therefore, they cannot become the "stars of tomorrow"; It is easier for low-priced stocks with potential to double their stock price from a few yuan to tens of yuan.
