Chapter 145 Search Engine Stock Selection Method
"Lin, I know what you want to ask, the stock price depends on short-term supply and demand, and the company's long-term weighing machine." Jack said.
Lin Shi nodded: "Have you looked at the home appliance sector?" β
"Look, many white horse stocks have come out of the home appliance sector."
"Have you ever seen such a stock, Meida Holdings, which sells integrated stoves in the D market? The price-earnings ratio increased by 45% by 50 times, and the market value was less than 20 billion. Lin Shi asked with a smile.
"P/E at 50 times? Profit growth of 45%? Oh, my God! The valuation of such a stock is too high, and if you are not careful, you will usher in Davis's double kill! Jack looked surprised, and then pulled a chair from somewhere else and sat down.
"No, that's not a high valuation at all." Lin Shi said lightly.
"Isn't that high?" Jack listened to Lin Shi's words, and silently wondered in his heart if this person was a fool?
You must know that stocks with good fundamentals in general, with a 30% increase in turnover profits, are best bought at a price-to-earnings ratio of 20 times, in Buffett's words, that is, there is a sufficient margin of safety!
According to Jack's idea of studying stocks for many years, such stocks will fall to at least 35 times the price-earnings ratio, that is, in the case of the market remaining sane, such stocks will fall by nearly 17% to not be overvalued, and once the market panics, it is not uncommon for the stock price to fall to 25 times the price-earnings ratio.
Lin Shi smiled and said confidently: "Let me tell you something, first of all, you know that the Huaxia house is an indispensable thing for every man when he gets married, right?" β
Jack nodded.
"Then you should also know what to buy after you buy a house, right?"
Jack nodded again: "In addition to some daily necessities, you also need to buy a range hood, an air conditioner, a refrigerator, and a juicer, and it would be perfect if you had a coffee machine." β
"Wait!" Jack's mind flashed, "I understand what you mean, everyone will buy home furnishings and home appliances when they buy a house, so people's actions like this will push the stock price of the home appliance industry sector up, but don't forget, the home furnishing industry is very competitive, and some large home appliance manufacturers only have a gross profit margin of about 20 percent." β
"When you choose a home appliance, what do you choose?" Lin Shi asked again.
"Brand, word of mouth, popularity, if conditions permit, I will discuss with the merchant to try it for a few days, but it doesn't seem to work in Huaxia." Jack said truthfully.
Lin Shi didn't speak, clicked on the browser with the mouse, and searched for "integrated stove brand ranking"
Press enter, and the browser's built-in engine will automatically list the brand's search popularity into a leaderboard.
Meida Holdings ranks first!
"When you buy an integrated stove, will you spend thousands of dollars on a brand that is not well-known, or will you buy the brand that is number one on the list?"
Lin Shi asked with a smile again.
"This ......" Jack couldn't say anything after seeing Meida Holdings, which ranked first on the list.
As Lin Shi said, he certainly wouldn't spend the same amount of money on a brand that is not well-known, any more than a man would be willing to pay a hundred dollars for a Beethoven piano piece or nine dollars to listen to a gifted conservatory student.
After all, there is no need to think about the quality, and there is no need to think about whether the brand is reliable or not, so many people are buying, even if they are unlucky, it will not be my turn, this is what everyone thinks.
"Lin, but you ignore the competitor, as long as you start a price war, this kind of stock will immediately plummet!" Jack reminded.
"In addition to this stock, you will find a listed company from it to see? Maybe you will say that Tianling Household Appliances Group is also doing integrated stoves, but they are a side business, the main business is still air conditioning, you say that the development of the company that can raise money is good, or the development of the company that can not raise money is good? β
Lin Shi said with a smile.
"Huh?" After listening to what Lin Shi said, Jack immediately thought of a thing, although Meida Holdings was overvalued in his eyes, but Lin Shi provided him with a profitable stock selection method, through the search data left by people when they buy home appliances in the browser, he can easily judge which type of company consumers currently prefer, and he ......
Just search: "Top 10 shaver brand ranking"
"Top 10 Home Appliance Brand Ranking"
"Top 10 Lighting Brand Ranking"
"Top 10 Faucet Brand Ranking ......"
Through the automatic list arranged by the browser, he only needs to select the top ten listed companies, and use the methods he learned on Wall Street to reverse research, and he can find out the leading bull stocks in the industry at once!
It's definitely a great way to get a lot of trouble and find out popular company stocks in the shortest possible time! Whether it's short or long, this method can be applied!
Thinking of this, Jack hugged Lin directly: "Brother, you gave me a really great idea, I just don't know how to thank you!" Don't forget to let me know if you go to Wall Street in the future. β
The smell of cologne perfume filled Lin Shi's sense of smell at once, and before he could react to what was happening, he was hugged by a big man? what the hellοΌ
And this fragrant scene attracted the exclamation of the girl in the trading department, and her heart was suddenly broken: "Male god! You can't do this! β
"Anyway, you let me go first." Lin Shi said helplessly.
"Haha, I'm excited, I'm sorry." Jack smiled heartily as he let go of the forest.
"Lin, you are one of the most talented traders I have ever met, and I have used this method before, not to download social software...... Ha ha. β
"Many consumers use this method to find a good brand, but few shareholders use this method to find stocks, and if they do, they may not lose money." Lin Shi said truthfully, this method is also unintentionally found by him, at the beginning when he was looking for a household faucet, he found that this faucet is very famous, but the company is not listed?
Lin Shi opened Baidu Encyclopedia with a hint of doubt, and then ......
He found that this company is listed in the United States and is a local enterprise in the United States, Lin Shi pulled out the fundamentals and K-line to take a look, except for the financial crisis, the stock has been rising, and from the fundamental point of view, it has maintained a growth of nearly 25% every year!
Subsequently, Lin Shi applied this method to the field of stock analysis, and he no longer had to flip through the plates to select stocks one by one, but only needed to search for any keyword in the "Top Ten Brand Rankings", such as home appliances, razors, lighting, or chips.
In this way, he can easily find the preferred companies in the hearts of consumers, which greatly shortens the time for stock analysis.
(I accidentally discovered the method, I chose a U.S. stock, and I earned 12% in a week)