“Technical adjustment”?Hengrui is down 62% from its peak, taking its stock back four years

2022-05-29 0 By

In the Hong Kong drama Big Time, there is a classic line: “Don’t be afraid, it’s technical adjustment, don’t be afraid”.This sentence has also become retail investors in the exchange of self-selected stocks fell, the most commonly used joking statement.As one of the most enduring value investment stocks before last year, Hengrui Pharmaceutical makes the old value investors fully enjoy the charm and fun of investment.If the stock price of Hengrui pharmaceutical is divided by the 10-year unit used by price investors to calculate investment returns, it rose from the closing price of 5.99 yuan on January 7, 2011 to January 7, 2021 in the 10 years before hitting the all-time high of 97.23 yuan (the former recovery price).There was only one drop of around 35% in 2018, and there was no major correction in the second half of 2015.However, the sky is not the end of the rise of individual stock prices. “There is no stock in the market that only goes down and never goes up, and there is no stock that only goes up and never goes down.”After hitting a record high, Hengrui medicine began a wave of more severe down trend.But, at the beginning of the fall, a lot of shareholders will be self-kan way, “just technical adjustment”, because it has not fallen too much in the past year, to the end will slowly up again.As a result, there are many voices saying, Cherish the 70 won of Hengrui.But as the decline deepened and accelerated, there were no such cries.From the peak of the stock price, the market to now, the decline of the stock price is 62.17%, has been “knee cut”.At 36.78 yuan, the stock price has returned to four years ago.The closing price on April 4, 2018 was 36.93 yuan, which is equivalent to the current price.In the process of hengrui pharmaceutical stock price decline, its top ten current shareholders hold a total number of shares in the decline.By the end of the third quarter of 2021, the top 10 outstanding shareholders held 4.201 billion shares, accounting for 65.98% of outstanding shares, a decrease of 33.9737 million shares compared with the previous period.On March 11, 2022, this value changed to 4.055 billion shares, accounting for 63.57%, a decrease of 146 million shares compared with the previous period.Institutional investors can’t match retail investors in the rigour of their trading strategies.Once they hold a stock performance or technical conditions to leave, they will “know the unity of action”!However, most retail investors do not have the ability to combine knowledge with action.Retail investors, on the other hand, tend to be “bargain hunters” : shares falling from highs become “cheap”.”Pick up bargains” in the process of a stock price decline is equivalent to bottom-fishing on the left.But from the past too many stock running experience, Stockholders left bottom copying is very difficult to succeed.And, with the increase of floating losses of holdings, will also cause pressure on their own mentality.Most of the bottom-hunting should be done on the right, because individual stocks move ahead of the performance of listed companies.Once a stock price rebound after stabilization, then there must be a listed company’s performance for positive support.At this time, is usually a stock has a significant upward trend, the probability of success will be greatly increased.However, some investors may ask: “Is this still a bottom hunt?Even if it goes up, there is not much room for profit.In fact, the bottom is never shown to us as a pointed shape, it should be a region.In addition, although the absolute return space after the success of the bottom hunting will be smaller, but at least it is safe!Risk tip: the point of view in this article is for reference only, investment risk, market need to be cautious!