Many small and medium-sized investors apply for new shares not because they have some knowledge and Research on the new shares they want to apply for, but because they feel that the new shares are unbeaten, winning the lottery and making money, and some investors have a strong new share complex, they can't help buying and selling new shares. Such new stock operation thinking belongs to the typical blind following the trend and blind speculation. A series of columns published by the media recently show that the result of blind "speculation" by small and medium-sized investors is in many cases a loss. With the continuous development of China's capital market for more than 20 years and the increasing complexity of transactions, investors trading new shares not only need to rely on some basic factors, such as their own income, familiarity with related industries, the convenience of mastering information, etc., but also need to take a higher level in investment philosophy and investment methods. In short, before investing in new shares, we should do our homework to avoid blindness.

So, how to judge the investment value of new shares, in order to avoid buying and selling new shares blindly, and at the same time to find investment opportunities from the new shares with real investment value? The most important lesson is to have an overall understanding of the new shares that you want to purchase. Investors can obtain information about the new shares from government departments, stock exchanges, issuers, intermediaries, media and other aspects. For example, at present, the CSRC has advanced the prospectus (application draft) of the enterprises to be listed to the preliminary examination meeting for pre disclosure There is a lot of time from the pre disclosure date to the subscription date of new shares, which is enough for investors to have more time to understand and study the basic situation of the enterprise. At the same time, the media will often start from the pre disclosure of the prospectus to track and report the relevant enterprises, which enables investors to get more information beyond the prospectus. The prospectus presents the basic information, financial indicators, senior management team, corporate governance and other aspects of the enterprise in front of investors, which is the most important way for investors to study the enterprises to be listed.

Specifically, investors should carefully browse the company profile, competitive advantage and position in the prospectus, so as to make an objective evaluation of the industry characteristics, industrial pattern and the company's own production and operation conditions, that is, first understand the characteristics of the company's industry, such as industrial chain, industrial barriers, industrial competition pattern, etc. At the same time, the company's financial situation should be analyzed in detail, especially the vertical and horizontal comparison of the main indicators related to the company's profitability and financial risk, such as the growth rate of the main business income, main business profit and net profit in the past three years, the gross profit level of the main products, accounts receivable and account age, amount of related transactions, etc. Investors should make reasonable judgments and more objective and accurate conclusions on the fundamentals of the company, so as to lay a solid foundation for further research on the internal investment value of listed new shares.

Investors do not blindly apply for new shares. Another important task is to investigate the potential risks that the company may face in the future development process. These risks can be analyzed according to the risk factors in the prospectus. After effectively eliminating the uncertain factors that affect the company's production, operation and future development, investors can make a reasonable assessment of the investment value and risk coefficient of new shares. Generally speaking, the company's risk factors generally include the following categories: first, the market prospects of products or services, changes in the industry's business environment, the impact of the business cycle or product life cycle, market saturation or market segmentation, excessive dependence on a single market, market share decline, etc. Second, the business model changes, the business performance is not stable, the price of main products or raw materials fluctuates, excessive dependence on an important raw material, product or service, and excessive concentration or dispersion of business sites; third, the risk caused by insufficient effectiveness of internal control, liquidity risk caused by poor liquidity, poor cash flow or unreasonable debt structure The risk of debt repayment, the risk of insufficient provision for impairment of major assets, the risk of significant fluctuation in the value of major assets, the risk of non recurring profit and loss or the risk of significant fluctuation in net profit due to a large amount of investment income other than the consolidated financial statements, the risk of significant guarantee or litigation, arbitration and other contingencies; fourthly, the risk of immature technology, non industrialization of technology, lack of Technology Lack of effective protection or short term of protection, lack of core technology or dependence on others, product or technology facing elimination, etc.; fifthly, problems existing in market prospect, technical guarantee, industrial policy, environmental protection, land use, financing arrangement, cooperation with others and other aspects of investment projects, management caused by expansion of business scale, business scope or business transformation Risks, business transformation risks, profit decline risks caused by the substantial increase of fixed assets depreciation, and product sales risks caused by the expansion of production capacity, etc.; sixth, risks caused by changes in laws, regulations and policies in finance, finance, taxation, land use, industrial policy, industry management, environmental protection, etc.; seventh, risks that may seriously affect the company's sustainability Other factors of operation, such as natural disasters, production safety, exchange rate changes, foreign trade environment, etc.

In addition, investors can also judge the investment value of new shares from the aspects of investment direction of raised funds, horizontal competition and related transactions, basic information and mutual relationship of directors, supervisors and senior managers, management discussion and analysis, etc.