ZTE Communications according to the dynamic valuation, the current 20 times, is already very cheap. However, it is still in the bottoming stage, and long-term buy points have not been issued. That is, we can consider

ZTE Communications according to the dynamic valuation, the current 20 times, is already very cheap. However, it is still in the bottoming stage, and long-term buy points have not been issued. That said, we can consider low suction, but don't think it will make you money right away.

30 yuan ZTE, I think it is cheap enough, but Mr. Market is crazy, we can't guarantee that this price must be a low, we can only determine a little, the chip of this price, in two or three years will definitely make money.

The biggest factor affecting market expectations is the possible sanctions imposed by the United States. We are worried that the United States will return a huge fine at any time, so that ZTE's beautiful financial report will become a huge loss. In fact, from the perspective of investment, the return on investment of enterprises such as ZTE is very low, and we can hardly expect it to carry out large dividends. Huge R & D investment will swallow up too much profit, and the fierce competition in the field of science and technology also makes it difficult to ensure long-term stable profit growth.

What is more troublesome is that in the background environment of the Sino-US science and technology war, the size of ZTE determines that it must be the focus of the US crackdown. In this case, to invest in ZTE, you really need some feelings of investing in the national fortune.

From the annual line, in the past two years, ZTE has closed a long upper shadow line, and so far this year, the annual line is closed and fell below the 5-year moving average. However, ZTE benefits from the mainland's 5G construction cycle, and normally speaking, there is no reason to go to the 10-year moving average under the condition of good performance. Of course, if you really want to kill and fall to the 10-year moving average, the probability is the big bottom.

In the current situation where the weekly and monthly lines are not good, trend traders should choose to sit on the sidelines. Value investors can decide whether they need to enter the market on the left side based on their judgment of the fundamentals of the enterprise. My view is that the set can be adhered to, after all, the valuation is not high; if not, keep an eye on it, and wait for the opportunity to enter the market on the right side of the trade.