The stock of a listed company auctioned off the price of cabbage, and Niu San relied on it to earn several times! Can ordinary people pick up the leaks?

$1, $2, $3...... The price at which A-share listed companies sell cabbage.

On the judicial platform, the stocks of many listed companies are impressively listed. According to the regulations, the shares of listed companies, whether restricted tradable shares, unrestricted tradable shares, or non-tradable shares, can be disposed of by judicial auction and are not subject to the restrictions on shareholding reduction rules.

Normal tradable shares can be disposed of in a variety of ways, but restricted shares can only be disposed of through judicial enforcement procedures, which are limited in ways and the disposal price is lower than that of tradable shares.

From the perspective of the auction reasons, the main reason is that the shareholders' stock pledge is liquidated. There is also a situation where investors are in dire need of cash flow. If an investor holds a large share of the shares of a listed company, it is difficult to sell them in the secondary market in a short period of time, and the investor is in urgent need of cash flow, he may choose to auction the shares. You can sell all the stocks at once, and you may get a higher return than if you sold the shares directly in the secondary market.

Seeing that stocks are being auctioned at a discount, can you start investing?

The auction of the equity of the major shareholder of a listed company after it is frozen by the judiciary often occurs at the end of the company's reorganization, and the company has the possibility of "reversal of difficulties". Therefore, after winning the equity at a low level, it has a certain appreciation potential.

Therefore, the stock auction of listed companies has also become a business experience for some "foreclosure hunters" and "cattle scatterers". For example, on June 15, 2021, the mysterious Niu San Fang Zebin spent 262 million yuan to auction 117.6 million shares of Oceanwide Holdings through the Internet. As of the close of the day, Fang Zebin's transaction made a floating profit of 20.63%.

However, it is important to note that investing in stock auctions is not a sure bet.

According to the analysis of a lawyer, individual investors should pay attention to the growth ability, profitability, operating ability and other indicators of the listed company when participating in the stock auction of listed companies. If the operating performance of the listed company continues to decline, or the performance of the entire industry declines due to policy risks, etc., it should consider whether the performance is likely to be reversed, and consider the impact of the performance on the decline in stock price.

At the same time, it is also necessary to comprehensively consider some other factors that affect the performance of listed companies. Stock price and investment judgment, such as the size of the market capitalization, usually the stock price of listed companies with a small market value is more likely to fluctuate; for example, the changes in controlling shareholders and senior executives (especially the person in charge of finance), if there are more changes, it means that the company's situation is unstable or has internal information; for example, the overall pledge ratio of pledged shares is high, once there is a risk of debt repayment, it is likely to lead to insufficient liquidity; for example, the price-earnings ratio and price-to-book ratio of listed companies are benchmarked with other companies in the same industry, and generally deviate more from the same industry, and the risk is greater.

Will you go and pick up the bargain at the stock auction?