Study On Investment Value And Investment Strategy Of Industrial Special Treatment Stocks

As Chinese capital market gradually matures, value investing is more and more attention, ST stocks generally are poor business performance and financial condition, the investment risk is very huge, so it is often seen as objects of speculation, which has questioned the value of its investment. September2011, the market continues weak cases, the ST sector’s performance is extremely compelling. Whether ST stocks has no investment value and how huge it’s investment value, investors should be clear how to select stocks from the ST stocks in order to avoid risks and gain a larger income, these issues are worth pondering. This article elaborate on the causes, ST company stock investment risk and return, the background of the establishment of the ST system and function defects, factor analysis method and an in-depth analysis of stock investment value of ST. By k-means clustering method to classify ST stocks, the appropriate investment strategy against the ST stocks, Integrated use of many kinds of analysis methods, which is Interlocking, makes more thorough analysis. Analysis shows that debt paying ability, operation ability, growth ability, profit ability, market performance is the key factor to evaluate ST stock. Business performance improvement trend of class and reorganization trends ST stock investment value is larger, investors should be focus on these objects.