Concept stocks refer to stocks with some special connotations, as opposed to blue-chip stocks. Blue-chip stocks need good performance support. Concept stocks rely on a certain theme, such as the concept of asset reorganization and the concept of three links to support prices. This connotation is usually regarded as a theme of stock selection and speculation, and has become a hot spot in the stock market.
Concept stocks are stock market terms, as a way of stock selection. Compared with blue-chip stocks, they must have good business performance support, and concept stocks are only a combination of stocks with the same theme and type. Because of the advertising effect of concept stocks, there is no guarantee of any profit.
The concept of stock market was originally a general term for a class of stocks with common characteristics. For example, the Olympic concept refers to a group of companies that have business opportunities to host the Olympic Games. There are many such concepts, such as network concept, 3G concept, WTO concept, biomedicine concept, overall listing concept and stock index futures concept.
However, in the stock market, the inherent meaning of the concept is not only a generalization of a certain stock category, but its extended meaning is market consensus. For example, the concept of network, before the network became a concept, the stocks involved in the Internet could only be called plates at best, which was a neutral definition, but the meaning of becoming a concept changed. This concept is a more positive and positive investment consensus. Investors will make very detailed analysis and research on the industry background, investment opportunities and future prospects of concept stocks, and they are not always confident to report them.
It has a very powerful advertising effect. A stock itself may not be very attractive, but once it is included in a concept, it will be closely watched by all investors. For example, a company made canned food in the early days, and then produced some products such as mineral water. The performance was mediocre and the industry was outdated. Few investors paid attention to this company. After that, the company turned into a network concept stock, and did open an e-commerce website, mainly selling its mineral water. So this stock immediately became the focus of general concern in the stock market.