"Zombie stocks", a term used in the stock market, refers to stocks that have been trading sideways for a long time, neither rising nor falling.
There may be stocks in the stock market that look good on paper, but behave like zombies.
In the West, such stocks are simply called zombie stocks.
There is no standard definition for stock market terms.
There are generally three explanations: 1. Stocks that have been trading sideways for a long time, neither rising nor falling.
2. Stocks with sparse trading volume.
3. Stocks that have been suspended from trading for a long time.
2. How to avoid “zombie stocks”?
1. The reason why value stocks are sluggish is probably because they are still digesting the blue chip stock bubble from 1982 to 2000.
2. A Shanghai Stock Exchange Super Large Cap Index Fund has fallen by 38.81% in two years, 6.35% more than the Shanghai Stock Exchange Index in the same period. The malaise of the "blue chip army" has "achieved" the fund with the lowest net worth in history.
3. Try to avoid buying companies that are growing extremely slowly.
If a company has a compound annual growth rate of 4%, then after deducting the effects of inflation and risk-free rate of return, there is basically no growth.
4. Look at the company's vitality through net cash flow, but at the same time, you need to be wary of some companies with selfish management, especially those companies that have continuous net cash but do not pay dividends.