St Hermes, with a huge loss of 4 billion in three years, has risen four times

On July 19, * ST Hermes closed at the opening, up 5.1% (the upper and lower limits of St concept were 5%). As of the issue, the company’s share price was 4.53 yuan, with a total market value of 2.391 billion yuan.

The direct cause of the rise in share prices is related to a piece of news. On July 18, * ST Hermes announced that it had recently received a letter of intent from Shenzhen duty free group.

After the news fermentation, caused the market hot discussion. Many investors think this is good for the company, and today’s share price performance also reflects the market attitude.

However, the announcement also mentioned that “Shenzhen duty-free group has the intention to participate in the investment of Hermes group after the reorganization of Hermes group meets the relevant conditions, and whether the investment is subject to the final decision-making approval result does not constitute any commitment of Shenzhen duty-free group to invest in Hermes group”.

*St Hermione is a bull stock in 2021, which is estimated to be very crazy. K-line data shows that on January 18 this year, after the company’s share price fell to a low of 0.86 yuan, the share price rose all the way, with the highest rising to 4.64 yuan, with a cumulative increase of more than 430%, of which the number of trading limit reached 49. Some investors joked on the Internet that “I’m going to regret my previous low cut.”.

The abnormal fluctuation of stock price has also attracted regulatory attention. At the beginning of July this year, Shenzhen Stock Exchange issued a letter of concern to * ST Hermes. In view of the situation that “since May 2021, your company’s stock price has risen several times and reached the abnormal fluctuation standard of our stock trading seven times”, it asked the company to explain four issues, including “confirm whether there are major information that should be disclosed but not disclosed”.

Is the stock price rising because the performance has improved? no According to the data, in the first quarter of this year, the net profit loss of * ST Hermes was 79.42 million yuan. From 2018 to 2020, the company suffered losses of 1.652 billion, 1.879 billion and 504 million respectively. In more than three years, the company has accumulated losses of more than 4 billion yuan.

The rise of stock price has nothing to do with performance, but may be related to market speculation. Since the beginning of this year, many st concept stocks have risen frequently, such as * ST Zhongtai, which rose more than six times in the year. Stimulated by the effect of making money, the stock price and market value of St concept stocks are low, which leads to the influx of speculative funds.

We are concerned that * ST Hermes also experienced a round of surge three years ago.