On April 21st, against the backdrop of increasing market uncertainty, some undervalued and cash flow abundant “cigarette butt stocks” are becoming the “favorites” of fund managers. The reporter noticed that “cigarette butt stocks” with severe oversold and abundant cash reserves have been strengthening frequently in recent times. Some funds’ exclusive heavy holdings of such stocks have shown a sharp trend, and even some public funds have listed “cigarette butt stocks” as the top holdings of multiple funds under their umbrella. Many fund managers believe that when investors’ risk appetite decreases and their pursuit of safety margins becomes dominant, “cigarette butt assets” with expected differences or high cash reserves will be favored. However, fund managers also remind us to be aware that such assets may have value traps. (Securities Times)
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