Chapter 95: Bucking the trend, it rose 4.7 times
Changsha is recognized as the entertainment capital, and Hunan TV's entertainment programs are the best in the country, so the ratings are very high, attracting a large number of enterprises to advertise. The station's annual advertising revenue is second only to CCTV, and it is far ahead of the provincial station, ranking first in the country.
In the morning, Yuansheng was idle at home and watched the second issue of "I Want to Sing with You 4" on Hunan TV. In this episode of the show, Yuansheng saw a message: the first "Happy Boys" in 2007 entered the top 13 contestants in the country, and after N years, one of them could not survive in the entertainment industry and could only deliver takeaways.........
In all fairness, Hunan TV is the best at entertaining, and the first session of "Happy Boys" is the most influential ........ in the past From the country of 1.3 billion people, the strongest 13 were selected, and after N years, they could only deliver food for a living........ illustrates the difficulty and fierce competition in the entertainment industry.
Yuansheng thought of the stock market from the entertainment industry, the stock market is a big competition of 212 million people, which is more intense and difficult than the entertainment industry, so many people have been speculating in stocks for N years and have not yet found a way to make money stably......... Among the more than 5,000 stocks, the stocks they buy, to be famous, not famous; To grow high, not to grow high; To have a P/E ratio, the P/E ratio is not low enough; To be small, there is not enough small; To be low, there is no enough low price; To imagine space, there is not enough room for imagination; To be the main force, the main force is not strong enough.......... In short, none of the stocks they chose were available, and they ranked first among more than 5,000 stocks. This kind of stock selection idea is inherently wrong.
If we are in life, your friends ask for money, and there is no money; Technology is needed, but there is no technology; to have power, not to have power; To influence, not to influence; If you want connections, you don't have connections......... To put it bluntly, what you want, nothing. Such friends, no matter how many you have, when you really encounter difficulties, he can't help at all.......
In life, if you are a very ordinary person, you have no strengths (specialties, or advantages), you want to make friends, people with power or money, they don't look down on you, because you are not on the same level as them, so it is difficult to become friends........
In the stock market, it's different, more than 5,000 stocks, you can buy whoever you want (of course, people with little money may not be able to open the Beijing Stock Exchange and the Science and Technology Innovation Board), and you have a lot of choices. So, in the stock market, your success or failure lies in picking stocks (and when to buy).
On the first day of listing on April 22, 2021, Yuansheng took a fancy to it.
There are several reasons why Yuansheng likes it: first, its opening price on the first day of listing was 35.50 yuan, and the price-earnings ratio was about 26 times at that time. Because at that time, the average price-earnings ratio of the Science and Technology Innovation Board was more than 70 times, while Huaheng Biotech only had a price-earnings ratio of around 26 times, which was very low.
Second, when it went public, it had 23.7 million shares outstanding, which is a standard small-cap stock.
Third, the technology research and development, production and sales of amino acid products based on alanine series products of Huaheng Biotechnology. To put it bluntly, its products are basic chemicals-chemicals-food and feed additives, and downstream industries are inseparable from it. For example, a gold mine was discovered in a certain place, which attracted countless people to pan for gold, maybe Lao Li was lucky, and when he found gold, he made a fortune; And Lao Zhang was unlucky, he didn't find gold, but lost money......... And Huaheng Biology is equivalent to selling water in the gold mine, there are so many people who dig for gold, no matter who they are, they have to drink water, so the people who sell water will make a profit.
Fourth, before the listing, Huaheng Biology introduced itself as follows: after years of innovation and development, the company has become one of the world's leading enterprises in the large-scale production of small varieties of amino acid products through biological manufacturing, and the production scale of alanine series products ranks among the top in the world. The company adheres to the development path of "replacing non-renewable petrochemical resources with renewable biological resources, and replacing high-energy-consumption and high-pollution petrochemical processes with green and clean biomanufacturing processes", and has established a technology research and development chain of "industrial strains - fermentation and extraction - product application" based on synthetic biology, metabolic engineering, fermentation engineering and other disciplines, and has formed a complete technological leading edge in the creation of industrial strains, intelligent control of fermentation process, efficient post-extraction, and product application development. The fermentation production process with microbial cell factory as the core and the enzymatic production process with enzyme catalysis as the core have been developed and applied, which has replaced the heavy pollution production mode of the traditional chemical synthesis process, realized the technological change of using biotechnology to produce fine compounds, and continued to promote the upgrading and iteration of biomanufacturing technology. Among them, the microbial fermentation process uses renewable glucose for direct fermentation, which has lower production cost and a safer, greener and environmentally friendly production process, representing a more advanced biological manufacturing method.
From point 4, Yuansheng noticed that its key words are "the company has become the world's leading .......", ---------- world's leading stocks are only 35.50 yuan, the price-earnings ratio is only 26 times (while the average of the science and technology innovation board is more than 70 times), and the circulation is also very small, only 23.7 million shares.
It is precisely because of the above 4 points that Yuansheng hyped up in the early days of Huaheng Bio's listing and made a lot of money.
People who can't find the right way in the stock market are the lack of comparison methods: look at the media 1-2 weeks earlier that a certain model of Hubei Dongfeng Motor was originally sold for more than 220,000 yuan, and this price is not competitive, so netizens said: 220,000 yuan, it is all shortcomings, not worth buying; As soon as the news of subsidizing the model of 90,000 yuan came out, netizens said: The model sells for more than 120,000 yuan, which is all advantages and grabbing ........ As a result, within 1 week, the model was out of stock.
Smart people in life, learn to compare, you can spend a little more than 120,000 yuan to buy a car that originally cost more than 220,000 yuan. Smart people in the stock market can spend 34.08-35 yuan to buy cheap chips in the early days of Huaheng Biotechnology's listing. After buying the stock, it continued to rise slowly, of course, it did not rise in 2 and 1, and by March 9, 2023, it rose to 194.54 yuan (compound price), an increase of 4.7 times.
On the first day of Huaheng Bio's listing, the Shanghai Composite Index was 3465 points, and when it rose 4.7 times, the Shanghai Composite Index was 3276 points, and the market fell 189 points, but Huaheng Biotech rose 4.7 times against the trend!
Yuansheng believes that such an example of rising against the trend is the focus of research.......... Why is it going up? What are the rules? Can it be reproduced? Whoever can discover the mystery will make money in the stock market!