Chapter 96: Why Can It Go Up 1181 Times?
It opened at $8.50 on the first day of listing, closed at $10.35, and reached a low price of $2.35 in the seventh month after listing. Then it rose slowly, and by February 18, 2021, it had risen to a maximum of 3,119.99 yuan.
Yuansheng calculated that the stock rose from the lowest price of 2.64 yuan (compound price) on July 29, 1994 to 3119.99 yuan, an increase of 1181 times. The maximum increase in Moutai is 25.88 yuan to 13593.01 yuan (compound price), an increase of 525 times.
Without contrast, there is no harm; If you are not afraid of not knowing the goods, you are afraid of comparing goods. Through the above data, we know that the stock is even more bullish than the famous Moutai stock! The increase is even bigger. What kind of stock is it? Why can it rise 1181 times?
What stock is it so bullish? It is Yunnan Baiyao.
March 12, 2023 is Sunday, Zhang Sheng went to Yuansheng's house to talk about the stock together, they reviewed all the information of the stock, and also summarized the following reasons through Yuansheng's memories:
Specifically, we have more than 10,000 kinds of Chinese medicinal materials and more than 4,000 kinds of Chinese medicine preparations, but there are only 8 kinds of permanent and long-term "national top secret" and "state secret" formulas, yes, only 8!
The first level is the national top-secret formula, also known as the national traditional Chinese medicine top-secret variety, and the confidentiality period is permanent, and there are only two at present, namely Yunnan Baiyao and Zhangzhou Pien Tze Huang.
The second level is the national secret formula, also known as the secret variety of traditional Chinese medicine, there are only six at present, namely: Beijing Tongrentang's Angong Niuhuang Pill, Guangzhou Qixing Pharmaceutical's Huatuo Reconstituted Pill, Hangzhou Lei Yunshang's Liushen Pill, Shanghai Hutchison Pharmaceutical's Musk Baoxin Pill, Shanxi Guangyu Yuanguo's Guilingji and Dingkun Dan, these six are second only to Yunnan Baiyao and Zhangzhou Pien Tze Huang, and the confidentiality period is long-term.
The treatment of these eight drugs is very special, and the instructions do not need to fully indicate the specific ingredients, which is a genuine national "secret recipe".
------ through the above article, we know that in the whole of China, there are only 2 national top-secret recipes (this is the highest grade), and one of them is Yunnan Baiyao.
Second, Yuansheng has sprained his foot N times, and has used sprain medicine produced in Hong Kong, South Korea, Singapore, Vietnam and other places, and the best effect is Yunnan Baiyao aerosol.
Third, if it is a minor injury, the best effect of blood is Yunnan Baiyao.
Fourth, Yunnan Baiyao had only 20 million shares in circulation at the initial stage of listing, and the total share capital was 80 million shares, all of which were very small. At present, the total share capital is 1,796.86 million shares, which is an increase of 22.46 times in the share capital alone.
Fifth, in the early days of its listing, the lowest price was 2.35 yuan (without reinstatement), and even the lowest price after reinstatement was only 2.64 yuan, which was very low. Low price, upside can be large enough. Looking at the housing prices in first-tier cities more than 40 years ago, it was only more than 200 yuan per square meter, and now it has risen 5,000 times to 100,000 yuan per square meter; After 100,000 yuan, the starting point is too high, and it is very difficult to rise. After 100,000 yuan, let alone another 5,000 times, it will be difficult to climb to the sky if it rises 5 times!
Because of the above five reasons, the maximum increase in Yunnan Baiyao stocks was 1181 times, while the market index in the same period rose from 333 points on July 29, 1994 to 3675 points on February 18, 2021, an increase of 11 times. That is to say, under the background of the 11-fold rise in the market index, Yunnan Baiyao rose 1181 times, far exceeding the increase in the market in the same period.
Zhang Sheng: Yunnan White Y is so good, can it still explode in the future?
Yuansheng: That's a good question! If it is said that it is 1181 times in the past, most of the credit is due to its top-secret formula, and its recent more than 10 consecutive launches of more popular products, resulting in its net profit in 2020 is 5.6 billion yuan, while the net profit in the year before its listing (1992) was only 63.65 million yuan (the net profit in 1993 is about the same as this figure).
If Yunnan BaiY continues to launch very popular products in the future, resulting in its annual net profit reaching more than 10 billion yuan, or 20 billion yuan, or more than 30 billion yuan in the next 1-3 years, then its stock price will most likely continue to rise!
So, will Yunnan Baiy's net profit reach 100-30 billion yuan in the next 1-3 years? I don't have this research or foresight, so I give up not speculation and research. Whether its stock price goes up or down, I don't care. People can only make money within the scope of their own cognition!
Zhang Sheng: Yes, there are currently more than 5,000 A-share stocks, and 20-40 will continue to be listed every month, which is equivalent to more than 200-400 new stocks listed every year. This kind of money is easier to earn. Stocks that are too difficult and complicated will be played by others.
Yuansheng: Yes, the degree of freedom in the stock market is very large, what stocks to buy, what stocks not to buy, you have the final say, why bother to be more serious, buy stocks that you are not sure of?
Yuansheng went on to say: In the same context of the market, why can a certain stock rise? There is a high probability that there is a theme behind it (you don't know), so you will speculate on it. Or maybe it's a recent product that's selling very well (or the price has gone up), and then the net profit will increase significantly (a few months later, the earnings report will come out, and retail investors will find out.) However, the main forces have known for a long time, so they dare to pull up the stock price). Why can Tuojing Technology rise from 88.10 yuan in the early stage of listing to 327 yuan after more than 4 months, an increase of 3.71 times, while the market basically did not rise in the same period. Why is it so awesome? Later, the company's announcement told you the answer: It is estimated that the net profit attributable to the owners of the parent company from January to December 2022 will be 33,000.00 yuan to 40,000.00 yuan, an increase of 381.85% to 484.06% compared with the same period last year.
And by the same token, why has the Bia D fallen from $306.13 to $243.14 in recent weeks. Now the mystery has basically been seen: recently, car companies across the country have begun to roll up: everyone sells at a lower price, and if they reduce, the net profit of car companies will naturally decrease. Net profit decreases, what do you say will happen to the stock price?
Zhang Sheng: From a long-term point of view, any stock rise, is caused by a sharp rise in net profit, the most typical case is Suning Electric Q, the initial annual net profit is about 100 million yuan, 3 years after the listing of the annual net profit is more than 4 billion yuan, so its stock price has also risen nearly 40 times. In the early days of a new stock listing, the net profit per share was more than 3 yuan, so the initial positioning of the listing was more than 160 yuan, but no one could have imagined that after the listing, its net profit fell sharply every year, and finally because of the continuous loss for 3 years and delisted (before the delisting, its stock price fell to about 0.8 yuan).
In the chat, time flies very quickly. At 5 p.m., Zhang Sheng went home....... Tomorrow is week 1, will their stock market go up or down? Let's listen to the next breakdown.