Changsha is recognized as the capital of entertainment. Hunan TV's entertainment programs are the best in the country, so the ratings are very high, attracting a large number of companies to place advertisements. The station's annual advertising revenue is second only to CCTV, far ahead among provincial stations, and ranked first in the country.
In the morning, Yuan Sheng was leisurely at home and watched the second issue of "I Want to Sing with You 4" on Hunan TV. In this program, Yuansheng saw a piece of information: The first "Happy Boys" in 2007 entered the top 13 contestants in the country. N years later, one of them could not survive in the entertainment industry and could only deliver food... .......
To be fair, Hunan TV is the best at providing entertainment. The first edition of "Happy Boys" was the most influential among all previous editions... From a country of 1.3 billion people, the top 13 were selected. N years later, I can only make a living by delivering food... This shows 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 among 212 million people. It is more fierce and difficult than the entertainment industry. Therefore, many people have been speculating in the stock market for N years and have not found a way to make stable money... .. Among the more than 5,000 stocks, the stocks they bought wanted to be famous, but not famous; they wanted high growth, but not high growth; they wanted a P/E ratio, but the P/E ratio was not low enough; they wanted a small cap, but it was not small enough; and they wanted a low price. , and the price is not low enough; there is room for imagination, but there is not enough room for imagination; there is a main force, but the main force is not strong enough... In short, none of the stocks they chose are feasible. It is ranked No. 1 among more than 5,000 stocks. This idea of stock selection is inherently wrong.
If we are in life, your friend wants money, but has no money; wants skills, but has no skills; wants power, but has no power; wants influence, but has no influence; wants connections, but has no connections... To put it bluntly What do you want? Nothing. No matter how many such friends you have, when you encounter difficulties, they will not be able to help you at all...
In life, if you are a very ordinary person with no strong points (specialties or advantages), and you want to make friends with powerful or wealthy people, they will look down on you because you are not on the same level as them. So, it’s hard to be friends.....
But in the stock market, it's different. There are more than 5,000 stocks, and you can buy whoever you want (of course, people with very little money may not be able to open the Beijing Stock Exchange and the Science and Technology Innovation Board). You have a lot of choices. Therefore, in the stock market, your success or failure depends on stock selection (and the timing of buying).
On the first day Huaheng Biotech went public on April 22, 2021, Yuansheng took a fancy to it.
There are several reasons why Yuansheng is interested in it: First, its opening price on the first day of listing was 35.50 yuan, and its price-to-earnings ratio at that time was about 26 times. Because at that time, the average price-to-earnings ratio of the Science and Technology Innovation Board was more than 70 times, while Huaheng Biotech's price-to-earnings ratio was only around 26 times, which was very low.
Second, when it was first listed, the circulating supply was 23.7 million shares, which is a standard small-cap stock.
Third, Huaheng Biological Technology R&D, production and sales of amino acid products, mainly alanine series products. To put it bluntly, its products are basic chemicals - chemical products - food and feed additives, and downstream industries cannot do without it. To give an example: a gold mine was discovered in a certain place, attracting countless people to pan for gold. Maybe Lao Li was lucky and made a fortune when he found gold; but Lao Zhang was unlucky and did not find gold, but lost money. ..... Huaheng Biotech is like a water seller in a gold mine. With so many gold diggers, no matter who they are, they all need to drink water. Therefore, those who sell water will definitely make a profit.
Fourth, before going public, Huaheng Bio introduced itself like this: After years of innovation and development, the company has become one of the world's leading companies in the large-scale production of small varieties of amino acid products through biomanufacturing. The production scale of alanine series products Ranking among the best in the world. The company adheres to the development path of "replacing non-renewable petrochemical resources with renewable biological resources, and replacing high-energy-consuming and high-pollution petrochemical processes with green and clean bio-manufacturing processes." Based on synthetic biology, metabolic engineering, fermentation engineering and other disciplines, the company A technology research and development chain of "industrial strains - fermentation and extraction - product application" has been established, forming a complete technological leadership in industrial strain creation, intelligent control of fermentation processes, efficient post-extraction, and product application development, and has developed and applied The fermentation production process with microbial cell factory as the core and the enzymatic production process with enzyme catalysis as the core have replaced the heavy-polluting production methods of traditional chemical synthesis processes, realized technological changes in the use of biotechnology to produce fine compounds, and continued to advance Upgrading and iteration of biomanufacturing technology processes. Among them, the microbial fermentation process uses renewable glucose for direct fermentation production, which has lower production costs and a safer, greener and more 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..." ----------The world's leading stock is only 35.50 yuan, with a price-to-earnings ratio of only 26 times (the average of the Science and Technology Innovation Board where it is located is more than 70 times), and the circulating market is also very small, only 23.7 million shares.
It is precisely because of the above four points superimposed together that Yuansheng was hyped in the early days of Huaheng Biotech's listing and made a lot of money.
People who can't find the right method in the stock market just lack the method of comparison: look at the media revelations 1-2 weeks ago that a certain model of Hubei Dongfeng Motor was originally sold for more than 220,000 yuan. This price is uncompetitive, so Netizens said: 220,000 yuan, it has all the shortcomings, it is not worth buying; as soon as the news of the 90,000 yuan subsidy for this model came out, netizens said: This model sold for more than 120,000 yuan, all the advantages, grab... As a result, within a week, this model was no longer in stock.
Smart people in life can spend a little more than 120,000 to buy a car that originally cost more than 220,000 yuan. Smart people in the stock market can buy cheap chips for 34.08--35 yuan in the early days of Huaheng Biotech's listing. After buying the stock, it continued to rise slowly. Of course, it did not rise in a 2-forward-1 retreat style. By March 9, 2023, it rose to 194.54 yuan (restoration price), an increase of 4.7 times.
On the first day Huaheng Biotech went public, the Shanghai Composite Index was 3,465 points. When it rose 4.7 times, the Shanghai Composite Index was 3,276 points. The market fell 189 points, but Huaheng Biotech bucked the trend and rose 4.7 times!
Yuansheng believes: Such an example of rising against the trend is the focus of research... Why can it rise? What are the rules? Can it be copied? Whoever can discover the secret can make money in the stock market!
