Perfection of Rebirth

Chapter 509
In the stock market, those stocks with strange and weird stock price movements are usually called "monster stocks".Their trends are contrary to the broader market or common sense, and completely inconsistent with the basic rules of technical analysis.

The trend of monster stocks is obviously abnormal compared with other stocks, which is unreasonable and difficult to figure out. Generally, they are skyrocketing and plummeting.Obviously this listed company is losing money, but it has repeatedly pulled the daily limit; obviously this company's stock cannot reach such a high price, but it has risen very high.

On May 2006, 5, the new IPO regulations came into effect. On May 18, 2006, the IPO that had been suspended for more than a year began to restart today.On the same day, CAMCE, as the first stock after resuming the issuance of new shares, was hyped immediately after listing. The issue price was only 5 yuan but was pushed to a high point of 25 yuan by funds, with the highest increase of 7.4%, and the turnover rate in one day was as high as 50%, but there was a sharp rise in its stock price, and it continued to fall by the limit in the following five trading days.The epoch-making CAMCE was slammed with funds that had been holding back for more than a year and had no new shares to invest in. Even Guanghui Investment participated in it.

On June 2006, 6, one year after the share reform, a part of Sany Heavy Industry's restricted shares obtained the right to trade, and the lifting of the ban on "Xiao Fei" began.

Xiaofei is a term unique to the Chinese Empire. Less than 5% of the company's stock held by non-tradable shareholders is called Xiaofei, and more than 5% is called Dafei.The lifting of the ban on small non-tradable shares means that this part of non-tradable shares can be listed and traded.The lifting of the ban on small non-tradable shares is the inevitable result of the shareholding reform and the prelude to the era of full circulation.According to regulations, non-tradable shareholders can sell 5% of their shares one year after the share reform is completed (holding less than 5% can sell all of them).The lifting of the ban on Xiaofei has brought considerable impact to the market.At the same time, those who hold this part of the stock can cash out and get real money instead of wealth on paper.At the same time, the lifting of the ban on large and small non-financial transactions has also caused a wave of shocks to the stock market. The stock market, which has been rising continuously since the beginning of the year, ushered in a correction in June, but it began to rise rapidly in July.

Afterwards, under the support of rapid economic development, shareholding reform, and RMB appreciation, the Shanghai Composite Index continued to rise. By September, the market index had risen by [-]% compared to the beginning of the year, and this upward trend has not changed at all.

The enthusiasm of the stock market rekindled the enthusiasm of the long-suppressed Chinese stockholders, and they finally felt like making money.

"Mr. Jiang, so far, the market value of the stocks we hold has reached more than 70 billion, and the book profit has exceeded 30 billion, which has almost doubled," Guan Weidong said.

The market has risen by 10%, and the return of Guanghui Investment has only doubled, which doesn't seem so amazing.But considering the size of Guanghui Investment's funds, it is already very good to be able to double the income.After all, if you have 50 yuan, if you want to appreciate it to 20 yuan, it is easier to play than if you have one billion yuan and want to appreciate it to [-] billion yuan.

In the stock market, small-scale funds can be operated flexibly to obtain higher returns.Large-scale funds, unless you are a banker messing around, otherwise you mainly have to invest in blue chip stocks to make profits.

In the stock market, investors refer to the stocks of large companies that occupy an important dominant position in their industry, have excellent performance, active transactions, and generous dividends as blue chip stocks.These stocks are well-managed, have stable profit-making capabilities, and are stocks of companies that have returned to shareholders year after year.Such companies have the ability to make profits in both good and bad times of the industry, with less risk.

The important thing is that the market capitalization of blue chip stocks is generally relatively large and can withstand the toss.Most of the stocks held by Guanghui Investment Finance Department are blue chips.

"Not bad, tell everyone, work hard, and give everyone a big red envelope at the end of the year," Jiang Hui said with a smile.

"Those people probably regret that they chose the salary model of high basic salary + low commission."

"I am responsible for my own choice, but in order to take care of everyone's emotions, our red envelopes will satisfy them."

"Mr. Jiang, our investment in oil futures is also very impressive. Now we have a profit of 15 billion US dollars on the book. If it is not for some losses in the past month, it is estimated that it will exceed 20 billion."

"In the next few months, I think oil prices will continue to pull back for a while. Let everyone operate according to short selling. After 2006, we will go long again."

In August 2006, the price of oil was close to US$8 a barrel, setting a new high, but it slowly fell back to more than US$80 in the following months.Then, from January 2007 until the outbreak of the subprime mortgage crisis, the price of oil almost doubled or tripled, which was really scary.

"The money comes in so fast in the financial market, no wonder the salary in the financial industry has always been the highest."

"When the money comes in, it is very fast, and when the money disappears even faster. Like that kind of highly leveraged futures, if you accidentally liquidate your position, you will lose a penny."

The so-called liquidation refers to the situation that under certain special conditions, the client's equity in the investor's margin account is negative.When the market conditions change greatly, if most of the funds in the investor's margin account are occupied by the trading margin, and the trading direction is opposite to the market trend, due to the leverage effect of margin trading, it is easy to have a liquidation.

"Indeed, not to mention anything else, our company has lost two to three billion US dollars in oil futures speculation in the last month alone. If we hadn't made a lot of money in the past and the leverage has not been increased so high, it is estimated that we will lose even more."

"The financial industry is not for ordinary people. If I was not very optimistic about this wave of market conditions, I would not have planned to speculate in stocks or futures."

"This year's stock market is really crazy, and my colleagues in the financial department can't believe it."

"In the past two years, you should pay a little attention to the affairs of the financial department. From now on, we will still focus on the real industry and make money slowly and steadily."

According to Jiang Hui's plan, apart from the Internet, which is a virtual and physical industry intertwined, other businesses of Guanghui Group will still be mainly industrial.Brilliant drones, Brilliant mobile phones, Brilliant cars, and related industries are all real industries.

It is said that the real industry is difficult to do, and the profit of the real industry is low. In fact, in Jiang Hui's view, this is all relative.Has anyone heard companies such as Intel, Apple, and Lockheed Martin complain that the physical industry is difficult to do?
The physical industry that will find it difficult to do must be an enterprise that lacks core competitiveness.In the future, as China's economy continues to develop, there must be many small bosses in China complaining that labor is too expensive, materials have risen in price, taxes are too high, and so on.No matter how expensive your labor is, are European and American companies expensive?There is not much difference in material prices around the world. As for taxes, the so-called high is also relative.

Many companies in China have fallen into such a misunderstanding, that is, they engage in the production of products when they see high profits. Therefore, they do food and beverages today, sell cement tomorrow, and operate real estate the day after tomorrow. As a result, the company has no core business and cannot afford it. market risk.

In the final analysis, there is still a lack of core competitiveness.

(End of this chapter)