Chapter 392 Clearing Out High-Dividend and High-Transfer Sector
Since the sharp drop on May 9, when the Shanghai Composite Index broke through 2,900 points, it has entered a consolidation period.
On Thursday morning, May 12, the Shanghai Composite Index fell to a low of around 2,780 points, and then began to rebound with reduced volume.
In the following trading days, the Shanghai Composite Index fluctuated and consolidated around 2,800 points, trying to use time to create room for rebound.
If you were to ask which fund product was the hottest in the market during this period, it would undoubtedly be Junshi Price Investment.
During the consolidation period, the liquor sector once again bottomed out ahead of the broader market.
Before this, investors who had previously bought at high prices and were trapped, as well as new subscribers, all increased their holdings in the liquor sector through new funds that poured in through either increasing their positions or making regular investments.
Due to the increase in funds, Junshi Price Investment once again seized the short-term bottom.
In addition, as the market stabilized at a certain bottom position, the market speculation atmosphere also picked up, and the high-dividend and high-bonus sectors once again moved collectively.
Perhaps for the final shipment, hot money in the market and some small funds have once again started speculating on the high-dividend and high-bonus sector.
During the period when Gu Junhao was traveling, the three stocks he currently held, namely Yinbao Shanxin, Ganfeng Lithium and Tianqi Liye, which had extremely high transfer ratios, started a new round of rising market conditions.
Since May 16, stocks with high bonus and transfer ratios have entered into a major upward trend with shrinking volume and rising prices, and the sector as a whole has moved against the market.
During this period, the lithium battery sector has also seen an increase in popularity as Keheng shares have continued to hit the daily limit since resuming trading.
On May 17, Ganfeng Lithium's daily turnover reached 3.97 billion yuan, and its stock price hit a high of 75.30 yuan, setting a new historical high.
From that day on, Wang Ruoyu began to reduce his holdings in Ganfengli Industry as requested by Gu Junhao.
At the same time, Xu Jianqing has also begun to reduce his holdings in Tianqi Liye.
Gu Junhao's holdings in these two stocks are not low, with 120,000 lots in Ganfeng Lithium and 45,000 lots in Tianqi Lithium.
Based on the closing price on May 17, the market value of Ganfeng Liye held by Gu Junhao exceeded 845 million yuan, while the market value of Tianqi Liye held by him exceeded 850 million yuan.
In this round of bottom-fishing, Ganfeng Liye’s profit exceeded 77%, and Tianqi Liye’s profit was as high as 89%.
After several rounds of speculation, lithium batteries have become one of the hottest sectors in the current market, and public opinion on the topic remains high.
Exiting the market when it is hottest has always been Gu Junhao's operating principle. He began to reduce his positions on May 17, which is also in line with his own operating philosophy.
It has to be said that Gu Junhao has more or less played a certain role in promoting the recent hot market for lithium batteries.
As of May 17, the total market value of holdings of the three lithium battery stocks exposed to the public was close to 2 billion yuan.
Just three stocks, which almost took up one-sixth of Gu Junhao's available operating funds.
For a while, the main water armies in the market, self-media, and even the water armies of listed companies were all using the reason of Gu Junhao's optimism about the lithium battery sector to hype.
Although Gu Junhao is traveling, it does not mean that he has put down his work. He is still paying attention to the news. Every night after returning to the hotel, Gu Junhao will check out his work emails and news on the message board.
In addition, Li Xinyu would also report some situations to him based on market dynamics, and Gu Junhao was well aware of this kind of speculation.
However, Gu Junhao would definitely not come out to refute; in fact, he is indeed optimistic about the lithium battery sector, and the Internet trolls using this to hype it up cannot be considered as spreading rumors.
In addition, Gu Junhao also had requirements for selling the stocks, so it was impossible for him to destroy his own market. The two parties maintained the stability of the stock price in this unspoken understanding.
This selling process will definitely harm the interests of some ordinary investors, but this is also the norm in the stock market. There will always be some people who chase high prices and will be trapped, no matter what the market conditions are.
However, with the high share prices of Tianqi Liye and Ganfeng Liye in a market without incremental funds, there are not many retail investors who can participate. Most of them are small and medium-sized foundations.
If we talk about the damage caused, it may be that more damage is done to the retail investors. The retail investors who remain in the market now, even those who entered the market at the high point in 2015, have been awakened by a few big scams.
It is still somewhat difficult to get the investors who remain in the market to buy at high prices at this time.
Even if they only chase the stock for a short period of time, when the stock price remains high and the increase is less than expected, this group of people will quickly liquidate their positions with one click.
On May 19 , Tianqi Liye's daily turnover exceeded 4.4 billion yuan, and its stock price reached a high of 200.02 yuan, setting a new historical high. The final daily increase was 7.07%, closing at 197 yuan.
The share price of Keheng Co., Ltd. closed at 44.74 yuan on the day, up 10.01% on the day, with a turnover of up to 1.21 billion yuan.
Keheng shares, which had been rising for six consecutive days, launched another upward attack after adjusting for two trading days. The stock price is less than 13% away from the highest level of 50.50 yuan in 2015.
A major round of restructuring, coupled with the hot lithium battery sector and the buying spree since the suspension, Keheng’s stock price can still be considered a buy before it breaks through the 2015 high.
Since late May, the share price of Yinbaoshanxin has been rising continuously, and by May 24, the share price had exceeded 80 yuan.
On that day, Yinbaoshanxin, with a daily turnover of 860 million yuan, closed at 80.40 yuan with a rise of 7.43%. The highest intraday stock price was 82.28 yuan.
The price of Yinbaoshan’s new share price exceeded the 80 yuan price previously expected by the boss. The traders who remained in the trading room followed Gu Junhao’s previous instructions and began their liquidation plan.
Throughout the day, traders sold all their positions in Yinbaoshanxin at an average price of around 79.5 yuan, and recovered a total of more than 54 million yuan.
With an investment of 20 million yuan, the profit exceeded 34 million yuan.
As of this month, among Junshi Price Investment's holdings, there is only one new stock that was the first holding that has not been sold, and that is Huang Shang Huang.
Huangshanghuang's first quarter report did not release a high dividend and bonus plan like other newly listed stocks , and the overall stock price still remained around 30 yuan.
The profit margin remains within 10% of the initial position building cost, which makes Gu Junhao a little confused about this consumer product stock.
The stock price has been flat for a long time, and I don’t know what the intention is. But it doesn’t matter. This company is also included in this research itinerary.
Everything will become clear after returning to the company and reading the research report submitted by Liu Tingting.
These days, Liu Tingting was conducting research in this company. Calculating the time, Liu Tingting and others, who have traveled around half of the country, will soon return to Zhejiang Province.
In about a week, the journey should be over. In these 20 days, Gu Junhao and the others had gained a lot of experience.
However, this is just one province in our motherland. It will probably take several years to fully appreciate the beautiful mountains and rivers of our motherland.
Gu Junhao has a plan. Before the black swan event in 2019, he must find a good opportunity to complete a trip around the country.
Time passed quickly and it was May 26, the day before Tianqi Liye’s ex-rights date. Xu Jianqing slowly breathed a sigh of relief.
Finally I cleared the last position and managed to reduce my position significantly before the ex-rights date.
"I finally completed the boss's instructions. I was too greedy. I should have started reducing my holdings a few days ago."
After completing the clearance, Xu Jianqing breathed a sigh of relief and said to Wang Ruoyu.
As early as when Gu Junhao gave the order, Wang Ruoyu had already begun preparing for the task of clearing out Ganfengli's business.
That is to say, yesterday, May 23, Zhang Muye had completed the task of reducing his holdings in Ganfengliye.
At the close of today, Tianqi Liye closed at 181.60 yuan, with a share price down 0.22% and a daily turnover of 3.52 billion yuan.
Ganfengli Industry closed at 68.22 yuan, down 3.03% on the day, with a turnover of 2.22 billion yuan.
For these two stocks, Tianqi Liye reduced its holdings by 40,000 lots, while Ganfeng Lithium reduced its holdings by 100,000 lots. Currently, Tianqi Liye has 5,000 lots left, while Ganfeng Lithium has 20,000 lots left.
After the ex-rights, Tianqi Lithium's share price will be reduced to 14,000 lots, while Ganfeng Lithium's share price will be reduced to 40,000 lots.
Tianqi Liye currently holds a market value of approximately 90 million yuan, while Ganfeng Liye’s market value is over 136 million yuan.
Tianqi Lithium Industry has recovered a total of 760 million yuan, and Ganfeng Lithium Industry has also recovered 700 million yuan. These two stocks have a yield of 90% and more than 76% respectively.
In the volatile market of 2016, with big funds almost openly buying at the bottom, such a rate of return is indeed very good.
"The boss should be back soon, right?" Xu Jianqing asked Wang Ruoyu after relaxing.
"It should be soon. Tingting and her friends have arrived in Jiangxi Province. The next step is to go back to Zhejiang Province. It will probably be almost there in a week or so."
"The boss is really outrageous. He hangs out here, plays there, and even shows affection with Sister Zhang. His account is almost becoming a place for fans to watch romance dramas."
"Haha, I didn't expect the boss to have this side of him. He would just leave the company alone and go out and play."
"It doesn't matter. Anyway, you are the one who manages the private equity now. The performance of public funds is not bad, and the returns of proprietary trading are also very good. What can't you do?"
"This is all the foundation laid by the boss. The stocks that the boss selected are basically able to survive bull and bear markets. If we can't do well, we'd be too incompetent."
"That's true, hehe; luckily we are not a listed company, otherwise the second quarter report would scare them to death."
"So do you think there is a possibility for our company to go public?"
"It's unlikely that the main body will be listed, but there will definitely be companies that the company has invested in. Most of the money from Tianqi Liye's reduction in holdings will be used for equity investment in the primary market. According to the boss's vision, there will be at least a few companies that will succeed in IPO."
"The investment directions of proprietary trading are getting wider and wider. It seems that you have more prospects. The future investment tycoon Xu Jianqing must be much more impressive than Xu Dayouzi, haha."
"You are the same, Mr. Wang, the future billionaire private equity tycoon!"
"That was given to me by the boss."
"That's yours too."
"That's true, haha, not bad."
After saying that, the two smiled at each other, and they could see the light in each other's eyes.
