Black technology: a super empire spanning two worlds

Chapter 293 [Buying Up Likang at Rock-Bottom Prices]

In a certain city, Zhao Mingjie, a young man around 28 years old, is studying the stock of Likang Technology. He is an A-share retail investor and a veteran stock trader. He started playing the A-share market when he was 20 years old and has been trading stocks for seven or eight years.

Zhao Mingjie's main job is running a self-media platform. In the past two years, when Lingjing Technology sparked the AI ​​craze, he was among the first to get involved in new things and thus reaped some benefits. He used to lose a lot of money in stock trading, but now he is making a profit.

Given the performance of the A-share market this year, very few people have made money; over 90% of stock investors have lost money.

Unless you bought Lingjing Technology stock, especially if you made a long-term investment and held it for more than a year, you would make money, the difference being how much you made.

Zhao Mingjie made a profit this year precisely because he invested in Lingjing Technology stock, and it was a long-term investment. Currently, he has a floating profit of about 26 yuan on this stock, and he will continue to hold it firmly for the long term.

"The liquidity of the Beijing Stock Exchange is really hard to describe..." Zhao Mingjie couldn't help but complain as he looked at the trading volume of Likang Technology's stock. Today is Tuesday, and it's around 13:15 pm.

The current trading volume of Likang Technology's stock is barely over one million yuan. Some time ago, there were even many trading days with a total daily trading volume of less than one million yuan. Meanwhile, Lingjing Technology next door has now reached a trading volume of more than 530 billion yuan.

The Beijing Stock Exchange has only been established for about two years, and the entry threshold for individual investors, or retail investors, is 500,000 yuan in assets and two years of experience. Most retail investors cannot meet this threshold, and without the participation of retail investors, it is impossible to have the same liquidity as the main board.

In addition, the A-share market was sluggish again in the second half of the year, and the trading activity and liquidity of the entire market declined rapidly. The main board had little liquidity and was even siphoned off by Lingjing Technology, so the Beijing Stock Exchange market was even less likely to have any liquidity.

Zhao Mingjie's account had long met the threshold for the Beijing Stock Exchange, but trading permissions were only recently granted, and he has not traded a single stock on the Beijing Stock Exchange to date.

The main reason is that he doesn't dare to participate much. There are basically no retail investors participating in the Beijing Stock Exchange, so it's basically a battle of wits between two scalpers.

Zhao Mingjie felt he couldn't outmaneuver those people, and the volatility of the Beijing Stock Exchange was even greater than that of the ChiNext and STAR Market, with daily price limits of ±30%. If he were to experience a sudden drop from the daily limit to the daily limit, he could suffer a loss of -46.15% in a single day, essentially halving his investment.

He hadn't originally planned to participate in stock trading on the Beijing Stock Exchange, but one of the stocks he had his eye on was listed on the Beijing Stock Exchange, and it turned out to be Zhou Chengyang's company, Likang Technology.

He opened a trading account on the Beijing Stock Exchange precisely because he wanted to invest in this stock.

Since its listing, Likang Technology's stock price has been halved and then halved again. At present, the stock price is fluctuating at 1.47 yuan, with an intraday drop of nearly 4%. The current market value is only 6.83 million yuan.

Even if this stock were listed on the main board, most investors would not touch it, especially given its huge losses this year.

However, Zhao Mingjie was very optimistic about this stock, and he agreed with Zhou Chengyang's philosophy. The annual report loss did not mean that the company could not make money, but that Zhou Chengyang had reinvested the money he had earned, and most of the funds were still used for technology research and development, with R&D funds accounting for 20-30% of the company's revenue.

Speaking of which, Zhao Mingjie, who is still single, is a user of Likang Technology's products. He has bought many of the company's products, which are not only cheap and affordable, but also offer an experience that is not much worse than that of well-known brands on the notebook side.

Having personally used Likang Technology's products, he is very satisfied with them from a user's perspective, which is one of the reasons he is optimistic about the company's growth potential.

Moreover, founder Zhou Chengyang is passionate about technological innovation. In the earnings call, he repeatedly emphasized that Likang Technology should embrace AI, firmly believing that it is a major trend for the future. As AI technology and prosthetic technology mature, they will surely empower the industry.

This is precisely the viewpoint that Zhao Mingjie agrees with.

"It shouldn't fall much further, I'm not waiting any longer." Looking at the stock's price chart, Zhao Mingjie decided to buy into the stock today.

This stock fell to a record low of 1.07 yuan more than a month ago, and then surged to a high of 1.61 yuan yesterday. The cumulative rebound during this period is +50%, which is quite a strong rebound.

However, given the previous sharp decline, even after a 50% rebound, the stock price remains very cheap and offers excellent value. The severe drop in Likang Technology's stock price is also significantly influenced by the overall market environment, with small-cap, large-cap, and blue-chip stocks all experiencing a gradual decline.

Only Lingjing Technology is truly resilient. Despite its large market capitalization, it managed to reach a new historical high this year, even amidst a bear market. Many other stocks, on the other hand, have hit new lows for the year or even historical lows.

"Bought."

Zhao Mingjie made up his mind and immediately took action. It was around 13:22 PM when he began to intervene in Likang Technology, planning to buy 20 yuan worth of shares.

At this moment, the intraday stock price of Likang Technology is 1.47 yuan, currently down 3.92%. Zhao Mingjie placed a buy order at 1.47 yuan and waited for the transaction to be completed. However, after waiting for five or six minutes, only about 4.7 yuan of shares were traded.

For the next eight minutes, the trading volume was zero. There was no turnover during those eight minutes, which means that even though Zhao Mingjie offered to buy at 1.47 yuan, no one placed a sell order at the 1.47 yuan price for such a long time.

"The liquidity is really bad. Even the worst stocks on the main board have a chart pattern that looks like a loom, but the Beijing Stock Exchange's stocks are like a loom that can't even weave anymore..."

Zhao Mingjie was speechless. Only the Beijing Stock Exchange would have this situation. Even if the main board stocks had low trading volume, were of poor quality, or were even ST stocks, they wouldn't have had zero turnover for such a long time.

He wasn't in a hurry and didn't plan to cancel the order and resubmit it at a higher price, because adding 1 cents would increase the price by about 0.7 percentage points. Anyway, there was still plenty of time before the market closed, and as long as no one came to buy at a higher price, he could definitely buy the 20 shares at 1.47 yuan per share today.

If I really can't buy it all, I can always buy it tomorrow.

Meanwhile, Mr. Li, who had obtained exclusive insider information, was almost ready to make preparations.

He has already notified the trader to start buying up Likang Technology shares in the secondary market today, and he is using hidden funds, that is, shadow holding, instead of increasing his holdings as the third largest shareholder of Likang Technology.

About twenty minutes later, Zhao Mingjie watched as only one-third of the 20 yuan order had been sold, and he felt utterly hopeless.

Just then, a large sell order suddenly appeared on the sell side, placed at a price of 1.45 yuan. This sell order was close to 30, which also pushed the stock price of Likang Technology to a new intraday low of 1.45 yuan, a drop of -5.23%.

Zhao Mingjie had about 13 units left in buy orders at a price of 1.47 yuan, so the entire transaction was completed.

"There are 30 sell orders at 1.45 yuan. I should have known about the tiered pricing." Zhao Mingjie couldn't help but say. His 20 yuan purchase was made at 1.47 yuan, and he held 13.6 shares.

The stock price has now dropped further to 1.45 yuan, and he has already suffered a floating loss of 1.36% on his first purchase, amounting to a loss of more than 2700 yuan.

"Finally finished buying." Zhao Mingjie breathed a sigh of relief. He wasn't too concerned about the unrealized losses. His investment strategy in Likang Technology was long-term, and the price wouldn't fall much further from this level. Even if it retraced to 1.07 yuan, it wouldn't matter.

If the price were to retest previous lows, Zhao Mingjie even planned to add another 10 yuan to his position.

A while later, just as he was about to close the software, the intraday chart of Likang Technology, which had been struggling to even jump a few times, suddenly surged straight up, like a spring rising vertically from dry land.

……

(End of this chapter)