mchenry-crisis.org Chapter 72 Buying Stocks with 500 Million
Chapter 72 Buying Stocks with 500 Million
Chapter 72 Buying Stocks with 500 Million
Mao Xiaoyu went to a different restaurant and ate her meal before returning home.
What should have been a happy day has turned sour because of Liu Yong's situation, and Mao Xiaoyu is still feeling uneasy about it.
But Mao Xiaoyu also knew that even if she was unhappy, she had to keep it to herself. The world couldn't revolve around her, and it was normal for problems to arise, even though the problem was caused by her good friend.
After returning home, Mao Xiaoyu first took a shower. Then, while turning on her computer, she used her phone to chat with Yang Ying on QQ.
chat.
Mao Xiaoyu wondered what Yang Ying had been busy with lately, as she hadn't been chatting with him on QQ as often. In Mao Xiaoyu's opinion, their relationship seemed to be fading, and they might not even see each other again for another six months.
Mao Xiaoyu took it in stride. "Women are nothing," he said. "Once I have money, I can have any kind of woman I want. I'll only ever like 18-year-old girls."
Since Yang Ying wasn't replying to her QQ messages, Mao Xiaoyu focused her attention on the computer, specifically checking the stock market trends. After all, now that she had the money, Mao Xiaoyu was ready to invest it in the stock market.
After turning on the computer, Mao Xiaoyu immediately switched to the stock market index and started looking at it.
Honestly, the stock market in 2005 was really bad. The entire market was barely alive, and after several years of continuous decline, the daily trading volume was extremely low.
If Mao Xiaoyu hadn't known that the Chinese stock market would gradually rise starting in the second half of the year, she definitely wouldn't have bought these stocks at any other time, since the Chinese stock market is a trap!
After glancing at the overall market, Mao Xiaoyu immediately clicked on Hudong Heavy Machinery.
The overall performance of Hudong Heavy Machinery is just so-so; the price fluctuations across the board aren't particularly high.
Currently, Hudong Heavy Machinery's stock price is only a little over 4 yuan per share, a price that has been falling for more than two years and has been hovering around this level.
Looking at the stock price, Mao Xiaoyu thought for a moment, then shook her head and said she couldn't buy it.
Although Mao Xiaoyu is familiar with other stocks that have seen high gains, she is most familiar with Hudong Heavy Machinery's stock.
After all, my dad lost all of his 700,000+ yuan in his previous life to 120,000 yuan on China Shipbuilding. How could he not be familiar with this stock?
The real surge in Hudong Heavy Machinery's stock price didn't happen until 2007, and even then, it was in the second half of 2007.
2007年上半年沪东重机的股价才不过5~8块钱一股，等到6月1号确定沪东重机被中国船舶收购以后。
才从8块涨到37块左右，然后8月1号沪东重机正式改名中国船舶，接下来三个多月，又从37块涨到了300来块钱一股。
In other words, Hudong Heavy Machinery is only worth this much money now. If I buy its stock, it won't rise much in the next year or two. So what's the point of buying its stock so early?
After all, my money was borrowed from the bank and I have to pay interest every month. I'm buying stocks now with the intention of making money, so I can't buy stocks that won't rise for 1-2 years.
Thinking of this, Mao Xiaoyu immediately closed the Hudong Heavy Machinery page and opened another stock, Jiaozuo Wanfang.
Jiaozuo Wanfang is an aluminum company. In recent years, the company's performance has been really bad. It has been losing money every year for the past three years, and its stock price has been falling year by year. Now it is only about 1.92 yuan per share.
Mao Xiaoyu glanced at his stock chart, studied it for nearly 10 minutes, and finally shook his head, feeling it still wouldn't work, even though the current stock price was already very low.
However, because these companies tend to be asset-heavy and have government support, they can remain barely surviving even with weak profits.
It's best to avoid buying stocks of such companies unless the entire market is doing well.
Buying it now would definitely result in a loss, and the stock price might even fall further, possibly until 2007. So why buy it at all?
According to Mao Xiaoyu, the only time to buy this stock is when it rises along with the overall market in 2007. Otherwise, anyone who buys it at other times will lose money.
But when the market is really booming, and you have so many stocks to choose from, why would you choose this one?
Therefore, Mao Xiaoyu believes that it's best to avoid buying Jiaozuo Wanfang in the future, even if the overall market is doing well. Buy other stocks, but don't buy it.
After looking at two stocks in a row and not being very satisfied with either, Mao Xiaoyu felt a bit bored, so she stood up, took a bottle of Coke from the refrigerator, opened it, took a couple of sips, and then went back to her computer desk.
Looking at the two stocks that she had directly rejected, Mao Xiaoyu was not in a hurry. After all, there were still many stocks to choose from, and she didn't need these two.
Mao Xiaoyu directly closed the Jiaozuo Wanfang section and then opened the Dongshan Gold section.
Sigh, the Dongshan Gold sector is pretty good.
Recently, the stock price has actually risen slightly.
The current price is 7.21 yuan per share.
Seeing the price, Mao Xiaoyu did the math in her head and decided it was worth the money.
After all, the five sectors that saw a surge in 2007 were non-ferrous metals, finance, coal mining, real estate, and shipbuilding.
Among them, non-ferrous metals, represented by Dongshan Gold, saw the most dramatic price increases.
Moreover, this company deals in gold. No matter how much the price of gold falls, it can't possibly drop to just a few cents. Besides, starting from the second half of the year, stock prices will rise. As the industry leader, Dongshan Gold will definitely rise as well.
Thinking about this, Mao Xiaoyu felt...
Since that's the case, let's make a move tomorrow and invest a little first.
Therefore, Mao Xiaoyu highlighted Dongshan Gold on her computer so that it would be easier to find when checking the stock price later.
After remembering Dongshan Gold, Mao Xiaoyu immediately closed the Dongshan Gold section and then looked at the overall market. Suddenly, she saw Moutai Liquor.
I don't think I saw Moutai liquor's name from 2001 to 2005, so its stock price increase probably wasn't too significant.
But thinking about the future reputation and price increase of Moutai liquor, Mao Xiaoyu clicked on it almost inexplicably.
Wow, that's so high!
Mao Xiaoyu saw that the stock price of Moutai liquor was 54.33 yuan, which is the price of one share.
No wonder Moutai liquor stocks didn't skyrocket in the next two years!
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Now it's over fifty yuan per share.
If the price increases forty or fifty times, that would be outrageous!
However, I heard in my past life that Moutai was a perennial winner, and at one point its market value was the highest in China.
They even went so far as to claim that as long as you buy it, you'll never lose money!
Since it has such a great reputation, should I buy some this time?
Even if the growth rate is not as high as other companies, Mao Xiaoyu believes that by 2007, it should be no problem to increase four or five times, and it may even be normal to increase more than ten times.
After all, this is Moutai liquor!!!
Thinking about this, Mao Xiaoyu was a little tempted. Why not write it down and talk about it tomorrow?
Mao Xiaoyu highlighted the Moutai liquor stock again, preparing to see if she should buy it tomorrow.
After reviewing Moutai liquor, Mao Xiaoyu exited his sector and then started looking at the broader market sectors.
Guangzhou Shipyard International, this is a good stock, Mao Xiaoyu clicked on it directly.
Not bad. Recently, the stock price of Guangzhou Shipyard International has been at a low level, hovering between 2.21 yuan and 2.76 yuan. It is the kind of stock that can't fall any further or rise any higher.
However, Mao Xiaoyu knew that this company's profits had been quite good in the past two years, and like China Shipbuilding, its stock price had skyrocketed in 2007.
If we're talking about the shipbuilding companies with the fastest stock price increases in 2007, China State Shipbuilding Corporation (CSSC) is number one in the shipbuilding industry, while Guangzhou Shipyard International (GSI) is number two.
The other party's stock price is so low now, so I have to buy some. Unfortunately, the company's current market value is only a few billion, and there aren't many shares circulating in the market, but it should be enough for me.
Moreover, since Guangzhou Shipyard International's prices are so low, I can buy more myself.
Unfortunately, I don't seem to have much money.
All the cash I had on me totaled just over 500 million!
And this money only arrived today.
Is it too much?
It seems like at most.
For ordinary people, it may be impossible to earn that much in a lifetime.
But in the stock market, honestly, this amount of money is nothing.
Take buying shares of Guangzhou Shipyard International as an example. It seems that 500 million yuan is not enough to buy stocks, let alone buy shares of Dongshan Gold or Moutai Liquor.
Thinking of this, Mao Xiaoyu felt a sense of emptiness in her heart.
There's no point in looking at other stocks anymore.
After all, if you don't have enough money, there's no point in looking at a lot of stocks. If you buy too many stocks, it's too varied and messy, which can easily affect your subjective judgment. So, it's better to specialize in buying only two or three stocks.
Then I'll buy three stocks next: Dongshan Gold, Moutai Liquor, and Guangzhou Shipyard International.
As for other stocks, I'll think about them when I have more money. Right now, I don't have any money, so there's no point in looking at other stocks.
Since that's the case, Mao Xiaoyu decided not to look at any other stocks. She turned off her computer, went to bed, and planned to go to sleep early so she could go to the brokerage firm to buy stocks first thing in the morning.
Early the next morning, Mao Xiaoyu got up, brushed her teeth and washed her face, ate breakfast, and then rode her electric bike to look for a securities company.
In fact, Mao Xiaoyu had opened accounts with nine securities companies in order to buy stocks, including Orient Securities, CITIC Securities, Haitong Securities, Huatai Securities, Guoxin Securities, Guotai Securities, GF Securities, Huaxi Securities, and Great Wall Securities.
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Mao Xiaoyu first went to Dongfang Securities and directly transferred 200 million yuan in cash into Dongfang Securities' securities account.
This move startled the manager of Dongfang Securities, who immediately arranged a high-level welcome for them.
There's nothing we can do about it. The main problem is that there aren't many people buying stocks right now, let alone spending 200 million yuan to buy them.
"Hello, my surname is Zhang. I am the manager of this branch of Orient Securities. Thank you for trusting Orient Securities. Please have a seat."
Manager Zhang met with Mao Xiaoyu in the VIP room of Orient Securities.
"Hello, my name is Mao Xiaoyu. It's a pleasure to meet you, Manager Zhang," Mao Xiaoyu said politely.
The two then sat down, and an employee brought them two cups of tea and placed them in front of them.
"I wonder which stocks Mr. Mao plans to buy with this investment of 200 million?" Manager Zhang asked with concern.
"Don't rush to buy stocks. I'd like to ask if you, Dongfang Securities, offer margin financing?" Mao Xiaoyu asked.
"What's wrong, Mr. Mao? Do you need to use leverage to trade stocks?" Manager Zhang asked with concern.
"Yes, at least one to two, or one to three, that's how you can have leverage in stock trading. I wonder if your company provides leverage?" Mao Xiaoyu asked again.
"We need to ask our superiors about this. To be honest, there are already complete margin trading solutions available overseas, but there aren't many securities companies in China that offer them," Manager Zhang said after a moment's hesitation.
After all, there really isn't any stock margin trading available in China, and Manager Zhang couldn't guarantee that he could secure funding from his superiors.
"Alright then, ask around for me first. If you agree to the leverage, we can talk about it later. If you don't agree, that's fine too. But I'll ask other securities companies. If any of them offer me leverage, I might have to transfer the funds out. Don't blame me then," Mao Xiaoyu said directly.
"Alright, we'll report this to our superiors immediately. We'll give you an answer within two days at most," Manager Zhang said earnestly.
"Also, with my 2 million yuan, find me a good trader to buy shares of Guangzhou Shipyard International. Don't drive the price too high; try to keep it below 2.4 yuan. I checked yesterday, and the price was around 2.35 yuan. The fluctuations have been that small recently," Mao Xiaoyu said.
"Okay, but that might take a little longer to buy, since there aren't many stocks that can reach below 2.4 yuan per day," Manager Zhang said in a low voice.
"It's okay, we can collect them slowly. I'm not in a hurry. It's fine if we collect them for two or three months, or even three or four months," Mao Xiaoyu said, pretending to be indifferent.
"Alright, we'll find the best trader to manage your portfolio," Manager Zhang agreed.
"That's all. Just remember that. It would be best if you could reply to me soon. That's all I have to say. Goodbye."
After saying this, Mao Xiaoyu stood up and left Dongfang Securities.
Next, Mao Xiaoyu went to Guoxin Securities and deposited 100 million yuan in cash. Mao Xiaoyu gave a bottom price and asked the trader to buy Moutai shares for her. She also said the same thing to the manager of Guoxin Securities, asking them to allocate shares for her. Of course, the answer she got was the same: she had to report to her superiors.
Next, Mao Xiaoyu went to the third CITIC Securities company and deposited another 2 million yuan in cash. She then did the same thing as the previous two companies: she gave the bottom price and asked the trader to buy Dongshan Gold's stock. She also asked the manager of CITIC Securities if financing was possible, and of course, she got the same answer.
After finishing all that, it was already past eleven o'clock. Mao Xiaoyu rushed to the hospital to try and rescue the person.