Boss Lu: A reborn life is destined to be without regrets!
Chapter 152 - 129. Xiao Lu, a successful candidate in the imperial examinations.

Chapter 152: 129. Xiao Lu, a successful candidate in the imperial examinations.

A group of elephants was blown into the sky by the wind.

This is an apt metaphor later used to describe the brokerage stocks in 2014.

As time entered the late October, a structural bull market set sail from this moment, brewing an eruption day by day.

Headed by brokerage and other blue-chip stocks, the "two-eight" effect played out to an unprecedented level.

Under top-level design, fueled by an escalating margin trading, the higher the bull market soared on leverage, the greater the profits for brokerages.

Like elephants catching the wind, in the blink of an eye, they were high in the clouds.

"Are you suggesting I buy these?"

At [Golden Stone] café.

Early in the morning, Lu Jincheng sat Zhou Sinin down in the most secluded corner, with a laptop on the table displaying red and green lines all over its screen.

"Yes, brokerage stocks, entering now is like picking up money."

Lu Jincheng leaned over to her ear and whispered.

"Why is that?"

"You may not have noticed, but ’One Code for All’ has already started to roll out recently."

From October 8th, China’s securities industry formally entered the "One Code for All" era, since then brokerages have been faced with more opportunities and challenges.

Additionally, the development of brokerages in all aspects this year can also be described as wild horses breaking free from reins.

The explosion of brokerage mergers, joining hands with the internet, the ascension of margin trading, battle for IPO underwriting supremacy, and so on, the scene was nothing short of spectacular.

Without a doubt, the internet and internet thinking were the hottest topics for brokerages in 2014.

To date, brokerages that have acquired licenses for pilot internet securities operations have reached a total of 24.

Starting this year, Sinolink Securities took the lead in forming a strategic partnership with Tencent, launching online account opening with a commission fee as low as two ten-thousandths.

Subsequently, the pace of brokerages venturing into internet finance considerably quickened, with Huatai Securities teaming up with NetEase; Dongwu Securities partnering with Royal Flush; Guoyuan Securities joining forces with Wind; Zhongshan Securities collaborating with Baidu; Guangfa Securities forming a strategic alliance with Sina, and Pacific Securities embracing JD.com...

Internet finance was gradually starting to sprout, and the future looked bright.

Reviewing Mr. Lu’s entire fortune in the stock market.

At the end of last month, after buying a house, he had over two million left for steady investing for over half a month, maintaining an average daily return of about 7%-8%.

But with the trend rolling on, the money in his stock market account also reached 5.6 million.

That was no small figure.

"Hey, you’re telling someone to enter brokerage stocks, why are you buying this?"

Zhou Sinin looked at the screen, curious.

"What I’m teaching you is trend investing, which is steadier, and different from my own methods."

"So what sort of investing is yours?"

"Don’t bother me, what I’m doing is called speculation."

Mr. Lu operated on his computer, and on it prominently displayed was the name of a stock called Lanshi Heavy Equipment.

Right after he was reborn, Lu Jincheng had tried to recall the name of the dream-like stock that once soared with 24 consecutive limit ups.

But he’s not an all-knowing deity, just an ordinary person reborn.

No matter how hard he tried, he could not remember.

Not until the timeline reached October 9th, when Lanshi Heavy Equipment listed on its first day, and to this moment, the stock price had hit consecutive limit ups on trading days.

Hard work pays off, and Lu Jincheng, who set aside time everyday to watch the market, finally noticed some clues.

Buddy, how do you keep rising?

The stock, due to embracing both "nuclear power" and "the cheapest new stock" concepts, kept rising non-stop since it began trading.

It must be you, right?

"Come on, this stock has already hit the limit up for several trading days, and you’re entering now... Isn’t that just chasing highs and fearing lows?"

Zhou Sinin, looking at his actions, her delicate peach-blossom eyes were full of confusion.

What he just said was indeed correct, it was truly speculation!

According to Lu Jincheng’s previous investment logic, she could not for the life of her fathom why the relatively steady Lu Jincheng would continue to buy this stock.

She looked up some information on her phone and found out that Lanshi Heavy Equipment had gained frenzied capital pursuit because its IPO price was the lowest in recent years, in addition to wearing hot-button themes such as military and nuclear power.

However, during the investor briefing held while the stock was suspended, Lanshi Heavy Equipment stated that nuclear power equipment currently accounted for a very small proportion of the company’s main business.

Before listing, not only was there nothing particularly special about the core business of Lanshi Heavy Equipment, but the company’s net profit had even declined over the past three years.

Isn’t this purely a "monster stock" that lacks earnings support and relies mainly on conceptual speculation?

An explosive rise without earnings or fundamental support essentially pre-paid performance for a long period into the future, making it likely to fall into a lengthy adjustment phase.

While speculating on monster stocks, there are, of course, significant risks involved, so she naturally wanted to advise Lu Jincheng to be cautious.

"It’s fine, I’m only touching a small portion of my capital, it won’t matter if I lose."

Mr. Lu still adhered to the approach of not putting all his eggs in one basket, although he was almost 80% sure that Lanshi Heavy Equipment was the legendary stock.

—In 2014, new stocks represented "a flag," taking the A-share market’s speculation myth to its extreme.

It had once chalked up 24 consecutive limit ups, and after the limit up was lifted, it continued to intermittently hit 4 more limit ups, with a staggering growth of 626% for the year, ranking it at the top of both markets.

From October 9th to the present, 7 trading days had passed.

That meant if this was indeed the legendary stock, Mr. Lu was highly likely to hit many more limit ups.

He gambled two million entering the market, with all the rest invested in brokerage stocks, increasing the effort on multiple fronts.

To put it plainly, he could afford to lose these two million if he guessed wrong.

But if he guessed right, he might just reach the threshold of A8.

For him, such a risk was certainly worth taking!