Free Web NovelChapter 900: Chapter 464 Warhawk-1 Design Finalization_1
Anyone could easily see that the surge in Red Wind Industry’s stock price was purely due to Zhao Yi’s celebrity effect, yet most people never imagined that Zhao Yi’s influence could reach such a level, causing Red Wind Industry’s stock to jump by more than seventy percent. ƒгeewёbnovel.com
As a publicly traded company, Red Wind Industry was not particularly outstanding in the domestic stock market, with a market capitalization of just over twenty billion—a figure easily surpassed by many others.
However, that figure was still over twenty billion. A seventy percent increase equated to a net inflow of over fourteen billion. A net inflow of over ten billion in a month was considerable even for leading stocks in the domestic securities market.
Therefore, some "securities experts" started saying, "Zhao Yi used one billion to leverage two hundred billion."
This was no exaggeration.
Because there were many sellers in the midst of the transactions, and even some small institutions that had purchased shares of Red Wind Industry sold off their holdings after a few days upon noticing a rise of ten or twenty percentage points, it could be said that over twenty billion was not an excessive amount.
After a month had passed, the market’s reaction had calmed down considerably, and many securities experts stepped forward to continue stating, "Investing should be prudent and rational. Value investing is the recommended approach, not following trends. Red Wind Industry’s stock price is relatively high compared to its earnings."
This was the truth.
A careful examination would reveal that Red Wind Industry’s stock price was greatly inflated. Their profit margins over the past few years could even be described as dismal.
Last year, Red Wind Industry’s total revenue was around eighteen billion, with only three hundred million allocated to shareholders as net profit.
And that was after an increase in net profit.
The reason for Red Wind Industry’s net profit growth was the sale of a nineteen percent stake in a subsidiary to another large state-owned shipbuilding enterprise, which brought in a direct gain of eleven billion. Looking back at the two previous years, Red Wind Industry had been consistently loss-making. The investment value of a heavy industrial company with continuous losses was self-evident.
When the market gradually stabilized, many securities analysts suggested, "Red Wind Industry’s stock price is at an absolute high, and it will soon face a sustained decline. Investors who have made money should take the opportunity to sell."
However, for the next half-month, as most people seemed to be waiting and holding, the large institutions holding stocks made no moves, and Red Wind Industry’s stock price was still being propped up.
After more than a month of noisy discussion about the stock price issue of Red Wind Industry, Zhao Yi frequently received interview requests, most of which he declined outright. Now that the public discourse had quieted down somewhat, he knew it was time to step forward and speak, to express his stance and clarify that "it wasn’t him manipulating the market." Otherwise, a national academician carrying the suspicion of stock price manipulation would not look good.
"I do not advocate for investing by following trends,"
Zhao Yi accepted an interview with a television reporter, "Looking at the public opinion, they talk about the celebrity effect. First of all, I am not a celebrity. Secondly, I personally purchased Red Wind Industry’s stocks without revealing my name when Red Wind Industry disclosed the news."
"I wouldn’t want to see myself impacting the investment decisions of market investors, whether they are institutions or ordinary investors. To be honest, I don’t understand the stock market."
"I don’t understand it, never studied it!" Zhao Yi spoke very seriously; he truly didn’t understand stock investment.
"Some negative public opinion suggests that I made money from this investment wave. I invested one billion and earned tens of millions in a month. But I have not sold any shares, and I don’t plan to do so in the short term."
"To me, it seems normal for a stock to rise by several tens of percentage points within a period or hit several circuit breakers. Red Wind Industry’s market value increased by over one hundred billion, but that has nothing to do with me. I still own the same amount of shares. Until I sell, I won’t make any money."
"Many securities experts say that value investing is the way to go, and I agree with their view. The difference is..."
"I believe Red Wind Industry has investment value, which is why I invested—it’s that simple. They think it lacks value; I think it has value—the difference lies there. As for profit ratios and such analysis, I’m not too knowledgeable, but I think, investing is a long-term matter. Just because I see future value doesn’t mean it’s there right now."
"I would like to remind investors here to stay calm and cautious in investing, to have their own judgment and not just echo others..."
Zhao Yi said a lot during the interview, mainly to express his attitude, and he also took care to remind investors to be more composed and that blindly following others in investment is unwise.
That was sufficient.
Those were all he could say.
If he continued to speak about guidance in investing, he might be deemed ’irregular’ by the securities regulatory authority and might face market access issues.
Therefore, public figures should be extra cautious with their comments on investment. Whatever should not be said must be left unsaid.
Having given the interview, Zhao Yi no longer paid attention to public opinion but instead focused on the design and research of aircraft. Two months after the year, there had been significant progress in the Warhawk-1 design.
The urgency before the year-end had its effect.
The efficiency of the research institutions related to the Warhawk-1 design had noticeably improved; in the two months following the year-end, the technical personnel who should have been dispatched arrived. They came over and interfaced with the Warhawk Special Research Group about the data, providing detailed specifications for the equipment needs.
