A Chinese stock just quadrupled in a month!
Why did $Yatsen(YSG.US$ fall from 10 billion to 300 million market value?
1. the profit model sucks: cosmetics sold, all advertising spent, continued to lose money. Industry competition is also very fierce
2. business model sucks: compared to skin care and color cosmetics is a relatively poor business.
1. the profit model sucks: cosmetics sold, all advertising spent, continued to lose money. Industry competition is also very fierce
2. business model sucks: compared to skin care and color cosmetics is a relatively poor business.
Why did it rebound 300% in a month?
1. too cheap, and is expected to stop loss: the company's profit model sucks, so from more than 10 billion dollars to 300 million dollars, at this time there are 500 million dollars of cash on the books. If the turnaround is successful at the end of the year, the risk is very small.
2. business model optimization: makeup is a bad business. But Perfect Diary's color cosmetics business continues to shrink and the skincare business is growing at a high rate (30% at the end of this year). High-end skin care is a good business.
What are the trading opportunities?
Share the behavioral finance knowledge from a paper (disposition effect and psychological account)
1) In stocks where investors are making money, the higher the risk, the higher the return.
2) The higher the risk and lower the return in stocks where investors are hedged (the deeper you buy a poor performing stock)
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Life is a game full of gambling. Face the bloody truth.
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whqqq : Wow didn't notice the stock. I will continue to pay attention to it.
Johnnie WorkerOP whqqq: Buy and hold. It’s a 10x opportunity it already got nothing to lose
whqqq Johnnie WorkerOP: Thank you for your article and proposal.
Johnnie WorkerOP whqqq: Not to mention. Good appetite