Becoming the King of Bottom Fishing After Going All-In on A-Shares

Chapter 116 Macau Gambling Stocks

At 10:30, China National Building Materials was fluctuating around 3.80.

It fell from an opening price of 4.60 to a low of 3.80, a drop of 17.4%, but did not make a new low.

Someone is guarding 3.80.

China Shenhua fluctuated around 14.70, failing to break through 15.50.

Conch Cement fluctuated around 25.80, without breaking through 27.00.

At 11 o'clock, the market situation changed.

Xia Yaozong noticed that both stocks were experiencing increased trading volume.

"The ship is sinking; Galaxy Entertainment and SJM Holdings are making moves."

Lu Chenzhou's gaze shifted over there.

Galaxy Entertainment, stock code 00027, opened at HK$0.57 and then rose sharply with increasing volume during the session.

0.60, 0.65, 0.70, 0.75...

SJM Holdings, stock code 00880, opened at HK$1.40 and continued to rise during the session.

1.45, 1.50, 1.55, 1.60...

"What kind of logic is that?" Xia Yaozong asked.

"Macau gaming licenses were opened up in 2001. Galaxy Entertainment was among the first to receive a license. SJM Holdings is owned by Stanley Ho, the veteran gambling king."

"Buy now?"

"purchase.

"How many?"

"Let's test the waters. Galaxy Entertainment, 3000 million. SJM Holdings, 1000 million."

Xia Yaozong's fingers touched the keyboard.

Galaxy Entertainment, with a market price of HK$0.75, has a value of HK$3000 million corresponding to 4000 million shares.

He took a deep breath and began placing the order.

The first transaction involved 1000 million shares, which were traded at 0.75.

On the order book, a buy order for 1000 million shares was placed, and the stock price jumped from 0.75 to 0.76 in an instant.

The second transaction involved 1000 million shares, which were traded at 0.76, causing the stock price to jump to 0.77.

The third transaction involved 1000 million shares, traded at 0.77, causing the stock price to jump to 0.78.

The fourth transaction involved 1000 million shares, which were traded at 0.78.

Four purchases totaling 4000 million shares cost approximately HK$3060 million.

His buy order pushed Galaxy Entertainment's stock price from 0.75 to 0.78, an increase of over 36%.

Xia Yaozong stared at the straight upward line on the screen and swallowed hard.

"Bought it too late."

"Continue," Lu Chenzhou said.

SJM Holdings, with a market price of HK$1.60, means that HK$1000 million corresponds to 625 million shares.

Xia Yaozong began placing orders.

One million shares were traded at 1.60, and the share price jumped to 1.61.

One million shares were traded at 1.61, and the share price jumped to 1.62.

One million shares were traded at 1.62, and the share price jumped to 1.63.

One million shares were traded at 1.63, and the share price jumped to 1.64.

225 million shares were traded at 1.64.

Five purchases totaling 625 million shares cost approximately HK$1010 million.

SJM Holdings' share price was pushed up from 1.60 to 1.64, an increase of 17.1%.

After placing the two orders, Xia Yaozong leaned back in his chair and let out a long sigh.

"4000 million went in."

"Um.

""

"You bought it too expensively, aren't you heartbroken?"

Lu Chenzhou picked up his water glass and took a sip.

"With a small market and low liquidity, it's normal to miss out if you place too many orders at once."

Xia Yaozong stared at him for two seconds, then said with a pitiful expression, "Since you knew, why didn't you remind me?"

Lu Chenzhou shrugged: "How was I supposed to know you'd place so many orders so quickly?"

The market closed at 11:30 a.m.

The Hang Seng Index closed at 13850 points at midday, down about 3.1%.

China National Building Material closed at HK$3.80 at midday, down 12.24%, with an intraday low of HK$3.80 and a high of HK$4.60.

China Shenhua closed at HK$14.70 at midday, up 5.00%, with an intraday low of HK$14.70 and a high of HK$15.50.

Anhui Conch Cement closed at HK$25.80 at midday, up 8.18%, with an intraday low of HK$24.50 and a high of HK$27.00.

Galaxy Entertainment closed at HK$0.77 at midday, up 35.09%, with an intraday low of HK$0.57 and a high of HK$0.78.

SJM Holdings closed at HK$1.63 at midday, up 16.43%, with an intraday low of HK$1.39 and a high of HK$1.64.

After recording the data in her notebook, Wen Zhiyu looked up at Xia Yaozong.

"How are you feeling?"

Xia Yaozong leaned back in his chair, staring at the ceiling.

"My hands weren't shaking, but my heart was beating very fast."

"Faster than a car racer?" Zhang Yixing laughed from the side.

Xia Yaozong thought for a moment.

"It's different. When you're speeding, you know you can control yourself. But when you place an order, you don't know if the market will listen to you."

He turned to look at Lu Chenzhou.

"Chen Zhou, doesn't your heart race every time you place an order?"

Lu Chenzhou thought for a moment.

"Add it, but it won't affect the judgment."

"How did you do that?"

"I've already calculated it," Lu Chenzhou said. "If I've calculated it, I'm not afraid. If I'm not afraid, even if my heart is beating fast, my hands won't shake."

At noon, on a bench at the entrance of the science park.

Lu Chenzhou and Wen Zhiyu sat side by side, each with a boxed lunch in front of them.

Xia Yaozong squatted down beside him, holding a plate of fried rice in his hands, and ate it very quickly.

"Why did you buy Galaxy Entertainment and SJM Holdings today?" Wen Zhiyu asked.

"Let the fat guy try his hand. Moreover, Macau opened up gambling rights in 2001, and Galaxy Entertainment was among the first to obtain a license. SJM Holdings is owned by Stanley Ho, the veteran gambling king."

"What's the logic behind buying now?"

Lu Chenzhou replied, "During the financial crisis and the poor economy, some people will go to casinos."

It's not that rich people go; it's that rich people don't have time to go, and poor people certainly won't go.

Those going there are middle-class people who have some spare cash when the economy is good, and want to take a gamble when the economy is bad.

Xia Yaozong swallowed a mouthful of fried rice: "So you're betting that the worse the economy is, the better the casino business will be?"

Lu Chenzhou glanced at the light bulb: "It's not a bet, it's a speculation."

Macau casino revenue was 830 billion patacas in 2007.

In the first three quarters of 2008, it had already exceeded 700 billion.

The overall trend is likely to remain flat for the year.

The financial crisis did not have as significant an impact on casinos as the market had imagined.

"Then why did the stock price drop so much?"

"Because of panic, the market doesn't look at the data, it looks at the sentiment. When the sentiment is high, everything falls. Once the sentiment subsides and the data is back, the stock price will recover."

Xia Yaozong stared at him for two seconds.

"So you bought into panic selling?"

"I'm buying data," Lu Chenzhou said. "The panic just gave me a good price."

Hong Kong stocks continued to fluctuate in the afternoon after the market opened.

China National Building Materials (CNBM) traded sideways around 3.80 without hitting a new low.

China Shenhua is trading sideways around 14.70.

Conch Cement traded sideways around 25.80.

Galaxy Entertainment has fallen from a high of 0.78 and is fluctuating around 0.64.

SJM Holdings has retreated from its high of 1.64 and is fluctuating around 1.40.

Xia Yaozong stared at the intraday chart of SJM Holdings and frowned.

"SJM Holdings has dropped from 1.64 back to 1.40. All that work for nothing."

"It wasn't a wasted effort; at least 1000 million worth of shares were acquired."

Xia Yaozong paused for a moment, then smiled.

"Too."

At 4:00 PM sharp, the closing bell rang.

The Hang Seng Index closed at 13800 points, down 3.5%.

Xia Yaozong brought up the holdings interface and stared at the numbers on the screen.

Holding stock: China National Building Material (HK3323)

持股数量：11250万股成交均价：1.60港元收盘价：3.80港元持仓市值：42750.00万港元当日盈亏：—5962.50万港元（—12.24%）

Unrealized profit/loss: +24750.00 million HKD (+137.50%)

Holding 12.47% of the total H-share capital, triggering a disclosure requirement, with a six-month lock-up period. Target stock: China Shenhua (HK1088).

持股数量：9002.50万股成交均价：10.20港元收盘价：14.70港元持仓市值：132336.75万港元当日盈亏：+6301.75万港元（+5.00%）

Unrealized profit/loss: +40511.25 million HKD (+44.12%)

Holding approximately 2.65% of the total H-share capital, and not triggering a disclosure requirement for this stock: Conch Cement (HK0914)

持股数量：2132.63万股成交均价：18.50港元收盘价：25.80港元持仓市值：55021.85万港元当日盈亏：+4158.62万港元（+8.18%）

Unrealized profit/loss: +15565.85 million HKD (+39.46%)

Holding approximately 4.93% of the total H-share capital, and not triggering a disclosure requirement for this holding: Galaxy Entertainment (HK0027)

持股数量：4000万股成交均价：0.765港元收盘价：0.64港元持仓市值：2560.00万港元当日盈亏：—500.00万港元（—16.34%）

Unrealized profit/loss: -HKD 500.00 million (-16.34%)

Holding stock: SJM Holdings (HK0880)

持股数量：625万股成交均价：1.616港元收盘价：1.40港元持仓市值：875.00万港元当日盈亏：—135.00万港元（—13.36%）

Unrealized profit/loss: -HKD 135.00 million (-13.36%)

合计持仓总市值：233543.60万港元帐上现金：约7.26亿港元总资产：306143.60万港元当日总盈亏：+3862.87万港元（+1.28%）

Total unrealized profit/loss: HK$80194.45 (+35.48%)

Room 608, Renmin University Cultural and Technological Park, after the market closed in the afternoon.

Xia Yaozong sat in Lu Chenzhou's seat, staring at the two lines of green numbers on the screen, without moving for a long time.

Galaxy Entertainment: - HK$500 million.

SJM Holdings: -HKD 135 million.

Total: -HKD 635 million.

Zhang Yixing stood next to him, glanced at the screen, and didn't say anything.

Wen Zhiyu stood by the window, holding a notebook in her hand. After writing down the last two sets of numbers, she closed the notebook.

Yang Cheng quietly read the book, without moving.

Lu Chenzhou sat on the chair next to him, holding a glass of warm water, his expression unchanged.

Xia Yaozong stared at the screen for a long time, then leaned back in his chair and let out a long sigh.

"The sunken ship."

"Um.

""

"I don't want to do this anymore."

"7

The room fell silent for a moment.

Zhang Yixing turned to look at him. Wen Zhiyu also looked up.

Lu Chenzhou put down his water glass and looked at him.

Why?

Xia Yaozong thought for a moment.

"I'm sitting here today, I've placed a few orders, my hands aren't shaking, my heart is beating fast, but my mind is blank."

He paused for a moment: "You don't know what that feels like. You know you have to place an order, you know what to buy and how much to buy, but your brain can't keep up."

The betting odds are fluctuating, the numbers are changing, you're watching them, but you don't know what they're saying.

He turned his head and looked at Lu Chenzhou.

"What are you thinking about when you sit in this seat?"

Lu Chenzhou remained silent for two seconds.

"I'm thinking about how many opposing positions there are, how many levels my order will break through, whether anyone will follow suit after it breaks through those levels, and if no one follows suit, whether I bought at the highest point."

He paused for a moment, then said, "There are too many things I'm thinking about to say."

Xia Yaozong nodded.

"I can't think about that many things; I can only think about one thing. But a transaction isn't a single event; it's many things happening simultaneously."

He stood up from his chair and pushed the keyboard back in front of Lu Chenzhou.

"You should sit here."

Lu Chenzhou looked at him.

"Have you thought it through?"

"I've thought it through. I lost 635 million today. I need to go back and reflect on it."

He walked to the window, leaned against the wall, took out his phone, and started scrolling.

The movements were natural, as if nothing had happened.

But Zhang Yixing noticed that his hand was much steadyer than usual when he was using his phone.

Zhang Yixing looked at him and couldn't help but ask, "You don't regret it?"

Xia Yaozong thought for a moment.

"What's there to regret? Regret placing the order today? No regrets. Chen Zhou told me to place it, so I did. Only after placing it did I realize I wasn't up to it. Once I knew, I stopped thinking about it."

He looked up at the ceiling.

"In this life, you should always try new things."

Lu Chenzhou didn't speak. He moved the keyboard back in front of him, opened the trading software, and pulled up the after-hours data for Galaxy Entertainment and SJM Holdings to start looking at it.

The room was quiet for a while.

Zhang Yixing looked at Lu Chenzhou and asked softly, "Is he alright?"

Lu Chenzhou picked up his water glass and took a sip.

"It's alright, it's only a few million, no big deal."