Not only all in on Chery Auto, but also fished out new Aux Electric!

1. Chery Automobile$CHERY AUTO(09973.HK) opened high, fell low, and then rebounded

The closing prices of the two grey markets were different. This time, the price of a certain platform was relatively weak, only rebounding slightly at the last moment.

In fact, there is a third grey market, such as a certain platform's grey market.

A certain platform's grey market started bidding 5 minutes early, with the highest price reaching 35.8 yuan. Brother Cai's account on this platform got 7 lots in the tail-end of the A group, and managed to sell at the highest price of 35.8 yuan by quick action (at the same time, the highest price on another platform was 34 yuan, and another was 35 yuan).

In addition to selling at the highest price of 35.8 yuan, I also sold several accounts at a price close to the highest on another platform. The remaining inventory and some acquired positions will be sold tomorrow.

The public oversubscription multiple for Chery Automobile this time was not high, mainly because, in addition to the large size of the offering, there were also disagreements.

For example, some said Chery might be delayed, fearing a conflict with Zijin Gold, so some partners either didn't participate or only took small positions.

Others said Chery has a lot of inventory, with traditional industry new energy vehicles accounting for a low proportion and high debt, fearing it might break the issue price like Aux did at the time, so some people didn't dare to subscribe aggressively.

Just like Health 160 at the time, any new stock with disagreements gives us an opportunity.

When big Vs shouted not to subscribe to Health 160, Brother Cai and the planet partners had the chance to secure positions in the B group.

This wave of Chery Automobile saw very good subscription rates because retail investors didn't go all out.

Although the increase was modest, the high subscription rate made up for it. A tail-end A group could get 6-7 lots, earning around 2,000 yuan.

Brother Cai went all-in with all his accounts on tail-end A group + B group and also acquired a lot externally.

Chery is the kind of stock with a modest increase but a sure profit.

When the market worried about a crash or a possible break like Aux, Brother Cai repeatedly reminded on the IPO planet and public account: Chery is an all-in stock, go all-in!

On the first day of the IPO, it was preliminarily decided on the IPO planet that Chery was an all-in stock, while also noting that Chery is a traditional industry, so the increase wouldn't be high.

That night, a post on the public account stated that Chery wouldn't conflict with Zijin Gold and other new stocks, reminding everyone to go all-in.

Over the weekend, when Chery's public multiple was still below 100x, very low, and many partners remained 观望， Brother Cai boosted confidence on the IPO planet, urging everyone to go all-in on Chery and not overthink it!

By Sunday, Chery's margin financing had increased slightly, and Brother Cai posted again on the public account, maintaining the all-in subscription plan and dismissing other risks.

Regarding Chery Automobile, other bloggers may have disagreements, but Brother Cai has been urging everyone to go all-in almost every day since the IPO started. On this point, Brother Cai has done his best.

2. Of course, our strategy isn't limited to IPOs; we also occasionally pick up new stocks.

Today, the secondary new stock Aux Electric$AUX ELECTRIC(02580.HK) surged 8.6%, as if on steroids.

Brother Cai cleared all the Aux positions worth about 100,000 yuan at today's close, making nearly 10,000 yuan.

Partners following Brother Cai directly earned back 8 years of Planet F with this Aux pick.

Actually, many partners didn't have a good impression of Aux Electric because it broke the issue price in the grey market, and its stock price kept falling day by day.

Brother Cai once said internally that Aux is somewhat like Green Tea back then—though it lacks a moat, it's still a leading company in the industry with some competitiveness.

More importantly, such companies have solid earnings support and decent growth. After being oversold, the probability of a price rebound is over 98%.

However, for picks like Aux, Green Tea, and Jiuyuan, the key is how to determine if they've been oversold.

This requires a lot of professional knowledge in company analysis, such as industry growth, survival rates, competitive landscape, company advantages, competitor dynamics and valuations, and the company's own valuation, among many other aspects.

In short, analyzing a company isn't easy. If you don't yet have your own framework for company analysis, leave the professional work to the professionals.

So, after selling Aux this time, will we pick it up again if the price corrects?

Brother Cai can only say this time: Not necessarily. It depends on the specific situation!

Why?

Because Aux just released its interim report last Friday, and the most concerning issue for Brother Cai—inventory pressure—hasn't been resolved yet.

Below is an excerpt from the IPO Planet's analysis of Aux's interim report:

Even if we don't pick up Aux again in the future, we have many other targets in our backup pool.

So, don't worry about missing a company with earnings flaws. We have many better and more certain secondary new stocks waiting for us.

When the target price for picking up new stocks is almost reached, we'll notify everyone in the IPO private planet. Don't worry, just go for it!

$PATEO(02889.HK) $HIPINE(02583.HK)