This article is reprinted from Tencent.com. Recently, LeTV, which has been cordially referred to as "farm fertilizer" by many retail investors, has recently attracted attention with its 15 "daily limits". There is even a claim from the media that Jia Yueting, who went to the United States to retreat, is about to re-emerge. However, if you observe carefully, you can understand that even if LeTV, which has been forced to delist and is in the "old third board", has gone through 15 daily limits, the stock price has only grown from 1 cent to 3 cents. Moreover, the daily trading volume of only a few hundred thousand or even a hundred thousand shows that this stock is far from reaching the day of turning over.
(Picture Source Network)
In the third board, a 1 point increase can be pulled to the daily limit
In 2015, under Jia Yueting's persuasive temptation, LeTV's share price once rose to more than 179 yuan per share, becoming the “big brother” with a market value of hundreds of billions and overwhelming many blue-chip stocks that dominate the GEM. But then, as the actual controller, Jia Yueting started a tens of billions reduction plan. At the same time as the cash out, LeTV's debt crisis broke out, and LeTV's share price fell to 1.69 yuan in 2019, less than 1% of its peak.
In the end, the Shenzhen Stock Exchange issued an announcement that as LeTV's net assets were negative at the end of 2018, its stocks were also suspended from listing on May 13, 2019. However, in the stock market world, LeTV did not disappear, but entered the "old third board" equity transfer system trading.
The so-called old third board does not correspond to the new third board. Most of the companies that gather in the old three boards are companies that are close to bankruptcy or delisting. Ordinary investors cannot trade it in the general trading market. The old third board also has its own trading rules, that is, once a week, Wednesday, and Friday, the transaction method is similar to that of A-shares, and the rise and fall are also limited to 5%. However, the stocks on the third board only generate a price increase every day, so from the K-line chart, any stock on the third board, no matter how much it rises or falls, looks like a limit-up/limit-down stock.
As for LeTV, because it is too "junk", its share price was only 1.8 cents on February 3 this year. The smallest unit of currency in our country is 1 cent. So for LeTV at the time, it had only three choices every day-1 point up, 1 point down, and no change. As long as it rises, it is the daily limit, and for the same reason, as long as it falls, it is the limit. Even if LeTV's share price has nearly doubled recently, reaching 3 cents 4, a daily limit will only cost 1 cent.
Because as long as the increase is 2 cents, it will be "exceeded".
280,000 retail investors, many of which are still "collecting" LeTV stocks
That year, Jia Yueting cashed out at the highest point of the stock price, earning more than 11 billion yuan. But at the same time, 280,000 investors, most of whom are ordinary small-scale investors, have not been able to get out. Today, many investors hold Baigu LeTV stocks, which are worth less than a meal. Even cutting meat is meaningless.
Under this form, the trading volume of LeTV, which is in the third board, is naturally pitiful. Even during the so-called fifteen daily limit period, LeTV's trading volume is mostly in the hundreds of thousands, not more than two million, and as few as hundreds of thousands. Many stockholders even expressed that they do not want to sell the "treasure" LeTV stocks, which is a lesson for themselves, reminding themselves not to be impulsive in the future. Therefore, LeTV's daily limit is not so much the number of people buying, as the number of people selling. Selling chips are limited, so it is naturally easy to limit.
As for why LeTV still has buyers until today, there are also stockholders' analysis, because LeTV is the one with the most famous among the "farmers" on the third board. However, Jia Yueting made some noise in the United States, which gave many investors the idea of bargaining. It's so cheap anyway, it's okay to buy something for fun.
It is worth mentioning that in the first three quarters of last year, LeTV’s revenue was 223 million yuan, net profit attributable to shareholders of listed companies was 932 million yuan, and non-net profit attributable to shareholders of listed companies was -931 million yuan. During the reporting period, attributable to The net assets of shareholders of listed companies are-15.2 billion yuan.