novelTele Chapter 84 Expected Reversal, Market Boils Over
Chapter 84 Expected Reversal, Market Boils Over
Middle Eastern countries also generate a significant amount of plastic waste each year, approximately 1000 million tons.
In the UAE alone, the consumption of plastic bags reaches 11 billion per year, which is about four times the global average per capita consumption.
Assuming DeepBlue Technology can secure a processing capacity contract of 300 million tons in the Middle East market at a price of $220 per ton, its annual revenue would be $6.6 million, which is approximately 42 billion yuan.
The key point is that the profit margin is off the charts, because the cost of processing each ton of plasminoides is only 30 RMB.
This means that with 42 billion in revenue, there can be 41 billion in profit.
In addition, Japan and South Korea are also potential customers.
Japan generates 800 million tons of waste plastic every year, half of which comes from industrial waste and half from ordinary households.
Last year, Japan exported approximately 90 tons of waste plastic to China, accounting for a significant portion of its total plastic waste exports.
South Korea generates more than 300 million tons of plastic waste every year.
……
Meanwhile, in the capital market...
As soon as the government announced the ban on the import of foreign waste, DeepBlue Technology's stock price opened at 7.82 yuan this morning, a 9.99% increase, immediately hitting the daily limit.
Funds from all sectors of the market rushed to buy overnight, leaving institutional funds that had previously liquidated their positions and withdrawn at a loss dumbfounded.
At this moment, they all began to "admit their mistakes" and try to recover the money.
However, there is simply too much off-market capital rushing to buy at this moment, and DeepBlue Technology has become a hot commodity in the market in the blink of an eye because of this news, especially at the current price.
Previously, institutional funds were willing to cut their losses to withdraw, primarily because they were worried that DeepBlue Technology would make a mess of things.
Moreover, blind expansion will squander all the money earned.
But what if DeepBlue Technology makes so much money that it can't possibly spend it all?
That's a different matter.
After the country banned the import of foreign waste, the waste generated by the world's major developed countries either had to be processed by themselves or transferred to other countries.
Waste disposal costs in developed countries in Europe and America are quite high, costing approximately $400 to $1000 per ton. Therefore, exporting to other countries is undoubtedly a more economical option.
However, now that China is banning the import of foreign waste, the waste generated by developed countries in Europe and America will most likely be diverted to other poorer countries.
The problem is that other countries' processing capacity and carrying capacity are far inferior to China's.
In the end, they still have to come to DeepBlue Technology. Even if it only takes 10% of the global market share, that's still a huge amount.
Previously, Omega's environmental company approached DeepBlue Technology for negotiations, and it was already known that the talks broke down because the offer was $220, a price that Europeans and Americans did not accept.
Now that the government has announced a ban on the import of foreign waste, investors immediately realized that this has significantly boosted DeepBlue Technology's bargaining power.
Compared to the cost for Europeans and Americans to handle it themselves, $220 is still cheap and offers excellent value for money.
If DeepBlue Technology can capture 10% of the global market share, it could expect to generate around $62 billion in revenue.
Most importantly, DeepBlue Technology has very low costs.
Many institutions in the capital market have already conducted research and found that the cost of the plasminoid bacteria solution is no more than 50 RMB.
Goodness, this profit margin is absolutely explosive.
Even conservatively estimating revenue at $62 billion, which, without considering exchange rate fluctuations, is approximately RMB 395 billion, while DeepBlue Technology's total cost of earning this money is only RMB 22.5 billion, meaning its annual profit could reach a staggering RMB 372.5 billion.
Yesterday, DeepBlue Technology closed at 7.11 yuan, corresponding to a total market capitalization of only 450 billion yuan.
Based on the calculations, the market capitalization at yesterday's closing price corresponds to a price-to-earnings ratio of less than 1.2, which means that if you buy DeepBlue Technology's stock at this price, you can recover your investment cost in less than 15 months.
With such strong profit expectations, is it any big deal that DeepBlue Technology is spending 80 billion yuan to build a new headquarters and 20 billion yuan to develop photovoltaic new energy?
With such terrifying earning power, it wouldn't be a problem for DeepBlue Technology to spend 180 billion yuan to build its headquarters or 100 billion yuan to venture into photovoltaic new energy.
At this moment, the comment section of DeepBlue Technology's stock forum is bustling with activity.
[Wow, a limit-up opening? What's going on?]
[The government's announcement of a ban on the import of foreign waste is a major boon for DeepBlue Technology.]
[Hold on tight, takeoff!]
[Is there any hope of breaking even after losing over 40%?]
[I'm standing guard at 18 yuan a share, what a loss!]
[This time it shouldn't be a one-day wonder, right?]
[The losses I incurred at the end of yesterday's trading session have now vanished before dawn; I'm so angry I could cry.]
[It hurts, I also sold at rock-bottom price, sigh...]
[Don't worry about it; even big investors suffered losses and missed out.]
[It's just self-consolation.]
[Many institutions previously cut their losses and ran away; is it time to try and recover their losses?]
[Hold on and don't sell; this stock is definitely going to hit a new high this year.]
[Thankfully, it held up...]
[I bought two layers of stock yesterday at a low price, costing 6.89 yuan. Buy less spicy!]
……
Some are happy while others are sad; those who fall before dawn are heartbroken and secretly slap their thighs in despair.
Those who persevered saw hope of breaking even and inexplicably breathed a sigh of relief.
Those who bought in after DeepBlue Technology's stock price halved were overjoyed.
Those who bought at the lowest price of 6.88 yuan yesterday are overjoyed. Today, with the stock hitting the daily limit, they have already made a profit of 13.66%.
In the days that followed, DeepBlue Technology's stock price reversed its previous sluggish trend and staged an epic reversal, experiencing a super main upward wave that was even stronger than when it went public through a backdoor listing.
Every day at the opening, the stock opens with a limit-up price and low trading volume, indicating that holders are reluctant to sell.
Stockholders who are stuck with losses are unlikely to sell at this price; they certainly won't easily give up their shares unless they can recover their losses.
The institutional funds that had previously liquidated and fled were in a panic, having dumped almost all their shares on retail investors. Unexpectedly, such a huge reversal occurred, and very few people knew about this level of news.
Looking back now, I thought I was just selling the goods to retail investors, but I never expected to be the one who got ripped off and forced out.
The number of retail investors in DeepBlue Technology has surged to over 8. More than 3 of these new investors bought in during the stock price crash to try and catch the bottom, only to get trapped.
Institutional funds that had previously withdrawn now want to get back in, but the shares are all in the hands of retail investors.
There are also many new investors, new retail investors or new institutions scrambling to buy, resulting in a situation where there are too many wolves and not enough meat. Every day, the stock opens at the limit up with low volume, and the total daily trading volume does not exceed 1000 million.
Holders rarely sell, mostly choosing to hoard their shares and avoid selling.
Some institutions that missed out on the initial surge attempted to bribe DeepBlue Technology's management to release negative news in order to acquire shares at a lower price.
The intention is to create panic and trick retail investors into handing over their shares.
However, Lin Chuan's management completely ignored them.
Lin Chuan has always ignored matters in the capital market and fluctuations in the company's stock price, focusing only on fulfilling his legal obligation to disclose information.
……