Let's talk about Auntie Shanghai and Bored Ape, sharing some insights.
$AUNTEA JENNY(02589.HK) saw a sharp rise in the gray market. Initially, I didn't plan to participate because the fundamentals were weak. However, when the margin financing exceeded 1,000 times, I felt the risk was manageable and placed a cash order for 15 lots. Later, one day before the IPO ended, I saw it hit 2,000 times, so I went all in with margin financing for the top allocation. At that time, I was prepared to cancel the order, but on the final day, it reached 3,000 times, indicating minimal risk. In the end, I got 3 lots.
As mentioned in my previous video, Auntea Jenny's valuation had no upside potential. Any rise would depend on market sentiment pushing beyond reasonable valuation ranges. Today, sentiment is strong, but note that with a 60% surge, Auntea Jenny's P/E ratio has reached 48x, surpassing Mixue's 40x.
Ask yourself: at the same P/E, would you buy Mixue or Auntea Jenny?
It's just a game of hot potato.
So, I suggest everyone take profits and run. Don’t be greedy or try to catch a falling knife—this stock will plummet soon.
As for when I sold?
Regular readers know I usually sell when the gray market pullback hits 10%. But this time, I didn’t wait—I sold at the first sign of resistance for two reasons:
1. As mentioned, the valuation is still unreasonable, and the hot potato game is risky. It’s safer to lock in profits early.
2. My target was 20%, but it opened at 40%, far exceeding expectations. I let profits run, but at the first sign of a downturn, I exited. It’s better to be content than greedy.
Also, this IPO wasn’t very profitable. With a hammer order of 1.4 million, 3 lots earned 6,500, a 0.5% return—just like a quick day trade. Those who got 1-2 lots are the lucky ones.
Now, let’s talk about $BRETON(01333.HK). I’m not tempted by its surge. With 186x margin financing, sentiment alone can’t justify its valuation or fundamentals—it’s all dealer manipulation and allocation tricks.
I’ve repeatedly said such stocks aren’t worth IPOing. If you apply for a few lots, you won’t get allocated due to tricks. If you apply for many and there’s no manipulation, you’ll lose big.
There are many surging stocks daily—can you catch them all? Stick to what you know.
Of course, if you’re loaded and ready to lose 30-50%, treat it like a trip to Macau—no problem.
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