Yinuo Medicine biting incident! Plus Moomoo US stock IPO Q&A

$INNOGEN-B(02591.HK) The dark pool closed at HKD 71 yesterday, surging 280%. Today, it started to drop at the opening. As of 11:56 today, Yinuo Medicine was at HKD 54.75, down 23% from the dark pool closing price.

Yesterday, I wrote in my article that a three to fourfold increase in the IPO price has already deviated from its actual value in the short term, and chasing highs carries significant risks. Large sell orders can be terrifying.

From the data so far, we can see that large sell orders are clearly the main force driving the sell-off, with a net outflow of HKD 65 million from large orders, accounting for 65% of the total net outflow.

It's obvious that this is anchored to selling on the first day. Otherwise, with the small amounts retail investors scoop up in the dark pool, where would such strong selling pressure come from?

Of course, I'm not saying this to play Monday morning quarterback. Frankly, I didn't participate in the IPOs of the two speculative stocks, Yunzhisheng and Zhonghui Biology, and missed out on both.

I mainly want to share an investment philosophy: earn the money you should earn and ensure your position risk is controllable.

For stocks like these, manipulated by big players, they might soar for several days like $UNISOUND(09678.HK) and $AB&B BIO-TECH-B(02627.HK), or they might encounter a situation like Yinuo Medicine, where the big players are eager to cash out on the first day to build a safety cushion. So, buying a few shares is like a trip to Macau—fine, but not advisable to go all in.

What's next for Yinuo Medicine? I don't know. It could rally again or continue to be sold off aggressively. But everyone just needs to understand one thing: rallies are ultimately for cashing out. When they do cash out, will there be enough buyers to stabilize the price?

Nano-cap stocks have huge price swings. The big players can even draw a smiley face on the K-line chart if they want. So, I generally avoid these stocks. Unless you have reliable insider information, playing these is more likely to lose than win. Big players, you do you. If it goes up, I'll watch; if it drops, I'll enjoy the show.