Can You Really Rely on a Single Product?
Theoretically, that's definitely a no-go. If you can't keep up with market transitions, it's game over. The real economy is easier to get displaced than the internet—even Baidu, the former search giant, has been declining day by day.
Huachen Equipment is a textbook case: they focused all their energy on making precision machine tools, only to face intensifying competition and worsening margins, as gross margins dropped from nearly 50% to about 30%. Meanwhile, their R&D investment wasn't strong enough. The 1.5x stock price surge in 2021 was mainly driven by speculative hot-money traders—a classic playbook. Big shots in stock-trading groups hype up low-volume stocks, quietly accumulate positions ahead of time, then ride the news to pump the price while slowly exiting, simultaneously fooling others into taking the other side. Whether the group you're in is there to make money and eat well, or to serve as the exit liquidity for those big shots, remains an open question.
