Edward Flores's Avatar
Edward Flores
published in Blogs
Feb 20, 2021
The 9,500% Stock Increase that Turned Factory Workers into Millionaires

The 9,500% Stock Increase that Turned Factory Workers into Millionaires

Imagine working for a company that gave stock options to employees at all levels, from factory workers to cooks to janitors. But then imagine that in the 10 years after taking the stock options, the stock rose in value by +9,500%! For many workers at the Chinese lens-maker Sunny Optical, that is the story of how they became millionaires.  

The story of Sunny Optical has, in a sense, always been one of rags-to-riches and long shots. It was founded more than 30 years ago by Wang Wenjian, who was an appliance-factory worker with no more than a high school education and $10,000 of borrowed cash. In the 1990s, when Wenjian started to see some substantial growth, he changed the company from a “village and township enterprise” into a joint-stock company, and he took the rare step of distributing shares of the company to employees from all walks – not just top management.

The end result was that quality inspectors, cooks, janitors, and low rung factory workers were able to subscribe for shares at a reasonable cost, which hopefully a majority of them decided to do. As the company grew, the stock skyrocketed and took shareholders with it – a meager 0.013% stake would have been enough to make an employee a millionaire, virtually overnight. According to Bloomberg, if you exclude the “combined 16% ownership of four directors in the trust, the average holding would translate to about $17 million per employee.” That’s not chump change.

The rise of Sunny Optical corresponds with the surging demand for cameras, but not the traditional type of cameras. Think smartphones, car cameras, and drones – all cameras that consumers are likely to demand more and more in the modern economy. Sunny Optical is poised to continue to seeing robust growth as camera demand rises, making those wealthy shareholders even wealthier.

On one hand, Sunny Optical gives a snapshot of the changing face of wealth in China, where technology companies and employees are accounting for the most growth of the country’s millionaires (much like here in the US). Credit Suisse Group AG estimates that China’s millionaires now top 2 million, a number that’s likely to continue swelling as the government pours resources into the tech sector.

But on the other hand, the Sunny Optical story also underscores how stock options or ownership of shares in a company with blistering growth can take investors for a ride to wealth. For employees and investors, it’s a matter of deciding whether it makes sense to take or purchase equity in the company, and it also matters how long the shares take to vest. But if you believe in the company’s mission and trajectory, it could be a bet worth making.

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Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 07, 2021
4 Tricks Hedge Funds Use to Get Ahead

4 Tricks Hedge Funds Use to Get Ahead

If the stock market were Major League Baseball, hedge funds and institutional investors would be the pros on championship teams while everyday self-directed investors (SDIs) are the benchwarmers in the minors.It’s how they get ahead, and it’s why 90% of SDIs lose money trying to play (invest and trade) in the major leagues. The 4 tricks we discuss below are rooted in one common theme: they all use Artificial Intelligence and algorithms to generate data and ideas.
John Jacques's Avatar
John Jacques
published in Blogs
Mar 22, 2018
A.I. Stock Market Predictions: Head & Shoulders

A.I. Stock Market Predictions: Head & Shoulders

Statistics for the Head-and-Shoulders Bottom Pattern The days where only hedge funds used algorithms to trade stocks are officially over. Now retail investors can use Artificial Intelligence (A.I.  Here’s an example of the algorithm in action: Late last year, Tickeron’s A.I.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Jul 10, 2020
3 Stocks to Buy if Coronavirus Second Wave Hits

3 Stocks to Buy if Coronavirus Second Wave Hits

By analyzing market trends from the first wave, you can predict behavior for the second. Technology stocks have performed at historic levels this year, but the market is severely overbought.To compensate for that, look at performance during Q1 and Q2, the height of global Covid shutdowns.
Edward Flores's Avatar
Edward Flores
published in Blogs
Feb 06, 2021
How to Become the Millionaire Next Door

How to Become the Millionaire Next Door

The Golden Gate Bridge is always a fixture of these walks too, one of man's most beautiful creations.  As we were walking, at one point she turned to me and said, "Man, I'll never have a million dollars."" My girlfriend is 27 years old and works as a graphic designer, making about $75,000 a year.
Alla Petriaieva's Avatar
Alla Petriaieva
published in Blogs
Feb 23, 2021
Is Ethereum’s Bomb about to Explode?

Is Ethereum’s Bomb about to Explode?

Ethereum’s software is set for an update in October.Until it is finished, participants in the Ethereum blockchain must determine how to delay the difficulty bomb – code that necessitates a steadily increasing amount of computer power to mine blocks and unlock rewards – that is already in place.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Aug 07, 2018
When Is the Next Recession Coming?

When Is the Next Recession Coming?

However, we also know that economists predicted 22 recessions out of 11 that took place since 1945. Are there real recession signs we should watch for?Indeed, the answer is yes, and here are a few very important ones: The first one is almost obvious and known to everyone – it is the Fed.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 22, 2020
Central banks have been buying $2.4 billion in assets every hour for the past two months

Central banks have been buying $2.4 billion in assets every hour for the past two months

Some $17.8 billion has been poured into  bond markets over the past week, the biggest move in more than three months.Around $3.5 billion has been invested into gold, the second largest on record. 
Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Feb 07, 2021
Mid-January Short Interest Report Shows 8 Stocks with Good Fundamentals and High Short Interest
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 10, 2021
How to Start Trading Penny Stocks

How to Start Trading Penny Stocks

Penny stocks have long been marginalized within the professional investment community, oftentimes being painted with a broad brush of simply being “too risky.” Leonardo DiCaprio’s depiction of the penny stock peddling conman, Jordan Belfort, in the Wolf of Wall Street certainly didn’t help.Here are four reasons to start trading them now. Reason #1: Let’s State the Obvious -- Penny Stocks are Cheap A single share of Apple Inc. costs over $350.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 08, 2020
US unemployment rate jumps to 14.7%, the highest in series history

US unemployment rate jumps to 14.7%, the highest in series history

The U.S. economy’s employment fell by -20.5 million in April. The coronavirus crisis led to unemployment rate soaring to 14.7% in the U.S, the highest rate in the Bureau of Labor Statistics-tracked series history that goes back to 1948. However, the figures were better compared to several economists'/analysts' forecasts of 22 million job losses and 16% unemployment rate.  Another unemployment measure that includes those who have stopped looking for work as well as those holding part-time jobs for economic reasons also touched an all-time high of 22.8%.