Core Viewpoint - The recent surge and subsequent crash of a circuit board company highlights the risks associated with speculative trading in the tech sector, where inflated valuations and market manipulation are prevalent [1][4]. Group 1: Market Behavior - The first day of trading for new stocks has no price limit, which has been exploited by major players to manipulate prices, leading to significant losses for retail investors [3][4]. - The case of Taihong Wanli illustrates a pattern where the stock surged 359% on the first day, only to drop significantly in the following days, indicating a strategy of "pump and dump" by major players [3][4]. Group 2: Valuation Concerns - The circuit board company in question has a price-to-earnings (P/E) ratio of 130, which is nearly double the industry average of 70, raising concerns about overvaluation [4]. - Historical comparisons show that similar companies, like Haiyang Technology, experienced drastic valuation changes, with P/E ratios soaring from 12.69 to 54, despite declining profit margins [4]. Group 3: Investor Behavior - Retail investors often fall into the trap of believing in a rebound to their cost price, leading to further losses as major players continue to suppress stock prices [6][8]. - The phenomenon of "psychological anchors" is evident, where retail investors are misled by false signals of support created by major players, resulting in a cycle of buying into falling stocks [5][6]. Group 4: Trading Dynamics - High turnover rates in newly listed stocks indicate a loose holding structure, which can lead to significant selling pressure once lock-up periods expire [8]. - The manipulation of trading data, such as showing net inflows while actually selling off shares, is a tactic used by major players to mislead retail investors [6][8].