Chapter 397: The Big Short
At the beginning of September, Su Mu encountered something terrible.
Recently, I have been investing, investing, investing, finding companies that I feel have potential, and then investing in it, and dozens of contracts have been signed alone, and the number is still increasing.
He is optimistic about the future of the Internet industry, believing that the bubble will be squeezed out of the bubble and making a long-term layout in advance.
Recently, several well-known opportunists in the United States have targeted Su Mu's OO and Bee, and unconsciously, in the first week of September alone, the funds for shorting OO and Bee were as high as 3.6 billion and 1.9 billion US dollars respectively, which made him pay attention to this situation.
The so-called "shorting stocks" refers to speculators borrowing stocks from brokerages to sell, returning the money to their own hands, and then waiting until the stock price falls, and then buying stocks at a low price to return them to the brokerage, or directly repaying them in cash.
In the case of determining that a company's stock price will fall, you can leverage more wealth, with the collapse of the Internet bubble, many people have made money because of this, even Su Mu's own investment company has made a lot of money because of shorting, but it is not absolutely safe, if shorting a stock, the stock price has risen, then speculators have to pay a lot of money for it.
Recently, the NASDAQ market, especially the technology giants, is picking up, and these bears' practices seem to be very unreasonable, Su Mu began to worry, he was afraid that there would be something wrong with the company that he didn't know.
If it is only one or two short institutions, forget it, but after the investigation, Su Mu found that there are dozens of investment institutions quietly shorting together, which has been affecting the investment confidence of shareholders to a certain extent since mid-August.
There is no doubt that the two companies founded by Su Mu have always been the darlings of the capital market.
Since its inception, it has not been too troubled by financial problems, and now that the cash flow is sufficient, the pace of global expansion is accelerating, the number of users is increasing, and the stock price has fallen to a three-year low, these aspects do not have the opportunity to make the bears active.
But the facts are in front of Su Mu's eyes, the scale of funds for shorting his company is getting higher and higher, and no institution has jumped out to speak out, as if it is silently accumulating strength, and there are some of Su Mu's "old friends" among these people.
Wall Street people only have money in their eyes, he doesn't feel betrayed, and he is even more curious about why in just one week, the size of the short has actually increased by 2.8 billion dollars!
It's a sunny day in Silicon Valley today, but Su Mu can't help but feel that there is a black cloud above his head, and he doesn't know when it will be windy and rainy, and he will even be struck by lightning.
The feeling of knowing nothing made him very unhappy, and he used a consulting company to investigate, called and asked acquaintances on Wall Street, and then pieced together the fragmentary information into a complete inside story, and summed it up in fact only one sentence - some hungry wolves want to bite off a piece of meat from these two companies!
Qian Helberg, along with his Mr. Sam, who was in charge of the family office, went into Sumu's office together.
Su Mu, who had just finished visiting his son yesterday, sat on a chair and said to the two of them:
"Wherever you go, I've paid for the intelligence that tells me that the Wall Street Journal will be covering this article in the next two days, and maybe tomorrow's front page will be it.
In addition to this article, the notorious speculator on Wall Street, Jim Rogers, will also talk about my company on the NBC TV talk show tonight, and I have been informed in advance that he actually shorted a billion dollars this time?!"
"It turns out that the biggest short is Mr. Rogers? Then you must be in trouble, the company he is targeting will have its stock price fall by half at best, and the heavy one will go bankrupt and go bankrupt directly, is it that Lin Lao doesn't have enough brains to short your company?"
Mr. Sam shook his head, "The TV interview isn't the scariest thing, it's scary that he's also a long-time contributor to Time, The Washington Post, The New York Times, Forbes, Fortune, The Wall Street Journal, The Financial Times, and many other important newspapers.
In other words, he is fully capable of telling everyone that your company is not good, and then the stock price of these two companies will fall even if it is fine, if it is not for me to work for you and know that they are in better condition at the moment, otherwise I will think that you are about to finish, and many people on Wall Street are following him. ”
Jim Rogers, this person is not famous, but when it comes to his partner Soros, that is, the financial giant who has successfully sniped the British pound and the Mexican peso, then many people know that the famous "Quantum Fund" was created by him and Soros in 1970.
Graduated from Yale University and Oxford University, to put it more carefully, this Wall Street bear, and was once Su Mu's old senior.
At that time, the average annual return of the Quantum Fund exceeded 50% for ten consecutive years, attracting a large number of investors, and in the eighties, Rogers, in his thirties, withdrew from the Quantum Fund, amassed tens of millions of dollars of wealth for himself, and then started his own investment business.
A veteran who can win consecutive battles, his ability should not be underestimated, Su Mu threw them a cigar, lit it himself, and said: "Sam, I didn't come to you to praise him, I know what you said, is there any good solution now?"
Herberg, the CEO of Galaxy Group, suddenly said: "You also short these two companies to hedge your risk? If the stock price really falls, you still have to make money, and I can cooperate with you to release some bad news." ”
“...... But if you do, I'll be arrested and sent to jail. Mr. Sam replied with a smile, knowing that Herberg was joking.
"If I could, I would have chosen to do so, carefully analyzed the data and news, and my idea is similar to the risk assessment given by McKinsey & Company, the only thing that can make the stock price significantly lower is the expectation of a serious decline in future earnings prospects, after all, shareholders do not know whether our company will make money in the future.
I called Gates and told me that the Indos operating system would still work with us, and there was no risk in the short term. Mr. Sam, haven't you heard anything else on Wall Street?"
Su Mu asked.
Old Sam shook his head and replied, "Who on Wall Street doesn't know that I'm your person, how could they tell me this kind of inside information, maybe there are other companies that have developed more advanced products?"
After Hellberg pondered, his tone was affirmative: "It can't be because of this, even if there is, we can kill them with a huge user base......"
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