Chapter 91: Speculating in Futures

Abel came from Los Angeles to New York. In order to make financial investments, his financial investments are not the norm, but the information in the small wrecking ball just indicates.

He's a little short of money right now.

The $300 million from the sale of the little blue pill is actually only about $250 million, excluding the taxes that will have to be paid in a few days.

But it was less than a month after it arrived.

He has almost been troubled.

The acquisition of Amgen Pharmaceuticals cost a little more than $50 million.

The acquisition of Miramax Films, because it is a gambling contract, does not have to throw out so much money at once. But the reserve in the early stage is also 50 million US dollars, plus the investment of 30 million US dollars in [Strange Heroes in Disguise], and the additional company's operating capital of 20 million US dollars, when it is in the movie, he threw out about 100 million US dollars.

Then there is the investment company of the merchant who is still a leather bag company, renting office space, employee salaries and bonuses, plus other miscellaneous expenses, almost about 5 million US dollars.

And his personal expenses, and the cost of buying a house, buying various other luxury goods, all kinds of high-end services, and various lawyer and accountant fees, all add up to almost $15 million.

Of the $250 million that can be used, these add up to a total of $170 million. There is less than $80 million in liquidity left.

$80 million in liquidity, it seems like a lot, more than 95% of companies, they don't even have such a large liquidity.

But for the spendthrifty Abel.

If the amount of funds in the bank account is less than $200 million, there is no money.

It will take at least one month for Amgen Pharmaceutical's new drug to be launched, and it will take at least half a year for it to be able to pay dividends and provide profits.

The dividends of Pfizer's little blue pill will be even longer, and it is estimated that it will not be available until the next fiscal year, or the end of next year.

The movie has not started filming yet, and it will take about a year before the filming is completed and the special effects are released.

A few things he's investing in now.

If you want to really see the money, the fastest will take more than half a year. But he asked himself that with the speed at which he spent money, let alone half a year, the remaining liquidity of less than 80 million US dollars was estimated to be gone in a month or two.

There are so many things to invest in in this era, and he is ready to invest in three more films, and $80 million is far from enough.

He had to make a second pot of gold.

Originally, he wanted to use technology to make money, but the reality is that the speed of science and technology can never exceed that of finance.

Instead of spending at least a few weeks, you can make hundreds of millions of dollars. Abel decided that it would be better to use the financial information of the little wrecking ball that has a bit of a one-time skill in finance to scavenge a wave in the financial market.

He inquired.

In the near future, there is a good opportunity.

The role of the small wrecking ball in finance, Abel has tried it a long time ago. It's not a panacea, because it's just a database, not a prophetic type of thing that can foresee the future.

You can use it to speculate on stocks or futures, but once you use it, you have to consider the result of the butterfly effect.

For example, in its materials.

In the original plot, on April 5, 1990, that is, tomorrow, there will be a good market for cotton futures. Abel chooses to invest in them, and there is a more than 80% chance of making a profit.

Because this time the market of cotton futures is the general drought in the world's major cotton producing areas at the end of last year, which led to the lack of cotton production this year, so that cotton futures briefly rose rapidly.

Unless there was no drought last year.

Otherwise, today's wave of cotton market is absolutely different from the information recorded in the small wrecking ball.

According to the data, cotton futures on the New York Board of Trade will rise from 40.69 cents/pound at the beginning to 49.08 cents/pound in the evening after the opening of the market tomorrow morning.

This is an exaggerated increase for futures, with an exaggerated increase of a little more than 20%.

For cotton futures on the New York Stock Exchange, the profit of one point is $10. 0.01 per cent is a point, for example, from 40.69 cents/pound to 40.71 cents/pound, that is a profit of two points, and a lot of cotton futures can make a profit of 1x10x2=20 US dollars.

Abel chose to do this cotton futures market because it was formed for a fixed reason.

This wave of market is due to the release of an economic data from the United States after the opening of the New York Stock Exchange tomorrow.

In the Russ Fed Business Activity Index, the price of raw materials for cotton has risen by a large margin due to the drought in the main producing areas at the end of last year.

It was only then that the global cotton futures were struck once.

Before coming, Abel had already inquired that at the end of last year, the world's major cotton producing areas were indeed a year of drought and shortage, and cotton income became a problem this year.

This proves that tomorrow's cotton futures changes should not be affected by their own little butterfly.

Can operate a wave.

Although he doesn't like finance, he doesn't like the financial elites who parasitize on society. But he's a self-interested pragmatist, as long as he can get money.

It's also okay to play with finance.

That's why he's not in Los Angeles now, but in New York, specifically to Goldman Sachs.

John Smith is a stock futures broker he found through his cheap dad.

Someone might say.

Do you need a stockbroker to invest in stocks? In the case that you can operate and can predict in advance, isn't it just after opening a stock account, you can place orders and operate by yourself?

Hehe......

Don't forget that it's 1990.

Although computers have gradually entered office life, the Internet has not yet appeared!

Today's computers can only process some simple files, and there is no network to connect to the Internet, so naturally they can't speculate on the Internet like later generations.

In the beginning, stock trading and futures trading were paid with one hand and one hand. In the past, there was a profession called a price meter, which was responsible for recording stock prices on the blackboard. At that time it was just a table, there were no candlesticks. One of their outstanding representatives is Livermore, who is the legendary stock dealer.

Although there is a lot of science now, there is no network, and there are no advanced computers that can be used. At this time, if you don't go to the trading hall and want to speculate on stocks, you can only contact the stockbroker by phone.

Xiao Lizi in "The Wolf of Wall Street" works like this, selling stocks over the phone.

It's just that the early promotion is a serious stock, relying on customers not to cash out, and constantly earn fees and profits.

Later, it encountered a financial crisis.

simply became the wolf of Wall Street, specializing in selling all kinds of junk stocks and bonds, and became one of the Wall Street tycoons by virtue of cheating, and even almost whitewashed and became a real financial oligarchy.

Abel now wants to speculate on a wave of futures.

He doesn't have a futures company, he doesn't have a stock company, and he hasn't opened his own stock account.

In this age of no computers and no internet, the only way is to find a trustworthy stockbroker and let the stockbroker carry out their own requirements.

John Smith was the man he was looking for. The reason is actually simple, John Smith was introduced by his cheap dad, this is one of them.

Second, Abel inquired about this guy's past and future experiences through the information recorded by the small wrecking ball.

In the records of the small wrecking ball, John Smith does not have much investment talent. But by 2019, he was still a senior stockbroker at Goldman Sachs.

The reason is that although this guy is not very talented in investment, his service attitude is very good, and he really thinks about customers, unlike Xiao Li in the wolf of Wall Street, who wants to cheat customers.

So it's not very profitable though.

Customers are still willing to believe him and invest their money in him, at least to protect their capital.

This also allowed John Smith to work at Goldman Sachs until 2019, and he had not retired in his 60s.

Abel fancied.

That's what John Smith is more honest about.