Chapter 57: Shorting Enron
Chapter 57 Short Enron
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Gazing at the handsome and young man in front of him, with infinite confidence in his eyes, William Chang's mind automatically appeared with the other party's information. After a moment of silence, he said in a deep voice, "Can I know your next plan?"
Guo Shouyun's eyes froze, and it was undoubtedly reckless and dangerous to reveal his investment plan to an outsider who had not yet joined the company. However, he thought about it for a moment and nodded. At the moment, William Chang is the best fit for his plans. If you miss him, it will be too late to let the headhunter find a more suitable person again.
"Do, empty, safe, ran!"
Facing William Zhang's deep eyes, Guo Shouyun said word by word.
"Enron Ltd., headquartered in Houston?"
William Chang was instantly moved.
"That's right!"
After taking a deep breath and suppressing the shock in his heart, William Zhang said in a solemn tone: "You should know that it is the world's largest integrated natural gas and power company...!"
"I also know that it has just been ranked seventh in the world's top 500 by Fortune magazine! It has been named 'America's 100 Most Innovative Companies' for six consecutive years, with a market value of more than $80 billion! But so what, just because the company is big doesn't mean there are no problems!" Guo Shouyun said in a resolute tone after interrupting unceremoniously.
The financial scandals of Enron in the United States and Vidiwang in France were the most sensational news stories in the world in the first years of the twenty-first century. The former went out of business, and the latter survived the crisis by selling assets. Now that he knows this, Guo Shouyun must of course seize this once-in-a-lifetime opportunity to short-sell in a big way!
As for why it was An but not Vidiwang, because the latter had what he wanted, Guo Shouyun didn't want to hate with Vidiwang for the time being. Moreover, Enron, which collapsed, is less risky when it comes to shorting.
"Why are you so sure that Enron has a problem. What's the inside information about you...!" The hurried words suddenly paused, and William Zhang took a deep breath, calmed his impatient thoughts, and shook his head, "Sorry, I asked too much!"
As a financial practitioner, he is well aware of what he wants to know to mean to investors. If you don't sign an onboarding contract and a non-disclosure agreement, no one will reveal much. Guo Shouyun can say the goal of 'Enron Company', which is sincere enough.
Guo Shouyun smiled and changed the subject.
"With Mr. Zhang's experience, connections and reputation, how many times can he get leverage in the secondary market?"
"Ten times!"
After thinking about it, William Chang Dao.
Guo Shouyun nodded, "Ten times, it's enough!"
In fact, despite knowing that Enron was going to go out of business, the ten-fold leverage was too risky for Guo Shouyun, who planned to short for the long term. Let's not talk about the margin required to maintain such a high level of leverage. In case those big investment banks and hedge funds are not willing to be lonely, Guo Shouyun will face the risk of losing his money. So he had planned to do it fivefold! Now William Chang has fully fulfilled that requirement.
"Now I'm going to make the first $400 million short fund, and I'll give you at least $60 million every month in the future. With five times leverage, this is a huge amount of money of at least $3 billion. For any fund manager, being able to control such a large amount of money is a rare and unavoidable opportunity! If Mr. Zhang is willing to join in. I think that when you retire, you will have this merit, and it will be in vain. Even if it goes further, it may be remembered in history!" Guo Shouyun agitated.
"Mr. Guo is really a good mouth. But high profits in the capital industry usually mean high risks, are you so sure that Enron's stock price will collapse?" William Zhang said with a deep gaze as his heart shook.
"The facts will tell. If Mr. Zhang doesn't join Phoenix, none of this will make sense to you!"
William Chang smiled, a thoughtful look on his face.
Seeing him like this, Guo Shouyun didn't bother much. There was an eerie silence in the reception room for a moment. It wasn't until five or six minutes later that there was a change.
"Even though I'm going to retire in a few years, I'm still a little curious. So, I'm on board!" said William Chang in a firm tone.
As Guo Shouyun said, as a fund manager, it is indeed difficult for him to resist an opportunity to operate a huge amount of $3 billion. Moreover, if it is just like Guo Shouyun said, Enron's stock price collapses. He will also get a lot of dividends. Whether it's fame, interests, or career choices, it's all in his favor.
"A year from now, you'll find that today's choice is the wisest you'll ever make!" Guo Shouyun stood up, smiling, and stretched out his right hand to William Zhang with a confident expression.
"Then I'll have to wait and see!"
After the two shook hands briefly, Guo Shouyun raised his hand to signal, and Wendy Solo next to him immediately took the employment contract and confidentiality agreement. William Chang looked at it, and after seeing that there were no pitfalls, he signed his name on the back.
"Now I should call you a boss!"
"Then should I also call you 'Lao Zhang' in the future?" Guo Shouyun said with a smile.
"Lao Zhang, I like this title!"
After a few casual conversations, "I will let Wendy hand over the business information we collected about Enron to you tomorrow." In addition to looking at the information, you will need to return to New York immediately and recruit the traders, intelligence analysts, security personnel, etc. that the company needs within a week at most. On August 1st, we officially entered the 'battlefield'!"
Guo Shouyun's resolute words full of enthusiasm made William Zhang, who was in his fifties, a little excited.
"No problem!
Having spent his entire life on Wall Street, he knows too well about it. He knows exactly where the qualified talent is.
Later, Guo Shouyun shared with William Chang and discussed some of the information he had gathered about Enron, such as the secret sale of Enron's shares while the top management of Enron was preaching that Enron's stock price would rise to 130 yuan per share. and Enron's losses in investments in the UK's Wessex Water and India's tens of billions of dollars in power investments, among others.
Although Enron is now in full swing, as long as he wants to investigate, those pervasive investigation companies will provide Guo Shouyun with the information he wants. This information falls into the hands of someone with a heart, and it is easy to make a judgment that Enron is in a bad situation.
The reason why Enron's problem has not been noticed by the public is not how well Enron covered it up. Instead, thanks to the help of giants such as Morgan, Citigroup, Bank of America, and Arthur Andersen, the world's five largest law firms. Holding Enron stock, they need time to find a receiver, pass on the risk, and then go short.
It's a pity that they didn't do it seamlessly, after the collapse of Enron was exposed, Arthur Andersen collapsed, and WorldCom, which had a close relationship with Enron, collapsed, and the matter was too big, directly provoking the U.S. Department of Justice to give a sky-high fine of more than $4 billion, triggering a series of turmoil in the financial and capital markets.
Of course, there are often huge opportunities in turmoil, and Enron is one of the most valuable.
After separating from William Chang, Guo Shouyun took Wendy back to the Plaza Hotel.
Close the door and go back to your bedroom to turn on the computer. From the encrypted file, I called up the two-thousand-year development plan that I had made in advance. Behind a detailed article, there are four red circles, each with a different content.
The first is 'pan-entertainment', the second is the Internet, the third is the financial industry, and the last one is 'investment'!
These three major industries, together with a series of investment plans, have completed the closed loop from capital to industry. Although every industry is thin now, it will take more time, money and energy to further improve. But the foundation has been laid, as long as you continue to add bricks and tiles, sooner or later it will be an amazing sky-high building.
The most important thing is that according to Guo Shouyun's foreknowledge in his previous life, these three industries have the greatest opportunities and the least constraints for him at present.
"It's August soon, and after so much foreshadowing in the early stage, it's time to reap the fruits of victory!" Guo Shouyun's eyes flashed with a hint of essence.
Thinking of this, he rummaged through the funds he had. $350 million in exchange for ABS securities, plus more than $60 million in the current account that has not yet paid royalties. Enough to make your first investment in shorting Enron.
As for the back, he can get 30 million royalties every month. The 50% charity deduction for personal income tax can reduce the amount of tax paid to 20%. In this way, the funds at his disposal are guaranteed to be $24 million.
In addition, he also holds an absolute controlling stake in the Thorn Bird, which can temporarily take over its income. Two plus plus to ensure that the monthly investment of 60 million is not a problem. As for the margin for securities borrowing, it can be offset by the royalty income from the new book he wrote. Guo Shouyun, who holds "The Da Vinci Code", "The Twilight Zone", "The Hunger Games", "Island Bookstore" and other classic bestsellers that can sell tens of millions, or even hundreds of millions of copies, can be said to be 'food in his hands, not panicked'.
Moreover, the box office and peripherals of "Smart: Ghost Record", and the "Red Alert" game disc that Welfort Software is preparing to go on sale, are all super projects that can bring tens of millions, or even hundreds of millions of dollars, and huge profits.
In case of shorting Enron and being obstructed by large institutions, if you can't wait for royalties, movies and games, you can get tens of millions of dollars in emergency funds by mortgaging the equity of Thorn Bird to the bank. So, he didn't worry about the margin at all.
Moreover, he is very suspicious that after Enron's broken car is shorted by him, there is still a chance to return to the light? Even if it rebounds occasionally, as long as it does not touch the highest price of Guo Shouyun's shorting, the margin call mechanism will not be triggered.
As for the investment of Matrix Pictures in making films, it is enough to go to the bank to find short-term commercial credit. Anyway, everyone in Hollywood does this, and Guo Shouyun is no exception.
After calculating, thinking of all possible mistakes, and preparing enough means to deal with them, Guo Shouyun closed the computer with satisfaction and fell asleep.