Chapter 244: Considerations for the Future

……

"Boss, this is the information that has just been passed from Solomon, the gold price in the Hong Kong gold trading market has exceeded 277.39 US dollars per ounce!"

"Zhang Shaoling, did they throw it?"

"Not yet!"

"When the market opens in London tomorrow, let him throw away my share!" Guo Shouyun said.

In May, he manipulated $7 billion to rejoin the gold battlefield, but after waiting for more than half a month, the low point of gold did not appear to be the $260 he expected, or even below. Instead, after a brief oscillation at $265, it began to rise. Although he did not wait for the price he expected, Guo Shouyun still entered the market decisively, once again leveraged 70 billion US dollars with 10 times leverage, and bought 2.62 million gold long positions at a price of 26,732 US dollars per lot.

After a brief analysis of the law of gold fluctuations, he determined the margin of safety of $27.739 billion for himself. As long as gold fluctuates within this range, he chooses to hold a position. Once gold exceeds this margin, even if it is still rising, it must be sold resolutely.

"Do you still choose to go short?"

"No!"

Guo Shouyun quickly shook his head.

After an emergency, gold's decline tends to be very fast, and it is advantageous to go short at this time. But if a crisis does occur, no one can predict the exact decline.

Of course, if you look at the past rules, after a short rise, the price will fall back in a month, or two months, and you can make money by shorting. But the opportunity to enter the market is difficult to judge, and Guo Shouyun does not know what kind of price gold will rise before turning down. If it is too high, he will need to make a margin call.

But now the Solomon Arm of the Thunder Fund is not just a margin for holdings, it also bears the capital expenditure of Pan Pacific Energy Group's mergers and acquisitions of peer companies to maintain operations.

In particular, after acquiring a series of loss-making power and gas utilities, Pan Pacific's funds to stay afloat have climbed to $2 billion, and most importantly, pre-tax profits are not enough to cover all expenses, and Guo Shouyun now has to provide $890 million a month to Pan Pacific to make ends meet.

With a monthly loss of $890 million, it's a huge pressure right now. Since founding Pan Pacific, he has accumulated losses of $1.57 billion.

And that loss will continue to balloon as he buys more electric and gas utilities.

Add to that the surging hostility of financial giants such as Enron, Goldman Sachs, and Seymour, and he must leave plenty of money to deal with the crisis.

In addition, after experiencing a series of expenses, Guo Shouyun's funds have also decreased a lot. For example, Apple, Pacific and Southern California spent $2 billion, Marvel spent $1 billion, and nearly $1 billion was injected into the PE division of Children and Grandchildren, Centaurs and Unicorns, and Phoenix Capital; Pan Pacific Energy Group has spent $3.5 billion on subsequent mergers and acquisitions and has not stopped until now; it has spent $430 million to buy shares in Amazon for Apple; plus Pan Pacific's operating deficit, all expenses have reached $7.93 billion.

Guo Shouyun made a profit plus principal of $18.009 billion through Solomon's two gold speculations in the first half of the year, leaving only $10.079 billion. About $2 billion of this money is principal and dividends from other customers. In other words, the money that really belongs to Guo Shouyun is only about 8 billion.

Let's not talk about shorting, if he doesn't sell his gold longs, he can maintain it for another month at most, and he will face a dilemma.

Fortunately, the gold market did not disappoint him.

If he sells gold at the current $277.39 per ounce, he can earn $1,000 per lot, 2.62 million lots, or $2.62 billion! This money can finally make up for the losses of the Pan Pacific Group, and it can last for another two months.

But Guo Shouyun, who still faces heavy pressure from Enron and financial giants such as Goldman Sachs, is unwilling to take risks in gold shorts.

Because if you are long, even if you lose money temporarily, it will always go up. But if you go short, the risk is too high. In the current situation, it is the most reasonable choice to ensure the safety of funds in order to cope with unknown crises.

After nodding clearly, Wendy smiled and said, "If that's the case, I'm afraid the boss will lose to Zhang!"

"With Zhang Shaoling's character, he will definitely be short, but it depends on whether he can control his margin of safety!" Guo Shouyun nodded.

“… Forget it, let's not talk about it! It's not early, you can go to rest early after a busy day!"

Wendy nodded, "You should rest early, too!"

"Yes. I'll go to sleep after reading these documents!"

After Wendy closed the door and left, Guo Shouyun lifted his spirits and continued to look at the documents in his mailbox. As each of the companies grows, so do the complexities. Even though the COO or the president can help with it, there are still more things that need to be decided by him, the chairman, than in the past.

The light in the study was on until the early hours of the morning, but Guo Shouyun did not lie in bed the next day because he went to bed late. After a simple exercise in the morning and breakfast, I drove to the airport. After waiting for about half an hour, the Kunpeng, his private jet that departed yesterday, had already taken Pan Pacific Energy executives from San Francisco to New York.

"Boss!"

“BOSS!”

After simply shaking hands with everyone, Guo Shouyun said: "The car has been prepared for you, someone in the hotel will arrange it for you, now we will get in the car and go to the headquarters of Phoenix Company." … Let's go!"

Everyone nodded, several executives got into the same car as Guo Shouyun, and the rest of the secretaries and entourage sat in other cars.

There is still a distance from the airport to the company, and at this time, Guo Shouyun inevitably asks about the company's operation.

"How's the company integrating?"

Jonathan Weir, the company's COO, frowned slightly: "With a series of mergers and acquisitions, the situation has become more complicated than before. It takes a lot of time for the comprehensive evaluation of personnel and the subsequent promotion or cropping. In addition, many companies have different cultural philosophies that take three to five years or even longer to integrate. What's even more troubling is that the companies we've acquired are electric and gas utilities, but they're more or less involved in other industries. These include factories for the production of consumables and power supplies such as cables, transformers, and meters, as well as power plants such as hydropower, thermal power, and nuclear power, as well as real estate, ski resorts, farms, and even more importantly, we now have a team!"

"Team?" Guo Shouyun said with interest.

"Yes, the Phoenix Suns, the company we acquired from Phoenix Contact, owns 37 percent of the Suns!

"Phoenix Suns? That's really surprising news. In fact, Guo Shouyun was wondering why it wasn't the Rockets? The latter had a tenfold increase in value in less than ten years because of a relationship with the Great Wall of China. From an investment point of view, this is a good option. What's more, it seems to be pretty good to be Yao Ming's boss!

"In addition to physical assets such as factories, real estate, and farms, there are also some corporate bonds and equity!"

"I'm afraid that the corporate bonds and equities that have not been sold are mostly loss-making, right?"

Jonathan Weir nodded, "The vast majority of them are internet stocks and technology stocks, and bonds are similar. They were all bought by various companies when the Internet concept was sought after, and they were all trapped after the NASDAQ crashed!"

"What is the total value of this equity asset?"

"At the current market price, they are only $1.27 billion! a 73 percent loss compared to when they first bought them!"

"Do you have any detailed information?" Guo Shouyun said after nodding.

"Yes!" Knowing that the big boss is an expert in the field of Internet and technology companies, Jonathan Weir prepared a detailed document when he came.

I took a look at it, and the names of eBay, Amazon, AOL, Yahoo, Microsoft, and Cisco were listed on it. Guo Shouyun is not surprised that at the height of the dot-com bubble, the above companies were the most popular stocks in the entire market.

"I'll take care of this part of the asset. All the remaining assets, except for the farm and Suns shares, were sold. ”

The farm can be sold to Guo, and the Suns are purely Guo Shouyun's whim. And he himself wears the hat of a college basketball player, so it seems normal to play basketball.

"Boss, do you want to sell even the cable factory and the consumables factory? You know, they are very closely related to our main business, and the profit is also good, if they stay, it will be a strong supplement to the group's business." ”

Guo Shouyun shook his head.

"Sell it. Pan Pacific Energy Group is an energy and utilities company. In the case that the company's business is not doing well, we must first solve the main business before we are qualified to consider horizontal expansion. ”

After saying this, in fact, he has another layer of consideration. Cables, meters, transformers are not high-tech things. If these factories are retained, they will certainly increase their income a little, but Guo Shouyun believes that if these things are imported from China, the savings will be far more substantial than the income.

After all, labor costs in the United States are too high. Moreover, he didn't want to add some unprofitable enterprises to distract his little energy.

Seeing that Guo Shouyun said resolutely, Jonathan Weil didn't say anything more. After all, the current situation of the Pan Pacific Group is indeed not good.

"What is the extent of the group's assets and liabilities now?"

"Assets of $127.95 billion, liabilities of $51.07 billion!"

"It's amazing!" Guo Shouyun sighed.

"Boss, I think we can slow down the pace of acquisitions, otherwise the accumulated debt will drag down the company's operations!" Jonathan Weil worried.

"I understand your concern, but the company won't have much time to expand rapidly. In addition, in the energy sector, there may be some acquisitions in 02 and 03, and the company will not make any more large-scale mergers and acquisitions in the last decade or so after 03. Therefore, in the past three years, the company's ups and downs will be relatively large, and the integration of personnel and business will be more arduous.

"Boss, why the three-year expansion period?" asked Jeff Durant, the company's CFO sitting on the sidelines.

"Because of the NASDAQ crisis, the U.S. economy lags behind for only three years at most, and the energy industry is generally having a hard time in these three years, which is a good time for mergers and acquisitions. We want to take advantage of this time to lay the foundation for the company to become a world-class energy giant in the future!"

Guo Shouyun clearly remembers that from the time of 03 years until the explosion of oil shale in the United States, international energy prices have been rising one after another. When you buy a company when the energy price rises, both the market value and the premium are much higher than when the energy price is rising. Of course, Guo Shouyun would not make such a mistake.

After he finished explaining, Jonathan Weil on the side nodded, "I will do my best to manage the company!"

Guo Shouyun smiled and patted him on the shoulder, "Don't worry, I will help you as much as possible, especially in terms of funds!"