Chapter 124: Profit
The so-called shorting, to use an analogy, is that you have an antique, I borrow it and sell it at a high price, and buy it back at a low price to return it to you, which is the act of earning the difference in the middle price.
John Berg and Johnson Lin immediately took action after signing the contract, and one of the advantages of big financial companies is that they can be more trusted by the market at critical moments. John Berg first borrowed $20 million of Bavi shares in the stock market to test the stock market, and then invested another 120 million in stocks. The U.S. stock market has a huge capacity, and although there is already bad news circulating in the market, there is still no shortage of receivers.
Similarly, there are opportunities to short-sell in the market, but I can't borrow stocks in my hand for a while, so I have to act as a pick-up man first, and then sell them. As long as you buy back the stock at a low point, you can still make money when you return it. This is a game to see who runs fast, the big fish eat the small fish, the small fish eat the shrimp, each has its own money.
Before 12 o'clock in the morning on March 29, John Berg had invested $140 million in shorting Bavi Company, and many investment institutions had already reacted at this time, in fact, on the 28th, some financial institutions had cracked down on Bavi Company's stock before Lin Johnson.
Lin Johnson's short-selling operation became one of the first group of people, and Wall Street's financial institutions are indeed not idle, and their intelligence gathering and analysis capabilities are definitely the best in the world.
At the same time, John Berg also successfully transferred other funds under his control to non-nuclear energy-related fields to minimize losses, and even controlled several funds to short-sell Bavi Company, which of course was agreed by investors.
After John Berg called to report on the stock market, Lin Qiangsheng asked him: "Do I have 160 million of funds left and haven't spent them?" ”
John Berg confirmed on the phone: "Yes, Mr. Lin! I propose that you are now waiting for feedback from the market, and the US government has not done anything yet. The New York stock market fluctuated violently, and stocks from all walks of life were not expected to be expected! ”
Lin Qiangsheng touched his chin and said, "That's it!" According to my analysis, in a few days, Westinghouse's stock will fall sharply! Because this company is a leader in the field of nuclear energy, the occurrence of such a nuclear accident will definitely cause an unprecedented blow to this company's nuclear energy business! I expect Westinghouse stock to fall by more than 15% in the next few weeks, at least! I'm going to mobilize 10x leverage. Take a short trade on this company's stock! ”
John Berg thought for a moment and said on the phone: "I have to say, it's quite possible! However, you also take a huge risk if Westinghouse's PR skills are good enough, or if the nuclear accident is minor, and the stock does not fall as expected, and the company may be forced to liquidate its position in a 5% fluctuation! In that case. Your losses are unpredictable! ”
Lin Qiangsheng smiled and said, "I don't think Westinghouse can fight this disaster!" That's it, I'll go to you right now and sign the agreement! ”
John Berg put down the phone, shook his head, and pondered in front of the drawing board of the stock market candlestick chart with his pen in hand.
The White House received the news of the nuclear accident that occurred at 4 a.m. on the 28th at 9:15 a.m., when the U.S. Department of Energy and the Environmental Protection Agency had mobilized their respective response forces. 15:50 p.m. The accident was brought under control. It should be said that this incident is indeed a human error. However, the post-control department reacted quickly and decisively took the correct way to deal with it.
After the accident, the White House and local departments in the United States are undecided, and both the operating company and the government have underestimated what the accident losses have been! For the first 48 hours, the entire U.S. government was on the sidelines. Then the U.S. Nuclear Regulatory Commission went to the other extreme, issuing a report on the risk of a nuclear leak to the White House.
The White House announced the truth of the incident, and public opinion in the United States was in an uproar!
On the 30th, the governor of Pennsylvania ordered the evacuation of pregnant women and children within a five-mile radius of the nuclear power plant. All schools within 10 miles are closed. But many families fled 12 miles away, leaving 200,000 people.
The scene of the evacuation of the victims was reported on television, and the whole country of the United States was shocked!
People can see on television the panic of the victims fleeing their homes, many of them driving cars with their loved ones, leaving no luggage or anything, and almost nothing for fear of being contaminated by the nuclear leakage.
The United States is suffering a catastrophe, and a catastrophe of great proportions! The Americans were shocked and angry, they went out of their homes to rally and demonstrate, and the residents near the nuclear power plant and the people living near the nuclear power plant to be built quickly took to the streets to demonstrate and protest against the development of nuclear energy, demanding that the construction of the nuclear power plant be stopped or closed, and for a time this kind of protest enveloped the whole United States.
On April 1, Carter visited the site of the nuclear accident and immediately announced that the United States would stop all nuclear power plants.
Although soon after, various experts said that the accident was a false alarm. But all politicians and media professionals have to be cautious about the nuclear issue, and any speech in favor of nuclear energy development will ruin their future.
The anger of the Americans has reached the point of madness, and they want to put an end to the American nuclear energy industry once and for all!
Lin Qiangsheng looked at the people on the street outside the window, who kept shouting protest slogans, and said silently: "Let's make trouble!" Make a big fuss! Huh"
Lin Johnson's remaining $160 million, while the vast majority of people had not yet thought of how things would expand, allocated 10 times leverage, a total of $1.6 billion to short trade Westinghouse's stock.
In fact, the U.S. stock market now has 400 times leverage, but Lin Qiangsheng really doesn't have the courage to think about such a high allocation ratio, and he thinks 10 times leverage is about the same. With Westinghouse's market value of hundreds of billions of dollars, 1.6 billion is just an itch for it, and it is not immediately poured 1.6 billion funds into the stock market.
Of course, according to John Berg, someone has already reacted, and there are also several huge funds in the market that are cracking down on Westinghouse stock. There are people who analyze quickly and act decisively!
The rumors did not need to be made by Lin Qiangsheng, investors and commentators from all walks of life revealed that the losses related to the Three Mile Island nuclear accident were more than billions of dollars! The manufacturing companies and operating companies involved will pay a huge price!
The manufacturing company in question is Bavi Corporation, Westinghouse is a leader in nuclear energy in the United States, and the operating company of the Three Mile Island Nuclear Power Plant.
In mid-April, the accident assessment report was released. Dealing with the damage to the reactor and disposing of the damaged 60 tons of fuel rods will cost Bavi $1 billion, in addition to the compensation that awaits the hapless company. Westinghouse was also unlucky, given the angry masses in the United States at this time, and the irresponsible behavior of the Carter administration. Its nuclear energy division has been hit like never before.
Bavi's stock plunged after Carter announced that it would halt all nuclear power plants, and as the loss analysis report came out, the market was generally not optimistic about the company's prospects, and its stock fell even more bitterly. Soon exceeded Lin Johnson's estimated loss decline, and the market value of the company of tens of billions of dollars evaporated by more than half!
Westinghouse's stock also fell heavily, due to the large proportion of the nuclear energy business in its company, the market expectation is not good, dragging down the overall performance of Westinghouse, its stock market value fell by more than 15% in a very short period of time!
April 18th. Johnson Lin and John Berg delivered the funds. Lin Johnson invested 300 million US dollars in the U.S. stock market, 140 million short Bwich Company made a profit of 63 million US dollars, 160 million financing 10 times leverage short Westinghouse made a profit of 240 million US dollars!
Of course, the transaction is not so smooth, if it weren't for the help of John Berg, a financial investment expert, Lin Qiangsheng would not even be able to borrow stocks if he operated it himself, and he would have been trapped at the beginning of the investment plan!
In addition, the interest rate of the allotment company is also very high. The monthly interest rate of 3 cents is 48 million US dollars, and a large amount of money will be credited to the account if the capital allocation company is upside down!
Plus commission fees, transaction fees, commissions. Lin Qiangsheng's money will not exceed 250 million US dollars. But no matter what, having made so much money in a short period of time, Lin Qiangsheng feels that he is already a little ready to fly!
"Mr. Lin, congratulations! You've made a profit of more than $300 million, which is a great victory! What are your next investment plans? John Berg is also very excited that this transaction has brought so much profit to the client. It was also a heavy victory for him, a huge club record.
Lin Qiangsheng snapped his fingers, took the champagne handed over by Ryan, took a sip and said with a smile: "Of course!" I intend to continue to invest in the gold market, and I expect it to be within the next year. Gold futures will multiply! ”
John Berg smiled and said approvingly, "This is what I want to recommend to you!" ”
"Currently, the price of gold is $239.16 per ounce, which is a rare drop after last month's $242 per ounce! And the price of gold has been rising for years! With the monetary easing system in the United States and the depreciation of the dollar, gold as a good means of investment, the price will be further pushed up, and the market is still optimistic for a period of time in the future! ”
Lin Qiangsheng smiled and nodded, drank the champagne, and the wine glass was taken by Miss Lane. Lin Qiangsheng smiled and nodded to her, and Ryan flicked his hair lightly, deliberately showing a charming smile.
"Ha, Miss Lane! Have you invested with us this time? Lin Qiangsheng asked her with interest.
Ryan smiled awkwardly and said quietly and happily: "I personally followed Mr. John's investment, with only $20,000 of capital, earning the equivalent of three months' salary!" You and Mr. John Berg are such wonderful people! ”
Lin Qiangsheng nodded with a smile and said, "That's good!" Miss Lane has been very attentive to me during this time, I thank you very much and I hope you will get something out! ”
Ryan looked at Lin Qiangsheng frequently, glanced at him charmingly, and asked, "Mr. Lin, are you free tonight?" I would like to invite you to my house for dinner! ”
John Berg coughed and said to Lin Qiangsheng: "Mr. Lin, then let's sign another agreement, you entrust me to act as your agent for your funds for gold futures!" ”
Lin Qiangsheng nodded, and Ryan immediately put down the wine glass and prepared a commission agreement cleanly.
The $300 million Lin Johnson borrowed in Europe has a monthly interest of $7.5 million, and the bank can earn nearly $100 million for a one-year term, which is really black! He has to work overtime to earn it back, so he doesn't feel distressed!
He signed an entrustment agreement with John Berg to invest in gold futures, and Johnson Lin's account now has a total of more than $540 million. Of course, $300 million of that is a loan, but Mr. Lin doesn't plan to repay it right away.
Until he walked out of Wall Street and thought that he had more than $500 million in his account, Lin Qiangsheng was still a little dizzy. So much so that many people who saw him thought that it was another unlucky person who had lost money on investment, and avoided him far away, in case he suddenly collapsed and hurt people. (To be continued......)
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