General Motors Headquarters, President's Office, Detroit, Michigan, USA

"Hell! What's going on? Smith, the president of General Motors, who was still full of ambition at lunch, was shocked by the stock price diving on the computer terminal at this moment, and the time-sharing chart on the screen showed that the stock price of General Motors was suddenly attacked and suppressed by bears after rising for several days, and the huge sell-off smashed the stock price of General Motors from above $62 to $59 in one breath within 15 minutes, a decline of nearly 5%, while other industrial blue chips fell only slightly, while the stock price of rival Ford Motor rose by 3%, Chrysler's stock price rose 2%, a sudden blow that made Smith almost go berserk!

Immediately afterwards, Rick Wagner, the CFO of General Motors, broke into Smith's office with a blue face, "Francis, I'm afraid someone is behind our backs, just twenty minutes ago, the market rumored that General Motors may have a broken cash flow due to huge losses, so it has to push Saturn Motors, the most potential high-quality asset, to the market through an IPO, and there are even rumors that if General Motors can't sell Saturn cars and return funds, Once the flow of funds is broken, it will enter bankruptcy liquidation ......"

"Hell! Which bastard is this slandering us?! Rick, what the hell did you do? Although the cash flow is tight, the Saturn plan is definitely not just to recoup funds, not to mention that GM has a good relationship with major bank consortia, and the credit rating of GM bonds is AA, and we can finance the funds needed for daily operations from the market in minutes! "The president and CEO of General Motors is so dry and angry that he can't breathe a little bit, but in fact, the rumors that broke out in the market really poked GM's soft underbelly.

As the No. 1 automobile manufacturer in the United States, General Motors' annual revenue of $150 billion is behind the consumption of working capital of up to 13 billion per month to maintain daily operations, which is not counting any possible M&A investment or new capacity investment, for an automobile manufacturing company with a net worth of only 18 billion US dollars, a huge and healthy cash flow is a necessary condition for maintaining the normal operation of the company. Almost all the investors will run away without a trace overnight, so that the company's capital side enters a vicious circle and cannot extricate itself.

"I will hold an ad hoc press conference as soon as possible to clarify the market rumors and appease investors, otherwise it will be too late if an avalanche effect is formed, and in addition, I am prepared to let the investment department use the funds in the emergency reserve account to buy shares in General Motors, otherwise the press conference alone may not help!" As the CFO of Rick Wagner obviously made the worst plan, to be honest, at the critical moment of Saturn's IPO underwriting bidding, the stronger the stock price of General Motors, the more beneficial it is to General Motors, and now the stock price is so diving, I am afraid that the major brokerages and investment banks that gathered in Detroit to seize the time to prepare for the bid are the first to laugh, Nima This is a godsend opportunity for the other party to suppress prices, isn't it?

General Motors, as a big blue-chip constituent, although the market value of 23 billion has not been able to continue to squeeze into the top ten weighted stocks of the S&P 500 index, but the ranking is also in the twelfth and thirteenth place, with a total share capital of 370 million shares, but more than 1,000 funds, trusts and institutional investors have allocated General Motors, which makes the chips in the market as extremely dispersed as equity, although the top ten shareholders hold less than 58% of the shares, but the largest shareholder UAW also holds 10% only, The last pension trust holds 4.85%, and the remaining 42% of the shares are held by nearly 1,000 institutional investors in the market, with an average of only 150,000 shares per institutional investor.

The average daily trading volume of General Motors in the last week is more active than in previous weeks, but it is only maintained at about 20 million shares, because the top ten shareholders are basically long-term investment institutions, so the limit of liquid chips in the market is also in the form of 150 million shares, the average daily turnover rate is about 12%, and the 12.6 million shares of General Motors held by the G3 fund under Merrill Lynch accounted for about 3.4% of the total share capital at that time, and it was not even enough to reach the 5% trading transaction announcement line. Therefore, when the G3 fund above 62 closed all the 12.6 million shares of General Motors held by the G3 fund, and shorted 12.6 million shares, it is not surprising that the stock price dived, and for a stock with an average daily turnover of only 20 million shares, there was an additional 25.2 million shares sold at once, and the result can be imagined!

The temporary press conference held by the General Motors headquarters urgently, the so-called clarification of the market rumors about liquidity in the face of the diving stock price appeared weak, because the market to undertake a limited number of buys, and the G3 fund smashed the GM stock price for the purpose of not simply to arbitrage to make money, Therefore, the G3 fund emptied the 12.6 million shares of General Motors held in the fund account in four waves at the position of 62.215-61.575, and then emptied the 12.6 million shares of General Motors in the range of 61.575 to 60.125.

GM's stock price plummeted to 3,000 feet, and after the press conference only rebounded from $58 to $59, the stock price plummeted to $56 and the trading volume increased sharply to 56 million shares.

Mannie and Dominic, a trader assistant in the Manhattan Center in New York, began to close the position at $57 and closed the short-sold 12.6 million shares, which made GM's stock price finally close at $57.125 at a record 70 million trading volume, down as much as 8% in a single day, and the lowest to -9.6%.

In just half a day, GM's market value fell from 23 billion to 21.1 billion US dollars, which is still the result of Rick Wagner using up the 600 million emergency reserve in the investment account of GM headquarters to buy 10.52 million shares of GM shares.

Furious, Smith held an emergency office meeting of the president at 5 o'clock, "What the hell is going on?!" Which organization is behind us? Find out, I will definitely not let them go! Rick, tell me about what you got! I know you have old acquaintances on the NYSE...... There's no SEC correspondent here, just say it! ”

The main participants in the emergency meeting were Mike Doug, vice president of General Motors' investment department in charge of investment, and several investment analysis experts under his command, plus CFO Rick Wagner and several elites under him, of course, the youngest of these people is also the general manager of their respective departments, General Motors is a manufacturing giant and empire, in addition to the branch subsidiaries, the management of the departments directly under the headquarters is several levels, and the investment planning department led by Doug itself has jurisdiction over several departments, From financial assessment to risk control to financing to self-operation, there are many talents.

Of course, the secretary of the president who enjoyed a fine French lunch was present at the meeting, and the girl in the restaurant witnessed how the handsome manager of the young Merrill Lynch Securities used the effect of butterfly wings to make a day speculative trader in front of him, although I don't know how much money Jiang Yelin used to short sell and short sell how many GM stocks, anyway, Rachel Kate watched the real-time broadcast of GM's stock price on the TV screen. For Jiang Yelin and the energy of Merrill Lynch Securities behind him, Miss Kate can be regarded as a first-hand experience...... Shudder!

"According to the trading returns of the New York Stock Exchange, the initial sell-off of GM shares above $62 was the account of Merrill Lynch, and the shares sold within ten minutes were roughly more than 12 million shares, because our stocks suddenly put a huge dive, which caused market funds and hedge funds to follow the trend and arbitrage to short our stocks, according to the information we gathered, Goldman Sachs shorted 10 million shares, Morgan Stanley shorted 8 million shares, and Salomon Brothers shorted 5 million shares, Let's not talk about other small organizations......

The main shorts were concentrated in Merrill Lynch, Goldman Sachs, Morgan Stanley and Salomon Brothers, with Merrill Lynch selling more than 25 million shares above $60, half of which were short because the other side covered 12 million shares at $57...... Without Merrill Lynch's cover this time, it is difficult to say what price the closing will fall to, and $55 is possible. Rick Wagner's tone was full of bitterness, and he did not complain in his heart that Smith was self-defeating, if the contract for Saturn's listing was handed over to Merrill Lynch according to the agreement with the Merrill Lynch Wonder Boy, I am afraid there would not be such a tragedy today.

It is indeed too tragic for Nima, the market value of General Motors fell by $1.9 billion this afternoon, and the median line of the original local star car listing financing is only around $2 billion, which is called why bother, and the headquarters account also consumed nearly $600 million to buy 10 million shares of General Motors stock, if the stock price opens low tomorrow, it will be directly set in and will continue to lose!

"Merrill Lynch?! Hum! Hum! Kate, where did you go at noon and couldn't find anyone for half a day! Smith gritted his teeth and asked his secretary's niece, who was taking notes.

"Of course, lunchtime is dinner, Mr. President...... As a member of General Motors, I believe you wouldn't doubt my loyalty and dedication to the company, right? Kate was a little flustered for a while, and she didn't know if she should say that she was going on a date with the handsome guy from Merrill Lynch Securities at noon, and of course, the other party also called Guò in front of her to remotely control the stock price of General Motors!

"What now? It's all rubbish! Now brokerages and investors all over the United States are looking at our GM jokes, Mike, your investment department is just eating dry food? If someone else can smash the market, you can't pull the stock price back?! ”