Goldman Sachs Group Investment, Manhattan, New York, USA

On the first day of Saturn Auto listing on Wednesday, Mai Gao Jackson took the initiative to eat 65 million shares of Saturn Auto stock, of course, at the cost of the loose and fragile Goldman Sachs-Morgan Stanley and Salomon Brothers joint front shattered, the three parties can not agree on a unified opinion at all, whether it is on General Motors or Saturn Motors can not agree on an effective trading strategy, especially Morgan Stanley and Salomon Brothers, the aggressiveness is too poor like a frightened bird, and the stock price fluctuates slightly and shouts to sell short now. Nima is a big deal, so today, Goldman Sachs investment vice president Mai Gao Jackson personally sat in the investment department, senior manager of the investment department Senai with a few assistants and a bunch of large-screen market terminals, more than a dozen hotline order calls, waiting for Thursday's opening.

"Buy 10 million shares at the opening price of no more than 4.975!" As a vice president of Goldman Sachs Investment, the last time he traded a stock on the spot was several years ago, when he was only a senior manager in the investment department. At least yesterday's shearing of Morgan Stanley and Salomon Brothers' wool at $3.7 is a real victory, and the winner is not to blame, the average holding cost of $4 is certainly not low, but the 6 percentage point floating profit gives him enough room and courage to go long.

The premise is, of course, that Merrill Lynch will not sell Saturn auto stocks at any cost, and it is nothing to miss the opportunity to subscribe for new shares for $3, and to intervene and control the overall situation in time when Saturn Motors soars in the secondary market, and even, it is not excluded that Merrill Lynch will give Merrill Lynch a head-on blow and earn back the loss of $90 million in General Motors. GM's stock is now covered by 10 million shares, but the cost is as high as $48.575, while GM's stock price was only $47.125 at yesterday's close, so GM really doesn't dare to move for the time being.

Due to the intervention of Goldman Sachs' huge buying of 10 million shares, the opening price of Saturn Auto soared directly to the position of 4.525, directly gapping 6 percentage points to open, and then selling swarmed out, mainly short-term investors' chips bought before the close of trading yesterday, but in the Merrill Lynch Securities Center Business Department on the first day of the actual cash sale to the market of 125 million Saturn Auto stocks, Goldman Sachs bought and locked 65 million chips, accounting for 52% of the day's circulating chips, so today's second transaction opened, In fact, the chips on the short side are only 60 million shares, of which at least 40 million shares are bought by medium and long-term institutions and funds, and only 20 million shares are really active floating chips.

Maigao-Jackson's first order of 10 million shares swept down, The average trading price was $4.375, and now Goldman Sachs Investment has 75 million chips in its proprietary account, and the average holding cost is $4.050 per share, and the stock price has fallen slightly from the $4.525 level to the 4.500 level, and the volume has risen to $4.750 on the impetus of the influx of short-term speculative buying, which is only 10 minutes before the opening at 9:30 a.m., and the volume is 22 million shares......

"Boss, it seems that it is an absolutely wise move for you to open a position in the exchange box yesterday, and we have robbed Merrill Lynch of the hat, but today Merrill Lynch began to reluctantly sell the shares of Tuxing Automobile?" Senna, a senior manager of Goldman Sachs' investment department, is obviously very good at observing words, and his words are both compliments and reminders, but the boss's hand is really good, the cost of closing the position has only increased by 5 cents, and the current stock price has soared by 11.7% from yesterday's closing price, in any case, it is a remarkable achievement!

"Where's the return on the deal? These 22 million shares were sold by the traders of that brokerage?! Yesterday Merrill Lynch reduced its holdings of 120 million to 150 million shares of Saturn Auto stocks, and today there is no reason to be a good man and a woman to stop reducing their holdings and wait for a sedan chair?

"Boss, the return on the trading on the floor has come, the seats of buyers and sellers are very scattered, the traders of Merrill Lynch have sold less than 2 million shares, and the rest are sold by the trading seats of other brokerages, the most is the seat of Credit Suisse First Boston, but it has only sold ......less than 3 million shares," a female assistant in the investment department of Goldman Sachs snorted in a report.

"Buy 5 million shares at a price of no less than $5.5, I want to see what the guys at Merrill Lynch have in mind......" Maigo-Jackson gave the second buy order, and soon, under the execution of the buy order of the Goldman Sachs floor traders, the stock price of Saturn Motors soared from the price of 4.750 to more than $5, but the selling volume began to expand compared to the enthusiasm just now, and many short-term intraday trading orders began to take profits, after all, such a rise as Saturn Motors is really a bit high......

Goldman Sachs bought 5 million shares this time is not as effective as the previous opening of the 10 million shares smashed out of the buy, the stock price quickly fell back to $4.925 after breaking through the price of $5, and according to the transaction return, Goldman Sachs this time the average purchase price of 5 million shares is $5, senior manager of the investment department Senna couldn't help but say, "Boss, I think $5 is a pressure level, short-term profit selling pressure is too heavy, do you want us to throw some of it down to try the plate?" ”

"Throw some of it? The average transaction price of the 5 million shares just now is $5, why, you want to smash your own brand?! Mai Gao Jackson glared at his subordinates angrily, dragged his chin and began to circle around the trading room, wondering in his heart, what is Merrill Lynch up in mind? At this time, don't you continue to reduce your holdings and cash out? Is it waiting for yourself to continue to pull up the stock price?

"Boss, the transaction return has come, the seats for the 5 million shares sold just now are still very scattered, and Merrill Lynch only sold less than 1 million shares......" The female assistant's voice was like a sobering agent, so that Mai Gao-Jackson understood that Merrill Lynch may not plan to continue to reduce its holdings of Saturn Motors at all today? Does Merrill Lynch really think that Saturn's stock price can rise to $6 or even $9 in the future?

"On the premise of no more than $5.5, continue to buy 5 million shares of Saturn Auto stock!" The vice president of Goldman Sachs obviously doesn't intend to do the stupid thing of buying high and selling low, and without the elbow of Morgan Stanley and Salomon Brothers, McGo-Jackson enjoys the thrill of being a self-servant, and now the average cost of the 80 million shares of Saturn Motors held in Goldman Sachs' account is just over $4.10, and the stock price is now around $5......

The third wave of 5 million shares of Mai Gao Jackson raised the stock price of Saturn Motors to 5.450, an increase of almost 9%, the average trading price of these 5 million shares is $5.250, and now Goldman Sachs has a staggering 85 million shares of Saturn Motors in its account, and if it continues to increase its holdings, more than 90 million shares will touch the announcement line of 5% of the shares, which is a big burden for Goldman Sachs, which is tantamount to exposing himself to the eyes of his opponents.

Of course, the trading seats of the top ten brokerages in the United States can not be hidden on the New York Stock Exchange, and the stocks and prices of each buying and selling transaction do not need too much statistics to at least be classified into the trading seats of which brokerage, as for the brokerage whether it is its own proprietary order to buy or market maker to buy, in fact, it does not matter, anyway, if you buy more, you will naturally be classified into the ranks of longs, and if you sell too much, you will be classified as shorts.

"Boss! According to the sales department's request phone, many Goldman Sachs customers hope to borrow and borrow Saturn Auto stock to sell short above $5...... Shall we lend out the stocks in our proprietary accounts?" The female assistant accompanied her and asked carefully.

"Joke, we struggle to pull up the stock price and wait for them to short sell securities to hedge ourselves? Dream! Inform the sales department that Goldman Sachs does not provide short selling services for Saturn Motors! At least not now! Mai Gao-Jackson was angry and funny, but Senna on the side muttered, "Boss, I think you can try it, anyway, there is an extra income from securities lending, since we are far from the time to short, then these customers who are short selling securities just happen to send them to the door themselves?" ”

For large U.S. brokerages that are generally market makers, margin trading is an important part of securities business income, and Senna reminded his boss that since we are going long, wouldn't those who tried to borrow and lend securities and sell short just to shear each other's wool? Anyway, when the other party loses a lot, the sales department can still be forced to close the position, why not do it?

"Hmm, then ask the customer how big the scale of the securities he intends to borrow?" Mai Gao Jackson felt that he also needed to encircle people's hearts and appease his subordinates, so he gave Senna a face, which was an opening......

"20 million shares......" The female assistant held the microphone and was a little shy to answer, not daring to report! Senna listened to it on the side, but his eyes lit up, and he was quite hesitant when he heard this, the customer who can borrow 20 million shares is definitely a big customer, and even if he adds leverage, the other party's margin size is more than 30 million US dollars, I don't know which fund or a small institution, or even a rich businessman......

"Let's find out about this customer account first...... I'm waiting! Senna grabbed the phone from the female assistant and ordered, and soon the feedback information from the sales department came up, Senna covered the microphone and turned to his boss and reported, "It is a private equity fund registered in the Cayman Islands, and the funds transferred to open an account are from Credit Suisse, and the margin balance of the credit account exceeds 30 million US dollars, and it is indeed no problem to borrow 20 million shares of Saturn Motors according to our 1:4 leveraged securities lending!" ”

"Okay, let's see if someone is really willing to send a pillow if you want to sleep, promise him, and give him 20 million shares! Goldman Sachs is the second-largest brokerage on Wall Street, and if it can't borrow bonds, it is the second-largest brokerage! "Mai Go-Jackson felt his eyelids jump a little!