Chapter 152 Billion Dollar Sell Order
The weekend passed in the midst of a tussle between Stanley and Huatou, and both sides knew very well that the other was their only choice. But the difference is that Stanley is waiting to assess the pros and cons of transforming into a bank holding company, while China Investment is waiting for Stanley to die completely, and Gao Dongfang and his colleagues know that no one else will be interested in Stanley at such a time.
One is like a man on the verge of drowning, looking around for a life-saving straw; while the other was holding a lifebuoy and standing on the shore to observe coldly. Until the last minute, neither side was in a hurry to reach an agreement, so the deal was dragged into the next week.
As soon as the market opened on Monday, Stanley's stock was in trouble!
"John, I heard that you are negotiating with the Huaxia people?" At ten o'clock in the morning, John. Mark received a call from Soros, the hedge fund that had been secretly shorting Stanley. Of course, Soros is not clear, John. Mark already knew the fact that he was secretly shorting Stanley, "What's the matter, are the Huaxia people planning to help you?" They are sovereign funds, so don't miss out on this opportunity! He said with a false persuasion.
"George, this is our company's top secret, I'm sorry I can't tell you about the progress." John. Mark said lightly, "But you are not an outsider, I can tell you a little, the Huaxia people are very interested in us." I believe that as long as the details are negotiated, we will be able to reach an agreement soon. ”
"Really? Congratulations! Soros said insincerely, "In order to avoid suspicion, I will not buy your shares, you must know that this can involve insider trading." Haha, just kidding, congratulations on making it through this hurdle. ”
"Thank you!" John. Mark said similarly perfunctorily, "But George, I advise you not to go short of Goodman's stock. You know, they're a little bit stronger than we are. They're in trouble right now, but I don't hear of sovereign funds interested in them! ”
Just in mind, John. Mark secretly cursed the "old fox". He naturally heard the implication of Soros's words, "not buying their stocks" does not mean not selling their shares.
"Of course I know that, don't worry. I'm not a troublemaker. Soros laughed and hung up the phone, but he cursed the same "old fox" in his heart. Naturally, he heard clearly, John. Mark was planning to turn the war on Goodman.
Like Stanley, Goodman is currently in troubles with capital outflows. Unlike Stanley, Goodman's flight of funds was not as fast as expected, but on the downside, none of the institutions expressed interest in Goodman. At present, Goodman is still struggling, but the situation is much better than that of Stanley.
If you continue to short them more vigorously, it will be a better investment option.
But Soros doesn't plan to ramp up his efforts in shorting Goodman, because he also has a killer feature, a killer against Stanley.
Hang up John. After Mark's call, Soros immediately dialed another number, "Hi. Hello, is this Congressman Rogers' office? I'm George. Soros. I made an appointment with Mr. Councillor to meet at 11 o'clock this morning. ”
"Oh, hello, please wait, I'll check Mr. Councillor's schedule." The secretary who answered the phone hurriedly said, and half a minute later, the voice came back from the microphone. "Yes, Mr. Soros, Mr. Congressman will be at the Waldorf Astoria Hotel after his speech, please wait there. Mr. Councillor has also invited you to lunch, and I hope you will not refuse. ”
"Of course. It is my pleasure! A smug smile bloomed on Soros's face, and he knew he had succeeded.
Ham. Rogers, a veteran Republican congressman, hails from Texas, a conservative state that leans Republican, and has unparalleled prestige and prestige. At the same time, within the Republican Party, he is also one of several bigwigs who have made a statement. If there are so many people in the world who can change the decision of the current president of the United States, Ham. Rodgers is one of them, and one of the very high lists.
In politics, the parliamentarian's position is quite conservative. Perhaps because of his native Texas, the congressman was extreme, even to the point of intransigence, on issues such as abortion, immigration, and people of color. Naturally, this congressman, who has always regarded himself as a defender of orthodox values in the United States, will not have a good impression of a country like China.
Soros approached him with the purpose of using the influence of this congressman to obstruct and interfere with the deal of Huatou's acquisition of Stanley, or even directly veto the deal. Only then will Soros be able to get the most out of the short Stanley deal.
He had already calculated that if Councillor Rogers could only let the deal fall through, there would basically not be much time left for the Stanley Company, and then they would face the same fate as the Karimon brothers, which was bankruptcy.
A super company with total assets of more than $700 billion and liquid assets of $200 billion is only a few weeks away from bankruptcy. It has to be said that the situation in the market has been bad to the point of no return, but this is not the lowest point.
And for convincing Congressman Rogers, Soros is full of confidence.
……
At one o'clock in the afternoon, the market continued to trade, and the stock of Stanley Company fluctuated around $85, and there was no big market for the time being. Although the market is well aware that Stanley has been in some trouble recently, because of the US government's bailout plan and the news that Huaxia is in contact with Stanley, Stanley's stock is temporarily in a stable situation.
The market is waiting.
In the midst of the blandness, the mutation is abrupt. Suddenly, in the sell column of Stanley stock, a sell order of up to 11,045 lots appeared at $84.50.
Almost instantly, the buy column was swept away, and Stanley's stock price fell to this $84.50.
But what stunned the market was not over, and the next moment at $83.5, another sell order of 10,000 lots popped up, which also instantly wiped out the buy order at this position, and Stanley's stock price continued to decline.
Just as the price was refreshed, the most shocking scene happened. A sell order of up to 50,000 lots appeared at $80, and the buy order column struggled for only five seconds longer than the previous two levels before it was swept away again. This time, Stanley's stock price slipped straight from $83.5 to $80.
The above three transactions took place in almost half a minute, so fast that the vast majority of traders in the market could not react, and the stock price had fallen to a jaw-dropping point. When traders react, their first instinct is not to take Stanley's stock at a low price. Instead, he was asking everywhere what was going on at Stanley.
This kind of thing happens instantaneously, and they think there must be a reason, it's event-driven.
As they wished, news from Stanley soon came to the market, and not one, but several unconfirmed ones. Some say that the negotiations between Stanley and China Investment broke down and that Stanley was on the verge of bankruptcy, while others said that Stanley's funds were being withdrawn on a large scale. There is basically no liquid cash, and tomorrow it will declare bankruptcy, and some say that Stanley and China Investment are about to reach an agreement, even if it becomes red capital.
It's funny that in a market that celebrates value investing, traders are often looking for news that is flying around the sky rather than models. This has to be said to be a great irony.
Soon the whole market was mobilized, and in this case traders were not trying to confirm the truth of the news. Instead, he frantically threw out Stanley's stock in his hand, because whether it is true or not, Stanley's stock price fell is an indisputable fact, and he must take advantage of this time to run quickly.
Chasing the ups and downs, even for professional traders, is the same.
Stanley Company's stock began to fall wildly. It didn't take long for it to fall below the $80 mark, and then it fell below the 79, 78, and 77 levels in a row, almost like a bamboo, and fell directly to $75.
At $75, there are hedge funds that set a large number of stop-loss orders. When the price is triggered. The stock price of the entire Stanley Company has become almost unstoppable like a flash flood and tsunami. The closing order given by the program quickly knocks down the immediate price, and the price drop triggers more closing orders, which in turn exacerbates the further decline in the price.
The shape shì suddenly became uncontrollable.
$70, $60, $50......
Stanley's stock price is no longer a dollar-by-dollar jump, but a drop of five dollars or even ten dollars at every beat, which has stunned all traders in the market. In addition to the shock, these traders are even more crazy to smash orders, hoping that they can escape.
It's like a secret room, packed with people, but only one exit for one person to escape. When panic erupted in the secret room, someone began to run through the door, but the door could only accommodate one person. When both of them appear at the door at the same time, they get stuck. And when more people appeared at the door, none of them could escape, despite the anxiety of all of them.
All they could do was keep making the run away, but to no avail.
No one knows where the bottom is, and no one wants to buy it, because the number of sales is like a snowball, and I am afraid that no one institution can take it alone. In fact, there are also institutions that plan to take the opportunity to buy the bottom, but in the wave of selling, they are like mantis arms blocking the car, and they are easily crushed. Worse than falling stones, their actions did not even cause a trace of waves.
Finally, the plummeting Stanley stock price reached the $40 mark.
So far, Stanley's stock price has fallen by more than 50%, from $85 to $40, a full $45 decline. And if $40 also falls, it may fall to $10 today.
But this extreme situation did not appear after all, and just when the price of $40 just came into view, some traders were surprised to find that there were 2.5 million lots piled up around $40. In other words, $100 million is waiting here.
The seller was aggressive, and he came with all his strength in the momentum. The side that rescued the city gathered thousands of troops and horses and waited for it here. The torrents of the two sides did not test at all, and almost in the blink of an eye, they crashed together.
"2.5 million hands, 1.4 million hands, 400,000 hands." With the roar of the traders, the buying side was depleted in three beats. But soon, a surprising scene happened, and in the next moment, the buyer popped up another 5 million lots and re-stabilized his defense.
Another $200 million bill!
Traders were numb to the sight, but the sellers' offensive was still not contained, and a minute later, a full 5.4 million buy orders were once again consumed, and with the last buy order being bought, Stanley's stock price also fell to $39.99 in an instant.
But once again, the nerves of traders were shocked, and Stanley's stock price only lasted at $39.99 for a second, then jumped to $40 again, and in the buy column, there was a huge buy order of 15 million lots.
$600 million super buy!
When this buy order appeared, it was like pouring cold water on the head of the boiling seller, which woke up most traders. Most of them began to reflect on whether they were affected by their feelings. And those who reacted faster began to grab the bottom.
Affected by this huge buy order, although the main force of the sale is still menacing, it can no longer shake such a huge amount of money, and they begin to realize the determination and strength of the bulls. The market situation reversed, and the stock price of Stanley Company began a wave of rapid rise.
The market fluctuates and is unpredictable, just like life.
By the end of the day, Stanley's stock had fluctuated more than 100% throughout the day, eventually falling slightly by 2.3%. After the market closed, some traders counted that the funds that stopped the decline were at least about $1.5 billion. And the funds that led the first wave of decline reached at least $1 billion.
The amount of transactions in one day reached a staggering $4.5 billion. If you use this figure, it represents 10% of the market capitalization of Stanley Company. And in the aftermath, more rumors arose around the unusual volatility of Stanley's stock. But no one knew at all that this was a mega-short run led by Soros's Quantum Fund, totaling $1 billion.
And even Soros himself doesn't know anything about the main force of the guard. It wasn't until something happened later that he knew what the whole thing was all about. By that time, he had lost all his way to shorting Stanley's stock. (To be continued......)
PS: Thank you book friends Xiaoqi Civilization Miracle, duyu, and cpower for voting for the monthly ticket! Thanks to the book friend who said he was not crazy for the reward! At the beginning of the new month, I received so many monthly passes and rewards, and it was the first time in two years, I hope that a good start will have a good process and good results, and I hope that more book friends can support this book, and the author will continue to work hard~