Chapter 669: Buying the Bottom - PepsiCo
President Hoover's inauguration is great news in the hearts of Americans, and a large number of Americans have high hopes for President Hoover, believing that he can lead the United States out of the economic crisis and allow Americans to live a prosperous and prosperous life again.
Regardless of what the Americans think, Arthur is happy to see President Hoover take office.
Not to mention President Hoover's historical reputation and deeds, Arthur has to give President Hoover a thumbs up just because President Hoover still maintains the laissez-faire economic strategy of President Coolidge.
The collapse of the U.S. stock market is not a day or two, and it stands to reason that the government should control or bail out the stock market.
But the damn laissez-faire economic strategy has left the U.S. government with little relief and control over the stock market, and all sorts of chaos is happening in the stock market.
Needless to say, the bankruptcy of small and medium-sized enterprises is accompanied by a large number of large enterprises with capital frantically buying the bottom and taking the opportunity to establish an absolute monopoly in their own industry.
During this period of history, many industry giants were born, and they were all the result of the crazy annexation of small capital by big capital.
Since President Hoover still maintained a laissez-faire economic strategy, Arthur was naturally not polite and immediately launched a large-scale bottom-hunting operation.
In the past, the bottom was bought for fear of attracting the attention of Americans, but now the attention of Americans is no longer on the stock market, and it is the right time to buy the bottom.
However, in order not to attract attention, the Australasian dip will be dispersed into various forces, and acquired in various ways.
February 23, 1927, Virginia, USA.
Getting out of the car and looking at the huge Pepsi-Cola logo in front of him, Frank nodded in satisfaction and walked towards the inside of the business.
This is already his second goal in the short term, and the companies that have been affected by the economic crisis have reduced their stock prices by more than half, even if they do not go bankrupt.
Speaking of the famous Pepsi, the journey he created and developed was much more difficult than that of Coca-Cola, which was created earlier.
The name Pepsi in Pepsi is derived from dyspepsia, which translates to indigestion. In short, Pepsi focuses on the fact that it contains pepsin, which promotes digestion.
The name of Coke is simply to rub the popularity of Coca-Cola, which also made Pepsi's trademark registered for five years before it was registered, and it was once considered a counterfeit product of Coca-Cola.
The development of Pepsi, which has successfully registered its trademark, will not go smoothly, because Coca-Cola has already occupied a considerable part of the market, and there are dozens of cola companies competing with Pepsi, and it is difficult to stand out.
Pepsi went public in 1919, but such a small and well-known beverage company declared bankruptcy in 1923 after only four years.
Subsequently, PepsiCo Beverages was acquired by a company from Virginia and has barely survived until now.
The current situation of Pepsi Cola Beverage Company is not too good, because of the impact of the economic crisis, Pepsi is about to face a second bankruptcy.
The Virginia company that bought PepsiCo is not very capitalized in its own right, and the parent company is at risk of bankruptcy, not to mention a small beverage company under the parent company.
Now Pepsi is like an abandoned adopted son, if no one can take over, it can only wait to be re-acquired after bankruptcy.
The economic crisis of the parent company, the serious unsalable Pepsi Cola, the rising cost of cola production (the price of imported sugar), coupled with the suppression from Coca-Cola and other cola companies, the bankruptcy of Pepsi Beverages has become inevitable and has basically been abandoned by Virginia.
This is what Frank has learned, and it is also the thing for them, the intelligence officers, who are on a mission, to understand the weaknesses of each company in order to better reduce the price, before buying each company.
Entering PepsiCo, Frank expertly ignores the crowds of job seekers and instead expresses his needs to the company's doorman.
The doorman clearly saw Frank getting out of the car and was dressed in a luxurious manner, not an ordinary person, so he was happy to report it to his boss.
It didn't take long for Pradoham, the helmsman of PepsiCo, to greet him personally, looked at the richly dressed Frank, and hurriedly stretched out his hand and asked with a smile: "Sir, are you?" ”
"Introduce yourself, Frank." Frank smiled and said his name.
Pradoham nodded secretly in his heart, although the other party's name was not well-known, but the other party's intention to buy Pepsi made him very excited.
Of course, this doesn't mean that Plantorham wants to give up the business he worked so hard to build. But the problem is that under the Virginia company, PepsiCo Beverages has no future at all.
Instead of waiting for Pepsi to fend for itself, try to find a better home for your hard work and let Pepsi's name resound throughout the United States.
"Mr. Frank, please come to the conference room for a detailed discussion. To be honest, I totally agree with the sale of Pepsi and am confident that Bragi (the previous acquirer of Pepsi) will agree as well. Pradoham smiled and gestured, leading Frank to Pepsi's conference room.
In the conference room, Pradoham changed his smile and said with a sad face: "Mr. Frank, I don't know how you want to buy Pepsi Beverages?" ”
Looking at Pradoham in front of him, how could Frank not think of his intentions. However, Australasia did not want to control the company himself, and Arthur did not think that Australasian economic experts could do better than PepsiCo itself.
"A wholly owned acquisition, of course, Mr. Pradoham. However, because we have so many companies, we can keep the top management of PepsiCo Beverages, including you, and give you sufficient management rights if you are regulated. Frank said with a smile.
Pradoham nodded slightly, not rejecting Frank's statement.
When it was acquired in 1923, Pradorham retained only 10% of the shares, and the remaining 90% was sold to Braggi.
It is worth mentioning that PepsiCo's offering price is as high as $40 per share, which also means that PepsiCo was actually a company worth hundreds of thousands of dollars at the beginning.
But when it went bankrupt in 1923, PepsiCo's price per share dropped to about $25, which also caused PepsiCo's market value to plummet to less than $300,000.
While this may seem like a lot, it also takes a lot of money to keep the company running. This, combined with the rising cost of making Coke and the decline in PepsiCo sales, led to the company's bankruptcy and had to be acquired by Bragghi.
In fact, after being acquired, Pepsi also ushered in a period of glory. Because of the new capital injection, PepsiCo still seized a part of the market in Virginia, becoming the most famous beverage company in Virginia, and the stock price of Pepsi continued to rise, reaching as high as $120 per share at the peak.
But the economic crisis is not something that small and medium-sized companies can withstand. Companies like PepsiCo, in particular, rely heavily on Coke sales to make profits and return on investment.
The economic crisis has directly put tens of millions of Americans out of work, and Coke's sales have naturally dropped repeatedly, causing PepsiCo's stock price to plummet from millions of dollars to hundreds of thousands of dollars again, and it is still declining.
To make matters worse, Bragghi's company is also facing an economic crisis, and PepsiCo not only can't wait for any financial support, but is even forced to mobilize some funds to Bragghi's company.
Under such a blow, if nothing else, Pepsi will go bankrupt in a short time.
It also gave PepsiCo holders, including Pradoham and Bragghi, the idea of selling their shares.
The difference is that Pradoham, as the creator of Pepsi, naturally thinks that Pepsi can develop in a better direction.
As an investor himself, Braggi had only one thought, and that was to sell his shares to give him the money to ensure that his original company would not go bankrupt.
As for what Frank said about giving him management, Pradoham was still very happy to hear about it.
Although there are no shares, it is enough for Pradogham to stay in the company he founded.
PepsiCo's history is close to 30 years, and only Pradoham knows what he has put into these 30 years.
And the bankruptcy of Pepsi Cola is also like a blood drop in Pradoham's heart, if Pepsi can find a more powerful capital home, Pradoham is definitely willing.
"Then I'll be fine, Mr. Frank." Pradoham said very seriously: "I will help you persuade Mr. Braggi when the acquisition of equity can begin?" ”
Looking at Pradoham, who was more eager than himself, Frank was a little surprised, but it was a good thing for himself after all: "If you can, it's okay today." ”
A veteran intelligence officer, Frank's multimillion-dollar campaign to acquire American businesses was funded.
If the mission can be successfully completed and there are windfalls, the funds for these activities can go up again, which makes Frank basically not have any financial worries.
PepsiCo's stock price was worth millions of dollars at its peak, and now it is worth more than $200,000.
After all, this is a company that is about to go bankrupt, and to take over this business, you must also consider the debt problems that the company is constantly facing.
If the problems of production costs and market size cannot be addressed, the value of PepsiCo will not rise.
Especially in times of economic crisis, it is all too common for such a beverage company to be on the verge of bankruptcy, and it is impossible to sell it at a high price.
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(End of chapter)