Reinventing the Millennium.

Chapter 439 Market Baptism
On January 1, at the Mandarin Oriental Hotel at the Time Warner Center.

Yu Hong hurriedly finished the company meeting in the afternoon and came here to understand the spirit of the boss.

When she knocked on the door of the presidential suite, she unexpectedly found that Qi He, who was in charge of European business development, had arrived early, and before she sat down for 2 minutes, Pan Ben, who also took care of business in both Europe and the United States, also arrived in a hurry.

"Pour your own tea."

"Oh, there are all kinds of wine in the refrigerator, such as whiskey and white wine, you can drink it if you want."

Fang Zhuo put down the "Wall Street Journal" in his hand, and said with a smile: "Qi He came from Italy, and Pan Ben came from Germany. They have all worked hard. Today is just a casual chat. You have a good rest at night, and we will meet again tomorrow. "

Yu Hong asked directly: "Then what are you going to talk about today?"

Fang Zhuo lit a cigarette casually, glanced at Xiao Yu again, crushed it in the ashtray, and said with a gentle smile: "Just chatting casually, Qi He is the first batch of business from China to the United States and then transferred to Europe." , Pan Ben came to Yike from IDG and did a lot of work, and you two are doing business in Europe now, and Yike has just been listed, I am afraid that any fluctuations will make you think about it."

Yu Hong understood, today is to explain the truth.

Qi He also understood. He also kept an eye on the company's stock price in Europe, looking forward to further increases.

Hearing this, Pan Ben felt relatively stable in his heart. After all, he was from IDG, and he knew that the stock price after listing was only a one-sided reaction. Like when Sina’s stock price was at a low point in the past, the book funds were higher than the market value. Ups and downs are normal.

"This market is a high-growth market. Our business requires both fast and stable business, and we cannot lose our footing due to fluctuations."

Fang Zhuo mentioned a strategic attitude. Seeing the three people listening carefully, he smiled and continued: "The three of you are usually in the market, and Mr. Yu is more in charge, but you are in the United States, and you may know some things. It's also vague."

"Goldman Sachs and these institutions have done a lot of work for the company's listing this time."

"If there is no institutional platform, our issue price will be the lower limit of the inquiry range of 19-23 US dollars, which is 19 US dollars, or the final issue price may be adjusted and lowered."

"At $19, the market cap is around $53 billion."

"The number of funds raised in the road show exceeds 5 times, and the issue price can be capped at US$23. The market value is US$64 billion, which is a difference of US$11 billion."

"The platform of the institutional side finally made this number continue to increase. The issue price of our No. 1 is 25 US dollars, and the market value is 70 billion US dollars."

"53 to 70, the gap in between is almost 1 Sina's market value."

Fang Zhuo eloquently said: "I don't really care about the market value of Nasdaq or its market value. The reason why we need institutions to cooperate with raising the inquiry price of the road show is because the funds raised by our road show are different."

"Normal roadshows, it is difficult for us to raise funds to 4 million U.S. dollars. I personally estimate that 3 million U.S. dollars is about the same."

"This road show, we actually raised 5 million US dollars."

"This is not the number of the stock market, but the actual funds that our company can operate."

Without operation, the road show raised 3 million U.S. dollars. After the operation, the amount was 5 million U.S. dollars, a difference of 2 million U.S. dollars!
Just this price difference is enough to further widen the music copyright moat, further develop market business, and further participate in industry competition.

What's more, it's far more than just the price difference.

Yu Hong was silent.

Qi He said excitedly: "President Fang, then we can be more aggressive in the European market!"

Pan Ben has other concerns: "Mr. Fang, the organization wants to make money."

Fang Zhuo nodded, and replied together: "Market expansion should be faster, um, so, although Yike's stock has risen a lot from the issue price, I guess there will still be shocks."

Pan Ben asked: "Have Goldman Sachs greeted Mr. Fang? Washing up, selling, etc."

Fang Zhuo shook his head: "They want to earn money from the capital market, how could they greet me like this, the tacit cooperation between us ended when the listing was successful, I guess they will definitely not let go of such an opportunity to make money. "

What kind of money-making opportunity is this in the secondary market?
There is a listed company with a good backing, which has used the media and even the institution itself to do a lot of publicity. The leeks in the US stock market are one after another, and the institution is really familiar with it.

If you want institutions not to make such money, it will kill them.

Therefore, a period of market value fluctuations is not easy to avoid, but in the medium and long term, such fluctuations will eventually give way to the company's basic business and financial performance.

It's nothing to say, the current stock market fluctuations have little impact on executive shareholders such as Yu Hong and Pan Ben, because they have to sell their shares half a year later, and the institutions at that time have already left the market.

It doesn't matter to a major shareholder like Fang Zhuo, because his lock-up period must comply with "Regulation 144", which lasts for one year and must meet certain conditions to prevent profit transfer.

Fang Zhuo casually chatted about the details of the road show that are not known to the outside world. For example, he found another third party to evaluate the price-earnings ratio. This figure is far from that of Goldman Sachs.

In other words, another company believes that the reasonable market value of Yike is lower than that given by Goldman Sachs.

When everything that needed to be chatted was about the same, Pan Ben and Qi He left, and Yu Hong stayed to communicate alone.

"Will the impact of stock price fluctuations be great?" Yu Hong asked something she hadn't asked before.

"For us, it's okay, maybe it's not good for the heart?" Fang Zhuo said with a smile, "Unless funds are needed for equity pledges, stock price fluctuations will affect the money you can get."

"Speaking of which, since Yike was listed, the equity in my hand finally didn't have to find a Washington Mutual bank with great difficulty like when I bought Sina before. Now I really want to pledge the equity, and the liquidity will be much better."

Yu Hong asked again: "Then we can only sit and watch this shock?"

"Otherwise? When Yike goes public, related transactions will be subject to much greater pressure, and we must act more compliantly." Fang Zhuo shrugged, "Besides, I don't know much about the operation of the secondary market."

Yu Hong frowned. Even so, although the impact of short-term shocks would be attenuated in the medium and long term, she still felt a little upset in her heart.

"Don't worry about the market value. Time will bring Yike back to a reasonable price. What we have to do is to continuously increase the reasonable price of Yike through performance." Fang Zhuo encouraged, "The work you are doing is to affect the most essential market value of the company. chips."

Yu Hong stared at her boss suspiciously, and asked, "Really? Do you really have no other plans?"

"No, in fact, I was thinking more about domestic affairs." Fang Zhuo said affirmatively.

"Well, after all, it's just to encourage me to work hard." Yu Hong stood up, "You said you don't understand the secondary market or capital operation, then I don't understand even more, and indeed, I can What you do is manage the market business well.”

Fang Zhuo nodded again and again.

After taking two steps, Yu Hong suddenly turned around and said, "Smoking less is good for your health."

Fang Zhuo smiled, "Okay, Xiao Yu."

The marketing director left the suite satisfied.

Fang Zhuo put the phone on the table, cut a cigar, casually flipped through the documents in his hand, and fell into thought.

……

Regarding the fluctuation of Yike's stock price, the prediction of Yike's president was not wrong.

If an organization wants to make money, it must create high and low prices.

Therefore, the stock price of YIKE has fluctuated since the 3rd, breaking through $40 for several days, and falling below $30 for a few days.

Shuffle, pull up, and ship.

Diving, rebounding, shaking the tank.

Calculated according to the stock price, the market value of Yike can rise from less than 80 billion US dollars to 100 billion US dollars in just a few days, and then fall in the opposite direction.

During this process, Fang Zhuo did not receive any notice from the organization, and he understood this very well, as this already belonged to different departments of the organization.

On January 1th, just half a month after Yike went public, its stock price still hadn't stabilized, and Fang Zhuo didn't know why the same trick always worked in the stock market. It could only be attributed to the institutional channels and media There is a lot of power.

On this day, Nasdaq opened normally, and YIKE’s stock price went through two rounds of baptism, and it was once again at the price of $28, which is the price of institutional cover.

However, just as YIKE's stock price was slowly rising, the secondary market suddenly saw the main force smashing the market, and the stock price quickly fell to around US$26, and then the two parties competed for this price.

In the afternoon, YIKE’s share price fell below $26, closing at $23.960 before the market closed.

That is to say, Yike fell below the issue price for the first time after the company went public. According to today's trend, it is likely to fall to the initial offering price of US$22 or below the institutional side.

At 6 o'clock in the evening, at Yike's New York headquarters, Fang Zhuo, who was in a meeting, received calls from old friends who wanted to talk about Yike's market value maintenance.

Fang Zhuo agreed.

At eight o'clock in the evening, he saw several familiar allotropes.

However, he was still very surprised that the people from IDG also came, and they were the main force behind the smashing. The news about Yike’s competitor Apple was released to IDG through him. They were not caught in this wave. What are you here for?
"What good is there now?"

"What can I do? Make up news for you?"

"You are trapped? What can I do? I didn't do it! I don't understand those stock markets at all, and I still wonder how high or low our company's market value is!"

"If you are trapped, you will be trapped. Didn't you already make money before?"

"I can't. If you can't make more money, you'll be considered a loss."

"Even if it continues to fall tomorrow, isn't $22 your earliest cost price?"

"I think we have common interests, which is to do a good job in Yike's grades. If you come to me when you have time, why not think of ways to help Yike, such as music copyrights."

On the night of January 2004, 1, the president of Yike complained impassionedly to several agency leaders for half an hour in the conference room, and he finally agreed to release it as soon as there was good news.

Anyway, the short-term stability of the stock price is what I want, and the company's market value is indeed the medium and long-term goal.

……

Chinatown, an apartment somewhere.

dong dong dong.

dong dong dong.

boom!
"What the hell is your name Ji Longfen?"

"Mr. Fang wants to see you, let's go!"

(End of this chapter)