Reinventing the Millennium.

Chapter 961 Fierce
Fang Zhuo didn't expect Kong Yu to give himself a vicious suggestion.

It's Chinese New Year, don't you have any peaceful festive atmosphere?

In order to deal with the threat of Nokia's patent competition, Fang Zhuo jumped out of the inherent thinking, and if he could not solve the patent lawsuit, he would solve the final decision referee, and proposed the idea of ​​bundling customer funds with Yike's stock price.

The ultimate goal is to protect Yike's US mobile phone market, and of course, to make a profit from the short sellers.

But he is not a professional after all. What he is good at is finding referees, inside information, binding interests, making friends, and seeking win-win results. The specific operational details and pre- and post-processing require professionals to do it.

Kong Yu is very professional.

After receiving the boss's idea, he had only one direction of thinking, how to maximize the benefits.

A while ago in Europe, Kong Yu inspected the financial situation there and at the same time had close contact with the parties involved in Porsche’s use of Volkswagen’s short squeeze, and learned from this experience to make further corrections to Yike’s trader.

Fang always puts the option lock-up of tradable shares and the overturning of the ban by the commanding office together.

However, Porsche’s short squeeze at the time did not have the benefit of a Jedi comeback like “overturning the ban”.

How does Porsche do it?

It absorbed Volkswagen shares in 05 and wanted to seek control of the German Volkswagen Group. There is a hurdle in the process. Germany has specially established a "Volkswagen Law" to protect the Volkswagen Group, which clearly stipulates that only 80% of the shares can be controlled.

However, the German government holds 20.1% of Volkswagen shares, which almost cut off the possibility of changing hands from the source.

Porsche does not believe in evil, and it took more than two years to sue in the European Court, accusing the "Volkswagen Law" of violating the EU's "Fair Trading Law", and finally overturned the German law at the end of 07, achieving a 75% holding bottom line, that is, no longer need Consider government shares.

But as Porsche drove up VW's stock price in the process of absorbing shares and fighting lawsuits, a large number of funds sniffed out the overvalued market value.

Is Volkswagen's share price reasonable?unreasonable.

Are public valuation multiples high?high.

Can short selling win?Ok……

Porsche has already estimated the menacing short-selling wave, and has been prepared to gradually lock in 31.5% of Volkswagen stock call options, plus the 42.6% of the publicly held shares, a total of 74.1% of the disposable equity.

The key to this step is that options are financial derivatives, not spot stock trading. It is a trading contract after a certain period of time at a price, so it is not subject to public announcement regulations.

而此时的金融市场上，大众的空单总量已经占据总股本的10.4%，但市面上的流通股只剩下100-74.1-20.1=5.8%。

In other words, there is a gap of 10.4-5.8=4.6% on the short side.

When Porsche chose to announce the news on Sunday, the spectacular short squeeze occurred the next day.

Volkswagen's stock price rose from 200 Euros to 1005 Euros within two days, and its market value exceeded 3000 billion Euros, making it the company with the highest market value in the world.

In the end, under the leadership of the Frankfurt Stock Exchange, Porsche delivered 5% of its shares, which alone brought in 30 billion euros in cash.

According to statistics, the losses of the short side in this wave exceeded 200 billion.

Now, based on Kong Yu's observation, speculation, and thinking, Yike has come to a situation similar to public stocks.

The European and American markets lead the way in 3G smartphones, and Huaxia has opened up the 3G market, initially fulfilling its potential.

At the same time, Yike is caught in the patent competition with Nokia, the mobile phone overlord. The latter has sued the ITC for a ban on sales, which is a big negative.

The game of good and bad has given Yike's share price room for profit.

The time when the profit margin can be maximized is before the ITC announces the sales ban.

Once the sales ban is issued, Yike's stock price is bound to plummet, which is the moment for the short side to reap, but they also face risks.

What if Nokia settles with Echo?
What if Nokia loses the patent lawsuit?

The latter is not considered for the time being. The former is the final result of many patent lawsuits, and often ends with high compensation for one company.

How to prevent Nokia and Yike from reconciling, and how to obtain the internal opinions of ITC as much as possible in advance, this is very important for the short side.

But in Kong Yu's view, it's very simple. No matter how Nokia decides, Yi Ke's self-confidence and tough attitude from top to bottom will make everyone happy.

As for whether ITC will disclose enough information in advance to generate a larger short position...

Kong Yu felt that the profits here were enough for many people to use resources, and Mr. Fang was very familiar with that injustice.

In this case, regardless of whether the commanding office will overturn the ban, let's learn from Porsche's option lock to complete a short squeeze.

When this wave of short squeeze is over, Yike still faces the ban of ITC, and still cannot solve this big bad.

The longest time for this ban and the overturning power of the commanding office is 60 days. During this period, better sales performance, real and fake huge patent fee reconciliation and other news can be used to push up the stock price again and create profits again. space.

The short sellers in the previous round can take revenge, and the new short sellers can pursue profits.

As for the ultimate bad news turning into good news, it depends on whether Xiao Ao and the others are willing to lose money.

Anyway, what Kong Yu already knew was that Xiao Ao had already gathered around Xiao Ao a group of former classmates and friends, and there were many senior executives who worked in a certain company, and everyone was waiting to contribute money to the new boss.

And what is an overthrow from the commanding office?
It is nothing more than billions of legal profits, and it is nothing more than assets that have doubled and doubled customer funds. Can it compare to the disposal of hundreds of billions or trillions of toxic assets?
Geithner and others are ready to get their hands on these, and the ban seems even more flimsy.

Of course, there are still many details to be perfected in these ideas.

For example, Xiangjiang Huanyu, which still holds 5.16% of Yike’s shares, is a shareholder who participated in Yike’s A-round financing and bought back the shares after listing. Its existence cannot fully guarantee the formation of the first wave of run space.

There is a run on this side, and when Xiangjiang Huanyu is approached by someone to deliver stocks or it sees that the profit is too large and cashes out directly, it will collapse, and only... can only cut the next wave.

Even, Kong Yu believes that even the shares held by Shenxin Kechuang cannot be retained, so as not to cause additional risks.

When he talked about this point with Mr. Fang one by one, he found that the boss who had been thinking about it hesitated.

"President Fang, don't be soft-hearted." Kong Yu immediately advised.

He knew the relationship between the boss and the head of Shenxin Science and Technology Innovation, but from the perspective of a trader, this risk was unnecessary.

"I trust Brother Wang very much," Fang Zhuo said.

Kong Yu frowned, and advised again: "Mr. Fang, you have to think about the new production line."

Fang Zhuo remained silent for a long time.

Forget it, in life, who wouldn't be wronged?

There will always be opportunities to make up for it in the future. Shenxin Kechuang still holds shares in Penguin. At the end of this year or next year, Yike will have a positive battle with Penguin by virtue of the development of the Android system.

Fang Zhuo didn't make a sound, and signaled the gasoline man to continue talking.

Kong Yu understood the boss's decision, and admired in his heart that this is the Mr. Fang he knew. Afterwards, he talked about the legal risks of the two short squeezes.

Procedurally it would be legal.

Just like the Porsche short squeeze, even if the German Financial Supervisory Authority intervenes in the investigation, everything is legal.

Even so, however, trouble arose after the fact.

Kong Yu is very clear about the movements in the financial circle. Now, many hedge funds are preparing to join forces to file a lawsuit in a US court, alleging that they are suspected of fraud, market manipulation, secret holding of positions, and manipulation of public stocks.

Can the lawsuit be successful?

Not very optimistic, even if it succeeds, it may only make Porsche lose a small amount of money, which is more or less a relief.

Boom boom boom, boom boom boom, boom boom boom.

The knock on the door in the office rang three times, and the guests who had made an appointment were repeatedly delayed.

It was not until nine o'clock in the evening that Kong Yu finished a comprehensive report and sorting out.

Rao Fang Zhuo couldn't help sighing a little: "This time it seems a bit fierce."

Kong Yu did not refute, but there was a little bit.

"Let's go, let's go eat something." Fang Zhuo had been listening to Mr. Kong's report, and the two of them didn't even eat dinner.

"Mr. Fang, you still have guests. Mr. Ni is also an old friend, so you don't need to greet me." Kong Yu got up and declined, "The family must have left me a meal."

He has rare moments of rest.

People in Shanghai are extremely quiet, and the fights and killings in the financial circle seem to be completely far away.

Kong Yu likes this feeling very much.

Of course, he also likes the feeling of profit-seeking, and sometimes the bloody smell of fighting and killing comes out of his heart. My name can't be displayed in the financial turmoil. This time, the head office, right?

Fang Zhuo sent Mr. Kong to the door of the office.

At this time, Kong Yu suddenly turned around and said arrogantly: "Mr. Fang, if I can bring the first production line, I can naturally bring the second and third ones as well."

arrogant!

This is the first time he has shown such arrogance in front of the boss!
Fang Zhuo was a little startled, and vaguely remembered the way Kong Yu walked into the office carrying a gasoline can.

At that time, it was up to him to do it, and now it really does!
Like a fish in water, like a fish in water!

Fang Zhuo patted the gasoline man's arm and said with emotion: "Mr. Kong, there are two ideals in this world. One is that I realize my ideal, and the other is that the ideal is realized through me."

"If I haven't met you, how can I realize my ideal? My ideal can only be realized through you."

This is the highest evaluation that Kong Yu has heard since he met Mr. Fang.

Ni Runfeng over there has already walked quickly in the corridor.

Kong Yu shook Mr. Fang's hand, nodded silently, left the President's Office of Hang Lung 23, and went downstairs to realize Mr. Fang's ideal.

……

"Sit, sit, sit."

"Old Ni, drink tea first."

"Have you eaten yet? Oh, I'll order you some dinner, you can eat first."

Fang Zhuo sent off the Gasoline Man and welcomed an old friend.

But he still needs to take it easy and sort out the report from Kong Yu in his mind.

It happened that Ni Runfeng really didn't have dinner, so he ate a simple dinner at Yike's president's office in a polite but observant way.

When Fang Zhuo collected his thoughts and locked the draft written by Mr. Kong in the safe, he didn't eat much when he saw Lao Ni.

"Old Ni, you can't 'fan no' anymore."

Ni Runfeng waved his hand: "I drank wine yesterday, but today I got angry and my throat hurts like a knife."

Fang Zhuo thought for a while: "I knew I'd order you a bowl of noodles, and you can eat sliced ​​noodles."

Ni Runfeng: "...you know how to find joy in suffering."

He made an appointment with Mr. Fang yesterday to chat about creating his own mobile phone brand. Now it has officially started, and it is expected to be launched in the domestic market in the second half of the year.

Now, taking advantage of the opportunity of the Yike Department's annual meeting, I just happened to seek some more opinions.

Fang Zhuo and Lao Ni exchanged a few words, and then got to the point: "The mobile phone supply chain is gradually maturing, and the gradual speed is actually very fast. The last time I heard you meant to be an entry-level phone for Android smartphones."

"There is no problem with this idea, and the positioning is very accurate."

"The entry-level machine looks for cost performance while ensuring the basic quality."

Fang Zhuo said a few words like this, and then took the initiative to say: "Old Ni, Yike can invest in your mobile phone brand."

Ni Runfeng suddenly heard this sentence, and his heart moved slightly: "Mr. Fang is willing to invest, and I am [-]% willing. I know that Hanwang and Meizu are also making Android phones. It seems that I have never heard of such cooperation between Yike and them."

Fang Zhuo was very open and honest when talking about these things, and revealed a piece of news: "Yike originally had a plan similar to an entry-level phone, but Qualcomm's chips did not go as smoothly as expected. This plan is being re-discussed and may be postponed."

Under such circumstances, Yike needs a product that occupies the position of an entry-level machine. Hanwang, Meizu, and Lao Ni are all within the scope of Fang Zhuo's consideration, but the first two have already established systems, and Lao Ni is easy to shape here.

Fang Zhuo and Ni Runfeng are old friends. They know each other well, and there will be no problems in cooperation. Even his son is still working in Yike, so all kinds of opinions can be easily communicated.

Even if the entry-level products do not achieve the desired effect, it will not damage the brand recognition of Yike.

The realization of the domestic market is a little faster than expected. Yike does not need to rush to launch new positioning products now, but can use the method Fang Zhuo said now to make efforts to sink the market. After all, the first generation of Mars and 3G are misaligned. Sink only once.

"Then if Yike launches products with this positioning in the future, what should I do here?" Ni Runfeng asked a question.

Fang Zhuo nodded: "Fair competition."

Ni Runfeng figured out this fairness, the fair competition between godsons and real sons... They are different in size, and the price of a single one is two different things...

But he changed his mind, what if Yike invested money and resources in other companies with similar positioning?
The future is something in the future, let's talk about it now if we can survive.

Ni Runfeng didn't spend too much time thinking. He stretched out his hand: "Mr. Fang, I trust you. To be honest, I'm a little surprised that you are willing to vote today."

Fang Zhuo threatened: "If you're so shocked, then I'll vote for someone else."

Ni Runfeng smiled and said, "I'm flattered."

He suddenly remembered the way Mr. Fang had talked about how to deal with giants joining the same track. Yi Ke now also has the appearance of a giant. This, this feeling of facing is completely different.

(End of this chapter)