legendary trader

Chapter 801 Chapter 802 Shorting
"Bai Shani formed a team with trainee reporters."

Chen Fan put away the phone, still pondering Zhang Quan's last words. Obviously, the news is so detailed, it should be a trainee reporter working part-time in their overseas company.

It is generally believed that these intern reporters should be students who have just left the campus. Their social relations are relatively simple, so they are relatively safe to use. I guess this is why Bai Shani chose some interns to participate in the investigation.

Chen Fan and Liu Ying attended the gathering of the financial circles in the Imperial City, followed by the company's annual meeting. This time it was held in the Imperial City. Some grassroots employees and almost all the middle and high-level managers of the company came.

Last year, the company's performance was good. Not only did it make money in the rice stock market, but Red Sun Fund's investment also went very smoothly, helping investors make a lot of money, so Chen Fan will not be stingy with the bonus at the end of the year.

In addition to the basic three-month salary, everyone also received a large red envelope according to the work situation.

After New Year's Day is the Spring Festival. This is the third Spring Festival that Chen Fan's family has spent in the imperial capital. Everyone has gradually gotten used to living here. In addition, there is an addition to the family this year, so it is very lively.

However, during this period of time, news from Zhang Quan's side continued to come in. With the secret investigation of the reporter group, more and more incomprehensible details began to be discovered.

In fact, shortly after New Year's Day, through Zhang Quan, Chen Fan obtained the information of the press corps, as well as the information obtained through their investigation of their relationship in the United States. income, and the complex equity relationship of those so-called customers has gradually become clear.

Looking at the companies with different names recorded one by one, they are all inextricably linked with Enron, but there is no relationship between them at all, but if we keep digging, at least in Zhang Quan's information, An affiliated group involving thousands of companies gradually took shape.

A considerable number of partners in Enron’s current financial report are in the final analysis its countless generations of grandchildren, and there are a lot of complicated cross-shareholding relationships among them, but in the end they are all controlled by Enron, and their existence is only to help Enron Companies raise capital and contribute large amounts of revenue.

These debts are not reflected in Enron's financial statements, and they are still fabricating a large amount of revenue and profits for Enron.

Although I don't want to believe it, after several months of investigations, more and more evidence shows that Enron has concealed huge debts and fictitious huge income and profits, which is the secret of its rapid growth in income and profits.

And some huge debts were transferred from borrowings to current projects. In fact, many of them were not reflected at all.

In the final analysis, if strict accounting audits are implemented, Enron's revenue will not only be cut in half, and the company's profits will drop sharply, but it will also form a high level of debt. The debt ratio has almost reached the point where it cannot continue.

Chen Fan has been in a daze for a long time at Zhang Quan's generalized centralized holding method, which is really too complicated.

Enron holds subsidiaries, and the subsidiaries have to form new subsidiaries with companies whose generations are not known. Of course, this newly formed subsidiary is not controlled by Enron's nominal subsidiary, so there is no financial information. Incorporated into Enron's report, naturally, the formed relationship was not discovered and was artificially covered up.

Then this newly established subsidiary will also form a new subsidiary. Well, they will find Enron and pay him for consulting to make a new project plan. Since this income is not related income, naturally there is no merger offset.

The method of raising funds is also a similar operation, which is carried out by an unknown number of generations of subsidiaries. In the end, these loans will not be seen in Enron's statements, and they will flow into Enron's bank accounts through income or transactions. So there is a high-growth Enron company and a beautiful financial statement, at least his cash flow statement is very good-looking.

This is the secret of Enron's rapid growth. Anyway, Zhang Quan has been confused by Enron's complicated organizational structure many times, and he barely understands part of the mystery until now, but this is enough.

At present, their investigation has found at least 2 companies that seem to have an affair with Enron, or they should be subsidiaries of Enron's head office, or even wholly-owned subsidiaries.

On February 2th, the first day after the new year, Chen Fan found Xu Jing and Zhang Yang at Chaofan Investment Headquarters. Of course, Zhang Quan and Zheng Xiaopang were also present.

In fact, among the people convened this time, maybe Zhang Yang didn't know what happened, Xu Jing and Zheng Xiaopang already knew about it, and Chen Fan had already shown some information to Zheng Xiaopang during the Chinese New Year, while Xu Jing It was learned from Zhang Quan.

Show them Zhang Quan's collected information again, Zhang Yang is watching it very carefully, but from his gradually bewildered eyes, Chen Fan and Zheng Xiaopang are snickering at the same time, probably already fainted up.

Xu Jing was sipping tea while watching Chen Fan and Zheng Xiaopang showing off their tricks. Their classmates didn't know whether to say something to them, it was too boring to play.

Zhang Yang finally couldn't stand this complicated document, put down the folder, and rubbed his temples with his eyes closed.

"Is everyone watching?"

Chen Fan said with a suppressed smile at this moment.

"Stop asking, keep talking, how are you going to do it?"

Xu Jing said angrily that more than ten minutes of her time had been wasted.

Seeing that Zhang Yang seemed to have slowed down, he had already sat down and looked over, Chen Fan then said: "Need to say? Of course, it is to raise funds to short it. If such a fake company does not operate, it will be too sorry for others."

Having said that, Chen Fan looked at Zhang Quan, "When will the news from your side come out publicly?"

"I have just started writing, and I have been collecting information for the past two months. It is estimated that the need will be early next month at the earliest."

Zhang Quan said.

"Then our job is to complete the securities lending task before the end of this month, get the most stocks and sell them through our respective channels, and wait for the report to come out, and then we will start smashing the market."

After hearing Zhang Quan's words, Chen Fan said.

"What about the deadline for the securities lending?"

Xu Jing suddenly said at this time, "Enron has a great influence in the United States. Even if the report comes out, it may not be able to quickly break through the stock price. It is a blue chip stock in the American market. We must convince the market that there is something wrong with this company. , it will take a long time.”

"Sister Xu is right, so for the stocks I got from the brokerage, I choose the longest term. It's best if it can exceed 6 months. It's just a matter of paying a little more interest. As long as it lasts until the end, Enron can't afford it." Only if we live can we count as winning.”

Chen Fan nodded with a smile, "At the same time, we need to use as many company accounts as possible to participate in securities lending, and spread it out. This way, we should be able to get more stocks. The key is not to be noticed too early."

Securities lending in the United States is still very easy. As long as the amount is not large, it can be completed with sufficient margin. But this time they want to operate as many stocks as possible, and there is no upper limit. After all, Enron is a blue chip stock with good liquidity. There should be a lot of stocks that can be melted into.

But once they crazily sell securities and make Enron stock tense in the market, and no one else can get it, it is actually very dangerous.

"How much money are you going to use to sell short?"

Xu Jing suddenly asked.

"20 billion, our family will pay 10 billion."

Chen Fan said with a smile, "Too much is not good. The main reason is that I am afraid of being attacked. After all, it is the territory of the Americans."

"20 billion, you can short 40 billion stocks, how much do you think Enron will fall?"

Xu Jing suddenly asked again.

"I don't know, at least cut it in half, it depends on how big its problem is."

Chen Fan didn't answer right away, but thought for a while before speaking uncertainly.

"Is there a put option on Enron in the options market?"

Zhang Yang asked suddenly.

"Oh, no."

Chen Fan answered Zhang Yang very simply.

"A company whose stock price continues to rise, who will design put options and sell them to whom?"

Zheng Xiaopang also answered with a smile. After Chen Fan told him that he was interested in Anran Company, Zheng Xiaopang checked it out, otherwise he would have started it long ago.

"You all know the news, is there any organization in the United States to sell short?"

Zhang Yang didn't care about Zheng Xiaopang's words, but asked again after a little thought, not because he didn't believe Chen Fan and the others, but because he felt that people in Huaguo on Bluestar's side had already started discussing shorting Enron, and Miguo Did no one in the local area discover the Enron problem?
Moreover, looking at this document, there is a detailed introduction in it. Some people on Wall Street have already seen the possible problems of Enron. Is there no one there to make a short sale?

As soon as Zhang Yang's words came out, Chen Fan, Xu Jing, and Zheng Xiaopang in the venue were all stunned for a moment, and then turned their attention to Zhang Quan. Zhang Quan was in charge of the follow-up work. Did anyone start shorting Enron stock? Zhang Quan may know something.

"In the past month, it seems that some people are suppressing Enron's stock price, but there is no news about whether they are short-selling."

Seeing that everyone was looking at him, Zhang Quan said hastily.

"Go back and check to see if anyone is also shorting Enron stock. This is very important. In addition, this time, Zheng Xiaopang is in charge of account scheduling, and the scattered accounts are shorting Enron. Don't be seen as shorting institutions, so as to avoid trouble."

Chen Fan quickly made a decision, "The funds will arrive today, tomorrow at the latest. Forget it, just today, we will go to Oaktree Capital later, and start the operation directly. Try to choose an overseas runway to maximize the amount of stocks."

After Chen Fan finished speaking, he turned around and said to Zheng Xiaopang: "You go over there to pick people later, and we will do it in the imperial capital."

Then he said to Zhang Yang: "You go to the airport and go back to Rongcheng directly. This time, you will go back by special plane. Pick two people to operate in the core trading room over there, and enter the market tonight."

The meeting ended soon, and Chen Fan sent them down. Zheng Xiaopang, Xu Jing, and of course Zhang Quan, they went directly to Oak Capital, and Zhang Yang went directly to the airport. Chen Fan has already asked someone to call the airport. Standby, take off when Zhang Yang arrives.

When Chen Fan came back upstairs, he happened to meet Liu Ying who was going out, "Hey, I just heard that you guys finished talking, where is he?"

"Just after seeing him off, Zhang Yang went back to Rongcheng directly. He has started to have work these few days."

Chen Fan smiled.

"The power company you mentioned?"

Liu Ying frowned and asked, she knew something, but she didn't pay much attention to it. Her job was mainly the management of the company, and Chen Fan was in charge of the investment.

"Ah."

Chen Fan nodded, "It's the first time to short the market, and I'm still a little nervous."

"How long will it take?"

Liu Ying asked, and the two returned to the office while talking.

"This time, I don't need to be like before. I just give orders from behind. It is estimated that it will take at least half a year, mainly because I am worried about the company's counterattack."

Chen Fan explained.

"Can you not fight back? You are all engaged in other companies, and you are a fool if you wait to die."

Liu Ying said with a smile, she has also read those materials, and knows that the company does have problems, but it just depends on the size of the problem and how much money it can make in the end.

"Today and tomorrow, I will go there to see their securities lending situation and the market's reaction. I always felt that it was very hidden before. I didn't consider that there might be someone on the rice stock market who started the securities lending one step ahead of us. Trouble."

Chen Fan said with a sigh.

After being reminded by Zhang Yang, Chen Fan also realized that at the end of last year, some fund company managers on Wall Street had already liquidated their Enron stocks, and they had already sold securities to sell short.

Although Enron's stock price seems to be still above 70 yuan, the trend is indeed not good.

After rebounding to 80 yuan at the end of last year, it did not stabilize there for a few days and then fell again. The stock price closed at 73.69 yuan in the early morning of this morning.

Chen Fan didn't notice the intraday trend, but he also suspected that the decline during this period was due to short sellers selling stocks at high prices.

As long as they polished all the stocks they could get, then the next step would definitely be to slowly lift the hidden cover of Enron, and let the market wash down the stock price by itself.

Enron's shareholder list has gathered many investment companies from all over the world. Now that the concept of diversification of investment is popular, all major investment banks and fund companies hold Enron shares more or less. After all, they are blue chips.

Once the inside story of Enron Company is uncovered through the media, they will inevitably choose to flee, and then they will step on each other. Thinking of this, Chen Fan felt a little creepy.

Although Chen Fan insisted on entering the village quietly and not shooting guns, he felt more and more urgent. Although there was no clear information from Zhang Quan that someone had started shorting Enron, Chen Fan still knew that Wall Street in the United States There are quite a few hedge funds on the sidelines, and short selling is one of the important ways for them to make money.

Yes, what Chen Fan is thinking now is to separate the short-selling accounts. The murderers who brought down Enron will be those hedge funds. Let them take the limelight, and he can earn some pocket money later.

(End of this chapter)