legendary trader

Chapter 806 807 Continuing suppression

"Return this wave of buying orders, and try to suppress the stock price to around 60 yuan."

Chen Fan sat next to Lin Hong and gave him instructions.

Although there have been rumors about Enron's fraudulent accounting in the market, not only the company has come forward to refute the rumors, but Andersen Accounting Firm and relevant regulatory authorities have all voiced their voices in support of Enron's statement.

As Enron's stock price continued to fall, the buying power in the market also continued to strengthen, especially now that the stock price has fallen to around 62 yuan, the supporting force below has also become stronger rapidly, and it is already difficult to continue to suppress the stock price.

After all, Enron stock had been labeled as a blue-chip stock many years ago. For those investment institutions, the decline in the stock price of such a stock was an opportunity to take advantage of bargains.

Don't they know that the market is now questioning Enron's performance?

No, they do.

But now it is obvious that some people are short-selling in the market, and it is precisely at this time that there are voices doubting Enron's financial situation. In their view, this is the result of short-selling campaigns, and they need to spread rumors to destroy Enron's stock price.

Moreover, even if there is a problem with Enron's performance, how can it be big?
For a large listed company with a market value of tens of billions, even if there are hundreds of millions of false or wrong accounts, it is not a big deal, and the impact on the stock price will not be great, let alone this is a Fortune 500 company Ranked 16th in the company.

Many fund managers saw the drop in Enron's stock price as an opportunity to buy on dips, so they placed orders to buy Enron's stock.

After Lin Hong sold nearly one million shares in a row, Enron's stock price was still around 62.39 yuan. Not only did it fail to sell down, but the stock price rose slightly.

"Mr. Chen, there is too much resistance below. It should be that those mutual funds are buying wildly. Now we have shorted more than 2 million shares."

Lin Hong turned his head and said to Chen Fan after repeated efforts to no avail.

"Let's close it, cover the stocks, and make up the difference from the previous two days. I have already guessed that this will be a long process. We can't convince all fund managers that Enron has made false accounts, and it is still a very serious false account. "

Chen Fan sighed and said, it's obvious now that there are still a lot of buy orders waiting for them to smash the market, so they must stop immediately.

"The stock price must be kept below 65 yuan, and it cannot be allowed to rise."

Chen Fan feels that there are so many people who are bullish on Enron now, and if they continue to suppress the stock price, they may continue to increase the sell orders. He doesn't want to get stuck here. Once he invests too much money, he is likely to be attacked by others, and he will suffer heavy losses at that time.

With a few dollars more space, Enron's stock price has a little flexibility, which makes it much easier for Lin Hong and the others to operate.

A few days ago Zheng Xiaopang had something to do and didn't come over, but today he has time, so he came over to observe shorting Enron stock.

Although it seems that short selling failed today, Zheng Xiaopang is still very interested in this kind of operation. At this time, he whispered to Chen Fan: "Well, I think we can also invest a small amount of money to short Maojian shares?"

"After adjusting the price of wine, there are a lot of funds entering the market. If the stock price is suppressed now, I am afraid that it will be the same as Enron now, and nothing will be gained."

Chen Fan frowned and said, according to the plan, the performance of Maojian Co., Ltd. has already come out last year. It can only be said to be average, and it has not reached the explosive growth of the performance that was boasted at the beginning. At the same time, there are rumors of internal struggles in the Maojian Distillery. Therefore, although the ex-factory price of Maojian Liquor has been slightly increased this year, the stock price has not risen, and it still fluctuates around 35 yuan.

In fact, among the stocks currently listed in Shanghai, the valuation of Maojian shares is not low, and it is among the top names among all liquor companies, but contrary to the operations of most listed companies, Maojian shares Not only did it not whitewash the report, but it increased the management expenses, that is, the publicity expenses in the next few years have already signed a contract with the advertising company, and the financial expenses have been accrued based on this.

There are many similar operations, all of which are to increase expenses and squeeze profits on the income statement. The money has not flowed out of the company, but the next part of profits is carefully concealed through these small means.

"But if you don't make a move, I'm afraid the stock price will rise to 40 yuan. Now more and more people are optimistic about Kayama."

Zheng Xiaopang whispered on the side.

"The performance of the wine company is not very good this year, right?"

Chen Fan suddenly asked, he hasn't paid much attention to the domestic market recently, but he still needs to read the news, but it seems that the reports of listed companies in the liquor industry this year are very mediocre and lack of outstanding results, so the stock price performance of listed liquor companies is low. not good.

"Now the media is bragging about the health benefits of red wine. Anyway, drinking red wine is better than drinking white wine. The stock prices of liquor companies are not good, but the stock prices of Zhang Yu and Great Wall are still good. They are both wine manufacturers, and beer is also good."

Zheng Xiaopang immediately said that of course he was very aware of these situations. Since he was confirmed to be in charge of the trading of Maojian shares, he began to pay attention to the changes in the stock prices of liquor companies in the market and industry news reports, including some reports in magazines.

Ever since Southern TV broadcasted a TV series called "Big Family" the year before last, the audience seemed to have suddenly rebelled. The ancient costume martial arts dramas that were popular on TV before were no longer popular, and modern urban dramas became popular instead. The most popular drama, the only one that can compete with this trend is the fairy tale drama "Flying Immortals Outside the Sky" released last year.

And in these rich and powerful fight scenes, Lafite in 82 was quickly popularized. In a large number of urban dramas, red wine leads the way. Let’s put it this way, the current screenwriters are trying their best to find the top red wine in Europe, and insert it without advertising fees. , so that now people in China think that the rich and powerful drink red wine.

This kind of thinking not only has a huge impact, but also has spread from the bottom of the society to the middle. In fact, drinking alcohol properly does have some benefits to the body, but it is not as exaggerated as people think. In the final analysis, it depends on the individual.

Liquor industry stocks, in fact, it should be understood that the performance of liquor stocks is not good. In fact, red wine, beer and even yellow rice wine, which are dubbed health wine companies, have average performance, but their stock price performance is much better.

Chen Fan thought for a while and suddenly asked: "Why are those institutions interested in Maojian Liquor, since baijiu is not good?"

"Buy a famous brand. Seventh Brother has already started preliminary publicity. It is estimated that those fund managers think that they must allocate liquor stocks anyway, so they should buy the most famous brand among them. So besides Wuliang, of course we are the only ones in Maojian. Choose one, even if you lose money, you will have an account.”

Zheng Xiaopang pouted and said.

"If this is the case, then you really have to go short to suppress Maojian's stock price and form a downward channel, so that they dare not enter the market and instead buy Wuliang shares."

Chen Fan also understood that now he needs to make some intraday moves to change the sideways trend of the stock price and reduce the funds involved in Maojian shares.

After thinking about it, Chen Fan didn't hesitate, "Take some time to form an operation team, and we can start to lower the price."

"That's fine."

Zheng Xiaopang happily agreed, and began to think about how to find someone, who to come and help him operate.

"By the way, are you going to the school next week?"

Chen Fan suddenly thought that Xiaopang could start to form a team to operate Maojian shares here, but next week is the school's anniversary.

But before Zheng Xiaopang could answer, Chen Fan went on to say: "This time I asked Liu Ying to go back, on behalf of me, I will not go back, stay here to see An Ran, the resistance is a bit strong now."

"I'll go back and download. I haven't gone back since I left the campus."

Zheng Xiaopang said without hesitation, in fact, he wanted to go back to school a long time ago, he used to pretend to be low-key, but now he doesn't want to pretend, he was born to be high-key.

"That's fine. I'll stay in the capital for a while and won't go back. There seems to be a problem with the pressure here. I have to guard it."

Chen Fan nodded slightly and said, in fact, he guessed that Zheng Xiaopang would choose to go back before. Although he was very low-key before, several people in the dormitory could tell at that time that the fat man was just pretending. You can tell by the tens of thousands of watches you wear at all times.

People like this are usually coquettish, and always want to show off.

"If you don't go back, have you told sister Ying?"

Zheng Xiaopang asked suddenly, he always thought that Chen Fan was going to follow him back.

"As I said, she will go back on behalf of me for this school celebration, but the library will be completed at the end of the year. If I have time, maybe I will go back and have a look and cut the ribbon. I haven't cut the ribbon yet."

Chen Fan said with a smile.

"Oh, that's fine."

Knowing what Chen Fan was thinking, Zheng Xiaopang nodded slightly.

Throughout April, Enron's stock price fluctuated around 4 yuan and finally chose to continue to fall. It was not because Hongjia Lin stepped up short-selling operations, but because Enron released its quarterly report, and the data was significantly weaker than market expectations.

In the first quarterly report, Enron made provision for impairment of various investment actions. The reason is that the market value of these projects has declined after evaluation by the evaluation agency, so the accounting has made corresponding accounting adjustments.

Less than two days after the release of the quarterly report, Enron announced again that it would shut down the company's subsidiary Azurix.

Azurix is ​​a company established in 98, representing Enron's business tentacles into the water industry.

However, investing in the water industry did not bring Enron the expected benefits, but suffered losses. In particular, the main assets of Azurix are located in Buenos Aires, the capital of the Republic of Pampas. state of loss.

In fact, after Azurix purchased this part of the water assets in the early days of its establishment, it sought to be listed on the domestic stock market in Pampas, but it was not approved due to poor management, and the benefits of Enron did not improve significantly after taking over.

According to the news released by Enron, after the closure of Azurix, the company's assets will be sold.

After the news was released, Enron's stock price just fell to around 60 yuan. As the news was released, it caused a short-term rush to sell, and the stock price once rebounded to around 62 yuan.

Because investors in the United States believe that Enron has started to clean up the non-performing assets within the company, which will help increase the company's earnings.

Selling loss-making assets seems to lead to investment losses and reduce returns, but in fact, everyone knows that even if they are not sold, the value of these assets has been greatly reduced, and it is only the difference between obvious losses and hidden losses.

Throwing away non-performing assets will result in book value impairment, but if the company's profits are indeed benign, the company no longer needs to continue to bear this part of the loss-making business, and the company's profits will instead increase.

This is the logic of this short-term buying order to enter the market. They believe that this action is a signal that Enron has begun to clean up its non-performing assets. There will be a second and third steps in the future. Generally speaking, they think this is a good thing, and they will recover part of it. Funds can be invested in other more promising projects.

In fact, the problem of a large number of non-performing assets in Enron was noticed a long time ago, but because of the rapid growth of Enron's performance, these flaws were naturally covered up.

This time the market broke out that Enron may have problems, and the financial report may be falsified. During this critical period, the company began to clean up non-performing assets, which seems to be a response to the previous rumors of falsification.

However, this rebound was just a rebound, and in the next two days, these purchase orders gradually disappeared. Under Lin Hong's continued suppression, Enron's stock price also returned to the right track, and continued to fall.

Although the stock price volatility caused them to lose nearly one million yuan, compared with the previous selling actions, it was still within an acceptable range.

In this trend, Lin Hong also keenly noticed that the trading activity in the market has increased significantly. Not only a large number of buying orders have entered the market, but also a large number of selling orders have begun to appear, especially when the stock price is approaching 62 meters The increase in these sales orders was particularly noticeable when the price was less than [-] yuan. In his eyes, it was almost an organized countermeasure by an institution.

The entire trading team, including Chen Fan and Xu Jing, were stunned by this and couldn't understand it at all.

In the information that Zhang Quan found before, there is no mention of Changzhuang in Enron stock, but there are many funds holding shares. Nearly two hundred funds, large and small, hold the stock of Enron, which basically eliminates the existence of this stock. The possibility of the banker, but the fund is unlikely to be reversed in this way.

However, after this rebound, the decline in Enron's stock price began to show signs of accelerating, because the market's sell orders increased significantly. In many cases, there was no need for Lin Hong to sell short, and some sell orders took the initiative to hit the buying orders below. By the end of April At that time, Enron's stock price had fallen to around 56 yuan.

However, at this time, Chen Fan's order was a bit strange. According to Chen Fan's intention, Lin Hong could only reduce the number of short-selling stocks, which was reduced by half from the nearly one million shares held before, and he could only keep less than 50 shares. level.

"Jeffrey, we have to change the current bad situation. Those guys have already sold their stocks."

Kenneth reconvened the company's chief executive Jeffrey and chief financial officer Kosai, among other executives, in his office.

In the past two months, there have been bad rumors in the market, and the stock price has been falling. Now the company's top management team knows that they are in trouble.

"We can only continue to find buyers for those non-performing assets to withdraw funds. Perhaps this is the only way to save ourselves."

Jeffrey looked at several people in the office and said.

(End of this chapter)