legendary trader

Chapter 825 826 Plunging
Regarding the question raised by Chen Fan, Zhang Quan replied very simply: "This concern will most likely not happen. Since we have already attended the meeting, we should have learned something from the investigation, otherwise it would be impossible to bring it up for discussion."

"So someone is deliberately creating an argument, so as to delay the time?"

Chen Fan quickly figured it out, whether it was due to the internal struggle of the SEC or other reasons, it is impossible for a department to be monolithic. If someone supports it, someone will definitely oppose it. This is the normal state.

It's just that sometimes it's a personal judgment, and it's from the perspective of being responsible to the public, and sometimes it's out of personal grievances, and of course there is the possibility of conflicts of interest, and so on.

At this time, Enron's stock price had fallen to close to 31 yuan, but when it fell to this position, whether it was the buying orders at the lower price or the active buying orders entering the market, they began to be active, perhaps seeing that Enron's stock price had fallen to this level. At the bottom of the platform recently, some people began to feel that there was a high probability that the stock price would stop falling and stabilize. Therefore, many investors who paid attention to the changes in Enron's stock price entered the market to buy stocks one after another.

Obviously, the image that Enron has maintained for many years is one of the reasons why they choose to buy Enron stock. Enron's rapid growth and stock prices have risen steadily for many years, so most investors still choose to believe in Enron, so although the current daily The line chart was not good, and there were all kinds of negative rumors, so they still chose to believe in Enron.

The gradual inflow of buy orders stabilized Enron's stock price again, and an unbreakable line of defense was quickly built around 31 yuan, and the continuous selling orders were digested by these buy orders.

The stock price began to fluctuate sideways here, and the selling orders gradually began to decrease. The declining stock price finally ushered in a turning point. Enron's stock price began to rebound, and gradually got rid of the pressure around 31 yuan and began to move closer to the price of 32 yuan.

Chen Fan stared at the active trading on Enron's market and frowned. So far, according to the previous judgment, the market maker is now trying to lure more and buy orders to enter the market to take orders. Once the news from the US Securities and Exchange Commission is confirmed, it is likely that the stock price will It will plummet.

It seems that Enron's concealment of related party transactions can be confirmed. Judging from the discussion at the US Securities and Exchange Commission this time, Enron is required to disclose some transaction documents to determine whether there is any fact of concealing related party transactions.

From this, we can be sure that the US Securities and Exchange Commission should have obtained some evidence that Enron has concealed related transactions, so there must be problems in the company's financial report, because although related transactions do not have any revenue-reducing items, they will. impact on profits.

Although Chen Fan is studying finance, he also has accounting courses in his courses. He naturally knows that when merging financial statements, there is a minority shareholder's interest, and the income of other shareholders needs to be deducted from the financial statement, which will reduce investment. Income, that is, the profits generated by these related transactions.

Enron concealed the relationship with its affiliated companies, and the accountants naturally did not deal with the income attributable to other shareholders of the affiliated company when they merged, that is, double-calculated the company's accounting profits for the year.

Moreover, without merging this affiliated company, the assets, liabilities, and equity on the accounts of the affiliated company are unknown, and the problem behind this is even greater.

In fact, the most critical part of the problem lies in "concealment", which is the most fatal. In a society that emphasizes openness and justice, this is fraudulent behavior, and Arthur Andersen, an audit firm, is naturally to blame.

Maybe it's just a small transaction amount, but it's really hard to say what will happen in the end after being infinitely increased in this way.

Of course, when Chen Fan is uncertain about the news, he will naturally not sell based on his own guesses, that is, he does not intend to sell short of Enron stock, but continues to wait and see. Anyway, the bottom position of 4 million shares is There, as long as Enron's stock price continues to fall, the money earned will go to sea.

It is worth mentioning that so far, the cost of their short selling is actually not low. The 4 million shares of Enron stock have already paid hundreds of millions of securities lending interest.

Just kidding, the interest expense is about 75 yuan per day. From March to the beginning of August, the interest has been paid for 3 months.

However, this profit is tragic compared to those investors who provided securities lending stocks. The loss of stock prices far exceeds the interest they received, and the difference naturally belongs to Chen Fan in name. partner.

Because the liquidation work has not been completed, those profits are still paper wealth and cannot be taken seriously. Chen Fan is also very aware of this, so he only wanted to close the transaction a few days ago and started the finishing work.

Enron's stock price fluctuated and rebounded, and the stock price rose to around 31.6 yuan before stopping abruptly. With the reduction of follow-up orders, Enron's stock price did not have enough energy to continue to rise, and the selling orders were limited during this period. Trading is still quite active, but there are no big orders in and out, so it looks a little dull.

The stock price lost its upward momentum, and it only fluctuated for a while near the high point of the rebound, and then began to pull back. As the stock price fell, selling orders were still active, and the buy orders should have been exhausted at this time. During the entire stock price decline, active buy orders Very few, almost all of them are active selling orders, and the buying orders at the intraday buying price are being quickly traded.

"Is it just going to be suppressed like this?"

Chen Fan noticed the trend of Enron's stock price, and asked Lin Hong beside him in a low voice.

"It should mean something like this, continue to lower prices, rebound at key prices, and stabilize the confidence of shareholders in the market."

Lin Hong also responded in a low voice.

The trend at this time is actually similar to the time when Qualcomm stock was sold at 6 or 70 yuan. It is to keep lowering the price, attract buy orders to enter the market with low prices, and maintain the confidence of those funds in holding shares through continuous shocks and rebounds. I think the stock price will rise at any time, but it has not been adjusted in place yet.

When Enron's stock price returned to the bottom formed before, the buying orders entering the market this time were significantly reduced, and they were not as active as before. However, the stock price that continued to be under pressure still could not withstand the continuous selling orders entering the market, and the stock price continued to decline. , In the end, the unsurprising intraday low was broken, and the stock price approached 31 yuan.

Naturally, the hundreds of thousands of selling orders on the 31-meter yuan couldn't withstand the continuous pressure of the selling orders. It only resisted for more than half a minute before the 31-meter yuan price broke through. In the final stage, it can be seen that with the selling orders The price continued to hit 31 yuan, and the follow-up sell orders became larger and denser. The confidence in Enron stock holdings has been shaken as the intraday lows broke, and some investors have begun to choose to cut their flesh and leave the market.

As the price of 31 yuan broke through, Enron's stock price immediately experienced a slight dive, and a large number of small and medium-sized sell orders swarmed out, which directly overwhelmed Enron's stock price to around 30.7 yuan before barely stabilizing.

After that, it seemed to repeat the previous trend. After Enron’s stock price stabilized at a low level, it rebuilt a new bottom, and then the stock price reversed again by 31 yuan. After the rebound was in place, it started a new round of decline. on the disk
Before the market closed, Enron's stock price had fallen below the 30-meter mark, and the intraday low reached 29.82 yuan.

Before, Zhang Quan, who had left when the stock market was still trading, returned to the trading room and reported the latest news to Chen Fan in a low voice.

"People at the US SEC are still arguing about the information they collected, mainly because most of the information comes from the media, so some members of the committee don't quite agree with the information, and feel that relying on the information published in the newspapers is the basis for a company's investigation. Investigation, too child's play."

"Hehe, it's not surprising, I think so too."

Chen Fan responded to Zhang Quan with a smile.

At this time, following a round of rebound from 29.82 yuan, Enron's stock price broke through 30 yuan again, and the stock price peaked at around 30.5 yuan and began to fall again.

"This time the buying order is a bit strong, and it has launched two consecutive rebounds around 30 yuan, indicating that there should be new funds coming in to buy."

Lin Hong on one side naturally heard their conversation. He had already judged that someone would stall for time at the US Securities and Exchange Commission. The latest news brought by Zhang Quan only confirmed this judgment, and it is not worth making a fuss about.

"Whatever, they can only enter the market for a short time, and it will not affect the overall situation at all. After all, the funds leaving the market now are those shareholders-level investors. They have too many stocks, and they don't have tens of billions of dollars. Yuan, whoever touches it will die."

Chen Fan is in a good state of mind at the moment. He has already felt that the market trend is highly consistent with their speculation. Now he just waits for the US Securities and Exchange Commission to launch an investigation on Enron. Maybe this time the decline will be even more severe. More than the previous time, it fell more than ten meters in a week.

"Team leader, the situation is not good. There are too many sell orders in the market, and I feel that the short sellers are a bit soft."

In a luxurious trading room in Guangdong City in the south, a trader said quickly to his boss.

Before their team leader could speak, another trader next to him said: "We have bought 300 million shares, but the selling orders seem to never dry up. It is not good to keep listing them."

In the past period of time, they continued to buy Enron shares around 30 yuan, and had consumed nearly [-] million yuan, but they still failed to resist the downward trend of the stock price.

As Enron's stock price approached 30 yuan again, continuous selling came in like a tide, and their team leader, a young man with glasses, hesitated a little.

Enron's current trend is very bad, even bad. No matter how much money they have, it may be that they are constantly pushing out. They don't know where the limit is, and how many stocks they still have to sell. .

"Withdraw all the purchase orders, let's exit and wait and see."

Perhaps because he had made up his mind, the young man with glasses said.

"Boss, I think we should reduce our positions. I always feel that the market is not right. It doesn't seem like an adjustment in the general sense."

Some traders continued to express their opinions. Although they did not trade for most of the day, when Enron's stock price approached 30 yuan and they began to place orders to buy according to the trading instructions, some people raised questions about entering the market now. meaning.

Everyone is not blind. At this moment, Enron's market situation is naturally very clear. Most traders feel that it is not the time to enter the market, but the trading order placed by the above is to enter and buy at 30 yuan.

It resisted two consecutive declines near 30 yuan and created two rebounds, but still failed to reverse the market's decline. Naturally, the feeling of uneasiness became stronger.

"It's not that everyone doesn't know what the above means. We couldn't refuse it at that time, and we can't do it now. The only thing we can do is to be negative and stop buying for the time being."

The young man with glasses also seemed helpless. The above instructions must be implemented, but the market trend is not good. He has already communicated with the boss before, but the big boss still insists that they enter the market and buy according to the previous plan. What can he do? manage?
Could it be possible to turn a deaf ear to the boss's orders?

Enron's stock price fell to around 30 yuan again. This time, there was no previous buy order to support the stock price. The selling order at the buying price of 30 yuan was quickly eaten up by the selling order. The stock price quickly fell below this point, heading for the intraday low. point closer.

"Before, I still wanted to pull the tail, but now it seems that it may be right to do nothing."

The young man with glasses shook his head and said.

"Boss, we can choose to lighten our position, you have seen the current situation"

The young man with glasses waved his hand and interrupted the trader, "I just contacted Mr. Mu, and Mr. Mu still insisted on increasing our share of Enron's stock. What can I do? Everyone, let's rest for a while."

That being said, one can still guess from the tangled expression of the young man with glasses that he is a little hesitant at this time, and he doesn't know whether he should call again to ask.

But if you call at this time, what will happen? It's already early in the morning.

At this time, the support strength of the previous low of 29.82 yuan has weakened, because without their buy orders entering the market to protect the market, after several consecutive small sell orders came out, the low point was refreshed again, 29.81 yuan, but this Obviously not the end.

Seeing such a situation, the young man with glasses gritted his teeth, took out the mobile phone in his trouser pocket, opened the phone book, searched for the number and dialed it.

In the final stage, Enron's stock price continued to decline. At this time, there were signs of weakness in the stock price near the close, and all investors who followed Enron's stock were a little panicked.

Weakness at the end of the trading day often indicates that the stock price trend in the next trading day will be very sluggish, and the stock price will often reach a new low. Combined with the trend throughout the day, the main force before the intraday has no chance of turning over at all, and the market's bulls are suppressed by the shorts. Yes, the fool also knows it's not good.

Before the market closed, Enron's intraday selling orders swarmed out again, which exacerbated the decline in Enron's stock price in the final stage. At this time, there were very few buy orders below, and no one would buy the stock.

In the end, Enron's stock price closed after experiencing a slight dive. The closing price was 29.11 yuan, a sharp drop of 3.18 yuan throughout the day, a drop of 9.85%. The trading volume increased during the decline, reaching 2 million yuan. shares, with a turnover exceeding RMB 1 million.

(End of this chapter)