legendary trader

Chapter 851 Chapter 852 Black Monday
"Mr. Chen, I just received two pieces of news. The international rating agency Standard & Poor's will release the latest rating report after work today, lowering Enron's bond rating from 3A to A."

Zhang Quan said on the other end of the phone.

"The A rating is not low anymore. It seems that this downgrade is not important."

Chen Fan didn't wait for Zhang Quan to continue to say another news, he interjected, he felt that with the current situation of Enron, it would be very high for the company's bonds to have a B rating.

"Inside information, this rating was actually set before get off work last Friday, but it seems that no decision to further downgrade the rating has been received. The situation of the other two rating companies is similar, and they are considering downgrading their ratings. It made Enron even worse."

Zhang Quan didn't have anything to do with Chen Fan's interjection, and immediately explained.

"great influence?"

"Yes, some bonds issued by Enron before have rating requirements, and now the rating has dropped, which means that some bondholders can request Enron to return it in advance according to the contract. Of course, because the current rating is not low, it is estimated that such bonds Not many."

Zhang Quan continued, "But it has become impossible for Enron to issue short-term bonds to replenish funds."

However, this news has no effect on Chen Fan. Now the news about Enron is all bad news. It is impossible for any organization or individual to lend money to it at this time.

However, this seems to be starting to sound the death knell, because the downgrade will make Enron's financial situation even worse.The most important thing is that this seems to be just the beginning. If the three major international rating companies lower the rating of Enron's corporate bonds in turn, no matter whether it is long-term bonds or short-term bonds, they will be completely blocked.

"What are those two messages?"

Chen Fan knew that this drop in rating seemed to be just a Pandora's box, and it was just opened now, and there should be a series of lowering actions in the future.

But the first message is this, what will the second message be?
Chen Fan was very curious.

"According to inside information, today Enron will submit documents to the US Securities and Exchange Commission, admitting that they have made financial fraud."

Zhang Quan's voice rang in Chen Fan's ears again, "What? They admitted it?"

Chen Fan felt that his brain was not enough. He admitted it at this time, but Chen Fan quickly figured it out. It is useless not to admit it at this time. The information has been taken away. If you admit it, at least it represents a trace of integrity. Inside, if it is not admitted, the US Securities and Exchange Commission will finally announce the results, and it seems that the effect will not be much better than it is now.

"At present, there is only this statement. Our people have seen the document, but it does not have Kenneth's signature on it, so it is not known whether this document has been approved by him. It is said that Kenneth has not been in the company for the past two days, but Going out to negotiate a big business."

Zhang Quan continued talking over there.

"Stop, that means there are people from you in the Enron headquarters? Then do you know who he is talking about and what kind of business?"

Chen Fan was keenly aware of something when he heard this. At this juncture, Kenneth, the boss of Enron, is not in the company, but goes out to discuss business. What business can he talk about?
"We don't know. As soon as I got the news, I urgently contacted the company's analysts. Their initial guess may be to find a buyer, hoping to acquire Enron, because at this time, it is the only thing worth letting him personally The thing to talk about."

On the other end of the phone, Zhang Quan told him about the work he had done after he got the news. Obviously, he had also noticed this matter. He knew that Anran Company was in a very bad situation, and the next step of Anran Company was very critical. It is related to the success or failure of this investment.

Of course, it may be a bit exaggerated to say that success or failure is indeed a bit more important, but it will indeed have an impact on investment returns.

"Have you guessed who the buyer will be?"

Chen Fan continued to ask.

"Kenneth's private jet is still in Houston, so it is judged that others have not left there, so our first analysis is the company headquartered in Houston.

However, there are too many large companies in Houston. Although we try our best to rely on the electric power and natural gas industries, there are also many companies in Houston that can buy Enron. You must know that the Gulf of Mexico is the most important oil and gas producing area in the Americas. There are at least four major companies there. Every oil company could step in to save Enron"

Zhang Quan was talking a lot on the other end of the phone, but in the end he still didn't say why.

Indeed, relying on such a little information alone, it is too difficult to guess Enron's next move.

Enron, as the main power supplier in the United States, trades with these oil companies, buys natural gas, uses part of it to generate electricity, and sells some directly. For this reason, they also have special natural gas pipeline assets.

"Is there an electric company there?"

Chen Fan knows that as long as it is an energy company in Houston, they can actually take down Enron. At least they can add a piece of the puzzle to their business scope, just to see if they are interested and willing to take action.

Of course, Chen Fan was not out of curiosity about the final outcome of Enron, but because it involved his final decision, when and how to leave.

"Deneng, Dezhou Energy, and Enron are similar in that they are all power suppliers."

Zhang Quan answered quickly this time. In Houston, there are many big companies, but most of them are oil companies, airlines, and of course the aerospace industry. Otherwise, how could it become the fourth largest city in the United States.

However, as far as companies that are purely engaged in power supply, there are not many companies that are close to Enron in size, that is, Deneng Company.

"However, Deneng has been in a competitive relationship with Enron before, and the relationship between them is not friendly."

Zhang Quan said suddenly at this time.

"Okay, I got it. In short, Enron is looking for someone to buy itself to avoid bankruptcy. By the way, is Enron likely to go bankrupt? You should immediately gather a team to study whether Enron was acquired by another company and There are two possibilities of bankruptcy, and an analysis report will be given.”

Speaking of bankruptcy, Chen Fan suddenly had a flash of inspiration. Up to now, Enron's stock price has continued to fall. Such a low stock price has not shown signs of increasing volume, and there is no money to enter the market. Before that, he was still wondering if someone wanted to short Enron. Finally, the acquisition is made. Now it seems that the possibility of this is really low. If someone really does it, the purpose may be to make Enron go bankrupt.

But the situation in Houston that Zhang Quan introduced just now is an economically developed area in the United States, with many powerful companies. They can all make a move to buy Enron, so how will the other party make a move?

If someone decided to buy Enron, what would they do?
How to stop this deal?

Chen Fan felt dizzy and didn't feel like eating right now. He asked the nanny to clean up the dining table, went to the living room sofa and sat down, and talked with Zhang Quan for a while before hanging up the phone.

At this moment, Chen Fan was sitting on the sofa, and he had already assumed himself into the role. If he wanted to bring down Enron and prevent someone from picking up the ready-made in the final stage, what would he do?
Find a company, first negotiate a purchase contract with Enron, and finally find a reason to prevaricate and refuse to implement the contract, and the timing of the refusal must be grasped, and Enron has no time to find a new buyer for negotiation. Maturing debts forced it into bankruptcy.

However, the law of the United States seems to have a way of bankruptcy and reorganization. If they don't take action, Enron may not be completely liquidated, and there is still a chance to sit down with the debtor to find a solution to the debt crisis.

Chen Fan felt dizzy. At this time Li Wu was already standing outside the living room. Although he didn't speak, Chen Fan knew that it was time to go to Oak Tree Capital.

Immediately, Chen Fan got up and walked out, quickly got into his car, and headed for Oak Capital.

When Chen Fan walked outside the door of the trading room, he heard constant voices in the trading room, as if something was being discussed inside.

Chen Fan knew it in his heart, so he opened the door and went in, sat down and listened for a while.

Nothing new, Chen Fan shook his head, turned around and asked Lin Hong's opinion in a low voice.

However, Lin Hong's opinion is not worth paying attention to. He just thinks that there is no need to consider closing positions for the time being. The exposure of the 2 million shares should be kept for now to see how the situation develops.

A roomful of traders is now optimistic that Enron's stock price will continue to fall, as if Enron could declare bankruptcy at any moment.

At that time, you can just pick up Enron's stock on the floor and return it.

"The brokerage firm has once again raised the interest on our securities lending, and now those customers ask us to return their stocks, and it is estimated that they will all sell them to the market."

Lin Hong suddenly whispered, "They have raised the interest rate to an outrageous 80% annualized rate now, and maybe it will increase in the future."

Chen Fan laughed, but then he began to silently calculate, now the remaining 2 million shares need to pay an interest of about 3 million yuan per day. Scared, but now?

As long as Enron's stock price falls by 1 yuan, they will earn 2 million yuan. You must know that the decline rate of Enron's stock price has completely covered this interest. If you persist for one more day, you can earn one more day money.

"One share of Enron stock every day pays 15 cents of interest, which is really high."

Chen Fan laughed.

"Now that the wall is down and everyone is pushing, who knows how much Enron's daily decline will reach. In fact, if you are brave enough, you can increase the selling force and further suppress the stock price."

Lin Hong suddenly said.

"Forget it, the current stock price, how much room does it have to continue to suppress, unless Enron is determined to go bankrupt, in fact, it is time to start preparing for the final exit."

Chen Fan responded in a low voice.

Although Chen Fan asked Zhang Quan to start assessing the possibility of Enron's bankruptcy, it was a waste of resources. Under normal circumstances, Chen Fan knew that the bankruptcy law in the United States was there, and it was impossible for Enron to go bankrupt and liquidated directly. There would definitely be a reorganization .

At that time, the stocks will not be able to be traded, and it will be troublesome if you can’t buy back the 2 million shares and return them to the securities lender. Listening to what Lin Hong said about the interest on securities lending, the baby is scared to death.

Not long after, the rice stock market opened, and then the American stock market followed the decline of the European stock market and continued to fall.

Monday is destined to be a tragic day. On Black Monday, the global stock market began to fall from the Asian market, until the US stock market finally completed a cycle. Who made the blue star round!

On this ordinary day, it has become a nightmare for global institutional investors.

The blue-chip stocks that they were once proud of became the protagonists of today's market, while those junk stocks that they never looked at in the past made their debut on this day.

Blue chip stocks plummeted and junk stocks rose, which is the portrayal of the global stock market on Black Monday.

In the eyes of buyers in today's market, at least these junk stocks have been losing money all year round, but their performance is real and there is no deception.

The Near East War did not cause fluctuations in the gold market. Today, when the confidence of global investors has been hit, the international gold price has unexpectedly strengthened. According to observers and analysts, because of the lack of confidence in the stock market, funds chose to hedge and began to buy Less risky assets like gold.

The rise in the international gold price and the slight rise in the price of precious metals such as silver formed a stark contrast to the decline in the stock market.

On Monday, Enron’s stock price closed at 5.87 yuan, down 0.69 yuan or 10.52% again, and continued to run wildly towards the penny stock road.

If there is no transaction, Chen Fan has nothing to worry about.

In fact, Chen Fan has already thought of it at this moment. I am afraid that the funds participating in the short-selling around the world are actually the institutions that entered the market in the first half of the year. They may still hold short positions in Enron stock, and the institutions after that will want to step in. , the difficulty is already very, very great.

And now these short-selling institutions in the market must be the same as themselves, worried that Enron's stock will increase in volume at the bottom, and someone will enter the market to take orders.

But soon, Chen Fan thought about what Zhang Quan said today. If Enron really planned to sell, what would be the final cost if the current stock price enters the market?

This estimate will dispel the idea of ​​many institutions entering the market.

I can know some clues about Enron, and guess that they are looking for a buyer, so other organizations may not be able to grasp this information, and they will also have such an analysis.

So, in fact, at this moment, the number of institutions that will really pay to enter the market may decrease a lot. God knows what the price of Enron will be in the end, and maybe they will lose money if they buy it.

After figuring this out, Chen Fan has nothing to worry about. The possibility of institutions entering the market is infinitely close to zero.

Afterwards, Chen Fan went downstairs to go home and rest. Why did he continue to stay in the trading room? Did he watch the price of gold continue to rise?
But at this time, Chen Fan has already seen the trend of gold through his ability, and there is no value in participating in it. It has reached the end of the market.

In fact, investor confidence is something that goes fast and comes fast, but it is just a matter of thought.

But before Chen Fan entered the house, the phone in his pocket rang again. Chen Fan took it out to look at Zhang Quan's phone, and then Chen Fan raised his eyebrows unconsciously.

(End of this chapter)