Rebirth 79: I opened a bank in the United States

Chapter 30 Young people are a bit ruthless
As the saying goes, what you give is what you get.

After satisfying the psychological expectation, Carter's body paid the price for the psychological pleasure.As the saying goes, "It's good to eat for a while, and you lie in the anorectal hospital." After returning home that night, Carter's stomach rebelled.

Let’s not talk about the pain, and even had vomiting and diarrhea all night (a real person, I once ate hot pot with a friend in Shanghai who doesn’t eat spicy food at all, and turned around and vomited after it was over), so the next day I came to Kidd’s company Carter looked particularly sluggish.

"Mr. Black, good morning! There is still half an hour before the opening, do you want to take a rest? You didn't seem to have a good rest last night."

Seeing Carter's sluggish expression, Julian smiled ambiguously.Young and rich, even if he looks crooked, he can still be close to a billion people. What's more, Carter's appearance is not only not bad, but also very handsome.Julian was not surprised at the scene in front of him, but kindly reminded him whether to go to the lounge for a break.

"No, it's just right, there is still some time before the opening. Let's see what stocks you want to recommend to me. You should have done your homework when you went back last night, right?"

When sending Julian away last night, Carter mentioned that he would invite him to dinner tomorrow to talk about making money.Carter didn't believe that he could be unprepared. People who just talked about a big client and then didn't make any preparations are destined to be unable to stay in the workplace.Besides, even if he didn't have his own words, if six million dollars came in, would he not move it?

"Of course, this list is all the goals I sorted out last night, which should be more in line with your thinking."

Julian smiled and took out a watch from in front of him, handed it to Carter, and when Carter flipped through it, he introduced:

"The above companies are all objects whose market value is seriously overestimated. For example, this Viktor tractor factory, although it says it is a tractor, in fact this company manufactures tank chassis. The Vietnam War has already It’s over, but investors think that even if the war is over, they can still make tractors. After the war, a large number of soldiers retire and return to their hometowns, which will inevitably increase the demand for agricultural machinery, so after the war, they Not only did the stock price not fall, but it also rose by five percent."

"But for four years, their earnings have been declining. The price-to-earnings ratio is getting bigger and bigger, and it is obviously on a downward trend. It may plummet at any time, so I put it at the top of the list."

"Can you show me their profit report for the past four years?"

Just listening to the description, Carter also agrees with Julian's point of view.The company's stock price has risen, and the logic makes sense, but whether it really enters the market, Carter has to figure it out for himself.

Listed companies have this advantage. Their financial reports must be disclosed to all shareholders, so it is easy for others to find out if they want to.Now that the target is recommended to Carter, Julian will certainly not make unprepared mistakes.Immediately, he took out another stack of detailed financial reports and handed them to Carter.

Carter couldn't understand complicated financial reports.But simple addition, subtraction, multiplication and division are still possible. Roughly divide the company's four-year comprehensive net profit, and found that their annual profit growth rate is actually less than 8%.
It seems to be positive growth, but the growth is relatively slow, don't forget the inflation in these years.An [-]% annual profit growth is probably not as fast as inflation!
It is positive growth, rather it is negative growth. According to the method learned from a friend who speculated in stocks in the previous life, Carter used the price-earnings ratio of this tractor company to calculate the growth rate and found that this company was seriously overvalued. up.

The PEG value has reached an exaggerated 3.4, that is to say, the market value of this company has exceeded its own value by 3.4 times.Of course, this algorithm is also a very theoretical value, but just like that, Carter's operation also attracted Julian's attention.

After staring at Carter for a long time, Julian suddenly asked:
"Carter, do you know Peter Lynch?"

"Huh? What?"

Carter, who was calculating in his mind how much to invest in this short sale, was taken aback by Julian's question.

"It's Peter Lynch from Magellan Fund, or do you know them? Your algorithm, Peter Lynch, they especially like to use. Use the price-earnings ratio to divide the profit growth rate to judge whether the company's market value is overvalued or not. underestimate."

"Really? That...that's quite a coincidence."

Carter slapped embarrassingly. He is a famous investment star of this year, a Wall Street tycoon, and a financial rookie, how can he know a lot.What else does he know besides a guy named Buffett, who likes to sell lunches, and a gambler named Soros.

Before I knew it, it seemed that I had copied something from an existing bigwig.I was recognized by someone at a glance. This feeling. I traveled to 01 with you. I planned to be a copywriter. After copying a song "Nunchaku", someone directly pointed it out and said it was Jay Chou's song.
"Anyway, your vision makes me very satisfied. Let's choose it first, let's operate it first, or you can operate it and let me learn it."

"Are you sure that's it? Don't look at other companies anymore?"

It doesn't matter whose method it is, as long as it works.The price-earnings ratio indicator was first invented by people from Goldman Sachs, but not everyone used it later. Julian didn't have the leisure to accuse Carter of plagiarizing other people's intellectual achievements.

"Let's take it first. It just so happens that its stock price is not high. It is suitable for a novice like me to be a teaching bureau and practice. How many shares do you think you can borrow?"

Since the PEG indicator and Julian told himself at the same time that the company's market value was seriously exceeded, Carter had no worries.Although I seem to have heard a friend say that stock selection should not be based solely on the data. Companies in the growth stage tend to have a relatively high price-earnings ratio, because they need to expand, which will take up a lot of costs, resulting in low profits and so on.
But a tractor company, not that Carter despises it.Where will there be any tractor market in the future? Emmm, it can't be said that there is no such thing, but the agricultural machinery market is generally like that.The amount of farmland is constant, and naturally, the total amount of machinery and equipment it will use is also constant.So the situation of this company, you can't use it as a company in the growth stage, or in other words, the industry prospect is so big, no matter how it grows, where can it grow?You can't go to reclaim Mars, can you?

Musk wanted to hit someone when he heard it.
"I have [-] shares in my hand, and the company has [-] shares. I can lend you all of them. Do you need to borrow more?"

Carter made a decision, and Julian didn't write any ink, and immediately gave his "old bottom", 35 shares that could be transferred directly.Accounting for about 220% of the company's tradable shares, Viktorra Machine Manufacturing Factory has issued a total of [-] million tradable shares, and this information is stated on the list.

After roughly doing the calculations, Carter understood the situation.Then he gritted his teeth and said decisively:

"Borrow! How can such a small amount be enough? If you don't want to buy it, you can make it bigger. I want to borrow another 35 shares. Can it be done?"

"Borrow another 35 shares? That's 70 shares. I'm afraid. I'm afraid, young people are a bit cruel?!"

(End of this chapter)