Rebirth 79: I opened a bank in the United States

Chapter 646 They Could Have Earned More

"Pepsi will pay for this! And give you a satisfactory reward!"

"Please don't get excited, Mr. Black. The SEC has no intention of interfering with the normal operation of the market, but only a stable and active market is in the interest of all Americans."

Billmont and the others, who had been slapped hard by Carter, didn't show any annoyance on their faces, but instead smiled politely to comfort Carter's emotions.
As for the SEC's intention to interfere with the normal operation of the market, just listen to it.Carter clearly remembered that the application for the issuance of new shares submitted by him had not been approved until now.
If it is a normal market operation, the resolution of the HT Board of Directors is passed and the shares issued are approved by independent directors.For HT, whose credit rating and risk rating are above the good line, there is almost no reason to fail.

It is nothing more than that after the total number of stocks increases, there will be a certain decline in par value in the short term.It can't interfere with the market at all, and it can't affect anything, but, such a normal application, it just can't be approved
As for why it didn't pass, Carter really can figure it out with his ass
Although HT issued new shares, in a sense, its own vested interests are not obvious.Even during the period of falling value, one's worth will still drop.But if the reputation is weakened a bit, what they get in return is more development funds and the profit margins that will increase every year after these funds are spent.
In a short squeeze, new shares are issued at a time when the value of the stock is much higher than normal.Carter is not worried that no one will buy it. After all, Pepsi has to buy it to pay off its debts!In this way, it is very possible for me not only to not lose a little bit of the so-called reduction in social status, but also to enjoy the development bonus of HT!
The little abacus was crackling, when suddenly someone smashed the abacus
Carter had a hard time keeping his cool:

"What will Pepsi pay?"

"You know, they were the first to provoke this incident. In addition, I am not just representing myself. You should know that Tiger, Quantum, Fidelity, and even State Street Bank, Boston First Bank"

"It goes without saying that their interests are not deeply tied to yours. After all, they are just borrowing money. Let's take a look at the first few."

Directly puncturing Carter's idea of ​​expansion, Billmon took a watch from the entourage beside him:

"The actual end, Coca-Cola, you and your HT company, Tiger Fund, Quantum Fund, Fidelity Magellan Fund, Fidelity Eklein Fund, Fidelity. Let Fidelity count all of them."

"Coca-Cola's current position is about 2000 million shares, which includes almost all the HT stocks held by Fidelity Investments and some of your personal shares. Tiger Fund, Quantum Fund, almost 400 million shares , in addition to the stocks of other institutions, some of them are your original shares. The rest are basically in the hands of PepsiCo, about 500 million shares, except for 280 million shares owned by PepsiCo, the rest "

"PepsiCo borrowed nearly 5000 million shares at the beginning, based on an average interest rate of 30%. It has been a month now. The total number of repayable shares is about 120 million shares. Even if all their current positions are cleared , the deficit still reached as much as 600 million shares."

"Under normal circumstances, the stocks held by Tiger Fund and Quantum Fund should not maintain positions for too long. You and I know these two funds very well. In terms of their commonly used long-short strategies, such a large number of long positions , It is not easy to find a suitable short hedge. As long as Pepsi can afford the price, the repurchase of 2000 million shares should not be a big problem.”

"The first thing we want to know right now is, what stock does Coca-Cola hold...among you"

While handing the statistics sheet in his hand to Carter, Billmon's eyes wandered around Carter's body.
If Coca-Cola's position never goes out, and it intends to hold it for a long time, then Pepsi will have a deficit of tens of millions of shares!With such a large amount of shortfall, even if all the stocks in the hands of retail investors in the market are eaten up at high prices, the hole still cannot be filled.

In this way, it is really a question of how far HT's stock price will soar.
"So you are now paying attention to me, hoping that I will sell some stocks, or persuade Coca-Cola to clear some positions, and at least maintain a balance between supply and demand."

The data recorded on the statistical form is much more detailed than Biermont's dictation.Also incidentally, there is an application for the issuance of new shares, look at the 2000 million shares on the application.
Carter tapped his fingers on the table, throwing the question back to the other party
"As you can see, my IPO is scheduled for one and a half months later. This is already taking care of the market, and I don't want to disturb it. But before the IPO comes out and the supply side increases, HT's stock will definitely appear. There is a situation where there is a price but no market. In such a situation, how much can we earn?"

"How can Pepsi make up for it?!"

"Unknown benefits are always unknown"

While Billmon sighed, he spread his hands again.

Just when Carter thought that he was going to persuade himself to keep his bag and accept it as soon as it was good, he only heard him say again:
"Of course, this gain is already predictable, and it's not too much to count it into your loss. Including this new share issuance application...how should I put it! It's this time, let us decide to come to you for a talk, from When you apply, we can see what you think. That's great"

"Of course, we hope that this time can be earlier. As for the loss in the middle, Pepsi has also submitted an application for the issuance of new shares. You can take a look."

"My personal idea is share replacement. During the share replacement, we will reduce the valuation of some Pepsi stock prices as appropriate, or limit the issue price of these new shares."

"Fill your losses with Pepsi's future earnings. As for the institutions, it's not that they can't earn, they just earn a little less."

Issuing new shares ahead of schedule and performing share swaps with PepsiCo
Carter didn't answer in a hurry, just took out a cigarette, lit it, and quietly thought about the pros and cons of it
It's still the old rule, settle the accounts first!
Tiger Fund and Quantum Fund, as Bill Mon said, Carter is also very clear.Neither Soros nor Julian will hold such a large number of stocks in HT for a long time, and they must sell them.

And the cost of their stock purchases is almost 1000 million US dollars, which is currently lying in Pepsi's account.Once Pepsi officially admits defeat, it will start to buy back, even if it is only a very short-term rise
It is not difficult for HT's stock price to break through 9.4. Even the average cost of Pepsi's repurchase must be at least 100 US dollars.That is to say, PepsiCo has to spend more than [-] million to buy these stocks.

The profit margin is only in the early 2000 million
The profit margin is almost 19.6%. Considering the time cost, this profit margin is not unreasonable.

The problem is, they could have earned more!

(End of this chapter)