Chapter 113: Rebuke for indecency
Chapter 113: Rebuke for indecency (6k)
The Fenzhong stock price tragedy caused by Guo Shanfeng has triggered media doubts and inquiries into the company, which is destined to be an important news before the New Year.
However, when Yu Xing was working normally and browsing his own website as usual, he suddenly saw the words "过山峰" in the title of the post. He was still a little confused. Did he click on "百晓生"?
He confirmed that it was indeed Bai Xiaosheng, a new workplace social and topic platform where people chatted, compared with each other, attacked their employers, pulled down competitors, and wished each other a happy new year.
Yu Xing clicked on the post with interest and found that it was a user certified as a "Fenzhong employee" who was posting anonymously, using the name "Pikachu".
"The SEC is investigating the company, and now there is a river of blood!"
"Shit, the stock price won't continue to collapse tomorrow, right?"
"I saw the boss go to the meeting with a gloomy face."
Because someone reposted the news, users who commented knew the whole story, and many people were asking one question - can they buy at the bottom?
“Pikachu” responded: “I don’t know. The stock price fell 40% yesterday. It should be a good price. But last year when it fell from $65 to $30, some people said they wanted to buy the dip. When it fell to $25, some people wanted to buy the dip. This year when it fell to $15, some people still wanted to buy the dip. Now… Anyway, do whatever you want.”
From 65 to 30, the drop is more than 53%, it’s the bottom!
From 30 to 25, the drop is more than 61%, it’s the bottom!
It has fallen to 15, a drop of more than 76%. Is this the bottom? !
Suddenly it was shorted, and the stock price has reached 8.1...
The impact of the financial crisis was huge, and domestic and foreign stock markets were in wailing. The topic of bottom fishing aroused everyone's empathy and heated discussion.
In addition to this discussion, some people are also talking about one thing - is Guoshanfeng a domestic product? How much money did it make this time?
When Yu Xing saw this, he silently closed the webpage.
Principal, principal, principal!
It is important to accumulate capital before finding a second short target.
However, as long as you do your best to be a know-it-all, you are accumulating capital.
This short selling has not been fully settled yet, and we don’t know whether we can get the bonus from the subsequent SEC fine on Fenzhong. Let’s put that aside for now. The initial estimate is that “Fenzhong allocated” US$100 million for a 10% stake, with a valuation of US$1000 million.
If the B round can increase Bai Xiaosheng's valuation to 3000 million, the 10% of "Fenzhong Grant" will naturally increase in value. At that time, other institutions can be found to take over and exit, and the short-selling capital will be further enhanced.
This 100 million US dollars goes into Bai Xiaosheng → Bai Xiaosheng can get development → Bai Xiaosheng's Series B financing increases in value → 10% of the shares are cashed out → Get more available capital after crossing the mountain.
And so the cycle continues...
Yu Xing pondered for a while. Could this be the initial capital operation?
dong dong dong.
There was a knock on the office door and Kong Huilin walked in with documents.
"Brother Xing, I want to report something new to you." Kong Huilin addressed him the same way as Song Yufeng.
Yu Xing said to the girlfriend of the steel chairman in a very kind manner: "Xiao Lin, go ahead."
Kong Huilin nodded and reported: "Fenzhong Media was shorted by Guo Shanfeng, and the stock price suffered heavy losses. This is..."
Yu Xing just took a sip of water when he choked: "Cough cough cough, you, cough, cough..."
No, did you report it wrong?
This is Bai Xiaosheng's president's office, not Guo Shanfeng's president's office!
Kong Huilin cast a concerned look.
"It's okay, drink quickly, talk, talk." Yu Xing breathed a sigh of relief.
"Oh, so, Fenzhong Media was shorted by Guo Shanfeng, and its stock price suffered heavy losses, which made the company more urgently in need of performance." Kong Huilin said seriously, "I just saw a post from a Fenzhong employee on the website, which mentioned the deployment of performance."
"Originally, our plan was to look for advertising after the new year, but now we have this opportunity. We will go to Fenzhong to discuss advertising. The price should be much more favorable."
"I took a quick look at Shanfeng's conclusion, and it turns out that Fenzhong is more than 3% water. However, if you ignore that, it still has great advertising value."
"Now is the perfect time to negotiate a better price!"
Yu Xing hesitated: "Killing at this time, cough, killing more ruthlessly?"
Kong Huilin said as a matter of course: "Yes, we have to be ruthless at this time. It doesn't matter which company produced the advertisements in the elevator. As long as our advertising effect can be achieved, it's fine."
Yu Xing was silent for a moment. How many times can you eat this fish?
Although he had thought about this before, it was suddenly raised in person by Kong Huilin, and it was the latest news from the Baixiao website, which he found a bit ridiculous.
Yu Xing coughed again: "Isn't this a bit too much?"
Kong Huilin advised: "Brother Xing, don't think this is taking advantage of someone's misfortune."
Yu Xing nodded gently: "Hmm..."
Kong Huilin continued, "Who told Fenzhong to fake it? Now it's at its normal price. We're lucky we didn't post a thread on the website criticizing it for being fake. Sister Ying thinks there's no need to push this topic. We can just watch the users discuss it naturally."
Yu Xing was a little surprised: "You have discussed this?"
"Yes, I saw the news on the Penguin portal last night. This Fenzhong must have fabricated it." Kong Huilin said seriously, "But no matter what it is, we should maximize our interests, right?"
Yu Xing could hardly disagree: "Okay, Xiaolin, well, then let's maximize it. Since you said so, let's try to determine the approximate situation before the end of the year. We'll prioritize Shanghai. If the price is right, then we'll decide on Beijing, Shanghai, Guangzhou and Shenzhen. Lin'an is not urgent."
Kong Huilin nodded heavily, stood up and left the office.
Finally, with the progress of the company's financing, I have room to display my abilities.
Kong Huilin came to Bai Xiaosheng because of her boyfriend, but she was unwilling to be just his assistant. Especially as Bai Xiaosheng developed, she would rather make outstanding achievements.
Yu Xing sat in his office and confirmed one thing: some secrets are indeed only suitable to be taken into the coffin.
I'm not afraid of taking advantage of someone's misfortune, I'm afraid of taking advantage of someone too misfortune...
However, Yu Xing was feeling a little uncomfortable, but Chang Haijie, the business manager of Fenzhong Media, came to Bai Xiaosheng eagerly after receiving a call from Kong Huilin.
At 2:30 in the afternoon, Chang Haijie sat down in the conference room. Before he could say a few words, he saw a young man pushing the door and walking in.
"This is our General Manager Yu." Kong Huilin stood up and introduced.
Chang Haijie quickly shook hands and offered words of praise.
He had previously done some brief research on the company Bai Xiaosheng, and he actually found a lot of information, including that of its founder Yu Xing, an entrepreneur with a medical background who had spoken at an Internet conference.
He is indeed young, and at first glance he seems very friendly, with a big smile on his face.
Chang Haijie sat down again and introduced the business to Yu Xing and Kong Huilin.
Because he knew that this was a newly established company, the products he promoted were released on a weekly basis.
"Mr. Yu, Mr. Kong, we can play Bai Xiaosheng's advertisements in all major commercial centers in Shanghai. Wherever you go, there will be a screen of our Fenzhong Media."
"Our package is very cost-effective. It plays for 5 seconds on each screen at a time, 60 times a day, which will definitely make users remember the name of your website."
"It should be said that the name of our website is also very distinctive. When the time comes, we can create an advertisement that suits this feature and use it every day when we go to work and come home. The effect will definitely be very good!"
Chang Haijie wrote down the package data on a piece of paper with a pen: 5 times per day with a duration of 60 seconds, the price was 18.08 yuan.
He observed the expressions of the two customers, ready to provide alternative solutions, either up or down, at any time.
Then, Chang Haijie looked at Mr. Yu and said with a smile.
"Give me a discount. Didn't your company fake the number of screens?"
Chang Haijie was caught off guard and felt his blood boiling for an instant. Is this something they can talk about face to face?
Still using this normal tone!
He took a breath and explained, "Some of our peers have been slandering us recently. Mr. Yu, our results in the industry have been well-known over the years."
Yu Xing looked at Manager Fenzhong in surprise and asked, "Didn't your stock price drop by more than 4%? Could the slander be so serious?"
Chang Haijie: “…”
Kong Huilin reminded him at the right time: "Boss Chang, think about the name of our website. We are the well-informed know-it-alls."
Chang Haijie felt a little embarrassed. He defended himself in a deep voice, "Mr. Yu, Mr. Kong, our company's stock price has indeed been attacked by some people with bad intentions, and the market is confused and short-sighted. This does not mean that we have committed fraud. I believe that we will be cleared of all charges soon!"
Yu Xing nodded and asked again: "I saw a reporter in Pengcheng verify the number of your screens, and they basically match the survey conducted by Guo Shanfeng. How do you explain this?"
Chang Haijie is sweating!
Is this really the real life of Bai Xiaosheng?
I do understand this incident...
He looked at the two people in front of him and could only say with absolute certainty: "Fenzhong did not fake it!"
How could I not know whether you have faked it or not?
Yu Xing sighed and asked, "You don't know whether you have faked it or not?"
He shook his head and stood up. "We don't care whether you're cheating or not. We just want a fair price. If you can't give us a quote based on facts, then don't waste your time today."
Chang Haijie rolled his eyes, stood up and tried to persuade him to stay: "Hey, Mr. Yu, Mr. Yu, please sit down, let's talk, let's talk, let's be honest..."
He hesitated for a moment and said, "The company has a lot of things to do right now, but our screens are set up in major commercial buildings, and that's real. I believe that Mr. Yu and Mr. Kong called because they recognized our results. There happens to be an event before the New Year, so I'll call and apply. We can talk about the price."
Yu Xing did not pursue the matter relentlessly, but only made a request: "Mr. Chang, I believe that the media in Pengcheng are not fools, so many Nasdaq shareholders are not fools, and the US SEC is not fools either. But even so, we are still willing to choose Fenzhong at this juncture."
"Why do you think it is?"
Chang Haijie was also a little puzzled: "Why?"
Yu Xing said seriously: "Because I have met your CEO Jiang once before. We had exchanges at the Internet Conference in Jinling before. I admire him very much."
Chang Haijie suddenly realized, no wonder...
"I also have his number in my mobile phone, but one thing is one thing. I can't go to him just for this business. You list all the packages and go back to apply for it. If it works, it's fine. If not, forget it." Yu Xing said directly.
Chang Haijie had no objection and listed the packages and external quotations. Fenzhong Media's prices in Beijing, Shanghai, Guangzhou and Shenzhen were the same: 30 times a day, 30 seconds each time, the price was 35.8 yuan a week, 15 seconds was 22.8 yuan, and 5 seconds was 10.68 yuan.
60 times a day, 30 seconds each time, the price is 58.8 per week, 15 seconds is 35.18, and 5 seconds is 18.08.
If it happens to be a national holiday, the price will increase by 20% per week.
While looking at the package he wrote, Kong Huilin said, "Mr. Chang, our company is looking for long-term cooperation business, because we have just started, and we have obtained the A round of financing, and we will obtain the B round this year. The effect will determine the length of our cooperation."
Chang Haijie put down his pen and took the initiative to say, "Within my authority, I can give you a 95% discount on any set meal you choose."
"You are cheating. The 95% discount is too exaggerated." Yu Xing did not forget to mention the cheating and asked, "Which effect do your customers report has the best cost-effectiveness?"
Chang Haijie pondered for a while and said, "In fact, 60 times a day, 15 seconds each time, this 35.18 package has always been very popular."
"Mr. Chang, how do you give discounts to long-term customers?" Yu Xing said with a smile, "Look at our company, everyone from top to bottom is young, and they are very straightforward in what they say and do. You can just quote directly, and there is no need to waste time to decide whether it is feasible or not."
Chang Haijie did not answer immediately.
Yu Xing turned to Kong Huilin and said, "Look, Mr. Chang hesitated. That means there is still room."
Chang Haijie smiled bitterly and said, "I'm not hesitating about this. It's just that no matter how much I quote, Mr. Yu will still lower my price."
He has realized this.
"I'm not trying to lower your price, but I still believe in you at the critical moment." Yu Xing gave him a way out, "Fenzhong Media also needs performance internally, and we, Bai Xiaosheng, are helping you in times of need."
Chang Haijie nodded in his heart. Indeed, he had received the news last night that they wanted to confirm as many customers as possible.
He gritted his teeth and quoted the price: "Boss Yu, I'll make it clear once and for all. If Bai Xiaosheng can subscribe for a month before the end of the year and sign a renewal contract for at least one year, I will go back to the company to apply, and the best I can give is a 85% discount. There is no room for more!"
Yu Xing stretched out his hand and Kong Huilin handed him the calculator.
35.18*0.85=29.903.
Yu Xing put down the calculator and nodded: "Okay, this price is fine."
Chang Haijie smiled subconsciously. He really kept his word. It was very satisfying!
Yu Xing said smoothly: "Then let's take 29.9. Then, let's calculate the price after removing the fake water."
Chang Haijie's smile froze, and he said unhappily, "Boss Yu, this is boring."
"You are faking it." Yu Xing mentioned it again and said directly, "Based on the number of real screens, the real screen is probably 0.65 as claimed, that is, 29.9 of 0.65, 19.435, minus the decimal, 19."
Chang Haijie spread his hands: "Mr. Yu, no one talks about business like you do. This can't be done."
Yu Xing asked in doubt: "Hey, no, isn't this wrong? Isn't it calculated according to your real price? I didn't force you to falsify it."
Chang Haijie shook his head: "Boss Yu, this is really not possible. Don't speak so harshly. We, Fenzhong, are number one in the industry."
"What do you mean I'm being harsh? I said the same thing in front of CEO Jiang, so how can that be considered fake?" Yu Xing said righteously, "I don't know how you guys calculate it internally, but this should be the real price, 19. CEO Chang, go back and apply for it."
Chang Haijie was finally pushed to the limit, his face flushed, "Boss Yu! You don't have to mention every sentence! My memory is not that bad!"
"Boss Chang, don't be impatient. I'm not saying you guys are faking it. That's what Guo Shanfeng said." Yu Xing softened at this time. "Just go back and tell us about our situation. To be honest, our A round of financing valuation is almost 70 million. We'll need advertising business all year round, not just this year. I know companies like yours offer different discounts to different levels of customers. I've read your financial reports and know your profit situation."
Chang Haijie stared at the young founder in front of him, inevitably feeling a little shocked. How could such a small workshop be worth so much money?
However, different levels of customers are indeed treated differently.
He took two deep breaths and finally fought back: "Since you believed Shan Feng's words, Mr. Yu, then the financial report you read is meaningless."
Yu Xing was stunned for five seconds. What you said... makes sense.
As Chang Haijie put away his things, he sighed and said, "Boss Yu, your price is really not negotiable. It would be a waste of effort for me to go back. Don't think of taking advantage of the situation."
"If it doesn't work, we can wait until next time. Even if the deal doesn't work out, we still have righteousness. It's not like I don't know your CEO Jiang." Yu Xing disagreed. "Go back and try your best to explain the situation clearly. Just say that your current customers are very suspicious and you have to report the difficulties to your superiors. It's not you who is lying. It's the company's problem."
Chang Haijie had nothing to say.
Just when he was about to leave, he was suddenly stopped by the young founder.
"Mr. Chang, since you are here, why not register an account on our website?" Yu Xing said with a smile, "Don't leave empty-handed."
Chang Haijie had a deeper understanding of the "smile" on this person's face. He gave a thumbs up helplessly and registered an account before ending this visit to the customer.
When he got back to the company, Chang Haijie thought about it and felt that he couldn't quote such a price. 19 was equivalent to a 54% discount on the customer, and there was no way he could apply for it.
At four o'clock in the afternoon, when he was about to talk to his leader about the customer's concerns, an impromptu meeting was held.
As expected, it was still a matter of taking customers, but what was surprising was the movements of competitors.
——A competitor claimed that as long as the client has invested more than 1 million yuan in Fenzhong Media in one of the past two years, he can get a 5% discount on Fenzhong Media’s quotation!
This is undoubtedly an attempt to snatch top customers while Fenzhong is being suspected of fraud!
There was an uproar in the conference room. This was just adding insult to injury!
When the tense meeting was over, Chang Haijie felt confident enough to make the offer. He stopped his leader who was about to leave in a hurry and mentioned the situation from Bai Xiaosheng.
"19?" Vice President Peng Shubao cursed, but still relented, "Give it to him! But only sign a six-month contract!"
Chang Haijie was stunned and shocked. What a gift...
This is basically close to the price offered by competitors to poach top customers!
"During this period before and after the Lunar New Year, we should get more customers this month and quote at a 85% discount. We can talk later. The company needs to report its performance to the outside world in the near future." Peng Shubao said earnestly, "After we get through this period, everything will be easy later."
He patted his subordinate on the shoulder and hurried off to attend another meeting.
Chang Haijie was stunned. He was shorting the market, the SEC was investigating, and his competitors were trying to snatch the top clients...
It’s difficult, it’s too difficult!
He rubbed his face and became more aware of the situation the company was facing.
At five o'clock in the afternoon, Chang Haijie called Yu Xing directly to inform him of the latest news, and at the same time emphasized that this was the final price and there would be absolutely no room for improvement after the expiration date.
He was afraid that the young man would continue to bargain recklessly, so he repeatedly emphasized the bottom line.
"No problem, Mr. Chang. You come to the company tomorrow and we'll sign the contract first. We'll pay the money after the New Year when everyone goes back to work, and then we can place the advertisement." Yu Xing agreed.
Chang Haijie said with a headache: "Why are you waiting until after the New Year? Don't you want to attract customers now?"
"The New Year holiday is coming soon, who can we invest in? Besides, the money for our A round of financing has not come in yet, and the institution is also on holiday. We are just waiting to get the money after the New Year." Yu Xing smiled and said, "Don't be afraid, as long as we have the contract in hand."
"Okay, then I'll go to your company tomorrow." Chang Haijie agreed reluctantly. Special times require special arrangements.
"Your profits are so high, don't be so discouraged, the gross profit margin is 65%, it's really enviable." Yu Xing said here, and asked, "I see our website has been talking about the mountain crossing, does your company have any plans?"
Chang Haijie frowned and said, "No, I don't know where they are from. Alas, they are all rats who dare not stand in the sun."
Yu Xing really didn't dare to stand in the sun, he only dared to mention a few words of reality in front of Fenzhong employees.
Well, when I have the chance to meet Jiang Nanchun, I can criticize him in person.
Fenzhong allocates funds and then uses the funds to buy Fenzhong's products. It would be even better if more Fenzhong employees could be encouraged to register accounts on the website.
Yu Xing was in a very good mood that day.
When the market opened again in the evening, he watched the stock price changes for half an hour and saw that Fenzhong's stock price rebounded to US$8.6. He couldn't help but call Liu Wanying.
"Fenzhong's stock price has gone up. Didn't you make as much today as you did yesterday?" Yu Xing was worried about Fenzhong's allocation. "Did you sell your options today?"
"Not yet. Wait a little longer. The rebound is normal. Jiang Nanchun has announced a stock repurchase." Liu Wanying said calmly, "One of the remaining shares has already locked in profits. As long as its stock price does not return to above $10, this part of the profit will be higher than yesterday's."
Yu Xing didn't understand: "Didn't its stock price go up?"
"Because this part of the principal is to sell a call option with a lower strike price and buy a call option with a higher strike price, it locks in the difference in the premiums of the two options." Liu Wanying thought for a moment and said directly, "If you understand it this way, as long as the stock price does not return to $10, this lock-in has reached the upper limit of its profit."
Yu Xing asked, "Is that more or less than yesterday?"
"3% more than yesterday." Liu Wanying replied.
Yu Xing was surprised and asked, "Why didn't you just lock yesterday's principal like this? Wouldn't you make more money then?"
Liu Wanying said patiently: "The strategy for this part is the bear market call spread. You are now making decisions based on the results. As long as the PUT breaks through $7.5 yesterday, you can get a higher profit than the bear market call spread."
"Unfortunately, we don't have more cards in our hand. We played all our cards before the market opened. Fenzhong rebounded after hitting a low of 7.8 yesterday. If we still had chips, we might be able to further break through its bottom line."
Seeing no sound from the other end of the line, she explained, "You should take another look at the email I sent you. Fenton Media has fallen 80% in the past year. Its implied volatility is very high. Our news came more than ten hours after it opened."
"We only know what we can do, not what our opponents can do."
"Our capital is only a tiny fraction of Fenzhong Media's. If someone like Shen Nanpeng has the resources and power, they can quickly communicate with the SEC to reduce the impact, or they can come up with some kind of penalty agreement. Operations that are too high-risk would be very dangerous."
"So, I only have a few CFD contracts, PUT to expect more declines, and call spreads to lock in the highest returns. When we have the principal that can withstand losses, maybe we can be more aggressive."
Liu Wanying explained her thoughts, pursed her lips, and asked, "Can you understand?"
"Yes!" Yu Xing said without hesitation, "Let's see how far we can go and also see the limits of our opponents!"
Liu Wanying judged: "No."
Yu Xing is actually very capable. He crossed the "muddy waters" by feeling his way. The first investigation by Muddy Waters must have confirmed that the report in their hands was true, but they did not go all in and only earned $6000. They must have been worried about the strange risks in the real world.
"You should take another look at the email." Liu Wanying gave advice.
Yu Xing readily agreed and shared today’s business cooperation with Fenzhong.
Liu Wanying remained silent for a long time after listening to this.
Finally, she said, "Boss Yu, protect yourself, you will really be stabbed."
(End of this chapter)