Sure enough, on that day, Tianyu Group's stock opened sharply lower, but was stabilized by a powerful force after falling by about two points.
This prevented many investors who planned to short Tianyu Group's stock but didn't have the chance to do so from continuing their shorting efforts.
Some of them remain bearish on Tianyu Group's stock, but they want to choose a better entry point. They think the stock might be pumped up later. Wouldn't it be better to short it when it's driven up to a higher price?
Some cynical investors, however, thought it was too much of a coincidence that Tianyu Group's smear videos suddenly appeared on the homepages of several nationally renowned portal websites. They wondered if Tianyu Group had orchestrated the whole thing.
Tianyu Group has made a series of big moves recently. Perhaps they have discovered a highly profitable project and the senior management of Tianyu Group wants to get rid of retail investors and go it alone to buy back the shares. Is this scene a self-directed performance?
After all, those shady videos from Tianyu Group went viral too quickly; no one would believe there wasn't some powerful force behind them.
If it wasn't a staged event orchestrated by Tianyu Group's top management, but rather a targeted move, Tianyu Group's top management might have continuously boosted the stock price to stabilize public sentiment, or even announced several major positive developments. After all, there are too many stocks in the stock market that have risen despite major negative news.
Some daring investors even went long at this price point and bought stocks.
It has already dropped two points. As long as it pulls up a bit later, they can quickly switch to shorting and make a profit.
That's how the stock market works. Given the same stock, at the same time, and with the same events, some people are optimistic about it, while others are pessimistic.
However, at this moment, most shareholders are bearish on Tianyu Group.
In China, only stocks that can be shorted through margin trading can be shorted. Tianyu Group's stock happens to be one of these stocks, which is why it attracts many investors.
...
In the suite where the six traders were located at the Qingyun Hotel.
"Boss, Tianyu Group's stock price is falling rapidly. We only had time to short over 200,000 shares just now, and the stock price has already dropped by 2%. Should we continue shorting?"
One of the traders looked at Lin Yun and asked quickly.
"Only managed to short 200,000 shares?" Lin Yun frowned.
The stock of Tianyu Group is currently around 15 yuan, and with more than 200,000 shares, it only amounts to a little over 3 million yuan.
"There's nothing we can do. Today, nobody's optimistic about Tianyu Group's stock. Not many people are willing to buy. We were lucky to be able to short more than 200,000 shares at the beginning. If the boss returns the shares now, he could make about 30,000 to 40,000 yuan." The trader shook his head and said.
They just shorted the stock, but not at yesterday's closing price, because today's opening price was much lower. Furthermore, the price at which they sold the shares plummeted, as if they were in a rush. They only managed to make a 1% profit because they were quick in their operations.
“If you return the coupon now, you can earn 30,000 to 40,000…” Lin Yun was no novice when it came to the stock market; in fact, he was quite knowledgeable about it. Although he had already arrived at this figure, he still took a deep breath upon hearing the trader’s words.
With an investment of over three million, it only took a minute or two to earn a profit of thirty to forty thousand. How long would it take an ordinary person to earn thirty to forty thousand?
At that moment, he seemed to understand why the stock market was so attractive to many people.
However, this is a profit; if it were a loss, it would have been lost just as quickly, or even faster.
If you raise several times the amount of funding, it's common to go from heaven to hell in an instant.
The stock market is just a big casino.
He certainly wouldn't return the voucher. He had prepared hundreds of millions of funds, and he didn't go to the Golden Dragon Building to absorb spiritual energy. Why would he come here to earn a mere thirty or forty thousand?
Thirty or forty thousand isn't even enough to pay the salaries of these traders!
"Continue to short slowly," Lin Yun said calmly.
His plan is to keep shorting; this is just the beginning. A 2% drop is nothing; it's still a long way from his target price.
...
A conference room at the headquarters of Tianyu Group.
"Heh, the online opinions are nothing special. It's only a 2% drop, and not many people dare to sell. It only cost a little over ten million in total." A director scoffed and said.
Tianyu Group's market value is now over 13 billion. Although it has dropped by 2%, which is equivalent to a loss of more than 200 million in market value, it is normal for stock prices to fluctuate. Not to mention a drop of 2%, a fluctuation of 10% within a few days is also normal.
These senior executives of Tianyu Group often make money by manipulating their group's stock, and they've done this kind of thing quite a few times.
"If you ask me, we shouldn't have held on when it dropped by 2%. We should have waited until it dropped by 10%, to the daily limit down, before buying. Wouldn't that have been better and saved us a lot of money?" one director nodded in agreement.
"If it really drops by 10%, do you think you can hold it up? Is our goal to buy stocks?" One of the directors, who was more knowledgeable about stocks, glanced at the other two directors and said irritably.
He really had nothing to say to those two idiots.
It only took a few minutes and more than ten million was spent. Is that a good thing?
The stock market has just started today, and many people are still observing!
If it drops another 10%, it will cause a huge panic. Many investors will rush to sell their shares in Tianyu Group, especially since the group's shares can be shorted. Some speculative funds will find it easy to take advantage of the situation. At that time, without a huge amount of capital, they will not be able to support the stock.
Most importantly, Tianyu Group's current stock price is somewhat inflated. Did they have an easy time driving it up to this high price?
A high price not only enhances the reputation and status of Tianyu Group, but also allows them to borrow more money!
Now, their group is embroiled in negative news. Once they fall, it won't be easy for them to recover!
These two idiots think that a 2% drop now is the same as the ups and downs they usually experience when they manipulate the group's stock?
At that time, whether the market was rising or falling, it was all under their control. They could harvest wave after wave of funds during the rise and fall!
The current decline is entirely due to unexpected factors, especially given that Tianyu Group's stock price is inflated and it is embroiled in negative news. Even if the money hasn't truly evaporated, it's pretty much gone!
Sitting at the head of the table, Zhang Zhongguo tapped his fingers on the table and frowned slightly.
The quality and ability of directors vary greatly, which is a common problem for many listed companies.
If you encounter a reasonable and understanding director, that's fine. They don't usually get involved in business or touch the stock much, and they just wait to receive their dividends each year. But if you encounter a director who is more active and scheming, you have to take extra care of them.
For example, right now, he has to take good care of these directors and prevent them from selling shares casually.
"Something's not right. It seems like someone is selling off a lot of our stock..."
Just then, one of the traders not far away suddenly frowned and whispered.
Logically, with prices stabilizing, trading volume should also decrease, and many investors should be in a wait-and-see mode. However, the reality is quite different; there are still people selling large amounts of Tianyu Group stock.
PS: Thanks to "If the mountain won't come to me, I'll go to the mountain", "SuperBigWhite121", and "Lingtu" for their donations.
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