Chapter 113 Acquisition of three listed companies



Hardy looked around and came up with a plan.

"Andy, I choose these three companies." Hardy pointed out several company names and said to Andy.

Andy looked towards the first one.

"Toy company?"

Andy was a little surprised why Hardy chose such a company.

"This toy company is good. Its stock price is only $0.23. It is located in the suburbs of Los Angeles and has its own factory and production line. Its total valuation is only about $60,000."

"Have you forgotten that this place was originally a toy factory? The original production workshop still stored a batch of machines, which were worth about 20,000 US dollars.

We have acquired this toy factory. As long as we ship these machines over, we can advertise that we have invested a large amount of money to increase production. The stock price is expected to rise."

"If those machines are left idle, they will continue to depreciate in value. Now is the time for them to come into play. If the price goes up by one cent, the investment will be fully recovered." Hardy said with a smile.

Andy thought this was a good idea.

It not only deals with bad assets, but also raises stock prices, killing two birds with one stone.

Andy looked at the other two companies and asked, "What do you think about this health care product company and this magazine that is about to go bankrupt?"

Hadi chuckled.

"Let's talk about this health care pharmaceutical company first. These reports say that its products are not selling well, causing its stock price to go down. Look at the product it sells. The name is not distinctive, "Fitness Capsules", which make people healthier after taking them."

"The effect is not significant, it is not targeted, and the product positioning is not clear. It would be strange if such a product is not unsalable."

Andy blinked. "So what do you think we should do?"

Hadi smiled and said, "Do you know China?"

"Isn't your auction house partner Han Chinese? Many of the antiques you purchased are Chinese antiques, and you like them very much," said Andy.

"I know a little about China. There is a branch of medicine there called traditional Chinese medicine, which is very profound and magical. They have many magical prescriptions. We can use them to produce health products. For example, there is a medicine that can make men more energetic and more powerful. Do you think men will like it?"

The blue Xiaoyao Pills have not been produced yet.

"There is also a kind of health product in China. I remember it was called 'Wuji Baifeng Pills'. It is very good for women's skin and can also delay aging. Do you think women will like it?"

"I also know of an ointment for treating hemorrhoids. It's refreshing and cool when applied there. There's no such medicine in the United States. Do you think people with hemorrhoids would need that ointment?"

Andy was a little confused. "These prescriptions must be hard to get. After all, these drugs sound magical."

Hardy shook his head. "It's not hard to get. Just find a doctor who is proficient in Chinese medicine. They know all this."

"Then this business is worth running." Andy said.

Hardy thought to himself that Chinese medicine and Chinese herbal medicine had been severely suppressed in later generations. Now it was 1946. If he could allow Chinese herbal medicine to flourish in America and gain a place for it, would the future of Chinese herbal medicine be easier?

Moreover, health care products are a huge market, and there are too many products that can be produced, hundreds of them in total.

The United States has very strict control over drugs, but very lax control over health products. A health product does not need approval to be put on the market, as long as you do not write that it is a therapeutic drug but a supplemental health product.

Now is the embryonic stage of health care products, and the market prospects are broad. It is entirely possible to develop a global health care product company.

Depend on.

Hardy noticed something was wrong.

At first, I just wanted to start a junk health care product company and drive up the stock price to make a profit, but as time went by, I suddenly wanted to start a legitimate company.

I wonder if this is considered as going astray.

"Then why did you choose a magazine?" Andy asked, pointing at the last listed company.

In fact, when Hardy saw this magazine, the first thing that came to his mind was a men's magazine, Playboy.

No matter what the original magazine's content is, you can put Playboy on it, and I believe that the magazine society will be revived immediately.

"If the cover of a magazine features a naked beauty, would you be interested in picking it up and reading it? If there are a lot of nude photos inside, would you be willing to pay for it?"

"Of course, magazine content doesn't have to be vulgar. We can write about movie star anecdotes, pop stars, and the enjoyment of life with luxury cars and beautiful women."

“You can express your political stance, raise the anti-war banner, publish some sharp interviews, or commentary articles written by well-known writers. In short, this magazine must have a distinctive personality.”

"This magazine is designed to be attractive to women, but the content cannot be vulgar. This way, it instantly looks more upscale."

Andy is an expert in finance, and Hardy cannot compare with him in this respect. However, Andy cannot catch up with Hardy's fantastic ideas.

"It seems interesting." Andy murmured.

He thought about himself.

If there is such a magazine, would you read it?

like,

Can.

Hardy patted Andy on the shoulder and said, "Andy, collect more detailed information about these three companies, and then we can study whether to acquire them. The more detailed the information, the better. I will tell Henry and let his intelligence room help you."

The security intelligence department + accounting firm collect intelligence together. I believe that the information they can find must be more detailed than others.

After leaving Andy's office, Hardy returned to his room, picked up the phone and called Mayer. Hardy told Mayer about his current situation.

I don't have enough money.

Either one of the two films mentioned earlier should be discontinued, or Mayer should raise funds first.

"Hardy, why don't you just give both movies to MGM? I can give you 10% of the profits. As for the heroine who will dominate the world, it will definitely be Ava," said Mayer.

This cunning old fellow must have been optimistic about these two movies to say that. Hardy himself is also optimistic about these two movies. The movies he picked out are all classics for later generations, and their reputation and box office are guaranteed.

If he agreed to the old fox, he would lose millions.

"Mr. Meyer, you may not know that Mr. Siegel has sold Noah's Ark Films to me. I have merged HD Films and Noah Films. I also want to use these two films to further promote the reputation of HD Films." Hardy said.

Mayer was very surprised to hear that Hardy had acquired Siegel's Noah Films. This would make HD Films a second-rate film company in Hollywood.

"Okay, let's continue to cooperate according to the previous agreement. Each company will pay half. You give me 1 million first, and MGM will temporarily advance the rest of the money." Mayer said.

"Thank you, Mr. Meyer." Hardy thanked with a smile.

In the next few days, Andy collected information, established a financial company, and recruited staff. A week later, he came to Hardy again.

"Boss, the data of those three companies has been collected."

Hardy picked up the document and looked at it.

The toy factory covers an area of ​​5 acres and has two production workshops. The original products were plastic bears and plastic dogs. The company was established in 1935 and made money in the first two years. After making money, the boss became a little arrogant and started buying luxury cars, gambling, and playing with women.

Someone urged him to go public to raise money. Seeing others making money crazily in the stock market, this guy also found a financial company to operate the company and go public.

In the beginning, the boss did make some money in the stock market, and he became even more complacent. He no longer managed the factory affairs, and spent every day eating, drinking and having fun. Later, World War II broke out, supplies were tightened, and the factory suddenly ran out of raw materials.

Without production, there is no money to be made. All the original workers, numbering over a hundred, resigned. The war ended and the ban on raw materials was lifted. The guy quickly recruited workers and resumed production. However, a few years later, his toys had already become outdated and no one bought them on the market.

The warehouse is piled up with a large number of toys, the factory is in a loss-making state, the boss has no money, and the bank is not optimistic about his industry, so it will not lend him money. This company is stuck here, unable to go up or down.

After the quarterly financial report came out, the stock price naturally fell, and then kept falling, all the way down from more than one dollar to the current price of only $0.23.

There are photos next to the information.

Hardy picked it up and took a look. It occupied a fairly large area, the factory building was not shabby, and all other supporting facilities were in place.

Looking at the second document,

This health care product company is called "GNC Health Care Products Company" and its product is "Fitness Capsules", which are said to make the body healthy after consumption.

In fact, the company's performance was pretty good in the beginning. The reason why its stock price has fallen to such a low level now is that it was completely destroyed by someone.

Fitness capsules contain various vitamins, and the other ingredient is potato flour. Vitamins have only been discovered for a few decades, and some have only been around for a few years.

However, vitamins are very famous. Since 1906, a total of 17 Nobel Prizes in Medicine or Physiology have been awarded to vitamin researchers. This has made ordinary people know that vitamins are very important to the human body.

After obtaining a license to produce vitamin health products, the GNC health products company began to produce fitness capsules. At that time, there were already many similar products on the market, and many large pharmaceutical companies were eyeing this piece of cake. GNC had no advantage at all.

The shareholders who invested in him started losing money on the first day and finally had no choice but to hire a professional manager. This manager promised to turn the company around, but he wanted 20% of the shares and would be allowed to cash out after the company went public.

Several shareholders finally agreed.

That's it.

The professional manager found a sales team to work with him and vigorously promoted the fitness capsule, which made this small health care product company famous.

This was followed by MLM-style sales, and fitness capsules became a hot seller for a while.

At this time, the manager began to seek a listing, which went smoothly and the manager got the promised 20% of the shares.

Next, the manager carried out a series of financial operations, constantly selling and buying stocks to cash out. In the end, the stock price was raised from the IPO price of $1.75 to $0.8, and the manager made a huge profit.

Finally, the manager paid himself and his management team high salaries, which took away a large amount of the company's profits. When the next year's financial report came out, everyone was surprised to find that the company had suffered a huge loss.

How could there be a loss?

The directors were confused by the first half data because the sales team did not sell much in the second half, and the sales team had been responsible for the second half of the year, but it was not until now that it was too late.

Then there was a falling out between the shareholders and the management team, the management team left en masse, and the company fell into trouble again.

Many people analyzed that GNC had encountered a team of professional company laundering.

GNC's stock price also plummeted, falling all the way to just $0.16, less than one-tenth of its issue price.

The last magazine company.

The magazine is called "West Coast Perspective" and its content is very diverse, focusing on military, politics, economy, and humanities.

The only reason why the stock price is low is that the issuance volume is small and no money is made.

They originally sought to go public in order to raise money, but going public could only prolong their survival for a few more years. Now they are on the verge of collapse. A weekly magazine only sells a few hundred copies per week, and the printing costs are not enough.

No one was optimistic about the magazine's future, so its stock price was only a pitiful $0.04, which had already reached the bottom.

Hardy put down the information and said to Andy, "Andy, these companies are not bad. I think they have great prospects for transformation. Let's start acquiring them."


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