After get off work, Zhang Junfeng drove Li Fuzhen to the Wuxing Li family's mansion. Before leaving, Li Fuzhen called her father Li Jianxi and told him that Zhang Junfeng had returned. Li Jianxi was very happy and asked Hong Luoxi to arrange a sumptuous dinner reception in the evening.
…
Not long after Zhang Junfeng and his wife arrived at the Li family villa, his sister Li Shuxian and brother-in-law Li Zairong also arrived here with their wives.
Seeing the family gathered together again, Li Jianxi, as the head of the family, was in a very good mood. After chatting with everyone for a few words, Li Jianxi, Li Zairong and others looked at Zhang Junfeng, the son-in-law/brother-in-law, with some curiosity.
After all, the other party had been away for nearly two weeks, and they were still quite interested in what he had accomplished during his business trip.
Facing everyone's curious gazes, Zhang Junfeng smiled calmly, "In the United States, it was mainly because a friend who worked at JPMorgan Chase invited me to a meal and introduced me to a few new friends."
"When Daum's stock price rose so rapidly, I asked JPMorgan Chase for help and found an institution to help with the operation. Otherwise, the Goldman Sachs branch alone would not have achieved the current results."
When Zhang Junfeng mentioned the skyrocketing share price of Daum, everyone suddenly realized what was going on. Li Shuxian, the younger sister, looked at Zhang Junfeng with a smile and asked, "Brother-in-law, can you tell me how much the share price of Daum can continue to rise?"
Seeing Li Shuxian asking this, the others also looked at Zhang Junfeng expectantly, hoping that he could tell them. You know, it has been about 20 days since the beginning of the surge in the stock price of Daum, and the cumulative increase has exceeded an astonishing 640%!
That is, they did not buy enough stocks at the beginning, so the stock price rose very high, but the number of stocks in their hands was not large, and the profit was not particularly high. If they buy more stocks now, it is obvious that they are buying at a high price. If they do not know the subsequent changes in the situation, they are very likely to be trapped at a high price when the stock price plummets.
Zhang Junfeng raised his lips slightly, "Daum's stock price certainly has room to rise, but the subsequent rise will be adjusted. It is unlikely that the stock price will rise by 15% every day like before. The cost of violent rise is too high..."
"It is estimated that Daum's market value will be between 2.5 billion and 3 billion US dollars! As for the exact amount, it depends on subsequent operations and actual conditions."
As soon as Zhang Junfeng finished speaking, several people in the living room breathed a sigh of relief, and then the joy on their faces became even more difficult to conceal. Although they all knew that the stock price of Daum Company would definitely have room to rise.
But before getting a positive answer from Zhang Junfeng, everyone was a little worried. Now that they know that Daum still has at least 40% room to rise, what else do they have to worry about? They just need to continue holding for a while, and when it approaches the critical value, they can sell the stock price of Daum to maximize the benefits of holding!
After a few people chatted in the living room for a while, Li Jianxi returned to the study on the second floor to practice calligraphy.
Seeing this, Zhang Junfeng took the golden Pixiu in the suitcase to the study and showed it to Li Jianxi.
"This Pixiu is a beast of good fortune from the Dragon Kingdom. It has a mouth but no anus, and can swallow all the treasures in the world without leaking out. It means that it only takes in but never gives out, so it is regarded by many people as a beast that brings wealth. I happened to see it in the Dragon Kingdom this time, so I just brought it back. I think you will like it too, right?"
After the suitcase was opened, Li Jianxi, who was a little indifferent at first, was quickly attracted by the unique and golden Pixiu. Is this thing a mythical beast that brings wealth? It seems that the treasure given by the son-in-law has a good meaning and is very suitable for their Five Star Group! In the evening, after the family dinner, they gathered together to chat for a long time, and the atmosphere was very harmonious. It was not until Li Fuzhen felt sleepy that Zhang Junfeng got up and took her away first.
…
In the following three months, although the stock price of Daum did not rise as fast as before, the cumulative increase was more than 30%. Seeing that December was approaching, Zhang Junfeng made a prompt decision and quickly called Goldman Sachs and Morgan Securities to ask them to "sell large and buy small" to quietly sell the shares they held in order to avoid stock price fluctuations.
Afterwards, Zhang Junfeng also said hello to the three people from the Five Star Lee family, Jin Zhongmin and others, indicating that the share price of Daum Company had almost risen, and they could first reduce their holdings and cash out. After the notification was in place, Zhang Junfeng was also quite relaxed. Anyway, the greetings had already been made, and he didn't have to worry about what they would do in the end.
That evening, Zhang Junfeng contacted Nacho Morgan through a remote video conference and proposed to him the idea of gradually selling off all of his Qualcomm shares by early December at the latest.
Nacho Morgan was very surprised by this. After more than two minutes of consideration, he finally decided to agree to Zhang Junfeng's proposal and cash out all Qualcomm shares. Of course, Nacho Morgan was also quite curious, why did Zhang Junfeng remind him to sell in advance during this period?
"Mr. Morgan, Qualcomm's current stock price has risen more than ten times the price we paid for it! If we continue to hold on, we don't know how much the profit will grow, but the risk of a crash will inevitably increase exponentially!"
"And you haven't noticed that as the Federal Reserve continues to raise interest rates, the market's expectations for the economy have changed. A large amount of funds continue to flow into the technology industry, which has seen huge increases. The Nasdaq index has risen by more than 50%, and its valuation has increased from more than 30 times to more than 50 times now."
"During the same period, the S&P index rose by less than 10%, far lower than the Nasdaq index. This is not good news for investors!"
After hearing Zhang Junfeng's analysis, Nacho Morgan, who was relatively familiar with the current stock market, nodded in agreement. The situation was indeed the same as Zhang Junfeng said, but many investors and financial institutions had been completely overwhelmed by the huge investment returns of Internet technology companies, and subconsciously ignored the problems and risks that had arisen.
Nacho Morgan smiled triumphantly when he thought of this. Previously, many senior executives of JPMorgan Chase and even some members of the board of directors had complained about him and Zhang Junfeng's investment in Qualcomm. Now those guys dare not even spare a single drop of skin!
In less than half a year, it has obtained a super high return of 16-17 times. Not to mention other Internet technology companies, it is a unique and excellent investment even in the world. The more happily those guys jumped before, the more painful it is to be slapped in the face now.
Especially the people he introduced to Zhang Junfeng at the previous banquet, such as Li Jing, secretary of the JPMorgan Chase board of directors, Sun Wei, head of Morgan Stanley's credit department, and Bonny Brett, president of JPMorgan Chase's investment bank. They had previously looked down on Zhang Junfeng, but now they almost regard Zhang Junfeng as a "stock god" and an idol!
…
"…By the way, you should go and explain things to my niece yourself. She's been feeling very aggrieved ever since she found out that the Qualcomm stock she invested in had skyrocketed and doubled!" After chatting with Zhang Junfeng about business, Nacho Morgan thought of his adopted daughter, who was in a very bad mood.
After all, before this, even he, a veteran in the investment industry, thought that the annualized rate of return of 25% promised by Zhang Junfeng was already very impressive, and never expected that Qualcomm could be so amazing! According to what Anne Hathaway Morgan had told him before, and the secret report from Morgan Securities, Zhang Junfeng was definitely the biggest winner of this investment in Qualcomm! In addition to the 200 million US dollars he had given up for safety reasons, Zhang Junfeng also took about 9.2% of Qualcomm's shares.
Now the prices of these shares have soared more than ten times. Even though they were acquired at a premium and the cost was relatively high, they still couldn't escape the profit of about 12-13 times!
That is to say, the 500 million dollars that the girl gave Zhang Junfeng originally, this guy made more than 6 billion dollars with it, and taking into account the 200 million shares that were previously allocated to him, his total profit value may even reach 8.5 billion dollars! And he only needs to pay 625 million dollars (interest and principal) from Anne Hathaway-Morgan. After deducting the 575 million dollars that needs to be returned to him, only 50 million dollars are left for the girl. With such a huge gap, how could this girl not have a temper? I guess she must be heartbroken, right? ...
Hearing the other party mention Anne Hathaway-Morgan, Zhang Junfeng also smiled awkwardly. Although he had long known that investing in Qualcomm could bring huge profits, how could Zhang Junfeng easily reveal such an outrageous investment return?
It is said that "one step ahead is a genius, two steps ahead is a martyr, and three steps ahead is a madman". He does not want to reveal too much and behave too advanced and be treated as a madman by those guys. None of these guys are easy to deal with. If he reveals his ability to "foresee the future", he will be in trouble endlessly!
"...I will contact Annie. I will definitely not make things difficult for you as her uncle!" Zhang Junfeng laughed. Anyway, he has made a lot of money now. At worst, he can give the other party some benefits. It shouldn't be a big problem to appease her.
He believed that as long as Anne Hathaway-Morgan was rational, she would not quarrel with him over this matter. After all, investment was only temporary and would not happen only once. As long as he, an investment expert, could be won over, there would be more and more projects worth investing in! …
Hearing what Zhang Junfeng said, Nacho Morgan smiled and nodded. The reason why he mentioned Anne Hathaway-Morgan at this time was that he hoped to use the guilt Zhang Junfeng felt for making huge profits to create some opportunities for his adopted daughter.
As for how far the next step can go, it all depends on the girl's ability! Zhang Junfeng, this kid, can be said to have completely soared to the sky with this opportunity!
According to his estimation, Zhang Junfeng's net worth is likely to reach 10 billion US dollars, and Comet Capital, which he manages, will further narrow the gap between it and the top financial institutions in the United States. I hope that girl can work harder and not let such a talented person run away!
…
As time went by, Comet Capital had successfully sold most of its shares in Qualcomm, and the cumulative balance of the multiple accounts they opened at Morgan Securities had reached US$6.8 billion.
According to the current trend, it should not be a big problem to clear all the stocks before early December. However, the situation of Daum is a bit tricky.
According to the current situation, Comet Capital is now the major shareholder of Daum. If it transfers all of the company's shares in a short period of time, it will inevitably cause a huge public outcry, and the stock price may plummet in a short period of time.
After a long discussion, Zhang Junfeng and Leon John finally decided that Comet Capital would initiate an extraordinary shareholders' meeting, hoping to dilute its own shares through a new round of financing. Goldman Sachs and Morgan Investment Bank would help find willing institutions to invest.
In this way, Comet Capital can complete the dilution of its shares in a short period of time. At that time, they will split the shares of Daum they hold into several parts and sell them off, leaving only a smaller part to continue holding.
When the Internet bubble bursts and the crisis breaks out next year, they will act as "saviors" and buy back most of Daum's shares, which have fallen to dirt cheap, at low prices. Not only will they not suffer any losses, but they will make a huge profit and gain a good reputation. They will kill two birds with one stone!
…
So when Daum announced a new round of financing after the extraordinary shareholders' meeting, many financial institutions in Asia were quick to respond. Even some small and medium-sized institutions in Europe and the United States were tempted by the news deliberately leaked by Morgan Investment Bank and sent representatives to negotiate with Daum.
Daum's president, Lee Jae-woong, was both excited and nervous about this situation. He had never thought that their small Internet company would one day receive so much attention and praise from so many organizations.
Although it is not clear what considerations led Comet Capital President Zhang Junfeng to push forward this financing plan, it is definitely good news for Daum.
There is no mistake in the poem, post, content, and read the book on 6, 9, and bar!
With the new large amount of financing, they can expand the scale of the company and even enter other Asian countries, such as Japan, which is also a developed country, prosperous Singapore, and even European and American countries and regions. They can also give it a try!
…
Of course, Daum's move also attracted a lot of attention.
People like Zheng Mengjiu, Jin Zhongmin, and the father and son of the Li family also asked Zhang Junfeng for information, but they were all warned by Zhang Junfeng that it was not recommended to buy Daum's stocks. Comet Capital was already setting up a trap to get out. If they bought in at this time and were stuck at a high position, it would have nothing to do with them! Hearing Zhang Junfeng's change of his previous kind attitude and a much more serious tone, they completely gave up the idea and stopped joining in the fun.
In this "financing carnival", the most active ones were Yuetian Group and the securities companies in Japan. They seemed to be very optimistic about the development and future of Daum, and more than 70% of the financing amount was taken by them, while the rest was taken by investment institutions in other countries.
Comet Capital, which originally held the largest stake, also retreated from the largest shareholder to the top six. Many wealthy institutions even took the initiative to visit Comet Capital, wanting to buy their shares at a high price.
How could Zhang Junfeng refuse such a "buyer" who came up to him so eagerly? After some bargaining, he successfully sold a part of his company's shares. After this battle, Comet Capital's shares in Daum also dropped to less than 10%, only 8.7%, ranking last among the top ten shareholders of the company.
…
In February 2000, Federal Reserve Chairman Alan Greenspan believed that the Internet bubble was too big and the Nasdaq's price-to-earnings ratio had reached an astonishing 200 times, and announced a substantial interest rate hike. This also witnessed the end of the Internet technology industry, which had been prosperous for several years.
At this time, Zhang Junfeng contacted Nacho Morgan late at night and proposed a bold idea to "short the Nasdaq Index" in the futures market, which made Nacho Morgan inexplicably panicked.
"Zhang Junfeng, are you sure you want to do this? Your proposal is too risky! The current Nasdaq index continues to rise, with no sign of falling. If we do as you said, we will need to add leverage, and the money we invested may evaporate completely in less than a month!"
Nacho Morgan is not optimistic about Zhang Junfeng's crazy idea of shorting the Nasdaq. Although the interest rate hike by the Federal Reserve has indeed poured cold water on the currently hot Nasdaq, based on the current situation, although the upward trend of the Nasdaq index has slowed down, there is no sign of a decline.
…
Seeing Nacho Morgan being so cautious, Zhang Junfeng couldn't help feeling helpless. After thinking for a moment, he decided to try another way to convince the other party.
"In that case, let's change our thinking! Didn't we make a lot of money investing in Qualcomm before? We can extract a portion of these profits as the starting capital for this short-selling of the Nasdaq."
"If I guess correctly by chance, we can also take the opportunity to make a lot of money! If the investment fails, it will only be a loss of part of last year's profit, which will not be a big loss. What do you think?"
Nacho Morgan was somewhat tempted when he heard the new method proposed by Zhang Junfeng.
If they follow the other party's plan, the risk factor will indeed be greatly reduced, and even if there is a large loss, it will not have much impact on them. If the Nasdaq plummets as Zhang Junfeng said, they can also take the opportunity to make another fortune! Driven by interests, Nacho Morgan still chose to cooperate with Zhang Junfeng to short the Nasdaq index. In order to increase the chips and achievements for Mato Walls in the future, Zhang Junfeng also invited him to short the Nasdaq.
Originally, Mato Walls had some concerns, but after learning that Nacho Morgan had agreed to Zhang Junfeng's proposal, he agreed reluctantly. The three parties then agreed to open multiple new accounts at the futures exchange in late February, and then deposit funds into them in batches, plus the minimum 5x leverage allowed by stock index futures.
…
As the Fed's interest rate hike policy continued to ferment, on March 10, 2000, one month after the rate hike, the Nasdaq reached its historical peak and then began to fall rapidly! The reason for this situation was that there were a large number of sell orders in the market, and a large number of financial institutions realized that something was wrong and wanted to cash out and recover funds.
In particular, billions of dollars of sell orders from high-tech stocks such as Cisco, Microsoft, and Dell happened to appear simultaneously on the morning of the first trading day (Monday) after the March 10 weekend.
The result of the forced selling was that the Nasdaq index fell from 5038 to 4879 as soon as it opened on March 13, a full drop of 4 percentage points - the largest percentage of "pre-market" selling throughout the year.
The processing of the massive initial batch sell orders on Monday, March 13, also triggered a chain reaction of selling: investors, funds and institutions began to liquidate.
Then, in just 6 days, the Nasdaq index suffered heavy losses, falling nearly 10% of its total value, from 5050 on March 10 to 4580 on March 15! Then, the cumulative decline in April even exceeded 25%!
…
Under such an astonishing decline, the news of the collapse of the Nasdaq index quickly swept the world. Those financial institutions that took over at high prices and were trapped and had no time to cash out were quite devastated at this moment, wailing! Obviously, they were fine before, how could the wind direction suddenly change so quickly, and they couldn't even run away in time! However, there were a few well-informed financial institutions that reluctantly cut their losses and barely saved the principal and part of the income. Looking at the financial institutions that were trapped at high prices, they were also very lucky.
…
Inside the conference room of Goldman Sachs, one of the financial giants on Wall Street, a group of company executives behaved in perfect harmony; no one took the initiative to speak, and the atmosphere was exceptionally quiet.
Henry Paulson, who was sitting in the main seat, looked at his colleagues with a complicated expression, then sighed helplessly, and then slowly said, "This time, we failed to withdraw from the Internet technology company in time, and we suffered heavy losses. As the CEO of the company, I have an unshirkable responsibility. After this matter is resolved, I will submit my resignation..." (End of this chapter)