Reinventing the Millennium.

Chapter 865 Increase Strength (4K)

Chinese New Year in 2008 is February 2th.

Fang Zhuo is going back to China for the New Year.

Because the feeling of the whole big family getting together last year was not bad, so this form continued silently this year.

This Spring Festival Gala has two sponsorships from Yike Mobile, and he also wants to listen to the zero-hour broadcast of "Yike Mobile's Happy New Year to Chinese around the world".

It's just that before returning to China, I need to deal with Lehman's affairs a little bit.

After two extensions, the shorting of Lehman ended in March. Even if there is still more than a month to expire, this time it has already made a lot of profits.

Before March last year, Lehman still rushed to a high of $72. Later, with the release of the NYSE research report, Lehman's stock price fell all the way to $49 before it stabilized. There was no movement, and Fang Zhuo did not continue to release targeted reports because Fang Zhuo still had a short position.

On the one hand, Fang Zhuo felt that it was unnecessary, and on the other hand, Summers of the NYE did not want to chase after him.

However, Lehman's stock price did not rebound. By the time Fang Zhuo met Kong Yu in Silicon Valley, its stock price could no longer hold the $40 mark, and it was expected to dive all the way to $35.

Compared with its high level, this is already a halved drop in market value.

Now, there are rumors that Lehman will lay off workers on a large scale, but it has not been confirmed.

"The liquidity of the market has weakened, which is all-round, but it is more difficult for Lehman because of the previous short selling." Kong Yu reported the Lehman business that he took over halfway, "After all, the research report of NYE on it is more difficult. Straight to the point."

NYE's strikes were accurate and ruthless, revealing the difficult and difficult side of Lehman.

Among them is the expert data provided by Kong Yu for the New York Times.

"Mr. Fang, in fact, I think Lehman's ability to hold on like this is pretty good. Fuld is desperately looking for money, and the news of bank credit financing that has been passed on several times has not been implemented in the end." Kong Yu said, "Although I don't think Lehman will end well, but once it gets financing, there is still the possibility of a rebound, plus..."

He didn't finish his sentence.

Kong Yu actually thought that Mr. Fang didn't have to do this to empty Lehman, and just make money in a low-key manner.

But... the boss is the boss, so you can do it if you are short, just get out in time.

Most importantly, the actions of the MIGA Foundation Department remain confidential.

Since December last year, when Yike Mars started its Christmas shock, MIGA Fund has stopped absorbing external funds, no longer accepting new customers, maintaining the complexity and confidentiality of operations, and minimizing the sense of presence.

Kong Yu now feels more and more that the liquidity crisis caused by the subprime debt in 07 is likely to lead to a wider crisis.

This is of course a good thing for MIGA funds, but it must be cut by Mr. Fang in time.

Out of such considerations, Kong Yu strongly suggested that the short-selling of Lehman be terminated. Even if this stock still has a lot of profit to be made, he should not earn the last copper plate on the bright side.

He didn't know how Fang always thought about it, anyway, the result was to adopt the suggestion.

Kong Yu likes the evaluation of the boss in China very much, Mr. Fang is pure and clean - the reason why you shorted Lehman is because your Lehman did not do well.

"It's not easy for Fuld." Fang Zhuo understood Kong Yu's meaning, put down the document in his hand, and sighed.

Kong Yu nodded. It is true that it is difficult to find money in this environment. Everyone knows that Lehman is difficult, and the trust in it is very low.

Fang Zhuo thought for a while, and asked, "I'm going to accidentally upload the short position I hold in the Facebook feed, and then delete it immediately, which will attract media interviews and make it harder for Fuld, what do you think? "

Kong Yu: "..."

He considered: "This can easily attract the media and the market to pay more attention to the situation of Lehman."

Fang Zhuo asked again, "How will Fuld react?"

Kong Yu replaced him as the head of Lehman...Life is already so difficult, and Mr. Fang pushes him so hard, why does he ask him to look for him with a gasoline can?Do not!Fuld is not such a character. He has already begged left and right for Lehman, and he doesn't mind asking again!

He did not directly answer the boss's question, but instead talked about Lehman's withdrawal: "Just let the short sale end in the exchange between you and Fuld?"

"Isn't that good? At the beginning he shorted me, then I shorted him, and finally we exchanged our short selling experience, and from now on, we will be separated from each other, and this matter will come to an end." Fang Zhuo said, "I will not continue to short him, he will not Thank me?"

Kong Yu nodded without hesitation: "Thanks for that."

Although Mr. Fang stabbed you twice, but he didn't continue to stab you a third and a fourth time, of course thanks.

"That's it." Fang Zhuo planned to settle the matter before returning to China, and leave the United States cleanly.

Kong Yu continued to report on the short-selling actions of MIGA Fund.

He has now discovered that although Mr. Fang is going short to make money, he is also using this short sale to weave a network of contacts. There is a group of NYE, a group of trustees, a group of Illinois, and a group of rich people... …

And these people who are included don't care how the fund makes money, as long as it makes money.

Even when Kong Yu encountered some difficult problems, he was able to quickly find someone among them to help quickly clear the obstacles.

Everything is business and business is everything.

On the one hand, MIGA funds participated in Paulson’s short-selling fund, and on the other hand, they focused on giants such as Fannie Mae and Freddie Mac that were easily affected by subprime debt. In addition, a small number of funds learned from Goldman Sachs’ operations.

Goldman Sachs has crude oil on one hand and CDS on the other. The volatility of the former made Kong Yu more cautious in his operations and did not invest much.

When Fang Zhuo listened to these reports, he was like an old monk in meditation, and only commented after Kong Yu finished speaking: "Not bad."

"A wider crisis is likely to break out this year, depending on how the Federal Reserve operates." Kong Yu said thoughtfully, thinking of the Fund's Geithner and other Fed clients.

Just when Fang Zhuo was about to say something, a call from a collaborator appeared on the screen of his mobile phone.

"Qimunda." Fang Zhuo said these three words to Kong Yu.

Kong Yu's expression changed slightly.

However, the phone call didn't last long. It was just that Luo Jianhua, the head of Qimonda, was in Silicon Valley negotiating with a client, and he just stopped by to pay Mrs. Fang a good old year—this is what the Chinese said on the phone.

When they actually met each other, Luo Jianhua's depression could hardly be concealed.

Fang Zhuo invited the leader into his office, and asked Kong Yu to accompany him.

Luo Jianhua drank half a cup of black coffee to boost his spirits, and talked about the situation of the Lin'an factory that cooperated with Bingxin, and also talked about the global economic situation.

Finally, when he congratulated the New Year in advance, he finally revealed some surprising purposes.

"Mr. Fang, we may have to adjust our order capacity in the near future. As you know, the global storage industry is currently in a downturn." Luo Jianhua said helplessly, "Everyone is bleeding, but some people still want to tear the wound even more. Big."

Fang Zhuo said in amazement: "What? Adjust the order capacity? Mr. Luo, did I hear it wrong or did I understand it wrong?"

Luo Jianhua said earnestly: "Mr. Fang, if this matter was not forced to do so, Qimonda would never do this. I think it is necessary to communicate with you face to face. Please understand us."

He meant to cut the bill.

The underpants of the price drop in the storage industry are almost gone, and the more you sell, the more you lose.

Qimonda signed a foundry agreement with Bingxin Lin'an factory. The Lin'an factory obtained patent authorization and technology transfer, and sold 1.5W wafer production capacity to Qimonda at a discounted price every month.

It can be said that the profit of Lin'an factory is very meager.

What's more, the Lin'an factory has just established its production capacity in the second half of last year and gradually increased it. The customer is also very single, almost wholeheartedly doing OEM for Qimonda. Cutting the order at this time is tantamount to drawing salary from the bottom!
Fang Zhuo's face darkened: "Mr. Luo, this New Year's gift you gave me really allows me to have a good New Year!"

Luo Jianhua could foresee Mr. Fang's reaction, and said with a wry smile, "Mr. Fang, if I hadn't had to, I would never have thought of moving the Lin'an factory."

The Lin'an factory produces niche storage, which is relatively low-end, and is less affected by this industry fluctuation.

"Mr. Luo, do you know what you're talking about?" Fang Zhuo remained sullen, "You're breaking the contract, you're damaging our cooperative relationship, and even, you're here to discuss breach of contract with me!"

At the end of his speech, he even found it a little funny: "Mr. Luo, are you sure you want to talk to me about breaking the contract that hurt me?"

Luo Jianhua didn't finish his sentence, but under Mr. Fang's gaze, he bit the bullet and finished the second part: "Mr. Fang, regarding Qimonda's OEM fee, can we postpone it for a quarter?"

Fang Zhuo was stunned!
OEM fee extension?
Arrears of wages?

Luo Jianhua calmed down a lot after finishing the two appeals, and emphasized again: "Mr. Fang, my trip is actually here to plead guilty. You just listen to me saying that it is difficult, but you don't know how difficult it is."

"The market value of Qimonda is now 40% of the same period last year, and it has fallen by 6%!"

"The price of our 1G storage is less than $4, and the drop is almost 6%!"

Fang Zhuo looked at Luo Jianhua and commented: "The decline in the company's market value and product unit price is quite symmetrical."

Luo Jianhua said with a wry smile: "In the current state of the industry, Samsung still plans to increase production. It's really driving people to death."

Fang Zhuo was slightly taken aback: "Samsung is going counter-cyclical again? How far will the price fall?"

"Last year's storage price was $12, and now it's less than $4. Once Samsung's news is confirmed, it may be $2? $1?" Luo Jianhua cited two figures. The most frightening thing is that he is not talking nonsense, but that there are real ones. this trend.

Industry avalanche
Qimonda collapsed!
Fang Zhuo was silent.

After a while, he changed a cup of coffee for Luo Jianhua himself: "Samsung is backed by South Korea. The comparison is not about who can make a profit, but who can bleed more."

Luo Jianhua nodded approvingly, this is not the first time Samsung has done this.

He said helplessly: "No way, the business is so ruthless. I am also looking for Infineon now, and I am also trying to get a loan from the German government. I must find a way to stop the bleeding or slow down the bleeding."

Fang Zhuo hesitated and said, "Boss Luo, this is a niche storage, so it's fine to cut the order, why are you delaying even this OEM fee?"

Luo Jianhua glanced at Kong Yu who was silent in the office, then at Mr. Fang, and revealed the news: "Qimeng has reached a very dangerous moment. Mr. Fang, we made a profit of 3.35 million euros in the first half of last year. The full-year loss is already 2.18 million euros!"

He said heavily: "This year, the first month of this year, the loss is close to 2 million..."

One month loses the figure of the whole year of last year.

"This..." Fang Zhuo was shocked.

The self-report from the head of Qimonda is not wrong, it really is a very dangerous moment!
Luo Jianhua drank the coffee in his cup in one gulp, and said angrily: "Besides, there are still people shorting our stocks at this time!"

Fang Zhuo took a sip of his tea, frowned and said, "Really? That would really make things worse."

He thought: "Short Qimonda? Who could it be?"

Luo Jianhua said seriously: "I suspect it's Samsung."

Fang Zhuo was stunned: "Samsung is planning to increase production, while attacking Qimonda in the secondary market? It's too vicious!"

Those who engage in storage are looking forward to the death of their peers!
But he said objectively: "However, Mr. Luo, I have to say that once Qimonda is made, it will be empty. You also have to consider whether there are strategic mistakes here. Hey, let's go through this hurdle first."

Luo Jianhua nodded silently, the matter has come to this point, we can only get through the difficulties first.

He looked at Mr. Fang again: "Qimonda is actively raising funds. I believe that Infineon and the German government will provide assistance. As long as this hurdle is passed, the foundry fee of the Lin'an factory will definitely not be in arrears. We will pay back in the future." There can be more cooperation."

Fang Zhuo heard a lot of difficulties, but he was really ruthless, and sighed: "Mr. Luo, you really gave me a problem this trip, alas, it's me, well, I still hope to reduce production as much as possible, as soon as possible." Settle the OEM fee, otherwise, we can’t go on like this forever.”

Luo Jianhua breathed a sigh of relief: "Mr. Fang, thank you for your understanding. Don't worry, Qimonda will never fall."

Qimonda is the only major storage manufacturer in Europe and the light of European storage, and it will never fall down!

Fang Zhuo got up to send Luo Jianhua off, and even touched a new Mars as a New Year's gift for him.

When he returned to the office, he and Kong Yu drank tea quietly.

After a cup of tea, Fang Zhuo suddenly said, "Tell me, is it true that people like us are sometimes too ruthless?"

Kong Yu corrected himself, not like "us", but people like you, I am just a knife in the hands of people like you, a knife for shorting Qimonda.

He replied politely: "Boss Fang, Boss Luo also said just now that business is so ruthless, and he understands it himself."

Is it to help Qimonda get through the difficulties and cooperate more, or to short Qimonda to seek greater profit space?
This is a grim answer.

Even though Fang Zhuo's bill was canceled and his wages were owed, he still felt that his mood was not so good.

He silently drank half a cup of tea and shook his head: "Forget it, business is business, let's work harder."

Kong Yu nodded respectfully, business is business.

Official business.

(End of this chapter)