legendary trader

Chapter 811 Memo 812

For most investors, Enron's stock price has fallen from 7 to 80 yuan to the present, which is almost cut in half. In fact, according to the stock price in August and September last year, it has already been cut in half, but these investors still have an interest in Enron. The rumors of financial fraud are not very believed.

First of all, the supervision of the US stock market is the most stringent in the world, with a complete supervision mechanism. Secondly, Enron's audit firm is also a world-renowned firm, and the possibility of fraud is very low.

Regarding the trust in the rice stock market, most investors who hold stocks still regard the current market rumors as rumors created by short-selling institutions, either for the purpose of short-selling to make money, or to build positions at low positions.

For the main body of the market - the US Fund, it is a long-term investment behavior. Short-term short-selling will not affect the long-term trend of the stock price. Once the rumors are exposed, the stock price rebound will be quite violent. Maybe the short sellers will work hard to suppress a few In July, it only took a few days for the market to rise back.

So don't look at the sharp drop in the stock price, but for institutional investors, what they are waiting for is Enron's dividends. The company's continuous growth boosts the stock price. short.

The sell orders on Enron's stock market still did not increase, but the buy orders increased unconsciously, and Enron's stock price began to rise slowly.

Noticing that the stock price has started to rise, Chen Fan knows that the possibility of continuing to cover his position at the current price is relatively small, but he does not know at what price the funds for the rebound entered the market this time. , How high can this stock go up.

Originally, Chen Fan came here today to remind Lin Hong to pay attention to his positions again. The heavy volume at the end of the last trading day reminded him that the market may start to rebound at any time, but he did not expect that it might start today.

You know, if you pull up the stock price now, according to the brightness provided by the ability, the increase will only be [-]%. Is it interesting to operate with such a little space?

However, there was an obvious change in the market, and it would definitely not work to continue suppressing. Chen Fan turned his head and said to Lin Hong, "Buy up, cover up the position as soon as possible, and then sell short around 50 yuan."

At this moment, Lin Hong is also considering whether to continue to cover his position. There are very few pending orders on the market, even if he places a buy order, he will not be able to buy many stocks. However, the situation is not good for short sellers. When he heard Chen Fan's words, Lin Hong understood. Chen Fan thought the same as him.

"Enter the market to cover the position."

Lin Hong whispered to the traders around him, now that there are few operations, he is usually responsible for giving orders, and it is relatively rare to directly make orders, and he will only make moves when the market fluctuates violently.

He told the team members what to do next, then turned around and asked Chen Fan in a low voice, "Mr. Chen, this time we bounce up, shall we take a sniper attack at the 50-meter mark?"

This rebound, Chen Fan's words seem to be different from last time. Last time, Chen Fan only said to control the position, but to reduce it, but it did not prevent the stock price from rebounding.

But this time, Chen Fan directly set the high point of the stock price rebound at 50 yuan. When the stock price reaches that point, if the upward momentum still exists, is it necessary to suppress it? Lin Hong thinks it is best to ask this question clearly.

"Okay, the crackdown can be launched below 50 yuan."

Speaking of this, Chen Fan pondered for a while, and silently calculated the relationship between brightness and stock price. The high point of the rebound should reach 50 yuan, but if it continues to rise, there will be no room for it.

"You can sell when the stock price is close to 50, and try to compress the time for the stock price to reach 50."

Chen Fan felt that since Enron's stock price didn't have much room, he should take a sneak attack and hold down the stock price. He didn't raise his position this time. I believe Lin Hong knew what to do.

Indeed, after listening carefully to Chen Fan's words, Lin Hong had a solid foundation in his heart. There is no limit to the position of the opponent when he is sniping, that is, he can put it in short selling when he is sniping. Of course, he also needs to be careful not to zoom in infinitely. If you lose your position, you will be in trouble. Don’t let the other party have no ability to raise the stock price.

In the second half of the rice stock trading, Enron's intraday buy orders continued to increase, and the stock price also continued to be pushed up as the buy orders entered the market.

By Friday, Enron's stock price had rebounded to 49.25 yuan to complete this week's trading. Although the stock price rebounded, the good news is that Lin Hong has covered more than half of his short positions of more than one million shares below 47 yuan. The rebound did not do much damage.

In the following week, Enron's stock price fluctuated repeatedly below 50 yuan, breaking through several times during the session. However, with Chen Fan's order, Lin Hong naturally went all out to short. At the peak, the number of short-sold shares exceeded 2 million shares. Finally, the stock price was suppressed at around 50 yuan, and it failed to continue to rise.

After a week of turmoil, the bulls seem to have realized that there is a strong short seller attacking the stock price, and gradually gave up the idea of ​​continuing to pull up. Qualcomm's stock price began to fluctuate sideways around 50 yuan. Voting also became active.

During this week, Lin Hong and the others traded more frequently. Not only did they have to suppress the rise of the stock price at a high level, but they also had to cover their positions at a low level in time after each drop. At this time, he also knew that it was impossible to wait until the third day to consider It's a matter of covering up positions. When the suppression started on Monday, I sold while quietly covering up positions with small orders, and the transaction intensity increased geometrically.

In the last week of June, Lin Hong began to suppress the stock price consciously, but after several times the price was lowered to around 6 yuan, he encountered strong resistance. After losing a small amount of money, Lin Hong also realized that the bulls seemed to be really running for the second quarter report this time. Come on, in the absence of definite data about the second quarter report, it should not easily admit defeat.

After contacting Chen Fan on the phone, they gave up the idea of ​​continuing to suppress the stock price, but kept the stock price sideways below 50 yuan and waited for the disclosure of the second quarterly report.

However, He Li's operation is even more troublesome. The previous tentative suppression has led to short selling of a large number of stocks, and more than 2 million shares need to be covered in a sideways market. The difficulty of the operation has increased, but it is good. It is the market rumors that have not disappeared with the passage of time, but have intensified trends.

I have to admire the professionalism of the paparazzi in the United States. There have been no major events in the United States recently, and Enron’s pot seems to be big enough to attract attention, attracting a large number of reporters to visit and dig out the truth behind Enron’s rumors.

Was Enron financially fraudulent?

What is the real situation of Enron's business?

As the reporters followed up and reported, the people in the United States gradually became curious. Although they did not buy Enron stock, the interest in gossip seemed to be the same for all Blue Stars.

Their curiosity naturally stimulated the paparazzi, and they continued to crazily dig out inside information about Enron. Various reports were flying all over the United States, becoming a feast for the financial media.

To the despair of Enron's management, the public seems to be very willing to pay for such reports, and the sales of newspapers with the latest news from Enron have unexpectedly increased against the trend.

In fact, the sales volume of newspapers in the United States is actually similar to that of Huaguo and European countries, and it is in a downward trend. However, the appearance of An Ran seems to have successfully aroused the curiosity of the American people, and they are very happy to commute. When I was young, I stopped in a hurry at the newsstand and bought a newspaper.

It seems that these readers have abandoned paper media such as newspapers and magazines for a long time, and now they are starting to buy newspapers to read news again.

The editors of the newspaper are naturally interested in investment. They not only issue orders to their reporters to collect all the news about Enron for reporting, but also gradually extend the reports and make a series of reports. The top executives of Enron Company, who had calmed down silently, were extremely disappointed.

Under the exaggeration of the media, Enron seems to have instantly become a touchstone to test the integrity of Millikin Corporation. If Enron has no financial problems, it is foreseeable that the US stock market may usher in a new round of volatility the next day. Quotes, honest listed companies, of course, are worth having.

Amidst the volatility of Enron's stock price, Chen Fanyi bid farewell to his family and watched them board the plane to the distant continent of Europe again.

Returning to the deserted home, Chen Fan didn't know what to do for a moment. It seemed that he was playing with his son in his arms at this time.

Chen Fan was not in the mood. He stayed at home for two days. Enron's job was to keep up with the latest situation through the phone. These days, he never left his body on the phone. When he had nothing to do, he would call his family in Europe.

The time has entered July. Not surprisingly, Enron's financial report was released significantly earlier.

On July 7th, Enron's second quarterly report will reveal that the long and short funds in the venue are waiting for the final showdown.

The rice stock market is approaching a showdown, and the news war between newspapers about Enron is still in full swing.

On Friday, July 7, the "Yorktown Times" was the first to disclose a memo that I don't know how to obtain. It was a document written by Enron Vice President Sharon Watkins to former Enron CEO Kenneth. The second time I mentioned that there seems to be a problem with Enron's finances, and I hope that the president of the company will pay attention to it and conduct a thorough investigation of the company's financial situation.

The appearance of this information instantly detonated the market. During the rice stock trading session on Monday, the stock price of Enron Company plummeted from 49 yuan to below 45 yuan. It broke the layers of traps set by the main bulls.

However, the news was released too suddenly, and Chen Fan only knew about it before the opening of the market, because people in the United States only found out about half an hour before the publication of the current newspaper. It was the editorial department of the newspaper that adjusted the layout urgently. It was invalidated and had to be printed urgently, which also made the publication of the current newspaper a lot later than usual.

Being able to be published in the "Yorktown Times" newspaper, the authenticity of the memo is obviously needless to question, but the source issue seems very strange, but at this time no one pays attention to how the memo was leaked and whether it involves legal aspects The problem.

For such an exclusive news, the York Times Company also worked hard. Maybe it had consulted a lawyer before, but it was released anyway.

The market didn't need Lin Hong to suppress it at all, and the rapid collapse of the stock price surprised them for a while.

In fact, those investors who still hold Enron stock in their hands have also been suffering recently. There are too many rumors in the market. They did not make a move before because there were no regular newspapers that published news that could be confirmed. If they are lucky, they can still think it is a rumor, so they can still hold the stock firmly in their hands.

But this time it was the York Times' report, and the situation was completely different. The string they had been tense finally couldn't stretch and broke.

When Chen Fan came to Oak Tree Capital, Enron's stock price had already started to rebound, returning to around 45 yuan. After the rapid drop, the number of investors who continued to sell stocks began to decrease. After the extreme panic, everyone calmed down and waited for Enron's stock price. Company announcement.

After Chen Fan arrived in the trading room, he used his ability to look at Enron's stock for the first time, and then his face changed slightly, and he told Lin Hong: "Cover up the short selling position, don't press the market for now, the bulls should still try to resist!" of."

"Can Enron's stock price go back up?"

In the current market, although Enron's stock price has stabilized, Lin Hong really does not believe that there is still a chance to rise again.

"I guess there's still a lot of wrangling about the memo. It's true, it's false, it's false, who can say it clearly."

Chen Fan said, "There is also the funds for entering the market this time, even from the perspective of self-help, they will gamble again and again."

Chen Fan's last words really touched Lin Hong's heart. He was also worried that the bulls would protect the market. Although there was bad news, the stock price quickly stopped falling and stabilized after falling below 45 yuan. Without them Do it, who will believe it?
Now that they have chosen to sell, even if they really want to admit defeat, they have to save it, create a wave of rebound, and start to withdraw when the stock price rises, so as to reduce losses.

As for the short sellers taking the opportunity to counterattack, they have stabilized the stock price, which shows that the short sellers have no intention of taking action to suppress the market.

And Chen Fan glanced at Lin Hong inadvertently at this moment, and Lin Hong knew that he seemed to have done something wrong when he hesitated a little earlier.

At that time, when Enron's stock price fluctuated and stabilized below 45 yuan, if they shot down the market at a critical period, perhaps the bulls would really choose to kill the drop and leave the market. Their own hesitation gave them a misjudgment.

And if the stock price rebounds and then takes action to suppress it, it is really immortal. If you want to play them to death, then they will fight you desperately. Is this necessary?
If he really wanted to invest a huge amount of money in transactions here again, and compete for the initiative in the market, Lin Hong asked himself, although it seemed that Enron was suspected of making false accounts, it might not really be the end of the road, and they were really not sure of winning. Can beat the bulls.

"We will not make a sale for the time being, and wait for the stock price to go up and short the small order, which is the same as the previous operation."

Chen Fan continued.

(End of this chapter)