legendary trader

Chapter 812 813 Plunge
On the afternoon of July 7, the heavy rain that fell in the imperial capital yesterday made the weather cool today.

Chen Fan sat in the gazebo in the garden, enjoying the coolness. After staying in the air-conditioned room for a long time, Chen Fan still liked the natural cool breeze.

"Dinglingling" The mobile phone placed on the stone table suddenly rang happily. Chen Fan picked it up and looked at it. It was a call from Zhang Quan. He picked it up casually and asked on the other side of the microphone: Any news?"

"The memo published in the Yorktown News may be true. So far, Enron's spokesman has not responded to questions about that report. They declined to comment on the grounds that they are on vacation."

Zhang Quan's voice came from the phone. Before Chen Fan asked him to keep an eye on the reaction of Enron Company in the United States. With such a big leak, Enron Company should have reacted immediately.

"Where's the vice president? Did you come forward for an interview?"

Although Enron's response method surprised Chen Fan, he was still a little bit unwilling to get an answer. Then he thought of the author of the memo. Judging from the situation of this memo, it seems that this person may not know about Enron's problem and was being kept from it. people.

"Reporters couldn't find this person, and they didn't know where he was hiding."

Zhang Quan said, "Our people can't find out. It is said that he may have gone abroad for vacation. It is worth noting that on Thursday, he was still working in the company, and someone saw him."

"Hehe, you hid? Let's wait for Monday to see what the stock market says."

Hearing this, Chen Fan grinned, then said a few more words and hung up the phone.

After the rice stock market opened on Monday, Enron’s stock price opened slightly higher at 46.82 yuan. With the increase of entry sell orders, the stock price began to fluctuate and go down. There was no sign of bull funds to protect the market throughout the day. It should also be waiting for the financial report Release it, just one day, it seems that the bulls are too lazy to act.

However, the investment banks on Wall Street are still doing their own work. Since last weekend, major investment banks have successively released their forecasts for Enron's second quarter report, ranging from 41m to 43m.

Compared with previous performance forecasts, the data released this time is relatively conservative, and the company has not increased year-on-year, and it still maintains last year's profit level, which was unimaginable in the past.

Enron has always been advertised as a representative of a listed company with high revenue and profit growth. However, after the performance of the first quarter of this year changed, the investment bank's attitude became confusing. Although the company stated that the reason for the first quarter report was far lower than expected was that the market Non-recurring profit or loss impacts from a significant drop in value.

This year, it seems that the bad luck of Enron has lost its previous aura. None of these investment banks have any illusions about its performance in the second quarter. attitude.

In the end, Enron’s stock price closed at 46.22 yuan on Monday, and the market remained sluggish on Tuesday. After the opening, Enron’s stock price continued to fluctuate and fell, and finally closed at 46.01 yuan.

On Wednesday, there was a small competition in the market around 46 yuan, but neither the longs nor the shorts fought hard. It was just some funds fighting in the market. Although the scene looked fierce, the shrinking trading volume also showed that this was actually Just a boring show.

After some fighting, Enron's stock price closed at 45.78 yuan, still showing a slight decline.

According to Chen Fan's intention, Lin Hong didn't do too many operations, and didn't sell long funds. He was happy and relaxed. Now his Enron stock position is very small, less than 20 shares. , basically no pressure.

Regarding tomorrow's financial report, Lin Hong is waiting indifferently.

At 9:[-] p.m. Yorktown time, Enron's financial report landed on the website of the Yorktown Stock Exchange and was quickly downloaded by a large number of investors.

Enron announced its financial status for the second quarter of this year. The net profit per share was 45 cents, which was 3 cents better than Wall Street analysts expected. However, the operating income of another very important project was slightly lower than that of the previous quarter. .

However, after the financial report was released, there was no sound in a short period of time, because at this time most of the knowledgeable investors were staring at the financial report for research, and Chen Fan was no exception. Although he did not participate in the analysis, he did Waiting for his analysts' views on the financial report.

The source of profit is a bit strange, and we need to wait for Enron's explanation.

This is the comment made by the analysts of Oaktree Capital and Tianqin Investment after analyzing the financial report.

In a word, they did not understand how part of the profits came from.

It has to be said that simply looking at this report is better than market expectations, which also caused Enron's stock to soar at the opening of the rice stock market on Thursday, and the stock price quickly soared to 48 yuan. However, as the conference call proceeded, Enron began to After explaining this financial report, the unexpected profit of 45 meters was gradually analyzed.

The director of Enron's investor relations department answered many analysts of investment banks and institutions on the composition of its profits, and answered that 1/3 of profits came from recurring operating income, while the remaining 2/3 came from the value of Enron's real estate investment projects. Revaluation, which is non-recurring operating income.

This answer made many analysts feel unbelievable: at the end of the first quarter, Enron said that the value of these real estates had plummeted. Only three months later, Enron said that the value of these real estates had risen sharply. Where did such a big change come from?

At this moment, the questioning of Enron's fraud has been magnified infinitely, which is an insult to everyone's IQ.

The first quarterly report reduces the asset value, and the second quarterly report adds it back.

But after further questioning, Enron CEO Jeffrey and other senior executives were vague on the conference call.

Later, when analysts began to ask about the related party transactions disclosed in the financial report, how much the several transactions between Enron and LJM Capital Management, one of its many affiliates, contributed to the second quarter profit, CEO Jeffrey responded with "Oh, we Only a few paltry deals with LJM" prevaricated.

Such an answer, of course, did not satisfy the analysts who participated in the conference call, but at least at this moment, even the analysts who had firmly believed that Enron had no problems before could not help but wonder, is there really no problem with this company? ?
While this conference call was continuing, many investment banks and investment institutions on Wall Street already knew what to do. Before the meeting was over, Enron's stock market was filled with sell orders in an instant, and the stock price fell wildly at a speed far exceeding the skyrocketing opening price. .

The ambiguity and prevarication of Enron's top management has already made these extremely shrewd elites guess what. The fund managers who hold Enron's stock in their hands have cut down their holdings after getting the news. It's so obvious. Who would dare to keep Enron? stock.

As Enron's stock price plummeted, the rice stock market also set off a wave of selling. Many blue-chip stocks were hit by huge selling orders today, and the three major indexes all fell sharply.

This time, Lin Hong did not miss the opportunity to suppress the stock price. In fact, Chen Fan did not expect the situation to reverse in an instant. He thought that the previous sideways fluctuation trend would appear on the market.

During the rapid decline of Enron's stock price, he and Lin Hongcai received the news from Zhang Quan that Enron's second quarter report conference call was messed up. At this moment, those investment banks and fund managers no longer trusted them and voted with their feet.

In fact, there is no need for them to take action to suppress the stock price at this time. The huge selling order overwhelmed the resistance of the bulls in the market in an instant.

The disadvantages of institutional shareholding are fully revealed at this moment. No one wants to stand on the last shift, and they all frantically sell the stocks in their hands, just hoping to escape here as soon as possible.

At this time, Chen Fan asked Lin Hong to take the initiative to guide the market down, and the stock price soon fell below 44 yuan, but of course this was not enough.

Lin Hong kept selling stocks at low prices to snatch the buying orders below, which made those fund managers who were eager to sell out howl.

Stampede, the trend that appeared on Enron's stock market at this time is a crazy stampede accident among bulls. Under Lin Hong's active suppression, no one can calmly wait for the market to form more buy orders. In a small diving market, the stock price quickly fell below 40 yuan.

The downtrend got a breather on Friday, the final trading day of the week.

"It should be the bottom-hunting funds. I guess they want to stabilize the stock price here and look for opportunities to escape."

Sitting in the trading room, Chen Fan watched Enron's stock price trend and said.

Enron's stock price fell below 40 yuan at the end of Thursday and closed at 39.67 yuan. Today, it continued to fall in the session, but after the stock price fell below 38 yuan, the market showed signs of temporary stabilization.

At this moment, Zhang Quan quickly came to the trading room. As soon as he entered, Chen Fan knew that there must be news about Enron again.

"Enron's president, Kenneth, made a speech, claiming that Enron's financial statements are true and credible. At the same time, he also called on the company's employees to actively buy the company's stock. Now the company is being framed by short sellers because they are shorting the company's stock price. Now the company's stock price is lower than the actual value of the company."

After Zhang Quan entered the door, he quickly reported the news he had just received. It was the president of An Ran Company who came forward to clarify yesterday's messed up press conference.

"The boss came out to end, does he have this ability?"

After Zhang Quan finished speaking, Chen Fan thought about it and suddenly said, "If I remember correctly, this guy cashed out a lot of money at a high price last year. If there is really no problem, he should enter the market to buy the company's stock at this time. Sell ​​high and buy low, and he will become a stock god.”

Neither Zhang Quan nor Lin Hong responded to Chen Fan's joking words. If Zheng Xiaopang was here, maybe he would make use of it.

Will Kenneth's speech be useful for the market?

Of course it is of no use.

However, at least it still played a small role. Some investors who planned to sell their stocks temporarily chose to wait and see after seeing the stock price stabilized, and waited a little longer to see if there would be funds coming in to drive up the stock price.

The funds that entered the market before took advantage of this rare opportunity to save themselves, and while protecting the market, they are still secretly holding on to the stocks in their hands.

At this time, they had already conceded defeat. Although the second quarter report did look good, at least exceeding the previous predictions of Wall Street analysts, the actual situation was indeed worse, and it seemed that the company's financial rumors were false.

After waiting in the trading room for a while, Lin Hong saw that Chen Fan still had no intention of continuing to suppress, so he took the initiative to ask questions.

"Mr. Chen, shall we continue to sell down?"

Chen Fan's response to this was to shake his head, "Those organizations didn't rush to appear today, we'll wait and see, we'll do it after they do."

Today's market is indeed a bit strange. Although the stock price still fell after the market opened, the big sales orders in the market yesterday disappeared. This is not normal. Logically speaking, it should continue today.

Although Chen Fan is still very confident about shorting Enron stock, it does not mean that he can sell short without any scruples. Following the trend is the kingly way. After all, it is not known how big Enron's thunder is, so it is right to be cautious.

Enron's stock price began to fluctuate sideways, and the stock price showed signs of gradually rising from the bottom in the intraday performance.

"Forget it, those institutions don't reduce their positions, so let's not do it today."

After Chen Fan saw such a situation, he whispered to Lin Hong, "Maybe Enron's 2 employees can really support Enron's stock price."

Having said this, Chen Fan himself laughed first.

In the end, because there was no big sell order, Enron's stock price remained stable at a low level today. At the end of the day, the stock price rose slightly and closed at 39.42 yuan.

As for the strange market trend on Friday, at noon on Saturday, Zhang Quan made a phone call to explain Chen Fan's doubts.

"Enron has intensively contacted those funds and investment companies on Thursday and Friday, lobbying them not to sell the company's stock for the time being."

This is the reason why there was no institutional sell-off on Enron's stock market on Friday. It seems that everyone has realized that collective sell-offs will not have good results in the end.

"What are they doing now?"

Chen Fan asked curiously.

"There is no latest news. It should still be discussed. It's all high-level contacts. Our news network is still a bit weak, and we can't get first-hand information."

Zhang Quan replied on the other end of the phone.

This result was actually expected by Chen Fan. It would be awesome if the bosses of the company could be bought by them. Of course, for the sake of their own careers, professional managers would definitely not dare to take up this role.

So it's not that Zhang Quan's intelligence network is not good, but that there is really no way, unless they can acquire a large fund company or investment institution in the United States and directly participate in such high-level negotiations.

"Pay close attention, and notify me as soon as there is news."

Chen Fan understood Zhang Quan's difficulties and didn't say anything. What else can he do? Wait for the results of the market opening next week.

However, when the call was about to end, Zhang Quan still said: "We have arranged for people to keep an eye on their holiday estate, and judge the result of their negotiations based on some of their behavior."

"Yes, Not Bad."

(End of this chapter)