legendary trader

Chapter 853 854 Crash
Although in the eyes of the general public, the only suspense left in the Enron incident may be the punishment of the US Securities and Exchange Commission and the negotiation of Enron's acquisition. The day when these two steps are completed will be the day when the incident will come to an end.

However, Chen Fan didn't think so. He always felt that the Enron incident had not reached its real climax until now.

Yes, before they speculated that there was a black hand behind the Enron incident. Although it is still clear from time to time, the timing of many things being exposed is really too coincidental.

The "Wall Street Journal" and TheStreet.com website, which has a great influence on Wall Street, broke the news at the same time, completely uncovering the Enron incident, and the US Securities and Exchange Commission decisively launched an investigation. The flames of war gradually spread, and the fire was finally directed at Andersen's office.

Undoubtedly, the interests involved are huge, and all of them are closely related to Wall Street.

And in order to completely seal off Enron's retreat, the three major international rating agencies all downgraded Enron's ratings, making Enron's attempt to raise funds with short-term credit certificates also unsuccessful. This is the rhythm of forcing Enron to death.

Moreover, in fact, a long time ago, Chen Fan doubted whether Deneng really planned to acquire Enron.

Chen Fan had guessed before that if he really wanted to take over Enron Company or any assets in the company, he had to declare bankruptcy at Enron Company. Only in the stage of bankruptcy and reorganization can he fish in troubled waters.

Until now, Chen Fan has not fully figured out what is in Enron that is worth the effort of the people behind the scenes. At least Chen Fan doesn't think there is anything worth selling.

Therefore, before the Enron Company has completely collapsed, the Enron incident will continue, and the development speed of the incident may even be accelerated.

Judging from recent actions, everything shows that Enron is slipping into the abyss, and it may have already started when they negotiated with Deneng.

Although the content of the negotiation between Anran and Deneng is very confidential, Zhang Quan still got some information, although he doesn't know how accurate it is.

Now Enron very much hopes to complete the M&A negotiations as soon as possible, because they urgently need a sum of money to deal with the debts that will soon be faced. Although the debt is only a mere 6 million yuan, the current Enron has no way to pay it.

The news Zhang Quan got was that Enron asked Deneng to pay 20 billion yuan first to maintain the current operation of Enron.

It is very interesting that the boss of Deneng Company agreed to this request, but it still needs to be approved by the board of directors before it can be implemented.

But now the negotiation between the two parties is stuck on the price of Enron and how much debt it has. Deneng Company requires to know the exact debt figure. After the two parties determine the amount of debt, if there are hidden debts in the later stage, Deneng Company will not will bear this part of the loss.

Of course, Enron would not agree to this, and Enron required Deneng to take responsibility for all the assets and liabilities of the company.

As for how much Enron Company is worth, well, before the debts are determined, Chen Fan feels that even he does not dare to price Enron Company. God knows how many hidden debts are hidden behind it. So cool.

In the past two days, the newspapers and TV have slightly shifted the direction of the wind to Andersen, and in the last two days, after the Andersen firm is definitely going to be punished by the government, the media's attention has returned to Enron.

It is still a hidden debt that is constantly being exposed, and after the Enron incident was investigated, more landmines began to be detonated.

In the last few trading days, Enron's stock price has shown signs of stabilization due to news of mergers and acquisitions, but under the influence of these mines constantly exploding, it is still slowly sinking. Enron's stock price has fallen to around 5.5 yuan, although it still fell by a few percentage points. But for the previous storm-like downward trend, it is already a very good trend.

On Friday night, Chen Fan came to the trading room of Oak Capital at 8 o'clock, because Enron's stock price fluctuated sideways around 5.5 yuan in the last two trading days. Yesterday's closing price was 5.47 yuan, and it seemed that it really couldn't go down. .

Chen Fan planned to come over early and analyze with Lin Hong whether he started to stop. It was time to cover 2 million shares.

Because Enron's stock price has refused to fall these days, in fact their operations are losing money these days.

Yes, they were losing money. The few centimeters or tens of centimeters that Enron’s stock price fell every day was not enough to pay interest on securities lending.

Lin Hong received a call from Chen Fan in the afternoon, so he was already in the trading room at this time, waiting for Chen Fan to come over.

But before the two of them sat down to discuss, Chen Fan's cell phone rang suddenly.

Chen Fan curled his lips, took out the phone from his pocket, looked at it, squinted his eyes, and then picked up the phone.

"Hello, it's me. What? You come to the trading room, I'm here now."

After a few words, Chen Fan hung up the phone, but his brows were frowned, obviously some important news came from the phone call just now.

Soon, the sound of hurried footsteps appeared in their ears, and then Zhang Quan had already pushed the door and walked in. Seeing Lin Hong was there, he seemed to be a little stunned, and put the phone in his hand into his pocket inside.

"It just so happens that you are here, and I just wanted to call you."

Zhang Quan said to Lin Hong with a smile.

Chen Fan pointed to the empty seat next to him, and Zhang Quan sat down unceremoniously, and then said: "The latest news is that the negotiation between Enron and Deneng has broken down. It's going well.

However, Deneng notified Enron's representatives late yesterday or this morning that they were unwilling to pay them 20 billion yuan in advance, because the debts that Enron had concealed were too huge, and they were worried about the safety of this business. "

"No way, just stop like this?"

When Lin Hong heard the news suddenly, his reaction was so great that Zhang Quan felt bewildered.

But at this time, Chen Fan said, "Don't be nervous, haven't we closed the position yet?"

Zhang Quan immediately looked at Chen Fan, and then turned to stare at Lin Hong.

Being stared at by Zhang Quan, Lin Hong shook his head and smiled wryly: "Don't stare at me, it's actually nothing. I discussed it with Mr. Chen two days ago. My point of view is that the acquisition of Enron Company has a high probability of success. I suggest Start buying back stocks and get out.

We came here early today because we planned to discuss this matter. Fortunately, when we mentioned it two days ago, Mr. Chen was a little hesitant. "

"I also just learned of this news, and I know it will have a great impact on the market, so I will inform you as soon as possible."

Zhang Quan breathed a sigh of relief in his heart. He thought they had already started to buy Enron stock. When he saw Lin Hong's reaction, Zhang Quan had this reaction in his mind. Fortunately, it didn't happen, and he didn't neglect his duty.

"There is no need to continue today's discussion. If Enron doesn't plummet today, it will inevitably plummet at the opening of next Monday. No one can protect the market."

Chen Fan said.

"Will the news spread?"

Lin Hong suddenly asked.

"I haven't paid attention to this. I will contact you when I know about it. I will check immediately to see if the news has spread."

As he said that, Zhang Quan took out his mobile phone and made a call somewhere to let the other party pay attention to the latest news, especially the news about the acquisition negotiation between Enron and Deneng.

After that, the three of them started chatting in the trading room, puffing and puffing, to the point that they startled the next few traders. When they entered the door, they saw the three of them sitting there chatting about something. Appearing here, I don't know if something big happened.

However, the three of them didn't say much. The atmosphere in the trading room was a little weird. Everyone didn't talk much after they came in today, which was completely different from the relaxed atmosphere before.

Fortunately, before the rice stock market opened, Zhang Quan got a reward. Although neither Enron nor Deneng had reported the news before the market, rumors that the merger negotiations between the two companies had been suspended had indeed begun to circulate in the market. It seems that the speed of the spread is not fast, and everyone knows that it has not been done.

As time came to the rice stock trading hours, Enron's stock price fell at the opening, opening at 5.29 yuan. Obviously, some traders who had received the news in advance decisively sold Enron's stock and no longer tried to gain the price difference.

In fact, the reason why Enron's stock price has remained stable during this period of time is also related to the fact that some institutional traders are optimistic about the M&A negotiations. Although the institutions did not make a move, some of the following traders still took part of their transaction quota. Funds, I bought some Enron stocks at low prices, hoping that after a good negotiation price came out, I would get a good profit.

But obviously, they conceded the bet, they were wrong.

However, most investors in the market don’t know about this at this time. After seeing the opening price, funds quickly entered the market to buy bottoms. Today’s opening price has hit a new low in the near future, which naturally attracts buyers. field.

However, the rebound of Enron's stock price failed to last. After the rice stock market opened, Enron's stock price only rebounded to 5.36 yuan, and the rebound stopped abruptly, and then began to turn around and plummet downward.

There is no need to call to inquire, the three of them all know that this is because more people know the news that the negotiation between Enron and Deneng has been suspended, so they are decisively out of the game.

There was no dramatic scene in the subsequent trend. Enron's stock price continued to fall. In the early morning, Enron's stock price had fallen to around 4.2 yuan. The pressure accumulated in the past few days was completely released in an instant, and the stock price plummeted by [-]%. And as the stock price continues to fall, there are fewer and fewer buying orders below.

There were acquisition negotiations before, and most of the shareholders were still a little bit confident, but now that they heard the news that the negotiations had been suspended, they couldn't calm down anymore.

"4 pieces are a bit overhanging"

At this moment, Chen Fan and Lin Hong were still discussing whether Anran could hold the 4-meter mark today, when Zhang Quan's cell phone rang again, Zhang Quan's face changed slightly after answering the phone, and then hung up the phone.

"Mr. Chen, I just got the news that Standard & Poor's suddenly announced that it has downgraded Enron's credit rating by six notches in a row, positioning it as a "junk bond". Moody's and Fitch are said to be lowering Enron's credit rating again today. There is a high probability that it is also a garbage grade, and it is said that it is because they have already confirmed the news that Enron's acquisition negotiations have been suspended, so they think that Enron is hopeless."

Zhang Quan said to Chen Fan and Lin Hong at this time, but his voice spread throughout the trading room, several other traders heard it and looked over in surprise.

After the rice stock market opened today, Enron's stock price plummeted uncharacteristically, and they felt something was wrong. After asking Lin Hong, they learned the latest market rumors, so it was easy to understand the sharp drop in Enron's stock price.

But at this juncture, it can be said that when Enron's life was hanging by a thread, the three major rating agencies all downgraded Enron's rating.

In normal times, downgrading the rating would be enough damage, but at this tense moment today, the release of this news will undoubtedly push Enron into the fire pit.

Perhaps at this moment the news has spread, and Enron’s stock price near 4.2 yuan broke out in a seemingly bottom trend.

But this seems to be just the beginning, the plunge of Enron's stock price is still going on, and there are continuous selling orders hitting the buy orders below. , the naked eye can see that the number of selling orders is still increasing rapidly, and then these selling orders disappear together with the selling price.

At this time, the seller is no longer looking at the selling order below to place a sell order, but simply listing a price based on feeling. Only when the selling price is set at the invisible buying price, can there be a chance to complete the transaction before others.

And even so, the orders that are often placed may not all be able to be sold.

Enron's stock price collapsed after Standard & Poor's announced that it had downgraded his credit rating to junk status.

For companies with a bond credit rating of junk, they have completely lost the ability to raise funds, and they cannot issue a single bond, because no agency will underwrite them, and Enron still has a large number of companies that were previously rated A and AA. At this time, the holders of those bonds are afraid that they will implement the last resort. As long as there are conditions in the bond issuance contract, they will ask Enron to pay back the money immediately.

Undoubtedly, the three major rating agencies just downgraded Enron's credit rating slightly, and it seems that they have shown mercy. Enron still has a chance to save itself during this period of time, but it is a pity that they did not reach an acquisition agreement with Deneng.

By this time, Enron was clearly at the end of its rope.

Although many people were unwilling to believe it, at this moment, the only thought that had appeared in the minds of countless people was——Enron Company was going bankrupt.

The diving of Enron's stock price continued. After the 4-meter mark fell, only a few minutes later, the 3-meter mark was smashed again, and then the stock price continued to move rapidly towards 2 million.

At this moment, all investors holding Enron shares have lost their minds, and their only thought now is to get their money back before the company's shares are delisted, even if it is less, they must get back some.

(End of this chapter)