Coquettish Rebirth

"Mr. Jia, thank you so much this time! If it wasn't for your help, I would really have to die to prove my innocence this time..." Lao Zhang stood in front of Jia Hongjian at this time, very Said with emotion.That's right, the lawsuit between the old Zhang Lida and Mattel, which sells Barbie dolls, has been settled by now.Mattel has dumped evidence from Huaxia Hi-Tech and Lida, and disclosed it to various media. It turns out that most of the Mattel toy recalls were caused by Mattel’s own design mistakes, and the original It was Mattel who "planted the blame" in order to shirk responsibility and avoid losses!When such a matter was fermented in the media, the pressure of public opinion immediately rose.

After the pressure from public opinion increased, the stock price went down a bit. After all, the stock price is actually the expected value of investors for the company's future earnings.For a company like Mattel, when the evidence was exposed by the other party before the trial, and then the media exaggerated that the whole of the United States knew about it, the investors went through analysis by various analysts and found that 99% The most likely thing is that Mattel will lose money, so who can still be optimistic about Mattel's profitability this year?After all, the problem with Lida is only 90 toys, while Mattel wants to recall 1800 million toys, not to mention that the United States still has punitive compensation.So in such a matter, if Mattel is ultimately fined by the court to compensate the other party for three to five billion U.S. dollars or something, it is really not a big deal!It's really normal!

As for a company like Mattel, although it is famous all over the world for its Barbie dolls, it seems to be a very, very big company, but such a company is actually not very profitable. The revenue is only 3-4 million US dollars.If it really lost three to five billion US dollars, wouldn't this mean that Mattel lost a quarter or more of its annual profits in 08?This immediately means that Mattel will spend a quarter of this year in vain!And this matter is only the compensation paid by Mattel to Lida, not counting the cost of recalling 1800 million toys by Mattel itself!Recall 1800 million toys. Originally, these toys were scheduled to be sold in the next few years, but they couldn't be sold at once, and could only be destroyed.Since then.It's not that the cost invested in these products is simply wasted, and even the money that these products could have earned is also lost!In the business field, if the money that could have been transferred is not earned, it is equivalent to a loss!

Of course.This kind of less earned money will not really be included in the financial report as a "loss", but it will put a lot of pressure on investors' confidence.Investors considered that 1800 million toys were invested in vain, and they would have to redesign and place new orders later. The various problems caused by the 1800 toys had to be paid by Mattel, and the money that should have been earned was not earned.Now that we have to start all over again, everyone would expect Mattel’s share price to decline, and everyone would expect Mattel’s earnings in the past two years to be unsightly.Under the circumstances that everyone expected so, the stock will naturally fall, and because everyone thinks that Mattel's stock will fall, it will cause the stock price to fall more than it should fall!

Why is this happening?This is something like panic!To be honest, if human beings are so rational that they are scary, then maybe the decline in Mattel's stock price will only drop a part of what they should drop.But human beings always have a feeling of panic. When an investor knows that the price of the Mattel stock he invested in is about to fall, he will of course be eager to sell it.No matter what price he bought it.Now that the price is about to drop, if he sells one minute later, he will lose some more money!For retail investors, of course, the sooner they sell, the better. It is best when no one knows that Mattel is going to have an accident, and it is best for him to run away first.But this is impossible!All the retail investors know the news almost at the same time, and they start to sell together, and then there are few fools who are new to the market and want to buy Mattel after seeing the news, so how to sell this stock?

You must know that stocks do not mean that when you want to sell, you call the securities company yourself or set the selling price on the computer, and then you will really realize it immediately!stock this thing.It really needs someone else to buy it before it can be sold.If a shareholder A wants to sell 100 shares of Mattel, he must have someone else buy the shares of Mattel before he can sell the 100 shares!When everyone can see that Mattel is going to be unlucky.Even those who want to buy the bottom think that this time is just about to start to fall, and it is not a good time to enter the market, what will happen to the stock price?It can only fall all the way!And the fall is getting more and more outrageous!Because the stock price in the stock market usually falls or something, after all kinds of news come out, many people may think that the prospects are not good, but there are still some people who do not believe in evil.I think it is a good opportunity, so that the stock price will not drop too much.But now, after analyzing by the media, everyone has found that Mattel is definitely going to lose money, so everyone is holding back to sell, and no one rushes in to buy... Isn't this the rhythm of going to the limit and not being able to sell at all?

When there was a price limit, Mattel's board of directors and executives held a meeting overnight. Early the next morning, they held a press conference before the stock market started trading-they said they would have a meeting with Lida Reconcile out of court, and at the same time take various measures to try to ensure this year's income!What does it mean?This means to give investors confidence, which is to support the stock price!For Mattel, such a matter is like death by a thousand knives. The longer it drags on, the more unlucky they will be!Now that the first knife in a thousand cuts has just been scratched on their body, if they immediately admit their mistake and seek to stop the loss with a good attitude, the loss may not be too serious, but if they persist to the end, they really have to wait until the court pronounces a sentence, or even Wait three to five years or something, then their Mattel company may be dragged down-who would like to see the stocks in their hands become junk stocks?They also invested in real money!So if the CEO wants to hold on, this group of major shareholders will immediately kill the CEO!

Speaking of killing the CEO, Mattel really announced one thing at the end of the press conference, that is, the CEO who blamed Lida for the previous product recall was fired!Regardless of whether such a decision was made by the CEO himself, or the board of directors asked the CEO to say that, anyway, the result now is that Mattel needs a scapegoat, and such a CEO is the best candidate!If such a CEO is fired, it seems that Mattel is going to start a new life, isn't it?Immediately make amends!

Ever since, after such a press conference, as soon as the stock market opened, Mattel's stock price really did not have a daily limit!Although it still fell a bit, at least it has stabilized temporarily, and it will no longer continue to go down!This is the confidence that Mattel gave investors at their press conference, telling investors that they will try not to let the earnings drop too exaggeratedly, so when investors are not so panicked, the stock price will naturally be able to stabilize.

Then the next thing is that Mattel contacted Li Dazhang to negotiate an out-of-court settlement.For investors outside the market, the negotiation of an out-of-court settlement will be held, which means that the matter will soon come to an end, and it means that there will be a result soon, but for both parties in the negotiation, this is not the case at all. ——Because Lida's luxurious lawyers knew they had caught Mattel's feet after seeing the press conference news of Mattel!Because for Mattel, the most important thing now is to stop the loss, which is to maintain the confidence of investors, but for Lida, they can delay for a longer time to seek a higher amount of compensation!

For Lida, it doesn’t matter whether the out-of-court settlement is reached today or tomorrow. It’s not even a big problem whether the agreement is reached this month or next month—although thousands of workers in the Lida factory still have to get paid, But Lao Zhang and the others can still afford it!So in fact, Mattel made a statement to the outside world, which stabilized the confidence of investors, but on the other hand, it also made them lose the initiative!This is a game where whoever can't bear it first loses!Meitai couldn't help it, so they became passive, and they were going to be led by the nose by Lida!From such a point of view, Jia Hongjian felt that such a luxurious team of lawyers he hired to help Lida can help to make the compensation amount this time at least 5 million!

That's right, although to the understanding of ordinary people, the money given out of court settlement is definitely not as high as the upper limit of the court's judgment, otherwise the party that lost money would not need to settle out of court.But the key point of this matter is not how much money to lose, everything is time!For Mattel, it is the top priority to settle this matter quickly!Since Lida knew that Mattel wanted to hurry up and solve the problem quickly, of course they would ask for more money!Since it is estimated that Mattel may pay 3 to 5 million US dollars in compensation if the court finally pronounces the first-come-first-served case, then when Lida's legal team settles out of court, the psychological price is naturally at least 5 million US dollars!Otherwise, for them, why settle out of court so quickly?Everyone procrastinates and finally gets 5 million!

So even if the reconciliation has not been successful at this time, but the two sides have just started reconciliation negotiations, this old chapter is already so grateful to Jia Hongjian that it cannot be expressed in words!This dark-skinned man looked at Jia Hongjian, his knees were really weak, and Jia Hongjian felt as if this old Zhang would kneel down and kowtow anytime he got excited! (~^~)