Reborn in 08, a heretical cultivator starting a business

Chapter 147 Large-Scale Transactions, Technology Salon
"Okay, let's buy Baogang Rare Earth at rock-bottom prices, below 6 yuan, and get 4.99% of the shares. You guys calculate how much that will cost!"

Wang Junshan also wanted to buy more at the bottom of the market.

But if it exceeds 5%, you have to raise your hand to indicate your intention to participate.

Even if you want to sell it later, you can't just buy it anywhere.

Buying at 4.99% is fine.

Wang Junshan had a plan; once the price rose to 75, he would sell all his shares.

Buy at 5-6 yuan and sell at 75-80 yuan for a profit of more than ten times.

More importantly, it doesn't require long-term holding; on the contrary, you can cash out in less than three years.

In less than three years, the return rate was more than ten times, which is even more terrifying than buying a courtyard house.

The floor price for courtyard houses and houses will not only be set at the end of this year, but also in the first quarter of next year.

I have a pretty good idea of ​​what March will bring.

The global financial crisis that broke out in September made everyone lose confidence and unable to make money, which directly led to a sharp drop in housing prices.

Even with the implementation of the four trillion yuan stimulus package, the situation will not improve in the short term.

Just like the stimulus policies in the United States, one after another, but they are mostly all bark and no bite, and are difficult to achieve any real effect.

The situation is similar domestically; the economy did not immediately improve after the 4 trillion yuan stimulus package was introduced.

On the contrary, when it was first introduced, many people felt they lacked confidence and thought it was all talk and no action.

Even those who are confident believe it will take a considerable amount of time to be effective.

The economy is not expected to recover until the end of next year, or even the year after, and a full recovery will take even longer.

It's unrealistic to expect policies to take effect immediately just because they're introduced.

Everything has a development process!
Therefore, domestic housing prices have been declining.

Everyone believes that the 4 trillion yuan stimulus package will be effective by the end of next year, and the economy will recover before rebounding.

Unexpectedly, the four trillion yuan stimulus package was a bit too much, and the domestic economy recovered in the second quarter of next year.

Domestic housing prices are also expected to bottom out and rebound in a "V" shape by April next year!

I thought that with such rapid progress, my future would be limitless.

However, it was discovered that while the domestic economy had recovered, the international economy had not, and even the first wave of recovery abroad was a false recovery.

The economic crisis is still ongoing.

Export trade remains dismal.

As a result, a second wave of panic ensued abroad!
Unlike the "V"-shaped rebound in China, the overseas market saw a "W"-shaped recovery.

After a brief rebound in the first half of 2009, the world was plunged into a second wave of panic and a more prolonged recession.

This wave didn't truly bottom out and rebound until 2012.

However, the situation in China is completely different, with a V-shaped rebound.

Housing prices rebounded in April, followed by a decade of straight-line surges.

Housing prices will bottom out in February or March next year, reaching their lowest level in decades!

In this way, the large-scale investment in courtyard houses can be carried out next year.

Before the Lunar New Year, the most you can do is buy some bargain properties at extremely low prices.

The best course of action for the current 20 billion yuan profit is to use it all to buy shares of high-quality companies at bargain prices.

As for whether the loss of this 20 billion will affect the operation of Future Technology?
Will this affect Vipshop's T+15 and T+30 settlement?
of course not.

This 20 billion is Future Technology's net profit and cash reserves, not all of its cash flow.

On the contrary, Future Technology's many businesses are settled on a T+30 basis. All payments from distributors and brands will be held in WeChat Pay for 30 days or even 40 days!
Future technologies will never lack cash flow.

For example, if a cosmetic set worth 1000 yuan is sold, the 1000 yuan from the consumer will be deposited into Vipshop's account, and Vipshop can then use this money for working capital.

The goods are shipped on the second day, arrive on the fifth day, and are signed for and used by the user on the sixth day. Confirmation of receipt is on the tenth or even thirteenth day.

According to the T+30 rule, Vipshop will settle accounts with the brand on the 40th or even the 43rd day!
Vipshop can use this money for working capital within these 40-43 days.

More importantly, this applies not only to this one sum of money, but to all funds.

Under these circumstances, Vipshop is not short of money at all.

These idle funds can be used for turnover, operation, or even investment.

In addition, each of Future Technology's business units is a cash cow, with substantial profits.

The daily profit from imported maternal and infant products alone is in the range of 1500-2000 million.

In addition, group buying platforms like YouTuan, Vipshop, and WeChat Farm have also been generating huge profits.

The entire Future Technology company makes 30 to 40 million in profit every day.

This amount of money is more than enough for the development and expansion of each business unit, with some left over.

Therefore, even if Wang Junshan uses 20 billion yuan to buy stocks at rock-bottom prices, it won't cause any major problems.

Unlike JD.com, which is severely short of money and relies on investments to survive.

“Okay, that’s basically the arrangement,” Wang Junshan said. “We must build positions in batches and buy at the bottom in batches to prevent buying too much at once and causing the stock price to surge.”

Cui Qian nodded: "Don't worry, Chairman, we will proceed on two fronts simultaneously: the secondary market and the block trading system. We aim to minimize the impact, reduce costs, and acquire the most shares!"

"Next, I will contact the institutional sales departments of major securities firms to see if there are any institutional shares that have been forced to be liquidated due to fund redemptions. Through the block trading system, I can take over the shares in large quantities at a price 2%-3% lower than the market price."

"Of the 20 billion yuan, we aim to quickly secure 12 to 15 billion yuan through the block trading system."

"I will allocate the remaining 5-8 million to multiple traders in different brokerage accounts, spreading it out and making small, fixed-amount daily purchases to avoid attracting market attention and causing the stock price to soar!"

"Very good." Wang Junshan was very satisfied.

This type of large-scale transaction is the most efficient way to buy at the bottom on a large scale, and it also has the least impact on the market!
The remaining 5-8 million will be traded in a dispersed manner in the secondary market. If it is carried out in a week or even half a month, the daily scale will only be tens of millions. If it is further dispersed among so many stocks, the average daily volume of each stock will only be tens of millions, which will not attract much attention.

That would be perfect.

The reason why Wang Junshan invested in so many companies at once, including infrastructure, technology, and white goods...

It means diversifying funds in all aspects.

A sum of 20 billion is not a small amount.

If this had happened at any other time, it would have caused a sensation, let alone buying at the bottom during a financial crisis.

It will definitely drive the stock price sky-high.

However, by operating separately and distributing the funds among so many brands, each brand only receives a few hundred million to a few hundred million, and at most a few hundred million to a few hundred million.

Alternatively, one can divide their positions into bulk transactions and secondary market purchases, using a week or even half a month to buy at the bottom.

This makes it very inconspicuous.

Moreover, Wang Junshan's configuration was also divided into three layers.

One layer is for short-term investment; the plan is to buy at the bottom and cash out in the second half of next year.

For example, Sany Heavy Industry, Conch Cement, and Xijiang Copper in the infrastructure industry.

Driven by the 4 trillion yuan infrastructure investment plan, the stock prices of these three companies could surge three to five times in the second half of next year, but subsequent growth will be weak.

Wang Junshan doesn't need to wait any longer; he can just cash out when the time comes.

Three companies invested 9 million yuan, and within a year, the value increased to 40-45 billion yuan!
Making over 3 billion yuan is absolutely a stroke of genius.

The second level is medium-term investment.

Most other stocks, if held until 2010 or 2011 and sold in batches, would have yielded a return of about 5 times.

Baotou Steel Rare Earth, if sold at its peak, could fetch ten times, or even fifteen times, the price.

Even so, it's not advisable to go all in on rare earth steel; the risk is too high, it's too conspicuous, and it's easy to be set up.

This diversification approach is actually more secure and yields more substantial returns. The third layer involves long-term investment.

For example, with stocks like Tencent and Midea, you can partially cash out and hold the rest long-term, depending on the situation.

The future growth rates are all quite considerable.

This diversified approach to investment is the safest bet.

"Are you still investing in the courtyard houses?" Cui Qian asked. "Currently, 20 billion yuan has been used to buy stocks at rock-bottom prices, and there's only some left on the courtyard houses..."

Wang Junshan smiled faintly: "It's alright, let's continue the investigation and negotiations. Large-scale investment can be postponed to the first quarter of next year."

"But if there's a suitable bargain property, just buy it; money isn't an issue."

"You could buy a courtyard house first, then take out a mortgage loan. Then use the loan money to buy stocks at rock-bottom prices. That's a viable option."

The next 20 billion yuan to buy stocks at the bottom will not be something that can be done overnight.

Instead, one should diversify one's positions and diversify one's bottom-fishing strategies.

It will take at least half a month, or even a month.

And in the past two weeks, or even a month, Future Technology has made money again!

Imported maternal and infant products alone could generate at least 6 million, or even 8 million, in profit.

Since Sanniu's financial crisis, the transaction volume of imported maternal and infant products in China has surged every month, with a year-on-year increase of 300%-400%!

In the first and second quarters of this year, the transaction volume was only 90-100 billion.

It increased to 120 billion in the third quarter.

Breaking 240 billion in the fourth quarter is no problem!

Everyone is panic-buying, fearing they won't be able to buy it or that prices will continue to rise, so they're buying like crazy.

As a result, the total transaction volume of imported maternal and infant products in China reached 70 billion yuan in October!
And in November, it is expected to reach 80 billion.

As the largest platform in the maternal and infant product category, U-Group International can easily capture a quarter of the market, which translates to 20 billion RMB in transaction volume.

The profit behind this, after deducting all costs including taxes, is over 8 million!

It can be said that in November alone, the maternal and infant product category brought Wang Junshan more than 8 million yuan in profit.

Add in Vipshop, YouTuan group buying, and games, and you can earn hundreds of millions of yuan.

There's no problem with making a net profit of 12 billion throughout November.

There's no way around it, the imported mother and baby product market is just too hot!
The profits are too high!
The combined profits of all other businesses cannot match those of imported maternal and infant products, and are even only half of those of imported maternal and infant products!
Of course, such good things won't last forever.

Wang Junshan believes that the growth will slow down after the Chinese New Year next year, and the sales of imported maternal and infant products will decline rapidly.

There's no way around it; the goods we panic-buied in the fourth quarter of this year can last until the second half of next year, so what's the point of buying more?
Just like hoarding salt, enough to last for ten years, the purchasing power will naturally decline afterward.

The same applies to mother and baby products.

In the fourth quarter of this year, Future Technology made a fortune from its maternal and infant products.

Next year, sales and profits are likely to decline significantly, or even be halved.

Even so, U-Tuan International, as the leading platform, is still doing very well.

“Okay, Chairman, then let’s continue. We’ve already acquired Hutong No. 1. We bought it for 20 million and got three tenants to move out for 1 million. It cost us a total of 21 million, which is definitely worth it.”

"Well done." Wang Junshan was in high spirits.

The courtyard at No. 1 Hutong is a three-courtyard complex with a house area of ​​420 square meters. Including the courtyard, the total area is 1000 square meters.

It's close to Zhongguancun Plaza, in a good location, and the market price is 40,000 yuan per square meter, so it would cost 40 million yuan.

Because of the ownership dispute, the price was 30% lower than the market price, and it couldn't be sold even for 2800 million.

Now, with the global economic crisis, the sales of courtyard houses have cooled down across the board, with prices but no buyers, and the company is bleeding money.

Cui Qian personally intervened and managed to negotiate a price reduction of 2300 million on her first attempt.

The second time, it was acquired for 2000 million.

The three tenants involved in the rental dispute spent a total of one million yuan and were successfully evicted.

Wang Junshan acquired a courtyard house of over 1,000 square meters near Zhongguancun Plaza for 21 million yuan.

It's only 21,000 yuan per square meter on average!

It's a bargain.

Nearby courtyard houses of 1,000 square meters all cost around 40,000 yuan.

Even during an economic crisis, it would still cost 30,000.

Because of a rental dispute, the property couldn't be sold, which allowed Wang Junshan to snag a bargain.

This location is right next to Zhongguancun Plaza!
Applying for dilapidated building renovation next year to transform it into an AI technology salon and a Zhongguancun technology meeting room will not be a problem.

In the future, it could increase in value to 10 billion.

It can also be leased out to technology companies for events, generating tens of millions in rent annually.

Furthermore, as housing prices rise, the rental income will also increase, reaching tens of millions.

As for when it can't be rented out, it's not a big deal.

Future Technology's own series of activities can also be placed here.

A venue of 1,000 square meters is no problem for a large-scale technology summit with 300 people.

Small press conferences and media briefings with a few hundred people are no problem.

The initial cost was 2100 million, but with government subsidies for later renovations, the total cost won't be much.

With a future market value of over 10 billion, it can also collect tens of millions in rent every year.

The return on investment is over fifty times!
This investment is absolutely YYDS!

Its advantage lies in its proximity to Zhongguancun Square, surrounded by major companies such as Baidu and Lenovo, making it a prime location.

As for other similar courtyard houses that you can find at a bargain price, you can take them if you find a suitable one.

Rental disputes are nothing to worry about; problems that can be solved with money aren't really problems.

"That's perfect, we still have a few more courtyard houses in the process of negotiating," Cui Qian said with a smile.
"Some of them are foreign trade companies that went bankrupt during the economic crisis and urgently needed money, so they sold them off at a 6% discount."

"There are also families who immigrate and are in a hurry to cash out, demanding full payment, which can be negotiated down to 40% off."

“Sure. Take any suitable ones we find. Money is no problem. We can always take them and then mortgage them,” Wang Junshan said with a smile.

Those with such special needs can take advantage of the economic crisis to cut prices and get it for 60% off.

This is a price that will be hard to come by before, and will be hard to come by after.

There's no other way; if we're not in a rush to get the money, we can sell them slowly at an 80% discount. If we can't sell them this year, we'll sell them next year.

But if you need the money urgently, you have no choice but to sell at a 6% discount.

Especially during a financial crisis, when people urgently need money, it's only natural to sell goods at 60% of the market price.

Following Wang Junshan's instructions, Cui Qian led the investment department to take swift action.

The entire investment was divided into three teams.

One team continued to inspect high-quality courtyard houses. If they found a suitable one at a bargain price, they negotiated directly, aiming to cut the price to 6% of the market price.

One team was in the secondary market, spreading out their positions to buy the stocks that Wang Junshan had mentioned.

The last team, led by Cui Qian herself, contacted various securities firms to acquire the stocks Wang Junshan needed in bulk through block trades.

As the stock price continued to fall, the holders panicked and thought about cashing out and leaving the market as soon as possible.

If the shares are sold directly on the secondary market, the stock price will definitely crash, and the consequences will be unimaginable.

However, by using the bulk trading system to sell in batches and find buyers, things become much easier.

This method will not cause a collapse in the stock price in the secondary market, and it can also quickly unload a large number of shares!
(End of this chapter)