What's wrong with me being a rich man?

Chapter 182 Collapse (5k)

August 8, Eastern Time, Canada. Just as Paulson was paying close attention to the mountain, Chandler was also paying close attention to this research organization.

Or, in other words, a hated short seller.

Guoshanfeng is called a research company, but it is actually a short-selling company for profit. This was confirmed the last time it went out.

Chandler had never heard of Shanfeng's name when he received the email, but after reading the research report, he quickly looked up relevant information. Seeing its successful short selling of Fenton Media, he felt even more depressed.

The email offering to "pay the ransom" received no reply, and Chandler didn't know whether other people had received similar emails. He could only keep a close eye on their actions to make sure he was ahead of the curve.

While running, they had to shout, "Believe in the company, believe that the management of Sino-Forest can handle external doubts correctly."

More than 80% of Chandler's holdings come from the secondary market, that is, non-restricted stocks. Although an "early warning report" was issued because the overall proportion exceeded 10%, he must later report any stock changes of more than 2%.

However, such reporting is done to the Securities Commission within two business days after the transaction is completed and the documents are updated.

Chandler read the research from Guo Shanfeng over and over again, confirming that the content was highly credible. He had made up his mind that if the other party really made it public, he would run as far as he could.

Such a decision is of course risky. If there is a problem with Guoshanfeng's research, he would become a fool who crashed the market for no reason.

but……

What if Paulson and Davis also received the email and did not run away themselves but they ran away first?
He would not try to contact other shareholders, lest everyone run together to further drive down the price. He even hoped that Guoshanfeng would really make the report public, so he would do it as late as possible.

Chandler didn't like the short sellers' style of doing things. He felt that they were like a group of hyenas taking backdoors, which was extremely disgusting!

However, he believed more in Hyena's ability to find backdoors, especially when it came to crossing the mountain peak. Its last research report on Fintech Media was also very good, and this time the relevant content was extremely clear and highly credible.

In that case, let’s run!

At 6 o'clock in the morning, Guo Shanfeng officially released the research report and launched the charge.

Chandler watched with a heavy heart as the news gradually spread. By 7 o'clock, many well-known media had reprinted Shanfeng's doubts about Sino-Forest.

By 7:, he saw a piece of news that had been preliminarily sorted out on BNN Bloomberg.

Preliminary review...

Just half an hour!

Even though you are under the name of Bloomberg, you can't be so efficient!

BNN Bloomberg is a website used by many Canadians to obtain business information. It is a Canadian business and financial news channel owned and operated by Bell Media, and uses Bloomberg's brand authorization and technical support. In many cases, the business, market and economic news provided are real-time.

This time, it’s still real-time!

Chandler didn't want to see this happen, but he couldn't stop the spread of the survey content.

As he looked at the gradually boiling online reports, discussions and doubts, he even felt an inexplicable conflicting emotion in his heart. If Guo Shanfeng's research was fake, what would happen to you unscrupulous media outlets that reprinted the news!
Then he gave the answer himself.

What can I do?
Apologize.

It is even possible that there is no need to apologize, just delete it and pretend it never happened.

Chandler is not so unscrupulous. He is selling off his shares while expressing his belief in the company and management. Therefore, he will inevitably be questioned and even interviewed afterwards.

He had already thought of how to respond, which was to apologize sincerely. He was also a victim, and the real culprits behind the tragedy could only be Sino-Forest and its group of fraudulent management.

This group of people must be punished by law!
At 8 o'clock in the morning, the pre-market price of Sino-Forest had fallen by 5 points.

"Tell those media outlets to release the news as soon as possible." Chandler noticed the trend of the stock price and immediately asked his secretary to take action.

Because the news was received very late, the options market could not move and block trades could not be negotiated. The main battlefield for this sell-off was in the secondary market. In addition, Chandler was the largest shareholder and did not intend to trade through the pre-market when trading volume was small.

A few minutes later, he saw his prepared speech on the screen.

——"Sino-Forest is an excellent company. It is the largest private forestry company in the Northern Hemisphere. I have great confidence in the management team represented by Chen."

——“I hope that Sino-Forest will not only achieve outstanding performance, but also gain more recognition.”

——"In fact, I learned from the management that everyone has considered continuing to list in New York or Hong Kong. If it succeeds, it will undoubtedly be very encouraging!"

Chandler is the company's major shareholder, and his attitude is crucial. In addition to his attitude, this time even the dual listing that had been discussed was pushed forward. This kind of news that can obviously stimulate the stock price is something that even Paulson cares about.

He did not talk about the mountain research, but this statement could easily be understood as a supportive attitude.

As expected, the positive news of the dual listing has restored Sino-Forest’s pre-market price.

Even so, Chandler didn't think his attitude could do much more.

Soon, Sino-Forest's share price fell again after recovering its lost ground.

This time, someone still stood up.

Yahoo Finance obtained an exclusive first-hand response from the parties involved.

At 9 a.m., Sino-Forest founder Chen Deyuan accepted a telephone interview with Yahoo Finance and responded to the Guoshanfeng research report that has attracted close attention from the market.

"This is all nonsense! It's just to suppress our stock price. It's a short position. Don't believe what it says."

"Our company is operating well, and our business in the second half of the year has grown compared to the first half."

"That's not right. The transaction between us and Yuda Wood Industry mentioned by it is totally untrue! The company that invested in Yuda Wood Industry was not our Sino-Forest, but Senli Jida Machinery and Electronics in Hong Kong. This is all well documented."

"I hope that investors can distinguish right from wrong, and we will also hold this institution accountable for its legal responsibilities!"

"I also call on all major media outlets not to reprint unconfirmed news at will, as this has already affected our company's image and stock price!"

“Finally, I would like to strongly condemn the vicious behavior of short sellers like Guo Shanfeng! In the future, we will let a third-party auditing agency conduct business audits. I have already called PricewaterhouseCoopers!”

"This is my response. According to the old Chinese saying, those who are innocent will be cleared!"

Chen Deyuan's voice sounded very angry, and his words were very confident.

Along with his exclusive response, Davis Consulting, another major shareholder holding more than 10% of the shares, also gave strong support and expressed its confidence in Sino-Forest's performance.

Chandler was reading the news on Yahoo Finance. He was a little hesitant because of Chen Deyuan's response, but then he saw the statement made by the CEO of Davis and immediately became furious.

Davis is so bad!

He must be trying to run away!
He is now just expressing the same attitude as me!
What’s the point of expressing your opinion? You don’t have to bear any legal responsibility!

Influenced by the founder and two major shareholders, Sino-Forest's share price, which had fallen before the market opened, rebounded again.

At 9:10 in the morning, just as Chandler was becoming increasingly nervous, he received a call from Davis in New York.

"Chandler, how have you viewed the mountain survey?" Davis asked bluntly.

Chandler was a little suspicious when he heard this. What did he mean? He was trying to trick me into supporting the stock price?

He replied calmly: "I think Chen Deyuan's response is trustworthy. He has contacted PwC. I never believe the words of those small institutions. What ability do they have to conduct research?"

Davis said with concern: "The problem is that Guo Shanfeng once accurately pointed out the problems of a listed company. They are actually capable."

"That's why their words are hard to tell. I invested in Sino-Forest after doing research. I don't trust myself, but they do?" Chandler asked. He added, "If you want me to trust the short sellers, you have to be a big short seller like Paulson."

Davis was silent for a while and then said, "Well, I have spoken to Chen Deyuan and asked him to do an internal audit first to confirm that there are no relevant problems with the business."

Chandler finally replied: "Okay, I believe Chen Deyuan."

He ended the call, some doubts in his mind.

Did Davis receive the email in advance? Did he really mean what he said? Did he really think Sino-Forest was fine?
No matter what...I have to run away first.

However, just as the market was about to officially open, Chandler was shocked to see the latest news from New York.

Paulson Advantage Plus, a fund under Paulson, joined the ranks of questioning, demanding that Sino-Forest's management explain one by one the research questions raised by Guoshanfeng.

At the same time, Smith, vice president of Paulson Advantage Plus Fund, said he would liquidate his holdings.

Paulson Advantage Plus Fund is the company that Paulson uses to hold Sino-Forest shares, with a share of up to 10.2%!
As a result, it actually threw out such a signal at the opening? ?
The third largest shareholder!
He is the third largest shareholder!!

It also clearly represents Paulson's attitude!!!
In other words, Paulson really stood up!
Chandler stared blankly at the news on Yahoo Finance. After a while, he subconsciously switched pages again and saw that Bloomberg also published the statement of Smith, the vice president of the fund.

When Sino-Forest was accused of fraud, the most famous hedge fund boss on the planet and the company's third largest shareholder turned against it at the last minute!

Regardless of his fame or the status of his shareholding, this will inevitably bring about earth-shattering consequences!
Nothing is more convincing than voting with your feet!
Chandler actually wanted to vote with his feet, but Paulson's action undoubtedly declared that he believed the doubts of the mountain, which undoubtedly turned his own flesh-cutting into amputation!
The billionaire's hands and feet were cold, and he felt a sense of despair in his heart. All kinds of thoughts in his mind were entangled and about to explode.

He gritted his teeth and called Paulson directly, fiercely verifying his guess: "Paulson! Are you the mastermind behind the mountain crossing?!"

As such a close associate of the third largest shareholder, why would he switch sides?!
Paulson is over the mountain!!
"Are you crazy? If that's the case, why did I buy Sino-Forest shares not long ago?" Paulson frowned and retorted, "I could just short sell it directly, why did I go through so much trouble?"

Chandler calmed down for two seconds, and still said viciously: "You shorted Sino-Forest too!!"

Paulson's thoughts skipped a beat, and he said disdainfully, "The research report was not released until 6 o'clock. How can I have time to short it?"

Chandler angrily asked, "Then why did you dump the market?" "Because there is nothing wrong with Guo Shanfeng's research report. We immediately contacted the Forestry Bureau of the Chinese province to confirm that the data mentioned in it is true, which proves that Sino-Forest has a lot of water in it." Paulson explained, "Smith and others re-examined Sino-Forest's high gross profit margin that exceeds that of its peers and believe that Guo Shanfeng's doubts and research are very valuable."

Chandler continued to ask: "Why don't you just sell the stocks directly? Why do you have to stand up and disclose your operations!"

Paulson said righteously: "I am responsible for the investors in the market!"

Chandler: “…”

He totally didn't believe such nonsense.

Chandler's anger receded a little, but his IQ rose a little. He asked out of the blue, "Have you received the notice from Shanfeng a long time ago?"

Paulson narrowed his eyes and asked calmly, "What notification? Did they notify you after they passed the mountain? Did they call you? Was it an American?"

Fuck King Cobra Research, it didn’t just send emails to itself!

Chandler no longer expected to get useful information from Paulson.

He finally gave his blessing: "Paulson, you will be punished for crashing the market like this!"

"No," Paulson replied politely, "I believe that investors will be more grateful for my reminder than for your insincere words."

He was already aware that Chandler had received advance notice, which meant that the major shareholder's statement in the morning was contrary to his actual actions, and that ordinary investors would ultimately bear the losses.

Why would a black pig say that a crow is black?

Chandler hung up the phone, and the next second he threw it to the ground without hesitation!
He now had only one thought: Paulson must have done it too!

Paulson must have been involved in the short selling of Sino-Forest!

Otherwise, it is hard to explain why he would turn against his party and crash the market at this time!

Chandler collapsed on the chair in despair. Where are the good people in this world?

The landline phone on the desk rang shrilly.

"Ring ring ring!"

“Ring, ring, ring!!”

Chandler plucked up his courage and answered the phone, wanting to hear what the bad news was.

“Let’s apply to CSA for a temporary suspension of Sino-Forest’s shares!” the secretary’s voice came over. “The stock price is falling too fast!”

Chandler swallowed and took a long breath: "No, no, you can't apply!"

Individual stocks can be temporarily suspended. This decision-making power belongs to the Canadian Securities Administrators (CSA), who will make rulings on a variety of reasons such as mergers and acquisitions, reorganizations, abnormal fluctuations, and violations of regulations.

At the same time, companies can also make requests.

The major shareholder itself does not have such rights, but can communicate with the company.

"If the stock price continues like this, it will completely collapse!" The secretary's voice was anxious.

Although he could see the stock price with just a flick of his finger, Chandler still hadn't mustered up enough courage. He just emphasized: "Don't call CSA, don't contact Sino-Forest. If it is suspended this time, it may not be able to resume trading and will eventually go bankrupt. All the stocks will be worthless! Don't fight, don't fight!"

The secretary was speechless and could only hang up the phone and continue to sell stocks desperately.

Because of Paulson's huge influence, everyone was cutting their positions and the stock price was in free fall.

Chandler pressed the phone back hard and put his hand on the mouse again.

This action seemed to exhaust all his strength, making him unable to perform the next move.

The landline on the desk rang twice more, but was not answered.

Time seems slow but it actually goes fast.

Chandler suddenly seemed to come back to his senses from a trance, and glanced at the lower right corner of the screen. It was already 10:50 in the morning.

One hour and twenty minutes have passed since the opening.

Chandler's hand trembled unconsciously as he moved the mouse. It took him another five minutes to prepare himself mentally. He clicked on the interface of the Canadian stock market and saw the large negative line of Sino-Forest Corporation falling freely.

6.73 Canadian dollars!

The opening price is 18.1 Canadian dollars...

In just less than two hours, the market value has been halved!
Not only has the market value been cut in half, but as much as 62.82% of the market value has been wiped out!
Yesterday, Sino-Forest had US$50.7 billion, but now it only has US$18.85 billion!
$31.85 million…

Chandler stared at the screen in a daze. So much money just disappeared? ?

At this moment, he was extremely angry!

It even went beyond personal interests and was angry at the inaction of the Securities and Futures Administration (CSA)!

Isn't it time to suspend trading at this time? !
After a moment, Chandler regained consciousness and decided that it was a good idea not to stop trading...

He blinked and looked at the screen again. The stock price had changed from 6.73 to 6.35...

Chandler couldn't tell whether it was his brain or his eyes that were shaking. He just felt that the world in front of him was blurry.

There was another piercing phone ring.

This time, Chandler picked up the microphone and heard the angry voice of Davis, another major shareholder.

"Chandler, have you received any notification from the Mountain?" Davis was so angry that his voice broke.

Chandler said weakly: "Why are you pretending at this time? Didn't you get it?"

Davis' voice was high-pitched: "I didn't receive it! I didn't receive it! You son of a bitch, I called you in the morning, why did you tell me to trust the company!"

Chandler was stunned. Davis didn't receive it?
If Davis hadn't received it, what would be his stock trading strategy today?
Chandler seemed to have regained some strength and said, "I received an email, but it was very close to 6 o'clock. I didn't believe it. However, Paulson certainly believed it. I called him. I even felt that he was involved in the short selling of Sino-Forest."

"Bitch! Bitch!" Davis cursed several times and said through gritted teeth, "I'm on my way to find Paulson now! I'm on my way now!"

Chandler was in high spirits and shouted, "He knew it a long time ago, he must have shorted it! He won't let go of the opportunity! Davis, don't let him go! Don't let him go!"

Davis angrily shouted, "You're a bitch too! You're all bitches!"

He hung up the phone without waiting for a response.

Unlike everyone else, he not only did not sell at the beginning, but also tried to buy at the bottom at one point.

However, in just fifteen minutes, the situation had gone extremely wrong!

Where did I copy this to?

Davis did not notice Paulson's defection in time, and suffered double losses in just a short while. He had to angrily talk to Paulson offline.

But he also knew in his heart...

The collapse of Sino-Forest will surely bury the majority of investors!
……

China time, 0:30 in the evening in Shanghai.

Yu Xing's cell phone suddenly rang.

He saw the unfamiliar number, frowned, and pressed the answer button.

“Mr. Yu, from Sino-Forest…”

These words were heard in the silent night.

When Yu Xing heard the first few words, his mind buzzed, and it took him another two seconds to realize that this was a request to delete the post that had just appeared on the website of Sino-Forest.

Following the second short-selling by Guo Shanfeng, some users of the Bai Xiaosheng website posted messages even late at night, mentioning the bloody collapse of the Canadian market and the loss of billions of dollars.

Also, someone is translating the English research report on the mountain and wants to exchange and learn with everyone.

Jiahan Forestry noticed this situation and promptly dispatched legal personnel to contact us to delete the post.

Yu Xing let out a long breath, shocked. He thought it was Jiahan Forestry that came directly to his door!
He did come to Bai Xiaosheng's door, and he did meet the real boss.

"Impossible." Yu Xing refused bluntly. For a moment, he felt a sense of absurdity as to whether he was representing Guo Shanfeng or Bai Xiaosheng in the conversation with Sino-Forest. "There is nothing wrong with the post. It just mentioned the situation of the Canadian stock market."

The legal officer on the other end of the phone immediately threatened and mentioned legal liability.

Yu Xing couldn't help but laugh and said, "You don't have to threaten me. Instead of doing this, you might as well go directly to the mountain peak... What's the point of threatening me?"

The call ended abruptly.

Jiahan Forestry was not even willing to send a lawyer's letter to Bai Xiaosheng, or in other words... it was over the mountain.

(End of this chapter)