Rebirth: The Financial Giant

Chapter 241 [While blowing AMD hard, shorting backhand? (5893)】

Although Lu Ming asked Qi Wei to lead a delegation to AMD and Silicon Valley in Magnesium for research, he was actually very clear about AMD.

In the past many years, including until now, ADM has always been the second in the industry because of congenital deficiencies.

The founders of AMD and Intel are both from the same company, Fairchild Semiconductor.

Both founders worked in this company, and both saw that semiconductors will usher in unprecedented prosperity in the future, so they resigned decisively and started their own businesses, and the gap between the two companies lies in the two founders. People from completely different backgrounds.

The founder of AMD was in the market at Fairchild Semiconductor, so he did not have in-depth exposure to semiconductor technology, which led to AMD's low technical strength from the very beginning.

On the other hand, the founder of Intel was born with real technology, so this led to AMD being unable to compete with Intel in the early technology, which also caused the early AMD to only commit to Intel, by being Intel's second supplier. Accumulate own technology and gradually expand production capacity.

But even this status quo did not last long. In the 1980s, the rise of personal computers made the competition in the semiconductor industry more and more fierce, and Intel was already the world's top player in semiconductors at that time.

And if this trend continues, Intel can become a world semiconductor giant with its own technology. Out of fear of being stolen by AMD, Intel unilaterally tore up its cooperation with AMD.

In this regard, AMD is naturally very angry. At that time, it helped Intel to win a large order from IBM, and turned around and was dumped by this scumbag.

So AMD angrily sued this scumbag. The two sides filed a lawsuit against Bo, and Intel eventually lost the case, but compared to the future world number one, the amount of compensation for losing the lawsuit is really nothing to Intel.

AMD, which was dumped by Intel, also missed the golden age of personal computer development, and could only watch on the sidelines as Intel made great progress, continued to devour the global market, and once became Intel's tool company to deal with anti-monopoly sanctions. of a batch.

But AMD is not willing to become a tool company, so it has been trying hard.

Especially after Su Zifeng took charge of AMD, he started the real counter-attack of the tool company.

In the case of several mistakes in Intel's decision-making and product architecture errors, it decisively came out to share the big cake of the processor market. Although it won some market share by virtue of its price advantage, the backwardness of technology is an indisputable fact. It also requires a huge investment of resources. For a small AMD company, this means that there must be no single decision-making error.

After all, Intel is still strong in the processor market in the past, and it can even be said that AMD is an RBQ that has been played casually, and is ravaged by casual play.

After five years of hard work and hard work under the leadership of Su Zifeng, the Ryzen series processors, which were finally launched this year, began to emerge.

It is also from now on that more and more people say AMD, YES in the market.

This also fully reflected the rise of AMD's stock price. In less than a year and a half, the stock price rose from the lowest of $1.61 last year to the highest of $15.55 at the end of February this year, accumulating an astonishing increase of +865%.

In fact, in the past year, AMD has actually been very grateful to Tiansheng Capital and Lu Ming. Of course, it is only limited to spiritual gratitude, and nothing else.

Because AMD was at a low point at that time, its stock price fell to $1.61 and was almost abandoned. But when everyone in the capital market was not optimistic about AMD at that time, Lu Ming spent $86.5 million to buy it. 39 million shares in AMD have been held so far.

This made AMD management see that the company had not been abandoned by the market. In terms of AMD with a total market value of less than $1.6 billion at the time, Lu Ming spent $86.5 million to buy the company's stock and firmly go long, which undoubtedly gave A huge confidence in AMD management.

Tiansheng QDIE bought AMD's shares. Although the money did not flow into AMD's account, it means that the market is optimistic about capital, which means that it is really short of funds. AMD can still raise funds from the market. , there will be capital to buy it, this is the point.

The meeting is still going on. Qi Wei, who attended the meeting, said: I don't know if the increase in AMD's holdings can reach 15%. After all, Laomei is very vigilant about our Chinese identity to intervene in the high-tech industry.

Lu Ming said: 15% is a bit less, but it doesn't mean that our increase in holdings does not threaten AMD's control, it is just a long-term strategic financial investment, and we do not interfere in the operation. First, LP institutions on Wall Street are the majority, and taking 20-25% is not a big problem, but no matter what, if the Securities and Exchange Commission of Magnesium does not come out to stop it, we will buy wildly.”

This time, Tiansheng Capital plans to invest another 3 billion to 3.5 billion US dollars in AMD. It is not in a hurry about the timing of the intervention. AMD's current stock price will fluctuate for eight or nine months in the future, and there are two huge backtests. end.

One time is at the end of the year, that is, the Sichuan University baby unilaterally provoked a technology war, and the other time is in April next year, various supply cuts, and the market is pessimistic. If AMD loses the huge consumer market in Greater China, it is indeed a problem. a major blow.

The market also chose to vote with its feet, and both times AMD's stock price has been re-dried to below $10.

At this moment, Lu Ming made a decision that surprised everyone. He looked at Qi Wei and said, After the meeting, you sell the AMD stock held by the company one after another, and then turn to short!

It wasn't just that other people were confused, Qi Wei was also confused, Chairman, you are... I didn't turn around for a while.

Who was blowing AMD, YES just now?

Backhand short?

Lu Ming smiled and said: Technical adjustments should be done technically, with a 30% amplitude fluctuation. Take advantage of the fact that you can make as much profit as possible now. If you raise your cards in the future, you won't have the opportunity to go back and forth.

I haven’t held more than 5% of the shares yet, so I can jump horizontally and repeatedly. When I really start to buy more than 5% of the shares, I will put up a placard. You can’t buy in reverse within half a year after selling, and half a year after buying. It is not allowed to sell in reverse.

This greatly limits Lu Ming's arbitrage actions, and also means that the two huge fluctuations of AMD's halving in September next year and the 30% drop in the global black swan in 2020 cannot be used for long-short arbitrage.

Although small funds can jump horizontally, no matter how happy the jump is, it is not as great as the absolute return of large funds.

Lu Ming doesn't care about the so-called rate of return, he cares about the absolute profit. The absolute profit of 100 times is only 100 million yuan, and the absolute profit of doubling is 10 billion yuan. Of course, Lu Ming will choose the latter without hesitation. .

When everyone in the meeting heard this, Qi Wei nodded and said, Understood!

Repeatedly jumping several times, it is not a problem that the average cost of the 39 million AMD shares currently held can be less than 1.5 US dollars, because the amplitude is large enough, it is still a T+0 transaction.

You have to cherish the current few time windows. Once you start to enter the market in a big way, you can only take it all the way to the end, and you will not move easily in the middle.

After talking about AMD, Lu Ming turned and said: We also sold all the Tesla shares we held and shorted the company after the meeting.

This is also the position that was established at almost the same time as AMD last year.

Qi Wei nodded: Understood!

For the operation of BOSS, everyone simply did not ask, because it was an operation that they could not understand. Here, they invested heavily in the new energy industry, and backhandedly threw away the world-class leader in the Tesla industry.

Don't be too obsessed with the operation, but the trend that the market has come out later has proved that it is all God's operation.

After thinking about it, is the logic of BOSS because Tiansheng Capital wants to build its own new energy vehicle ecosystem, so it squeezes Tesla's market in Greater China, so Tesla's stock price falls, so it sells?

Is this logic?

...