Rebirth: The Financial Giant

General Electric Group, Headquarters Office of the President.

At this moment, the CEO John Flannery, who took office not long ago, is reading the research reports published by several institutional analysts with a gloomy face. Within a few days of taking office, the company was shorted by capital institutions by 10 billion US dollars. Not a small sum.

Originally, GE had a lot of bad things to deal with, and now they have been stabbed in the butt, and John Flannery is also itching with anger.

In his eyes, although Lu Ming is a Chinese from the other side of the ocean, he and Wall Street are both greedy and greedy.

At this moment, the research reports Flannery was reading were all bad news that was bad for General Electric. He knew it was bad news, and he would be angry when he read it, but he just read it, and then he was very angry.

Analysts at Royal Bank of Canada:

[General Electric's stock price below $25 today may be a precursor to a catastrophe. The company's first-half performance fell year-on-year, and the full-year performance is expected to decline. The company is expected to announce a dividend cut in the second half of November. 】

Morgan Stanley analysts:

[General Electric long investors need to trade cautiously at the moment, the company may cut its dividend to 70 cents before November 13, the new CEO John Flannery is the right choice for GE, but the challenge is more than expected Large, downgraded to underweight from flat, target price lowered from $27 to $21. 】

UBS analysts:

[Although the second-quarter results exceeded market expectations, concerns remain that expectations and dividends may further decline, and GE's strategy has execution risks. Tiansheng QDIE Fund's target price of $5.5 is a bit excessive, but it also proves that the market is very pessimistic about stocks. Downgraded to Neutral from Buy, price target lowered to $21 from $31.5]

John Flannery saw that most of the institutions in the research report expressed pessimistic expectations, and many institutions downgraded their ratings one after another.

He swears that if the research team of Tiansheng Capital dares to come to the company again, they must ask the security guard to beat them up and blast them out.

Of course this is just angry emotional thoughts.

BOSS, the press conference is about to begin. Flannery's secretary knocked on the door and came in to remind him that he was shorted recently, and the market wanted to hear his response, and they had to respond. .

John Flannery waved his hand, adjusted his emotions, managed his expressions, left the president's office, and went to the press conference.

The agencies that downgraded the ratings actually had an interest in Tiansheng Capital. After all, Lu Ming spent $10 billion in short-selling funds, and the absolute bulk of it was Wall Street's LP institutional funds, including $100 billion in leveraged funds, as well as from institutions. Borrowed 390 million shares of General Electric.

The interests here are complicated.

Of course, the downgrade of the rating by the Wall Street agency was also rigorously analyzed. They also read Lu Ming's short-selling report, and there is indeed a problem.

In fact, some institutions have actually discovered the problem of black box operation, but Lu Ming, as an outsider, does not have so many scruples, and the majority of short-selling funds are still from Wall Street.

120 billion US dollars, involving the interests of too many people and institutions, Lu Ming is confident that he will not be stabbed in the back by institutions such as Goldman Sachs Group. .

And Tiansheng Capital poked it out, GE was suspected of concealing serious financial problems, and Wall Street also tacitly supported Lu Ming, so the SEC of the Magnesium Securities and Exchange Commission had to draw attention.

Tiansheng Capital’s short-selling report on General Electric points to two core issues:

One is the source of long-term contract revenue for the power industry. Currently, GE's power equipment and oilfield services divisions are the company's most problematic divisions. According to its financial report information disclosure, about $15 billion of it comes from the power sector;

The second is that GE disclosed last week that it needs an additional $15 billion to support its legacy insurance business debt.

The fermentation of the news also revealed that GE is currently facing at least two shareholder class actions represented by multiple law firms, accusing GE of making misleading statements about its long-term care insurance debt.

GE was investigated by the SEC for sure.

The flower of prosperity bears the fruit of decline is the future of General Electric.

...

The short-selling report published by Tiansheng Capital and the firm short-selling of six major companies, especially General Electric, have gradually aroused the resonance of other investors in the market, both at home and abroad.

Nowadays, there is a domestic exchange group specializing in foreign trading, which is discussing the incident of Tiansheng Capital shorting six major companies such as General Electric.

There are also some domestic retail investors who invest in the U.S. stock market, but the group is small, and the procedures and processes for doing external trading are relatively troublesome, but someone must have done it.

I divided some positions and followed my brother to copy homework, and shorted a handful of General Electric.

I took some empty orders from Tesla, earlier than the first brother haha, I feel stable.

Recently, a number of Wall Street institutions have downgraded GE's rating. After reading the news a while ago, I laughed to death. Foreign institutions are also nonsense. How many investors have been fooled...

What's the matter?

Look through the previous research reports. In the first half of the year, GE's performance has a good momentum, but the stock price has fallen by -16.6%. At that time, Tiansheng was not short, and Wall Street analysts finally concluded. Said: The decline in the stock of such an excellent company may be to create a buying opportunity for an investor, haha, create a chance to be caught~~, and listed six reasons...Pfft~~, a brother just released a short-selling report, a A large group of institutional analysts followed bearishly, what is the feeling of the person who took the order at the moment? Haha!

I found an original research report and listed six bullish reasons: the reform of the new CEO, earnings are still growing, costs are being cut, equipment profits will soar, integration of Alstom and Baker Hughes. Giants, revolutionary digital solutions...what the hell next year will be GE's 'reboot' year.

The work risk of copying institutions is also very high, first brother, don't fool me!

One brother never cheats people. This time, Tiansheng paid a huge sum of 35 billion US dollars to short these six companies. I also recognize that I was buried alive with the first brother.

...

Just when the attention of the outside world was focused on various analysis and interpretations of the six companies that Tiansheng Capital was shorting, and when they were bearish on the market outlook and so on, the first brother had already begun to shift the battlefield and steal his ass.

That is, do more!

Going long is the real biggest source of profit. Although shorting has a very eye-catching effect, frankly speaking, it does not have much profit-making effect. The most profit earned by shorting is no more than 100%, and there is no upper limit in theory for long.

This time, the short-selling funds have hit 35 billion US dollars, but Tiansheng has 90 billion US dollars of operational funds, and the remaining 55 billion US dollars is lying around at any time, and another 30 billion US dollars of leveraged financing funds have not yet been in place.

On the evening of Tuesday, August 8, Lu Ming came to the company's headquarters, went to Tiansheng QDIE Fund Management Department to hold a meeting, and then transferred to the trading room, and started the night trading operation.

The Qiwei people played an outpost in Magnesium, otherwise he would definitely let him execute, and most of the staff were brought abroad by him.

Lu Ming could only work overtime and manage it himself.

At this moment, the general assistant of QDIE Fund Management Department reported to Lu Minghui: Chairman, 326 operating accounts have been prepared and funds are in place, just waiting for your trading order.

...