Reinventing the Millennium

Yike Company encountered a long-short game.

This is the main tone of US financial, technology and related media reports.

The Chinese media that paid attention to the changes in Yike's stock price in the early morning had various reports.

Domestic reports did not limit themselves to the performance of the stock market, but carefully discussed the current situation of Yike. Following the patent litigation with Nokia and other companies, and now facing a short-selling game, where will Yike go?

In the past period of time, "China Securities News" has been paying attention to the institutional comments and market performance surrounding Yike.

However, this time, it really didn't expect that the situation would suddenly become so intense!

In just two days on the 23rd and 24th, Yike's market value has fluctuated by 3 billion U.S. dollars. According to the current exchange rate of 6.81, that is 20 billion Chinese coins!

However, this looks far from over.

At the very least, the results of the patent litigation related to Yike’s stock price have not yet been released.

No, with the major shareholders determined to attract funds, the outcome of the lawsuit will not matter so much in a short period of time.

From this point of view, a very critical question is placed in front of the stage. How much money can the major shareholder Fang Zhuo come up with?

On March 27, China time, with the emergence of more companies, people, and information, a classic scene appeared on CCTV Financial Channel's "Securities Time" at 9 o'clock in the morning.

The host asked observer Tao Ye, who rarely talked about U.S. listed companies: "Teacher Tao, what do you think of Yike's recent performance in the U.S. stock market? What are your expectations for its future?"

Observer Tao Ya hesitated for a few seconds and did not follow the script. Instead, he expressed his true feelings: "The situation Yike is facing this time is more complicated. Everyone has to see for themselves."

Not only the audience in front of the TV was stunned, but the host was also stunned. Master Tao, what do you do?

If you want to watch it yourself, why do you, the observer, need to do it?

But he quickly echoed: "Indeed, there is a lot of information surrounding Yike these days. Because of the distance, it is difficult to distinguish between true and false information. Everyone needs to pay attention to screening."

Many viewers only vaguely know about Yike being shorted and the stock price rising, but they don’t know much about the specific information.

However, they soon saw the information filtered out by "Securities Time".

——"Heavyweight!" Well-known Wall Street hedge fund manager Paulson shorted Yike! 》

——"Eruption!" Three well-known short-selling institutions are betting on Yike’s stock price! 》

——"Yike's stock price rises against the trend, is it a bubble or a rebound? 》

——"Nokia CEO Kallasvuo stated that Yike will be banned from selling soon"

——"Microsoft may re-examine the infringement incident of Yike Mobile Phone"

——"Oracle notified Android Company of its intention to discuss patent issues"

——"It is reported that the ITC is about to make a preliminary ruling"

——"Google CEO Schmidt refuses to comment"

——"Motorola countersues Yike for infringement!" 》

As Yike's long-short game in the stock market intensified, more people and companies came forward in just two days.

Unfortunately, most of them are disadvantageous.

Among them, the most critical thing is the informal statement of ITC officials.

Combined with Paulson's formal admission and announcement of a short position of US$200 million, the ITC news is likely to be true.

It is now generally believed that the ITC will announce the preliminary ruling on the patent litigation between Nokia and Yike on Monday, March 30.

Now, two completely different views have appeared in the domestic financial media.

"Yike's stock price is likely to crash next week, and the ITC's ruling is extremely weighty."

"Mr. Fang allocated funds and Yike repurchased shares. Even if the ITC ruled against them, they were obviously ready to deal with it. As Mr. Fang said, is Nokia ready to continue to lose in the smartphone field? Yike stock price It may go down, but it won’t crash.”

To flash crash or not to flash crash, that is the question.

However, even if the country is relatively optimistic, it is still just talking about collapse. This round of bad information really makes people unable to support the rise in Yike's stock price.

Nokia, Microsoft, Oracle, Motorola, LG, as well as Wall Street's famous short sellers Paulson and Andrew... are all big names, but the Google and Android camps that previously supported Yike have remained silent.

Google CEO Schmidt was interviewed by reporters in Silicon Valley, but he just left in a hurry, unwilling to answer questions about Yike.

In addition, there is news that Google and Samsung are getting closer...

The allies seem to want to leave, and everyone wants to kill them.

The situation is very unfavorable!

At 8 pm on Friday, March 27, U.S. time, the ITC uncharacteristically announced its preliminary ruling on the patent lawsuit between Nokia and Yiko during non-working hours. It determined that Yiko had infringed two Nokia mobile phone patents, and the product involved was a first-generation and the second-generation Mars, which are all Yike’s mobile phone products today.

This unconventional announcement once again detonated relevant media and industry practitioners.

Nasdaq has been closed, and Yike's stock has not responded yet. It will take two days to digest the relevant news.

A Nokia spokesman welcomed the preliminary ruling from the US ITC.

Yu Hong, president of Yike America, told the media that he would appeal against the ruling.

At the same time, it was nine o'clock in the morning on the 28th in China. It was extremely rare that multiple CCTV channels reported on Yike Company.

There are comprehensive channels, financial channels, Chinese international channels, social and legal channels, and news channels that more or less talk about the development of Yike Company and the situations and prospects it faces.

This scene is breathtaking.

However, this is hardly a bargaining chip for Yike to face short selling.

What really helps is...

On Saturday, March 28, the first day after the ITC’s preliminary ruling, Yike Company announced that it had obtained long-term credit facilities from ICBC, Bank of China, and China Construction Bank, totaling 3 billion Hua Xia Yuan, equivalent to US$440 million.

With the emergence of this news, Yu Hong, President of Yike America, told reporters that Yike may reconsider the scale of stock repurchases.

On Thursday, Yike Company had officially started stock repurchases, and the last stock price of the week at the close of Friday was $98.96.

On Saturday alone, the company was considering expanding the size of its repurchase funds. Such a change is extremely rare.

On the afternoon of March 28, Sina announced again that its major shareholder Fang Zhuo had reached a block transaction of 2% of its shares with the Bank of New York. The transaction price was US$104 million. This price was lower than many people expected, but it was understandable.

At the same time, a Sina spokesperson also stated that new information will be submitted to the SEC tomorrow.

Later, some netizens in Europe and the United States noticed one thing. Yike’s Amazon, operators, and official website channels all made price adjustments for Mars 1 and Mars 2. The name was to welcome the arrival of the third generation of Mars, but recent concerns People who are familiar with the company's situation can easily understand the meaning.

The money has arrived!

Buy stocks!

The money has arrived again!

Product sale is on clearance!

Yike Company released signals one after another on Saturday, which was interpreted by many institutions as that Fang Zhuo was going to fight to the end.

How to carry it? Carry it with money!

Can you bear it? have no idea!

Is there any confidence in the stock market on Monday? have no idea!

Just carry it!

A series of messages were transmitted to China. Xiong Xiaoge, the co-founder of Zhihu, who had been silent for a long time, couldn't help but burst out and expressed what many people were thinking: Why do I suddenly have a gut-wrenching feeling?

He didn't specify what caused the emotion, but everyone in the comments knew that Mr. Xiong was still concerned about Yi Ke's affairs.

However, what more people don’t know is that after Xiong Xiaoge finished handling IDG’s official business, she felt the intense atmosphere of the long-short game in New York. When she turned on the TV, she saw financial experts and short-selling institutions of different skin colors chatting about Yike, and when she turned on her mobile phone, she saw Domestic media and various friends are also talking about Yike.

Everyone is waiting to see what happens on Monday and whether there will be more news on Sunday.

Is this gut-wrenching?

No, it’s not over yet!

Xiong Xiaoge called Mr. Fang on Saturday night, thinking that if it was convenient, they could have dinner together and listen to the misty news up close, but there was a meeting on the other end of the phone.

This was confirmed by the little information he saw about Yike working overtime on Saturdays and Sundays.

There is no doubt that everyone at Yike is very busy, and all departments from marketing, legal affairs to publicity are also actively responding to the situation.

Xiong Xiaoge even saw the latest online advertisement - go to Amazon and buy out-of-print Mars.

He didn't know if this was Yike's handwriting, but if it was, it could be considered serious and lively.

Xiong Xiaoge wandered around New York City and didn't fall asleep for a long time that night.

When I opened my eyes, I saw the latest news from Yike.

——"Yike head Fang Zhuo and Google CEO appeared together to dispel false rumors! 》

——"Sony Ericsson is about to launch a new Android phone!" 》

——"Sina submitted information on pledged shares by major shareholders to the SEC! 》

After Sina's major shareholder Fang Zhuo reduced his holdings by 2% of his shares, he once again pledged some of his Sina shares.

When Xiong Xiaoge saw this news, he immediately became more aware of the seriousness of Yike Company's current situation.

He suspected that Mr. Fang had already used almost all his chips in order to cope with the possible flash crash tomorrow. It is very troublesome for major shareholders of the US stock market to pledge their stocks. What is involved is that after pledging the stocks, they will lose the right to propose proposals and lose their voting rights when voting at the shareholders' meeting. etc.

If someone at Sina causes trouble at this time, Mr. Fang will have a fire in the backyard!

However... the management headed by Wang Yan should not have any problems. Sina has not had any threatening shareholders in recent years. Apart from possible complaints, this backyard is probably still stable.

Well, there is no doubt that Yike on Monday did not know the situation first, and Sina on Monday was definitely going to fall again!

Xiong Xiaoge waited all morning for no more direct messages, but at noon, he saw Mr. Fang’s tweets.

The head of Yike took the initiative to refute the rumors on Twitter.

——"Google may consider exiting the Android company to resolve patent troubles", Fake News!

——"Pro Alliance is on the verge of dissolution, Microsoft is negotiating to acquire Android", Fake News! !

——"Fang Zhuo was rushed to hospital due to ITC ruling", Fake News! ! !

——"Eruption!" Yike Company sells shares in Android Company”, Fake News! ! ! !

Fang Zhuo on Twitter started the mode of identifying fake news. He cited nearly 20 different media reports in a row and denounced this as a common tactic used by short-selling institutions to fish in troubled waters.

At the same time, he informally talked about Yike's latest buyback plan on Twitter and considered increasing the capital size to US$1 billion, believing that this could effectively prevent shameless short-selling institutions.

Yike's book funds have always been very abundant, but if it suddenly takes out US$1 billion... this is still news that is difficult to distinguish between pros and cons in the long run.

This looks more like a shot of chicken blood for Monday.

is that useful?

On Sunday evening, Citigroup adjusted its rating on Yike stock - Sell!

Previously, its rating on Yike's stock was Hold (temporary holding), but now it is directly adjusted to Sell (recommended to sell). At the same time, it also lowered the target for Yike's stock price to $70.

Almost at the same time, Goldman Sachs also adjusted the rating of Yike stock - Outperform!

Previously, its rating on Yike stock was Hold (temporarily held), but now it is adjusted to Outperform (better than expected). At the same time, it also raised the target price of Yike stock price to 110 US dollars, believing that it can break through 100 US dollars tomorrow. Complete level.

Two well-known institutions have almost completely opposite rating views.

The long-short game reached a new level on Sunday night.

There is a lot of market news, a mix of bulls and bears, and factors such as companies, institutions, governments, banks, etc. surrounding Yike stock, making it difficult to predict the future.

Buy or sell?

On Monday morning, the Nasdaq opened, and the financial market gave the most intuitive answer.

Yike's stock fell sharply by 5% at the opening, and then the main players entered the market. A large number of buying orders appeared in the market and all the selling orders were absorbed. The stock rose during the session and reached a new high of US$100.

In the end, Yike's stock price fell below $100 again at the close, closing at $99.86.

On this day, Yike's stock price showed a "V" shape.

The stock price has stabilized.

From the opening to the closing, representatives of the previously active bull and bear parties remained quiet.

Until the evening when Ming Jin retreated, Fang Zhuo posted a smiley update on Twitter, and then expressed his thoughts: I have said that our well-informed investors will not be affected by one-sided, aggressive and future-oriented policies with vested interests. The impact of confirmed reports, well, keep it up.

Short-selling king Paulson paid close attention to the trend of Yike's stock price today. Although he was a little disappointed, he still said: The opening situation is already obvious. As one bad news after another breaks the bubble of Yike's stock price, everyone will know the final result. .

Fang Zhuo responded: Paulson, if you don’t want a loan, are you such a short-selling king?

Paulson's response was just a funny smiley and no words.

This is how another exchange between the two ended.

However, Dennis, the newbie who had previously raided Fang Zhuo's talk show, appeared.

"The situation is obvious. Mr. Fang, I want to remind you that Sina's stock price has fallen by 8%. How long can you maintain your practice of tearing down the east wall to make up for the west wall? Is this the clever strategy of the second best CEO in the world? This year in 2009 The worst president in the world, you will definitely be on the list."

Fang Zhuo's response to this person was extremely direct: "Why do I say it is shameless to short institutions?"

"Friends, I heard that a hedge fund paid a researcher a monthly deposit of US$8,500 last year to encourage him to conduct in-depth research on a certain real estate company. Subsequently, the researcher submitted a pseudonym to a well-known investment information website. Articles that are beneficial to the company, guess which hedge fund this is?”

Dennis, the newly reborn rookie: "..."

Dennis, the bleeding rookie: "..."

Rookie Dennis: "..."