What’s Wrong With Me Being a Rich Man?

Chapter 112 Valuation

Fenzon's stock price will fall, which is a similar judgment after many people noticed this incident.

The difference is how far it will fall.

That night, Jiang Nanchun, Chen Nanpeng, Xu Xin, Cao Guowei and others were concerned about the price of Fenzhong, and then they saw a tragic performance.

As the CEO who wants to implement MBO on Sina, Cao Guowei is also paying attention to the relevant situation in the office.

He looked silently for an hour, looked at the firm trend on the screen, and pinched the cigarette helplessly, giving two words of evaluation: "Awesome!"

Too awesome!

The stock price fell to $8.58, a drop of 40%!

The market value evaporated by US$570 million, and this hour was 3.9 billion Chinese coins!

If it were based on yesterday's closing price, it would have been almost half-cut!

What else can you say?

“Cross the mountain…”

“Cross the mountain…”

Cao Guowei murmured to himself, couldn't help but lit another cigarette, falling into deep thought.

In fact, after knowing that the SEC conducted a public investigation, he immediately saw the detailed research report from Zhushanfeng, and read the research methods and urban cases of Zhushanfeng before the opening of today.

Although Finnish Media refuted, who said it is true...

When Cao Guowei first knew about this, he was very disdainful and did not believe in any slander of the nine-rate institutions. But now he has seen the number of screens in various areas of Pengcheng that have been listed on the mountain...

It's hard for him not to be inclined to cross the mountain in his heart.

Similarly, the direction in the Nasdaq market also proves that everyone thinks so.

This thing is so easy to verify. There may be media going to count tomorrow. How can we refute it then?

Just an example? Are cities of the size of Pengcheng an isolated case? Then why do you charge Pengcheng customers?

Damn it, just counting it one by one?

How big is the grudge?

Are you still a high-end short-selling institution?

Cao Guowei shook his head helplessly. To be honest, the moisture exposed through the mountain peaks was actually to be packaged and sold to Sina's core assets. Fortunately... the transaction has not been reached yet.

Although it is to introduce shareholders with stable control, such a large amount of assets has serious moisture, which is equivalent to a thunder that explodes unknown when!

If it wasn't today, if it was exposed after Sina reached a deal...

As the CEO of this cooperation, Cao Guowei feels that he may be resigned at that time. At least, the number of people under his command has to be thrown out to suppress the storm, but Sina itself is relatively scattered and I don’t know at that time. What kind of storm is it?

Cao Guowei destroyed the smoke again and cursed: "Go to his horse!"

As soon as he finished speaking, Chen Nanpeng's call lit up on the phone on the desk.

Cao Guowei twisted the cigarette **** hard before answering the phone.

"Fenzhong's affairs are so outrageous!" Chen Nanpeng stood on Sina's position as soon as he rang the phone. "Fortunately, the deal between Sina and Fenzhong was not reached, otherwise it would be troublesome!"

Cao Guowei said "um" and smiled bitterly: "Our Sina stock price has also fallen."

Then, he said meaningfully: "This is really a disaster."

Although he is a director of Fenzhong, Cao Guowei is completely unaware of the specific business. Even if he can accept some moisture according to common sense, he cannot ignore such ingredients.

As for whether Chen Nanpeng on the other side of the phone, he knew about it...

"Fenzhong is going to buy back the stock price." Chen Nanpeng said tiredly, "The decline before the closing today will definitely narrow. How will it be in the future depends on the overall performance."

Cao Guowei reiterated his position again: "Well, Sina cannot continue. I will announce it after the sensitive time now. In addition, I will resign at the right time for my board seat in Fenzhong."

This is the limit he can do.

It also expresses dissatisfaction.

"Fenzhong's problem seems to be very big now, and this is something they need to rectify internally." Chen Nanpeng continued after commenting, "But Sina still needs to continue moving forward. Since this is not possible, then just use funds directly Yes, Sina does need a more stable equity structure to facilitate long-term development.”

Cao Guowei said nothing.

Chen Nanpeng gave himself stronger support: "Sequoia can provide funds. This week we will go to Fang Yuan and CITIC to communicate about this matter, and completely end Sina's turmoil over the years."

Cao Guowei's mood eased, and he knew that this was something that had passed Fenzhong, so he had to look forward.

He knew that Chen Nanpeng had already made plans in his mind when he heard Chen Nanpeng say this, and asked directly: "How much does the management team need to pay?"

"Sina's major shareholder needs at least 9% of the shares. According to the current stock price, this operation requires raising about 180 million US dollars." Chen Nanpeng said seriously, "Your management needs 30% of the funds. Our three private equity firms can serve as LPs that provide funds, and in addition, they can also find companies to provide loans, so that they can achieve MBO to Sina."

Cao Guoweimo calculated the value of the shares he held.

"Your management first reduces the holdings of the stocks in your hands, communicate internally on the MBO price of the new company. When it is implemented, one stock will become multiple stocks." Chen Nanpeng advised, "In recent years, everyone hopes that Sina can be used to be able to do so." End the chaos.”

Simply put, the management and three private equity firms have established a new company, and Sina sells shares to the new company. The private equity firms only provide funds, seek capital returns, and do not participate in business management.

As for why I didn’t do this before, because Fenzhong’s asset sales can be win-win, and the cost is still low.

Cao Guowei thought for a long time and nodded: "Then let's meet again before the New Year."

Chen Nanpeng breathed a sigh of relief and said, "Okay, we believe in Sina's future."

Such an MBO needs to raise more funds, and cannot be completed in a short period of time, and it also requires more work, but it can indeed take over Fenzhong's failure.

"Sina will inevitably rise again." Cao Guowei said bluntly, "The money invested will be rewarded."

Business needs to be rewarded.

The two chatted for a few more times. Just as they were about to hang up the phone, Cao Guowei thought that Chen Nanpeng had a wide connection and was well-informed, and asked, "What is the origin of that mountain peak?"

"I don't know." Chen Nanpeng was also quite distressed, "I don't know where it came out, but its investigation this time was very solid."

It can only be described as a solid research.

Cao Guowei was a little confused: "I really don't know? Is there any news?"

"I can only say that its equity setting is very professional." Chen Nanpeng said, "I checked it, but I didn't find it out. I turned several turns, but I was basically sure that it was a domestic person, so I don't know if it was Xiangjiang or the mainland. ”

Cao Guowei asked, "Why? There are clues in the equity structure?"

"The ultimate direction of the equity structure is to fall in Singapore," Chen Nanpeng pondered, "but if it is an American or European institution, they usually don't have to worry about it."

Cao Guowei understood.

He hung up the phone and wanted to take a look at Fenzhong's stock price again, but hesitated for a while and decided to see the final result from the news the next day.

The tragedy of Fenzhong cannot escape. According to Chen Nanpeng, it is probably not as miserable as possible.

…

On January 19, at six o'clock in the morning, Jiang Nanchun, the head of Fenz, who had not slept all night, heard the ringtone of his cell phone and clicked to answer the call almost numbly.

"Hey, Hello, Mr. Jiang, I am Fu Guozhang from Southern Metropolis Daily." The call reported his identity as a reporter, "What do you want to say about the doubts of the outside world?" Jiang Nanchun said in one sentence: "Everything is waiting for the company announcement, Thanks."

He hung up the phone, and the phone didn't ring again in a short time.

However, Jiang Nanchun couldn't sleep when he was lying on the bed.

Fenzhong's closing price yesterday was US$8.437, down 41%!

This has experienced a narrowing intraday decline. If it weren't for announcing that I would buy back the stock, the decline would undoubtedly exceed 50%.

But this is just a day's trading. Including the pre-market decline, the company's stock price actually fell by 44.5%!

A news from the SEC, a research report from the short sellers...

Heavy losses!

Jiang Nanchun had the urge to change his name to Jiang Nanqiu. It was so high that things were dry and the fire was almost wiped out!

"Cross the mountain peaks, cross the mountain peaks!"

Jiang Nanchun gritted her teeth.

No mistakes, one song, one content, one in 6, one book, one bar, one reading!

A moment later, the phone rang again, but this time it was from the PR director Ji Hairong, who asked how to face the media today.

"Ask me everything, what do you do!" Jiang Nanchun replied and shouted.

Ji Hairong had to bear it in his heart after eating, and he could only keep it in his heart. His position was a bad thing at this time.

However, the work still needs to be done...

Whether it is a private phone or a company number, it has been heard frequently from yesterday afternoon to today.

Ji Hairong only slept for three hours and was preparing for how to face the media and the public, but...

When he received the news, he knew that many reporters were counting screens at Pengcheng at the first time, his heart still trembled!

The screen distribution of Pengcheng announced by the mountain peak is very detailed!

Moreover, it is too late to add this kind of new products overnight!

The reporters are simply investigating the mountain peaks...

Ji Hairong rubbed his face, feeling that the truth was cutting his own meat, the company's meat, and the boss's meat...

This knife is too fast!

It hurts too much!

…

——"Looking for the disappearing screen of Fenzhong Media! 》

—"Fenzhong's stock price plummeted, which may involve financial fraud! 》

—"SEC launches a public investigation into Fenzhong Media, and well-known research institutions recommend selling Fenzhong shares! 》

The weather was very good in the morning. Yu Xing, who had jogged twice, felt a little sweat on his forehead. He stopped and walked slowly. He searched for information on the first anatomical target on his mobile phone.

Everything else was fine. When he saw the characterization of the "famous organization" from the media, he couldn't help laughing.

Famous?

I definitely didn't know it before, but now I don't know if it's a bit famous.

Well, I just don’t know how to maintain my fame.

At 7:30, Yu Xing squatted downstairs of the company, drinking soy milk while calling Xiaoying.

"Hey? Ying smashed it, did you get up?"

Liu Wanying yawned, rubbed her eyes, and replied in a daze: "No."

"Open the door for me, I'm here to find you." Yu Xing said with a smile.

Liu Wanying was instantly awake and said, "Nonsense, do you know where I live?"

"Either live in my left atrium or my right atrium." Yu Xing said with a smile, "Where can you live in?"

Liu Wanying commented: "Two atria, I'm going to live in two people, right? Greasy!"

Yu Xing promised, "I'm just greasy to you, okay?"

"Boss Yu can't wait to call me this morning, it must not be for the sake of the love of his children." Liu Wanying made clear about the other party's purpose, "Are you not waiting in a hurry to find out what you had yesterday?"

Yu Xing admitted: "Well, I just want to achieve success in my career and then stand in front of you in a glorious manner."

"Okay, okay, let's get to this day's greasy portion." Liu Wanying got out of bed barefoot and took two steps. "Yesterday it was 1,200 PUTs, and the lowest price of Fenzhong yesterday was $7.8, but I didn't wait for that point. , sold at $8.1, the profit of these 1,200 PUTs is $228,000, and now it is $528,000 in the account."

The option bonus of 1,200 PUTs is US$300,000 and the profit is US$228,000.

Yu Xing hesitated slightly and said, "If I remember correctly, are you planning to exercise 50% of the rights on the first day? There is still 50% behind?"

"Yes, I don't know what the trend of Fenzhong will be tomorrow and next Monday. This part of the profit will be locked first." Liu Wanying said calmly, "If it can fall to a lower price in the next two trading days, those higher profits will be All can be counted in your share.”

Yu Xing's principal is 150,000 US dollars, which is all the money he can use.

He calculated the principal this time and said in surprise: "You Bai Xiaosheng invested in the angel round, and you were trapped in your fund. How could you still pay 450,000 US dollars this time?"

Yu Xing originally thought that Xiaoying invested this time and that it was similar to his own, or more, and it was quite considerable to have a net worth of over 200,000 US dollars. If it was replaced by Huaxia currency, it would be 1.36 million.

Even though Liu Wanying's salary in Bain's previous consultation was quite high, the financial crisis hit her, her income has also been greatly lost in recent years.

Liu Wanying smiled and said, "Leverage, I also added a little leverage, but this time we are generally conservative. For the first time, I was nervous when I chose to exercise my rights yesterday."

Yu Xing was silent for a while: "Give me my money aside next time."

PUT put options themselves are leveraged, but... after taking stock of the returns, and thinking about the money evaporated by Fenzhong in the stock market, there is indeed a huge difference.

However, thinking about the first shorting in Muddy Waters only earned $6,000 in profits, I felt balanced, and it was all accumulated from less to more.

"My money can be lost, you can try it out. Do you still need to prepare for Bai Xiaosheng for this money?" Liu Wanying persuaded, "The main reason is that the principal is too small. I hope there will be more next time."

"Tsk, I just feel that I'm making too little money, I'm a little sorry for Jiang Nanchun." Yu Xing sighed, "I'm a little upset for him."

Liu Wanying said, "Then I will give you his phone number and you can call him to comfort me."

"Mr. Liu, should we talk before the New Year or after the New Year?" Yu Xing changed the more important topic directly, "This is a mix of those people, but I found that the valuation of the company's financing increased. Not weaker than our short selling.”

"Principal, principal, or principal." Liu Wanying pondered, "After the New Year, the valuation of your company..."

"The valuation must be higher than today's capital, but you can sign a channel mechanism for round B exit." Yu Xing emphasized, "Since there is little money and few shares sold, then based on integers, 1 million US dollars will be held in the shareholding. 10%, 100, 1000, it’s easy to calculate.”

Previously, the highest price of Capital and Sequoia today was US$2.5 million, accounting for 30%, and the company's valuation was US$8.33 million.

Now it is $1 million to hold 10% of the stake, and the company is valued at $10 million.

As less funds come in, the valuation becomes higher.

Liu Wanying smiled and said, "The price of your hard back is that the company has not got so much money, are you still happy?"

"Happy!" Yu Xing did not regret at all, "With this 1 million, we can raise more money in the B round. In addition, I think the above is now free. After the New Year, we will find a bank loan and definitely give you investment materials. Great value! ”

Liu Wanying pretended to be serious: "But I still have to consider it."

Yu Xing said toughly: "Either let me beg you or let me beg Xu Xin, you should think carefully about it yourself."

Liu Wanying was amused: "Then let me be a third-rate investor who successfully grabbed the project from Xu Xin."

(End of this chapter)