Chapter 248 Lend to a Securities Company
Mandel does not want Sky Capital to raise its stake.
Originally, he thought that the placard line would make Sky Capital wary, and he might take the opportunity to bring them down.
As a result, after a day of bargaining, Kingkong Capital did not show any fear at all.
Holding up signs has become a trend.
Once Kingkong Capital raises its stake, he will not be able to take over the other party's chips.
Of course, he must have thought about this before, and he would not give up just because Kingkong Capital wanted to raise its stake.
If Kingkong Capital had not raised its stake, the loss would have been less.
Once Sky Capital takes the stake, it will definitely suffer a loss of four or five billion US dollars.
Because his goal is to drive Nvidia's stock price to $100.
Even if Kingkong Capital makes further replenishment in the future, it will still be liquidated due to the ten-fold leverage!
At present, the cost of Kingkong Capital is more than one hundred and fifty US dollars. With subsequent additional investments, the cost may reach one hundred and thirty US dollars.
If the price drops to $120, Sky Capital will be liquidated. If the price drops further, Sky Capital will have to add additional margin because its stocks are restricted and cannot be forcibly liquidated, so it can only collect money off-market.
If the price reaches one hundred dollars, Sky Capital will lose twenty points. With a leverage of ten times, the loss will exceed three and a half billion dollars.
Add to that the loss of around US$1.7 billion from his margin call, his total loss was over US$5 billion.
If Morgan fails to take over the chips from Sky Capital, it will suffer another loss.
Today he has tried to see if he can destroy Kingkong Capital, but Kingkong Capital finally injected another 200 million yuan of funds.
For Mandel, how to minimize his losses this time has become the most important task at present.
There is no need to worry about Kingkong Capital anymore. Once they raise their hand, the subsequent market situation will have nothing to do with them. They only need to take the money.
Come with a large deposit and exchange it for a lot of chips.
Half a year is enough time for Wall Street to plow Nvidia back and forth several times. Even if the stock ban is lifted later, it will be impossible for Li Yuan to make money.
On Thursday, as expected, Skyworth Capital directly raised its stake in Nvidia, throwing a huge stone into the entire financial market.
On this day, Quantitative Capital invested 2.2 billion US dollars, Kingkong Capital mobilized 1 billion US dollars, and Nvidia fell 8 points.
It is a very rare thing for Hua Xia Capital to take a stake in U.S. stocks. Even for the entire U.S. stock market, it is a very rare thing for a stake to be taken.
Once a placard is raised, it means that a large number of chips are locked up, and the entire ticket will go crazy.
Whoever holds up the sign will be unlucky.
In a pure financial market, any ticket may be abandoned. Anyone who is willing to lock up his or her funds is equivalent to handing over his or her money to others.
In the entire market, some people are bullish and some are bearish.
Morgan couldn't even get the short contract, as they had all been taken away by others.
And the stock price hasn't gone down much, because the short positions and long positions have formed a hedge, and they are playing against each other.
Whoever wins in the end takes away the profits.
Mandel had the media issue a press release.
In one day, Sky Capital lost 280 million US dollars.
After the market closed, Li Yuan went to bed.
After all, he was too tired. He had been fishing in troubled waters last night. Nvidia had a transaction volume of 3.6 billion US dollars in one day, and he took nearly 1 billion US dollars in chips.
The current price of Nvidia is only $133. Today's $1 billion is equivalent to the amount of chips worth $1.5 billion that were bought in the past few days.
He currently holds 16.68% of Nvidia's total shares, which is very close to his goal.
He knew that the chips were of little value in his hands, after all, the stocks themselves were not valuable.
What is valuable is expectations, and what is valuable is the money willing to pay for it.
Stocks are called chips, which indirectly illustrates this problem.
When he woke up, he saw Chen Jie looking at him strangely.
"Sister Chen? The look on your face shows that you did something to me while I was sleeping? And you're not very satisfied?"
Sister Chen said helplessly: "I thought you were joking, but I didn't expect you to really take over Nvidia."
"Isn't this just earning some hard-earned money? I've been suffering from kidney deficiency from staying up late. If I can't earn some money, who would be willing to do this job?"
"But it's very risky for you to do this. Even if someone is willing to take over your stocks, they will lower the price a lot under the current circumstances. Besides, are you sure you can make money from Sky Capital? At present, the price of taking over is too high..."
The current holding cost of Kingkong Capital is very high, close to US$145. No matter how much additional capital is added in the future, the cost is unlikely to drop significantly.
In the current situation, who is willing to take over at this price?
Chen Jie didn't know the situation of Qingtian Capital, but he knew the situation of Li Yuan's account.
This account of his has been secretly receiving chips, and its cost is definitely lower than that of Qingtian Capital.
Even so, the cost is currently approaching $140.
"Yes, I know. Sister Chen can help me contact the person tomorrow."
"Contact tomorrow? Do you have enough chips now? If you only have a dozen points, they won't want it."
Western capital is not a monolithic entity; there are many different factions.
Especially some old traditional capitals cannot get any dividends from emerging finance at all. New technology companies are the companies with the highest added value, which is much higher than that of traditional companies.
But the truly powerful companies have no ability to invest at all, and can only rely on luck and make some money.
They definitely want to eat meat, but who is willing to give it to them?
This situation has lasted for many years.
If Li Yuan could give them 30% of the chips, they would definitely be willing to take it, and would even give a slight premium.
Because they have the means to use these chips to take the company directly into their own hands, and it is impossible for other capital to turn Nvidia into an empty shell.
But if it’s only a few percent, they won’t look down on it.
This little bargaining chip is not enough for them to take the initiative, it's the same whether they have it or not.
"Well, I know. I will definitely give them more than 20%. Let's talk about the price first..."
"good."
Li Yuan ate something and walked around the room for a while.
He also read the news online. Morgan even produced solid evidence to prove that he lost more than 200 million US dollars in one night.
After facing the solid evidence, the domestic media went crazy. What they said before was relatively vague, but now they directly and openly belittled Li Yuan for overestimating his own abilities, thinking that he had made some achievements in the A-share market, not taking the world seriously, and wanting to speculate in the U.S. stock market, the most mature system in the world.
While insulting Li Yuan, he also belittled the domestic system.
They are very good at this.
Li Yuan’s fans were the ones who suffered the most bullying. After all, in the face of evidence, they couldn’t even keep up their tough talk.
There are also fans who played the opposite role and asked Li Yuan to come out and give an explanation to the fans, asking why he deceived the fans' feelings and why he dared not admit that he lost money.
Li Yuan was too lazy to pay attention to him.
Because the results will be out in a few days...
The last time I replied, I was because I didn’t want those media to keep leading the trend. If they keep leading the trend for half a month, something that is not true will become true.
It doesn’t matter now, as long as the results are available within a few days, just bring it!
Anyway, as long as the heat doesn't go down, there will be a chance to fight back.
When he opened WeChat, he received a kiss from Jiang Yiling, as well as messages from various people, some of whom wanted to verify his identity.
What's there to verify? He just came to verify it after reading a media report. He doesn't have that much free time.
I quietly changed the notes for verification. These guys are boring.
I guess after I say a few words, someone will take a screenshot and send it out, saying it’s first-hand information…
But he was surprised that Jiang Yiling would care about this matter.
"Thank you for your concern, I'm fine."
Soon, Jiang Yiling replied: "Of course I know you are fine. Are you comfortable living next door?"
"???"
"Your bodyguard betrayed you."
"I see, but I have been working."
Li Yuan has a bodyguard, who was arranged by Tang Jianjun and others. He basically stays in the garage 24 hours a day.
As long as he went downstairs, he would follow him immediately, send him to the company, and then wait in the company garage.
Sometimes Li Yuan didn't know where the group of people was, but Jiang Yiling found out.
"I believe you, otherwise I wouldn't care about you. I'm going out now, bye!"
Li Yuan: “…”
He always thought Jiang Yiling didn't care, but he didn't expect that she actually cared a little.
If he doesn't care at all, he won't expose it even if he knows that I live next door.
In any case, we have to finish this matter first.
What surprised Li Yuan was that the National Big Fund and the village chief had never intervened in this matter from beginning to end, and had not even talked to him about it.
This also proves that he is now in a position of absolute initiative.
Soon, it was late at night and after the U.S. stock market opened, Nvidia's stock price fell all the way and soon dropped by five points.
Quantitative funds are very powerful. Through their painstaking efforts, they increased Li Yuan’s costs little by little.
Even with billions or billions of additional funds, the cost cannot be reduced.
Facing the brink of liquidation, Kingkong Capital can only add funds again and again, and every time it adds funds, there will be a prompt to increase holdings.
Many people feel that Kingkong Capital has gone crazy. Even at this point, they are still desperately increasing their holdings.
How much is the stake going to be increased? To 30% and then a takeover offer will be issued?
As a Chinese company, why would you acquire an American company?
You don't deserve it at all!
You don't have the bloodline!
…
"Hey, my brokerage firm is out of chips. I need to borrow some from you. I only have a little bit left, right?"
"Yes, my friend, you have indeed forced your opponent into a corner. But at the same time, you have also forced us into a corner! We want to be in the long run, and we want to push Nvidia's market value to 500 billion US dollars. Now you force us to abandon this shell..."
"We are the masters of NVIDIA. We are fully capable of cultivating another NVIDIA. Isn't it good to let that Chinese fund spend billions or even tens of billions of dollars and only get an empty shell? After all, this is our territory. The other party is going to piss on our heads!"
"I admit that you have convinced me. I can give you some of the chips in my hand, but next we need you to cooperate with us to pull up Nvidia's stock price again. Even if Nvidia's noble soul has been tainted by dirty Chinese funds, we will squeeze out every last bit of its value."
"Of course, this is our common interest!"
Mandel breathed a sigh of relief.
Then start calling other agencies.
There is only one requirement, to borrow stocks.
He was not lying. It was true that they were unable to obtain the contract from the brokerage firm. They even threw away all the chips in their hands and were completely unable to get anything else.
In order to avoid a margin call, Kingkong Capital has been frantically pouring funds into the market today, and the chips in the market are being consumed very quickly.
But he knew that this group of people had a lot of chips in their hands.
Nvidia now has a market value of more than 50 billion US dollars.
After making a few phone calls, he actually got 15% of the chips.
"These guys must have made a fortune in there!"
With these 15% chips, he is fully confident that he can completely blow up Kingkong Capital.
He could pretend to be careless with the remaining chips and use them to repay his short position.
Thereby earning some profits to make up for the losses.
After all, this 15% is probably only half of what those guys have snatched away during this period of time, and the chips in their hands must be more than before.
Otherwise, why should we agree with him to push up the price again?
At this time, a meeting was being held in an institution on Wall Street.
"That bastard Mandel ruined our plan! With Nvidia being such a big hit, we didn't make much money at all!"
They are very annoyed. The market conditions have been bad this year. They had originally planned to increase Nvidia's value to more than $200 billion, and then split its stock at a high price, cashing out part of the funds to make up for other losses.
As a result, the market value had just risen to more than 90 billion US dollars before it was implicated.
There is no way to get angry with Mandel because we are all in the same camp after all.
And Mandel hasn't done anything wrong so far.
"This time, we have put out one-third of our chips, which is the limit of what we can do. Next, we must let Mandel use his short positions to increase Nvidia's market value to 100 billion, otherwise we will lose money."
"I believe Mandel will not refuse this opportunity after seeing our sincerity. That amount of Chinese money is too crazy. This time, burying him completely in it may be a good thing for us. It is much better for Morgan to come forward than for us to come forward."
"Yes, Wall Street will not let Huaxia Capital make a profit because they learned their financial system from us. We are their teachers and it would be very embarrassing if they lose."
"How many chips do we have now?"
"If you include the 10% held by Morgan, there is still about 40% left."
"Mandel is such a shrewd man. He doesn't even use his own chips, but instead asks us to borrow from him."
"Hey, that guy has been thinking that we are trying to grab the chips he dumped in the market. We already have so many, and taking more will only reduce our flexibility."
At this time, someone raised his hand and said, "Ladies and gentlemen, I'm afraid we don't have 40% anymore, because I lent my chips to the broker... You should understand that I can't refuse the conditions given by the broker..."
