Reborn Capital Empire

Chapter 233 Dwarfs and Giants

…

After nodding, Guo Shouyun stood up and walked to the window, looking at the lush mountains behind the villa, and after a while, "Actually, sometimes I feel conflicted, since I want to end the California energy crisis as soon as possible to avoid losses, I plan to take advantage of the crisis. Buy more utilities and turn a crisis into an opportunity!"

"A fight between dwarfs and giants?" said Qin Zhicheng, who was standing behind.

"That's right." Guo Shouyun nodded after looking at him, "One is the loss now, the other is the opportunity in the future! The dwarf made me choose the present and avoid the loss. The giant made me accept the loss and choose the future. Sometimes I also Very contradictory." After a pause, "Old Qin, if you had to choose, how would you choose?"

"I will choose the future, and I believe the boss will make the same choice as me!"

"How do you know?" Guo Shouyun laughed. The acquisition plan of Balbey Douglas has just started, and it is impossible for Qin Zhicheng to know the plan.

"If you chose to avoid losses, you would not have acquired Pacific Ocean and Southern California!" Qin Zhicheng smiled.

Guo Shouyun was stunned for a moment, then laughed.

"I can't hide anything from you!"

"Is the boss shorting Enron to hedge this loss?"

"That's right!" Guo Shouyun nodded, "California's energy crisis will always come to an end, maybe two months, maybe three months, maybe half a year, but it will definitely not pass this year. With our short Enron income, it is enough to hedge against the Losses from this crisis. Take a step back and say, if not fully hedged, the amount of loss will be reduced to a smaller value!”

After nodding in agreement, "Why does the boss firmly agree that the energy crisis will end this year?"

"California people have endured an energy crisis for over a year, and there is no guarantee what will happen if it continues to spread!"

Of course, this statement is just an excuse for Guo Shouyun, and the reason why he is so sure still stems from the memory of his previous life. In the last life, even with the income from the California energy crisis, Enron did not survive this year. Now that he has learned about Enron's more detailed operating data, he is more certain. If nothing else, Enron's administrative expenditures alone have grown to an unstoppable level.

It is impossible to imagine an energy trading company with a market value of 100 million US dollars and a net income of only 1.5 billion US dollars. Her administrative expenses are as high as 200 million US dollars a year. Except for energy trading and pipeline business, more than 95 percent of Enron's industries are losing money. Countless facts have proved that companies lacking industrial support lack the stamina for growth. In particular, An Ran was still an empty-shelled giant that was stolen by the 'inner thief'. He has almost nothing left but his intimidating appearance.

Qin Zhicheng nodded, thinking for a moment, "If everything is as expected by the boss, in addition to shorting Enron to hedge losses, we should also have some evidence. Once things get out of hand, we can also use these evidences to end the situation. Energy crisis, reduce losses. Only in this way can we truly take the initiative in our own hands!”

"You're right. But Enron's structure is very complicated, and it's done carefully. It's not easy to find evidence that they manipulate the market!" Guo Shouyun said with a slight frown.

"Maybe the boss should find a solution from within Enron!"

"I understand this. It's just that there are not many high-level executives who can master Enron's secrets. And we don't know where to start!"

"If the boss is embarrassed, I can recommend a person for you!"

"Who?"

"Tim Belden. He's an Enron West Coast energy trader, and he must be very aware of the California energy crisis and even involved!"

"Tim Belden!" Guo Shouyun's eyes became deep.

"He was my classmate when I was studying my master's degree in financial engineering at Duke University. If the boss needs it, I can contact you!"

After a moment of silence, a smile appeared on Guo Shouyun's face, "Sometimes, surprises always come so suddenly."

"No surprises, I hope this meeting will give you what you want!"

Guo Shouyun nodded, "Whether it is successful or not, I have written down your favor!"

Qin Zhicheng smiled and nodded.

"Oh, that's right. The funds invested in shorting Enron this time are the funds of the Pan Pacific Group. Don't make a mistake when recording it!" Guo Shouyun reminded.

"do not worry!"

…

"… In Enron's annual report, the profit figure for the "Assets and Investments" project is always a mystery. The annual report notes to the division "Building power plant projects around the world, putting them into operation after completion, and selling at a profit; this division It also participates in the business of buying and selling shares and bonds of energy and telecommunications companies.” The division’s profit in the second quarter of 1999 was $325 million, which fell to $5.5 million in the second quarter of 2ooo. Where did such a big change come from?” LinkedIn Fortune believes that Enron is manipulating its profits through the amount of asset sales in the "Assets and Investments" program. This way, when profits in any quarter fall short of Wall Street analysts' expectations, Enron can always increase or decrease program assets by adding or subtracting assets. The sale to meet or exceed the expected profit."??"...Despite several years of Enron's claims to reduce debt, in the first three quarters of 2ooo, Enron issued another $3.9 billion in new bonds, bringing total debt to 2ooo Reaching $1.3 billion at the end of September, its gearing ratio (debt to total assets) rose to nearly 5o%, compared to 39% at the end of 1999. In addition, its operating cash flow was $1.6 billion in 1998, 1999 1.2 billion, compared to only $100 million in the first nine months of 2ooo. Although Enron's operating cash flow is gradually declining, its reported net profit is rising every year, which in itself shows that Enron's profits are not From the main business, and either from non-recurring income or from fraud…”

"boom…!"

The water cup on the table was almost knocked over, which shows how angry the people who made such a big commotion are in the bottom of their hearts.

"Damn, they're slandering, these **** should be brought to federal court!"

A strong white middle-aged man with a dense beard waved his fists and said angrily.

"We could do that. But when the judge asked us to show proof that their press release was defamatory, we showed a lot of evidence that Enron was running a worse business than the other side said? Genius idea!"

A yellow-skinned, dark-eyed Chinese man with gold-rimmed glasses spread his hands and said sarcastically.

"Maybe you **** can tell us what to do?"

"A softie is always better than a fool. At least a softie can keep the company, and a fool can only make things worse!"

"Who are you calling an idiot?"

"Who's talking is who?"

Looking at the two arguing, the senior executives around An Ran looked at their noses and noses, but Quan Dang didn't see them. After all, one of these two guys is a close confidant of current Enron CEO Jeffrey Gilling, and the other is each other's assistant, currently the CEO of Enron's most favored energy services department. They are Jeffrey Gilling's right and left hand. Except for Kenneth Lay, and Enron CFO Andrew Stowe, no one is above them.

"Cliff, Lu, calm down for me. Now Enron is in crisis. If you feel that your personal grievances outweigh the safety of the company, you can resign. I promise to approve."

Seeing that Geoffrey Gilling was really angry, Cliff Baxter and Lou Pei glared at each other before calming down.

"Guys, the rising trend of Enron's share price since March has stopped now because of the continuous negative reports on Enron on LinkedIn. Even after Bruce Guo invested a lot of money to buy Enron's short position, the stock price fell 5.3 US dollar. If we let this situation continue, the situation will only become more and more unfavorable for us. Therefore, I hope that you can work together to come up with a solution to change the current predicament of Enron, otherwise the stock in our hands will continue to depreciate, I I believe that no one wants to see such a situation." Jeffrey Jilin said solemnly.

"I have a question, Bruce Kuo spent close to $700 million on the acquisition of Pacific Ocean and Southern California, and three of Apple's projects, or $800 million if you count Legendary Comics. In addition, just yesterday, he also The Oregon Power and Gas Company was acquired at a price of $800 million~www.wuxiaspot.com~ Now adding the funds to short us, his overall investment has reached $9.3 billion. In calculating the operating funds to maintain Pan Pacific Group, it must have been Tens of billions. Even with loans from Goldman Sachs and Morgan, his financial strength can't be this strong!" The speaker was a bald black man, his name was Rick Causey, Enron's accountant.

"I heard that his Thunder Fund made a lot of money on gold speculation!"

"No matter how much he earns, we must figure out the specific amount. Otherwise, if we don't know the strength of the enemy, we will attack rashly, and there is little chance of winning!"

"It's not easy to figure out the revenue of the Thunder Fund. Especially when Bruce Guo has been strictly guarded."

Watching the crowd arguing in the conference room, Jeffrey Gilling was upset by their quarrel. But he didn't think of a good way for a while.

"Andrew, what's your opinion?"

Andrew Fastow, a financial genius with the title of 'prodigy' within Enron. It was his wonderful financial skills that increased Enron's stock price step by step, and it still has a market value of more than 600 million US dollars. However, a weak foundation obviously cannot support a building that is too high. Enron, lacking industrial support, had come to an end. This is not something that can be changed simply by financial means.

Of course, Andrew Fastow, the treasurer of Enron, knew this better than anyone. Therefore, he has been slowly selling his Enron equity since last year. After earning nearly $127 million, his stake in Enron was running out. Therefore, he didn't care much about what happened to An Ran in the end. Even in the worst case scenario, Enron went bankrupt, and he ensured that his profits would not be damaged.

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