Reinventing the Millennium

Short selling is a complete failure!

This is the view of all viewers who watched the CNBC Financial Channel talk show on the morning of March 23.

The short-selling trio were very stylish when they first appeared. When the host introduced them, they had various resumes and backgrounds. They were definitely the elite among the elite, which gave the audience strong expectations for the confrontation.

However, this online-to-offline meeting between bulls and bears was one-sided.

Isn’t there a lot of shouting on the internet? Why are we facing each other like this?

Or a raid launched without their knowledge!

That's it? That's it?

Then people will point their fingers at you and scold you!

The scene was too ugly.

Even some hedge fund managers who knew the news in advance and watched the raid with great interest had to admit that Fang was good at this! Wrong occasion! It’s time to itemize Yike’s bubble performance on text media like Twitter.

Or, considering CNBC's wide influence, the program team should be contacted in advance and asked to display textual things like Twitter on the spot, using reason to break down the incited atmosphere at the scene.

However, even so, I don't know if the person named Fang will have other troubles.

As if he had a tacit understanding, poor Andrew, who performed poorly on the show, became more and more angry after leaving the TV station, and directly updated the financial analysis one by one on Twitter.

Because Twitter has a character limit, he tweeted 15 times in a row, each one @Fang Zhuo, which caused a small crowd.

Fang Zhuo finished the interview on the raid and confirmed the sale of Sina stocks on the way back in the car, and then saw Andrew, the Wall Street bounty hunter, pursuing him.

That's easy.

He updated his Twitter, concisely and to the point: Are you in a hurry?

Andrew refreshed Twitter from time to time, and was struck by lightning when he saw such replies. He felt that it was neither right nor wrong to reply.

And during the half hour of hesitation and silence, the previous Twitter comments were already filled with spontaneous comments like "Silly" and "Urgent", which made him feel like a mouthful of blood was stuck in his throat.

The talk show is live.

With the poor performance of the short side and the news revealed on the show, Yike's stock price fluctuated in real time, rising from US$84.63 to US$86.70, an increase of 2.45%.

Everyone is waiting for Mr. Fang to continue using real money to buy stocks.

However, the rally turned around in the afternoon.

Maybe the performance of the short-selling institutions has reached the ears of the short-selling king, maybe Paulson really got the news, maybe Paulson finally completed the research and judgment on Yike Company.

Paulson also updated Twitter, and the content was very simple: Yi Ke? funds?

As the most famous short seller speaks out, a fund manager also posted the latest news about ITC on his Twitter. It seems that some sources believe that the preliminary results of the patent litigation case between Nokia and Yike will be ushered in in the next three days.

The king of short sellers wants to take action? ITC's negative news will appear?

Yike's stock price fell in response, from 86.70 to 83.16 US dollars, which was lower than the stock price before the show started.

After witnessing this situation, Fang Zhuo finally took the initiative to find Paulson and interacted with him on Twitter: Paulson, you should be responsible for your clients. They did not give you money to make you addicted to money. Aura of scale.

Paulson: Haha, thank you, Fang, like you said, thank you for showing me how to run my hedge fund.

Fang Zhuo: Do ​​you really think there is a bubble in my company?

Paulson: Doesn't it exist?

Fang Zhuo: Then what are you waiting for? Just come here and go short.

Paulson: I'm waiting for your money to continue to push the stock price higher.

Fang Zhuo: You can wait a moment.

Just half an hour after such a conversation took place, Sina reluctantly made an announcement - Sina's major shareholder Fang Zhuo would reduce its holdings of 2% of the stock in a block transaction.

The value of this part is initially estimated at around US$110 million, because the specific price of the large transaction depends on the transaction object.

As soon as the announcement of the listed company Sina came out, the American financial media and Twitter were the first to go crazy.

No, Mr. Fang, are you serious?

Subsequently, in the early morning, major portal websites in China paid urgent attention to the news about Yike and Sina, and began to update the situation simultaneously.

Before Nasdaq closed at 4 p.m., Yike's share price rose again to $87.94, an increase of 4.4% from the opening price.

Correspondingly, Sina's stock price fell 2.3% in a hurry.

Paulson, the short-selling king, shows his influence.

Fang Zhuo, the head of Yike, demonstrated the influence of real money.

Arguing is useless, it is better to invest money.

From four to six o'clock in the afternoon, the two sides were calm.

But many people are paying attention to the news and believe that new situations will emerge. After all, that is the short-selling king Paulson.

Until eight o'clock in the evening, there was still an update from Fang Zhuo's side.

He replied to a question that seemed to come from an ordinary netizen.

Jesus: Mr. Fang, why do you dare to continue to increase your holdings of Yike shares at this time?

Fang Zhuo: Hahahaha, because I really firmly believe that there is no bubble in Yike.

Half an hour later, Paulson updated Twitter declaratively: I'm coming.

I am coming.

For whom? it goes without saying.

In Paulson's two previous remarks involving Yike, he has never made it so clear that he wants to short Yike.

This time, and for the third time, Paulson, the short-selling king who raked in more than 20 billion US dollars during the financial crisis, finally announced his entry.

Even though financial institutions have a bad reputation today, Paulson's almost mythical profit performance still makes him admired by many people and has gained great influence.

Many comments under this tweet mentioned the performance of Yike stock after the market opens tomorrow, believing that it will be significantly affected.

Five minutes later, Fang Zhuo spoke up again, reminding the other party: Paulson, you should safeguard the interests of your clients instead of indulging in the influence of the so-called short-selling king. There is an abyss ahead of you.

Paulson responded quickly, using a line from the Today show: I am rich.

If I use my own money, what does it have to do with my customers?

Paulson has just set a new record as the most profitable fund manager on Wall Street. He is a real rich man.

Thirty seconds later, Fang Zhuo gave his final response: Come on.

bring it on.

At this point, the head of Yike has completed the day’s friendly exchanges with short-selling institutions.

From talk shows to Twitter conversations, from stock price rises to setbacks and then rebounds, from reducing holdings of Sina stocks to entering with personal funds, from I am rich to I'm coming to I am rich and then to Come on.

In just one day, the stock prices of the two listed companies fluctuated, and the most influential hedge fund person made it clear that he was shorting Yike.

Dizzying and dizzying.

The financial media exploded!

The first hedge fund person!

The second best CEO in the world!

Both sides are here for real!

Come on! Come on!

Many media began to review what happened on March 23, reporting on the performance of talk shows, the bull-short showdown, and the patent dispute between Nokia and Yike. At the same time, they also began to predict Yike’s stock price performance on the 24th. .

Will it rise, fall, or fluctuate?

March 24, Tuesday, 8 a.m.

Many media reporters, mobile phone industry, financial industry, and melon-eating people around the world are waiting for the opening of Nasdaq, intending to witness the increasingly fierce long-short confrontation between Yike.

At this time, Yike Company, which had previously reported news of stock repurchases, officially issued an announcement.

——The board of directors has approved a share repurchase plan. According to the plan, Yike will repurchase shares of up to US$350 million in the next six months. The start time is scheduled for Thursday this week. The process will be carried out by Financial Management Consulting. The company, Goldman Sachs, is in charge and will end on September 26.

Yike also said it plans to fund the buyback from existing cash balances.

At the same time, Yike's board of directors will evaluate the stock repurchase plan in stages and may adjust the repurchase conditions and scale.

Yike's stock repurchase plan has really come to fruition!

$350 million share buyback!

I’m so rich, I really dare to buy it!

This is the signal released by Yike Company and its leader Fang Zhuo!

The stock repurchase method of U.S. stocks is mainly a combination of open market and private agreement repurchase, but this time, Yike Company adopted an open market repurchase.

Generally speaking, stock buybacks have different motivations, such as signaling, financial leverage, free cash flow, dividend tax avoidance, control market, stock options, wealth transfer and other explanations.

Yike's current share repurchase is undoubtedly sending a signal to the market and large and small shareholders.

——We know that there have been a lot of rumors outside recently, such as Paulson, Andrew and others saying that they are shorting us, and there are also one-sided remarks such as whether the sales ban is a bubble or whether the new machine is not connected well, but let us tell you. , those are not true. Yike’s stock price still has room to rise, and the current stock price is still undervalued.

Last night, the head of Yike responded to a netizen's question. His words, "Hahahaha, because I really firmly believe that there is no bubble in Yike" are still ringing in my ears. This morning it was once again confirmed that he really believes in the future of Yike.

2% of Sina's shares worth US$110 million have not yet been officially traded, and Yike's stock buyback plan will not start until tomorrow. Neither of the two funds has yet been invested in the stock market.

But it was enough to spark enthusiasm.

Nasdaq opened in the morning, and Yike rose sharply by more than 10%.

As of the close, Yike's share price rose 7.8% to close at US$94.80, directly breaking through the 90 mark, with a market value of US$27.086 billion, both hitting record highs.

That evening, Fang Zhuo met the Gasoline Man.

In the two days before and after, Kong Yu had to lament the influence of the short-selling king: "Mr. Fang, as soon as Paulson entered the market, several hedge funds also stopped waiting and started to short the company, really awesome!"

"I even suspect that in two or three days, there may be room for a run on the circulating stocks on the market!"

Fang Zhuo also nodded: "Paulson is indeed powerful. This time he used his own money... and he is indeed responsible."

"No, Mr. Fang, I suspect that Paulson got the news from the ITC. At noon today, Chicago said that it was Paulson who said in private that the ITC's preliminary review is really coming soon." Kong Yu said seriously Said, "Because of this news, Paulson is not willing to let his clients make money and directly uses his own money to make profits."

News about ITC leaks like a sieve.

When Fang Zhuo heard this, hey, it makes sense.

Paulson really thinks that Yike's stock price is in a bubble. If this is the case, then just make money yourself.

However, Paulson's plan to use his entry to poke Yike's stock price was dashed by the buyback plan.

Now we are waiting for the ITC’s preliminary review and final ruling.

"Well, let's wait until Nasdaq's short positions are disclosed at the end of the month." Fang Zhuo said, "Where do you think I will fit in then?"

Kong Yu knew that the boss was asking about the final harvest time.

He thought deeply and said: "It's better to go back to China. The panic can be squeezed to its maximum in a short period of time."

As long as it is determined that the short position is greater than the outstanding shares, the options will be announced after the stock market closes on Friday afternoon, giving them two days over the weekend to go crazy.

On Monday, that's when Yike's stock price exploded.

On March 25, there was still one day left before Yike launched the repurchase plan. On this day, the stock price still rose without hesitation, once exceeding US$100, and finally closing at US$98.16.

That night, Fang Zhuo, on behalf of Sina, personally negotiated with the Bank of New York for a large-scale transaction of Sina stocks, and almost finalized a price of US$108 million.

After the dinner between the two parties was over, he received a call from Xiao A's staff Lu Peining.

"Mr. Fang, Yike's stock..." Lu Peining knew that part of the funds from the MIGA fund were used, and it was Yike's stock that she bought.

"Do you also think there is a bubble in Yike's stock price?" Fang Zhuo asked back.

Lu Peining did not answer directly, but gave a message: "The ITC will announce the preliminary results of the patent litigation between Nokia and Yike as early as this Saturday, which will be detrimental to Yike."

Fang Zhuo pondered, ITC also wants to give the market time to digest the bad news.

Moments later, he said: "I'll have another funding announcement over the weekend."

Lu Peining hesitated for two seconds and asked: "Mr. Fang, that's not what I meant. I'm asking you from a personal perspective. Is it really okay for you to support Yike's stock price like this?"

"No problem." Fang Zhuo said without hesitation.

Lu Peining hesitated again and again, and still asked: "Even if the final ruling is announced? At the very least, should Yike advance the press conference?"

Fang Zhuo smiled and said, "You even know this? You really care. I'm very touched."

Lu Peining didn't answer, nonsense, who cares about whose money it is.

"There will be no problems with the MIGA fund. The good news must be released one by one. The competition in the financial field is not just for a while." Fang Zhuo explained briefly, "As long as the stock price is stabilized, after this period of time, our strength with Nokia will be It will be reversed and there will be no problem if it is stable.”

"What if we can't stabilize it?" Lu Peining had to say a few more words today, "Should we be more appropriate?"

"Don't worry, Kong will always take action." Fang Zhuo said calmly, "He is a genius. He said that he is short-squeezing now."

Lu Peining smiled: "Mr. Fang, I'm even more worried. Is the risk too high?"

"The higher the risk, the greater the profit." Fang Zhuo replied seriously.

Lu Peining gave a different opinion: "I still think the funds can be safely handled now..."

Fang Zhuo interrupted: "At least a profit of hundreds of millions."

Lu Peining frowned, concentrated, thought, and said, "It's about respecting professionals."