The Industrial Giant Reborn

After staying at the fedmart headquarters for two days, Chen Zhiwen took his team to New York. Citibank has acquired more than 5% of Wal-Mart's shares. According to US laws and regulations, when the share reaches 5%, it needs to be announced on the stock market. Once, in the same way, when it reaches 10%, 15%, it also needs to be announced, and so on.

Just as he had guessed, an unknown company bought 5% of the stock of a well-known supermarket retail listed company, which did not cause any fluctuations. Even the Walton family probably would not care about it. After all, their family controlled More than 50% of the stock, no one can threaten them.

"Mr. Chen, your investment is very successful. In just half a year, the Wal-Mart stock you bought has increased by 20%." Joey, a senior investment advisor of Citibank, said very happily when we met.

"This is just the beginning." Chen Zhiwen said lightly. In front of Americans, especially this kind of investment bankers, it is best not to have the modesty of Chinese culture. Confidence in one's own investment direction is more important.

"Mr. Chen, please sit down." Joey took Chen Zhiwen to the sofa next to the floor-to-ceiling windows. The summer sun shone in, but he didn't feel the heat at all. Through the floor-to-ceiling windows, he could see Central Park not far away. And half of New York City.

"The scenery here is very nice." Chen Zhiwen said with a smile.

"There are also apartments for sale nearby. If Mr. Chen is interested, he can buy one. Although the scenery is not as good as the World Trade Center, it is not much worse." Joey laughed.

"That's unnecessary." Chen Zhiwen shook his head and said.

The location where they are now is the most famous World Trade Center in New York before 2001. It was just completed last year. As the latest and tallest building in New York, the scenery is naturally beautiful, and the price is naturally expensive. Only internationally renowned banks and insurance companies Only enterprises, trading companies, and law firms have the ability to settle in, which is also a symbol of strength.

The real estate in New York has been rising except in 2001, but the rate is not comparable to Hong Kong, and if it is used as a residence, it is not as comfortable as living in a five-star hotel.

"Before, Mr. Chen said that he wanted to mortgage Wal-Mart's stock in Citigroup, then buy Wal-Mart's stock, and then repeat the mortgage multiple times? Such financial operations are more commonly used in the treasury bond and real estate industries, as well as in the stock market. The risk is relatively high, and I want to know why Mr. Chen is so optimistic about this Wal-Mart stock?" Joey officially entered the topic. As bank representatives, they also need to understand some investment intentions of customers as a reference for lending.

Chen Zhiwen said with a smile: "Because of the oil crisis and the economic problems after the crisis, inflation."

"Won't retail be worse after inflation?" Joy asked.

"The overall situation will become worse, but from the perspective of different companies, companies with high costs will be eliminated, and companies with good cost control will gain a larger market." Chen Zhiwen paused and said: "Because a large number of users will Looking for cheaper products, and Wal-Mart has a very good cost control. Their business style is small profits but quick turnover, and their stores are also located in the suburbs to reduce property costs. Supermarkets such as Celtic and Sears are located in the city center The prime location, the rent alone will lead to no way to reduce operating costs."

"But to go shopping in the suburbs, you also need to drive. Now that the gas price is so high, the supermarkets in the suburbs may not have any advantages?" Joey asked. This kind of leveraged investment is a kind of investment consultant for them. Risk is also a kind of opportunity. If they succeed, their commission will be quite a lot, but if they fail, it will seriously affect his income. What is more serious is that the bank has not had time to close the position, resulting in huge losses, and they may not even be able to keep their jobs. Therefore, when encountering this kind of investment, we are very cautious.

Chen Zhiwen smiled and said: "So it will lead to centralized purchases by supermarket users, so that it is cost-effective to spread them out evenly, and supermarkets like Wal-Mart can gain a higher market share."

"It makes sense, so Mr. Chen also personally invested in a supermarket?" Joey asked with a smile.

"Yes, it's just a small supermarket." Chen Zhiwen nodded and said, as his investment advisor, Joey still paid close attention to his actions, and since the acquisition was an open act, it was naturally impossible not to know about it.

However, he also knew that he had acquired a supermarket. It is naturally impossible to know the layout of the future supermarket. In the minds of many people, warehouse supermarkets belong to the small classified market in the retail field. You will know the difference. In the original history, the growth of giants such as Costco and Metro made this industry a new star in the retail field.

"Mr. Chen, in principle, Citibank will agree to your request, but the specific percentage of leverage that can be obtained needs to be approved by the general manager of the New York branch, but my suggestion is that Mr. Chen put another It will be much more convenient to use it as collateral," Joey said.

"How much money do you need?" Chen Zhiwen asked.

"Mr. Chen invested a total of 40 million US dollars before. It took us half a year to acquire the shares of Wal-Mart. Now the value of these stocks is about 50 million US dollars. If we keep revolving loans, we can provide 25 million US dollars for the first tranche , and then 12.5 million US dollars, and so on." Joey accepted: "But if there is a mortgage of 20 million US dollars, the amount can be greatly increased."

"With so much money, wouldn't I buy stocks directly?" Chen Zhiwen said with a frown. After the oil crisis, the global economy fell into a severe downturn, and European and American banks were also very cautious about loans. to 70%, instead of the current 50%.

"Of course, so we can provide another plan, which is to conduct hedging investment. Mr. Chen can use the funds to buy stocks of other companies, and then mortgage them in our bank. In this way, our bank has a guarantee, and Mr. Chen can also Enjoy the return on investment, the best of both worlds, but this stock, it is best to be a large company stock, or a stock approved by our Citibank." Joey said again.

"Hedging, I understand, it's okay, but we can think about it after the first loan of 25 million US dollars is purchased." Chen Zhiwen thought for a while, and didn't directly refuse. He wanted to give the banker in front of him some hope.

The hedging method is feasible, and the risk to the bank is also greatly reduced, but recently he really doesn't have much money. After acquiring Fedmart, with Fedmart's current operating conditions, there is no way to mortgage to obtain funds. It has to bear its debts, and it also needs to build Costco's first branch, which requires real capital investment.

In his account, there is still a liquidity of 30 to 40 million U.S. dollars, but this money is also a guarantee for the implementation of the plan in Hong Kong. Wharf and Hutchison are definitely the top priorities in Hong Kong's layout. Fortunately, Red Bull's current sales in the United States are good. As long as the production capacity in Hong Kong increases, it will become a very rich cash cow company.

"That's fine. Regarding the contract, our bank will prepare a draft first, and your lawyer can also participate in it." Joey said with a smile.

"Okay, my lawyer will come tomorrow." Chen Zhiwen nodded and said.