"Are you talking about Enron, the U.S. listed company that engages in the energy business?" Dong Qiangqiang looked at the red and beautiful flaming clouds above the horizon. "Among the U.S. listed companies, Enron is the one with the biggest trouble right now, right? And do it for them?" Arthur Andersen, who does financial auditing, seems to have been fined a lot..."
"The U.S. Securities and Exchange Commission fined it US$7 million in June this year." Duanmu asked, "Then do you know what happened to Enron?"
"Let me think about it..." Dong Qiangqiang remembered that he had read the newspapers before, and the newspapers were full of news about this company, and they were long and lengthy. But because it was an American listed company, Dong Qiangqiang didn’t pay much attention to this part of the content at the time. “If I remember correctly, it seems that an American investor suspected that Enron had fabricated the company’s income, but I do remember what happened specifically now. It’s unclear.”
"Jim Chios was the first investor to question Enron. After he questioned it, investors in the market began to take this matter seriously." Duanmu continued, "I checked its family The stock price was still US$80 per share at the beginning of the year, and now it has fallen below US$20.”
"Then are you planning to short this stock again?" Dong Qiangqiang knew that U.S. stocks can be freely long or short, but he didn't understand Duanmu's purpose in telling him this, "But isn't all your money already in Munich Re's short position?" Are the options in? Do you still have money?"
"You're right, I really have no money outside." Although he said he had no money, Duanmu felt as sweet as honey. His Munich Re put options had already added a huge amount of wealth to his account, far exceeding his expectations. If it weren't for the fact that European options could only be traded at expiration, he would have been able to settle down right away. If that's the case, he can live without worries for many years even if he doesn't have a job. "Enron will announce its second quarter financial report in October. The current market view is completely one-sided, and no one is optimistic about it, so no matter what it is at this time Whether to short its stock or buy its put options, the price/performance ratio is not high, and there is great risk, but that is not what I want to say.”
Dong Qiangqiang thought to himself: You have already said all the words. But he said, "Then what do you want to say?"
"Andersen."
"Enron's auditing company?" Duanmu's thoughts were completely jumping around. He hit a hammer here and there, and Dong Qiangqiang went a little crazy. "What happened to it?"
“Think about it, if there were really problems with Enron’s finances, then its auditing company would have known a lot of inside information if they weren’t idiots, but in the end it still chose to issue a non-opinion financial audit report instead of informing investors of this. The company’s financial data is fishy. Isn’t it clear enough what this means?”
"Let's be honest, what did you think of?" Dong Qiangqiang was too lazy to guess.
Seeing Dong Qiangqiang's anxious look, Duanmu smiled: "Do you still remember Mr. Bian's company?"
"Of course I remember. Isn't their company going public soon? But does this have anything to do with what you said?" Dong Qiangqiang asked suspiciously, "You don't want to tell me that the audit of Bian Corporation was also done by Arthur Andersen. Right?"
"Hehe..." Duanmu smiled maliciously, "It's easy to chat with you."
"Isn't it?" Dong Qiangqiang felt that Duanmu's words were unbelievable and couldn't help but gasped.
"I only found out yesterday that our company would recommend Arthur Andersen to them. And what's even more exaggerated is that I learned one more thing before leaving the company this afternoon." Duanmu lowered his voice while looking around, "You would never have imagined it. "
Dong Qiangqiang's curiosity was suddenly aroused: "Tell me and listen."
"I went to the company's copy room in the morning and planned to use a paper shredder to shred some materials, but the only shredder couldn't be used. I was so confused that I dismantled the machine. Guess what happened?" Duanmu Pretending to be mysterious.
"What's wrong?"
"The shredder... was stuck by a piece of paper." Duanmu said nervously.
Dong Qiangqiang thought there would be some secret, but what he heard was this sentence. He couldn't help but mock Duanmu: "It seems that the machine of your company should be called a paper jamming machine more appropriately."
Duanmu ignored Dong Qiangqiang's teasing and continued: "As soon as I saw the mathematical formula on the paper, I knew it was to calculate the future income of the stock put option. But what surprised me was that the name of the stock was actually the same as the name of Bian Corporation. Exactly the same, don't you think it's strange?" Duanmu stared meaningfully into Dong Qiangqiang's eyes, spread the five fingers of his left hand, and slowly raised it: "This is Bian Headquarters." Then he spread the five fingers of his right hand and slowly raised it. Starting from: "Here's the put option on it."
Dong Qiangqiang was also confused: "But isn't your company the investment bank responsible for running the listing of their company? Can you still design the company's put options while promoting the company's listing? Isn't this considered a conflict of interest? German securities supervision Doesn’t the organization care about you?”
"We are not an investment bank," Duanmu corrected. "We are at most an intermediary, helping it find a law firm to resolve legal disputes, help it find an auditing company to audit its financial data, and help it find a real investment bank that can specifically promote the company's listing, such as Deutsche Bank or Swiss Securities. As long as the company can finally be listed, our contract is completed. As for its stock price performance after listing, that is not what we should be concerned about. "
Only then did Dong Qiangqiang fully understand Duanmu's intention: "So you suspect that your company deliberately took over the listing of Bian Corporation, and then helped it go public while using the intelligence you collected to short-sell it? Are the French so ruthless? "
"Of course this is just my own analysis. After all, there is too much information involved here. I haven't had time to sort it out completely, so I also want to hear your opinion." Duanmu looked at Dong Qiangqiang seriously and said cautiously, "But if something As I suspected, there is something fishy about Bian Corporation’s business or income. Once investors in the market question this, the company’s stock price will definitely not be able to sustain it. Do you understand what I mean?”
"So you suggest that I buy short-term put options on Bian Corporation?" Dong Qiangqiang simply made it clear, "Am I understanding correctly?"
"Old Director, even if you don't do this, someone else will do it. Besides, put options are also completely legal financial products. I can't buy them this time. Firstly, my identity does not allow it, and secondly, I have no money. . But if you can make this money, I will be really happy for you." Duanmu used Dong Qiangqiang's huge sum of money to write the stock picking software that became more and more convenient, and his work went smoothly, and his investment also made rapid progress, so he was very hopeful in his heart. They could give Dong Qiangqiang some material rewards, and Mr. Bian's company was like a fat sheep that came to their door and jumped in front of them.
Dong Qiangqiang understood that Duanmu was telling the truth. It was not that he had no money, but he had no idea what was wrong with this company. He thought for a moment, nodded and said, "Thank you. Then I'll go back and study it first, and I'll ask you if I don't understand anything."
Seeing that Dong Qiangqiang did not refuse his kindness this time, Duanmu happily patted his shoulder and said with a smile: "I think if you get this deal done, maybe you won't have to go to the trouble of catching wild boars anymore. Just become financially free and enjoy your wonderful life."
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