Chapter One Thousand and Ninety-Two

In the afternoon, the owner of a Wall Street investment company sat in his office and turned on the TV as usual to watch today's news.

Suddenly, his complexion changed drastically, and he immediately picked up the phone to notify: "From now on, throw away all the Enron shares we hold, and you don't care how much we will lose, this is an order! If you can't Throw away the stock within half an hour, then pack up and get out!"

Not only this one boss, but also the bosses of many investment companies and securities companies, after seeing the news on TV and the articles of the two professors in the newspaper, they all chose to sell their stocks immediately.

Some people who didn't pay attention to these news were very surprised. What happened? Why did so many people release Enron's stock? Enron also said yesterday that there will be a large amount of income soon, and the stock price should continue to rise.

Some people speculate, is it the so-called technical adjustment?

If this is the case, then it is likely that the dealer washes the dishes. They should take this opportunity to buy some Enron stocks again and spread the cost.

So when many people sold Enron's stock, some companies began to buy Enron's stock in large quantities, and they didn't pay attention to the news.

If you are a financial person, you can't even grasp the real-time information well, so it's not surprising that you lose money.

At this time, Enron Company temporarily held an enlarged meeting of directors, not only the company's board members, but also some important executives of the company, all participated.

"Everyone, now that our stock price is plummeting, can anyone tell me what we should do?" Enron's chairman asked.

"I think we can have people refute Feng's words in the media. He is not a professional financial person, and his words are not credible!" Someone suggested.

"What about the two Harvard Business School professors? They are professional and can be called authoritative."

"We can make those two change their minds. I don't think anything is priceless." The man gritted his teeth and replied. He couldn't think of a better way than this.

When he saw the news today, he also asked his broker to cash out all the Enron stocks he held. Although he lost a lot by selling it like this, if he waited until tomorrow, the loss would be even more.

At this time, some people who did not read newspapers and TV received news on the Internet that Enron was suspected of financial fraud and falsely reported profits.

They wanted to dump Enron's stock at this time, but found that they couldn't sell it at all.

Since everyone was selling and no one was picking up, Enron's stock could not be sold, and its stock price plummeted. Those people placed orders, and the price was lower than the other.

I'm afraid it will be later, these stocks are equivalent to a piece of waste paper!

At this time, the bosses of the securities companies and investment companies who bought the bottom in the afternoon were about to cry. They thought they had picked up a bargain, but it turned out to be a trap!

Now that it's rotten, it's guaranteed to continue to fall when the stock opens tomorrow.

Those who sold Enron shares first breathed a sigh of relief. Although such a crazy sell-off caused them to lose a lot, some large companies even lost tens of millions of dollars. But it's much better than nothing left in the end.

...

"Falling! Hahaha, Feng, you are amazing. The stock of Enron has really started to plummet. You said that such a big company has so few shares issued, and we haven't even borrowed much. Go short." Kirilenko looked regretful.

"That's good, you still plan to invest in this company's stock at first." Feng Yu gave Kirilenko a blank look.

If you invest in Enron, you will lose all your money.

Well, maybe the court will order Citigroup and other companies to pay compensation later, but the compensation is definitely not enough.

"That agent has already been fired by me! I know that I follow the crowd. If it is at this level, why should I give him such a high commission?" Kirilenko became angry when he mentioned this. Why is there such a big gap between the agents he hired and those hired by Feng Yu!

This time, they borrowed Enron's stock through a securities company and sold it, and then bought it back after a while and paid it back. All they had to pay was a deposit.

It's a pity that one stock can not borrow much, so despite the high profit point, the overall profit is not much, but it is enough to make up for the loss they sold the Internet technology stocks together that time.

While Feng Yu and the others were chatting, Ralph knocked on the door and came in: "Boss, Enron has responded. Their chairman said that your remarks are pure slander, and they have never falsified any data. They have hired a lawyer and sent a lawyer's letter to you and the US cable TV station, asking us to apologize publicly and compensate for the loss."

After the news was released, Enron's stock price really rose a bit, and some of the listed orders were finally successfully delivered. And now those investors are divided into two factions, one is to sell quickly and admit the loss. The other faction is to take advantage of the opportunity to buy the bottom, waiting for tomorrow to turn around, so as to make a lot of money.

Kirilenko frowned and said, "They are too shameless. Didn't they respond to that Benford Law?"

Feng Yu smiled and waved his hands: "It's okay, the accounting firm I want to account for Enron will give us a response soon."

Sure enough, that very well-known accounting firm in the United States fired two senior accountants that day.

Feng Yugang said that they made false accounts, and then two accountants were fired. They said it was okay, who would believe it!

After the news broke out, Enron's stock price plummeted again, and it couldn't be held back.

"Feng, should we repurchase it?" Kirilenko asked, the borrowed stock must be returned.

Feng Yu shook his finger: "Don't worry, how much has it fallen today, and it will continue to fall tomorrow. I even think that this company's stock may fall below one dollar."

"How much? One dollar? This morning, their stock price was more than sixty dollars!" Kirilenko widened his eyes.

Feng Yuxin said, what if it falls below one dollar, the company will go bankrupt.

"Nothing is impossible. If their company made false accounts, it will inevitably bear legal sanctions. And the evaluation agency will lower Enron's credit rating, which is another fatal blow to Enron. Besides, Come to think of it, why are we shorting Citigroup?"

"You mean, if the Enron incident gets bigger, Citigroup will be involved?" If Citigroup can be involved, then the crash is not impossible.

"Inevitably, Citigroup is one of the most famous financial groups on Wall Street. Citigroup is also one of the driving forces behind the Internet bubble. How many stocks of these companies have they invested in, and they have made a lot of profits. There is no real evidence for that , the blow to Citigroup will not be too big. But Citigroup’s account transactions with Enron have been tampered with, so Citigroup may not know?”

Feng Yu is full of confidence, and Citigroup must pay a heavy price for it!

...