Chapter 256 [A short report caused a huge sensation]
[Tiansheng Capital recently released a short-selling report. The company’s QDIE fund announced that it would spend US$35 billion to short six stocks: GE, TSLA, KOF, REGN, CMG, and DXCM!] "Wall Street Journal"
[Breaking news! Tiansheng Capital announced 235.2 billion yuan in shorting six major U.S. listed companies!] "Financial Associated Press Telegram"
[Tiansheng Capital shorted General Electric, a North American industrial giant, for RMB 67.2 billion. The company’s current market value is US$220 billion, or approximately RMB 1.47 trillion!] "Tonghuashun News"
[Tiansheng Capital’s short-selling report claims that General Electric Group is accused of “black box operations” in its finances, and the U.S. Securities and Exchange Commission (Color C) may intervene in the investigation!] "Global Network"
[Tiansheng Capital downgraded the ratings of six major companies: GE, TSLA, KOF, REGN, CMG, and DXCM. Tiansheng Capital analysts warned the market that all six companies have major problems and hidden dangers, and the major negative effects have not yet been exhausted] "Doncai
telecommunications"
[According to relevant sources, Tiansheng QDIE Fund bought put options on six major companies including General Electric!] "Financial Times"
…
The release of Tiansheng Capital’s short-selling report caused a huge sensation in the domestic and foreign capital markets, and it also made many media headlines, and foreign media also reported on this matter.
The New York Times and the Wall Street Journal both cited reports. These media are mouthpieces representing Europeans and Americans, and they actually helped expand the reporting of bad news. This made many people in the country feel puzzled and thought that the sun
It rose to the west.
I thought it was fake news, but upon closer inspection it turned out to be true, and I immediately felt like I had seen a ghost.
In fact, as long as you look at where the stakeholders are, it is not difficult to understand that 80% of Lu Ming's short-selling operation is inextricably linked to several top capital institutions on Wall Street.
When they help Lu Ming, they are helping themselves.
The domestic media even reported overwhelmingly on this unexpected incident. Tiansheng Capital is a domestic financial institution, and it actually made such a big noise in the European and American capital markets.
A large, close-up report is a must.
This kind of incident naturally has a strong eyeball effect in the mainland. In the eyes of most ordinary netizens, Brother Yi is messing with the Chinese people. Everyone likes to see this kind of thing, and the media is naturally willing to hype it up.
Go up as hard as you can.
"I wonder, Brother Yi, are you going to be so aggressive and short General Electric with a price tag of 1.5 trillion?"
"General Electric has been on a downward spiral for a year since peaking at $33 last June."
"No, did I read it wrong? The short-selling report said that General Electric's stock price was at US$5.5? This... this is General Electric, the former pride of the United States and the symbol of magnesium industrial glory. How could it possibly fall to US$5.5?
"
"This news is very refreshing. General Electric, the pride of the Chinese people, has won two Nobel Prizes, helped the United States win the world war, trained nearly 200 Fortune 500 CEOs, and even trained senior executives.
The beautiful president is now in such a situation... He was stabbed in the butt by Brother No. 1, haha!"
"General Electric has been making frequent moves this year. The French power giant Alstom was finally killed by Lao Magnesium. General Motors is integrating, and the giant Baker Hughes is also integrating acquisitions. Could it be that Brother Yi discovered that General Motors was engaging in black box operations?
Operation? Is there an ulterior secret?"
"We don't know, we don't dare to ask, and it's hard for us to tell."
"I found a piece of news from an external network. Tiansheng Capital's research team wanted to enter General Electric for research, but was unable to enter the company and was rejected!"
"There may be a real problem. Otherwise, Brother Yi would not have dared to short GE for more than 60 billion yuan. He must have seen important and obscure information that we did not see. Everyone has forgotten that Tiansheng Capital did not question Lux's financial affairs."
?”
"General Electric fell by -1.59% yesterday and almost failed to hold the $25 mark. The platform is in danger of breaking the level. However, the resistance of the bulls is indeed very strong. Brother Yi did not break the $25 level."
"I'm thinking about a question. If Brother Yi is so arrogant in shorting General Electric, a company that the United States is proud of, will he be attacked?"
…
Tiansheng Capital released a short-selling report. What is more interesting is that the domestic Internet is far more popular about the incident than abroad. Someone on the Internet has also launched a heated discussion on "How to evaluate Tiansheng Capital's short-selling of the six major U.S. listed companies."
Unexpectedly, it actually became popular in China. Not only the capital market is focusing on this topic, but also less relevant netizens have also paid a lot of attention.
In the eyes of netizens who don’t know the truth, this is a PK between domestic financial institutions and Wall Street. Some media are also deliberately guiding this aspect, so everyone is paying close attention to it.
It's never a big deal to watch the excitement.
Over the years, what most people in China have heard is that foreign investors are shorting the domestic stock market again, shorting this and that.
In the eyes of many people, short selling is an evil behavior, and many people will immediately think of Soros, the world-famous short seller.
Therefore, when many domestic people saw this news, they naturally admired and looked forward to Tiansheng Capital, and also hoped that their country's financial institutions could win in overseas markets.
But the short-selling mechanism itself is a market mechanism, which has a positive side for the capital market. It can allow a listed company with an inflated valuation to return to a normal and reasonable value. Of course, in fact, the short-selling mechanism is more of amplifying the speculative nature of capital.
and cutting leeks.
As for the domestic melon-eating netizens, no matter whether short selling is evil or not, even if it is evil, but the target is the evil Magnesium Emperor, the domestic melon-eating netizens express their support.
The current domestic public opinion is not a bad thing for Tiansheng Capital.
However, what people in the capital market industry pay the most attention to is short selling itself, especially short selling of General Electric, which has attracted much attention from domestic and foreign capital markets.
General Electric announced its second quarter financial report last month. The financial report showed that the company's revenue and profit both exceeded expectations, with revenue of US$29.6 billion and adjusted earnings per share of US$0.29.
But it is not as good as the revenue of about US$33 billion and adjusted earnings per share of US$0.51 in the same period last year. This is also Tiansheng Capital's "concern" about General Electric in its short-selling report.
In fact, although General Electric's financial report exceeded expectations, concerns still exist. In the second quarter of this year, the company's industrial sector revenue and profit fell by 2% and 4% respectively, and the performance of the oil and gas sector fell behind.
In addition, there is General Electric’s cash flow problem, which also appeared in Tiansheng Capital’s short-selling report.
General Electric's cash flow problem has always attracted widespread attention. Data for the second quarter of this year showed that operating cash flow and cash flow generated by the industrial sector have improved, reaching US$3.5 billion and US$1.5 billion respectively. However, Tiansheng Capital's report pointed out that GE
Electric's cash flow in the first half of this year still declined significantly year-on-year.
In fact, the deception of stock god Buffett also contributed a lot to the cash flow dilemma that General Electric is currently facing.
When General Electric was in its glory days, its cash flow was abundant, and the stock investor Warren Buffett, who held shares, tricked GE's senior management into using money to buy back shares, thereby driving up the stock price. Then the stock investor ran away in a high-profile manner.
This kind of thing happens not only to General Electric, but also to other companies. After Buffy buys a company's stock, he likes to encourage the CEO to repurchase the company's stock. For example, the stock god is still encouraging Cook to repurchase the stock.
Apple's stock price continues to hit record highs.
If General Electric had used its cash flow for corporate development and expansion instead of repurchasing shares in the capital market, the situation would have been much better than it is today.
However, I have fallen into the trap of the stock god. Of course, there are also factors for the CEO's selfish desires. The stock price has risen and the KPI performance has been outstanding. So it can be said that it is the result of everyone getting what they need and having consistent interests. Anyway, I am a professional manager and a senior worker.
If you can't do it anymore, the worst case scenario is that you should resign and leave.
Regarding General Electric, the stock gods have already left the market at a high level and walked away. This shows that this bad old man is also very bad.
