Chapter 844 [North American investors who were bloodbathed]
Lao Lu's "self-destruction" magic operation was directly on the top of the Internet's hot searches, and the popularity skyrocketed.
Internet gurus, teachers, and big Vs all followed up and posted articles on the media, with constant hot comments and excitement.
There was a thunderstorm late at night, and the whole network went viral.
The past and present life of Ruixing Coffee began to be frantically excavated by various experts.
When it comes to Ruixing Coffee, it can be said that everyone knows it now, and it has the reputation of "the domestic version of Starbucks".
But unlike Starbucks, Ruixing Coffee makes full use of the new retail model of mobile Internet and big data technology, so it has obvious Internet attributes. Therefore, after going public, Wall Street investors are willing to give such a high valuation and are crazy about it.
its prospects.
Since the establishment of the brand, a lot of money has been burned along the way. Although the business model is very simple, it is very effective.
It means spending a lot of money on subsidies and using money to kill competitors, thereby quickly taking away market share.
As soon as the money came in, it quickly began to expand, opening more than 2,700 stores in just one year.
After that, the most primitive and violent method was adopted-price war.
Lao Lu branded his company as high-tech coffee and did not accept cash. He only relied on mobile phone payments to reduce costs. He also used the first cup to be free and get a 50% off coupon. Buy two, get one free, buy five, get five free. This kind of thing is bad.
The operation of giving money to consumers backwards attracted a large number of customers. At the same time, celebrities were invited to endorse the business, and monthly active users increased rapidly.
Not only that, Lao Lu also found the world's largest asset management giant BlackRock Group to endorse him. In addition, the book data was so beautiful that for a while, North American investors felt that Ruixing Coffee was a rare potential stock.
, super unicorn, continue to be crazy optimistic about it.
In fact, Lao Lu once considered letting Tiansheng Capital endorse him to deceive Lu Ming, but in the end he did not do so.
Firstly, considering that Jabs was not able to fool Lu Ming into it back then, it meant that this idea was a bit tough and not easy to fool;
Secondly, considering the grievances between Tiansheng Capital and Meili Guo, Ruixing Coffee is going to ring the Nasdaq bell. Being too close to Tiansheng Capital will be bad. After all, it has no plans to be listed on the big A.
Under normal circumstances, the queue to go public in a big A company would take ten thousand years, unless it was a backdoor listing, but even so, Lao Lu would not dare. If he did, he would have to follow the example of Steve Jobs and return to China next week.
It was enough to have the endorsement of BlackRock Group. With these foundations, Ruixing Coffee was able to successfully ring the Nasdaq bell this year, and its reputation was endless. At that time, the market value had reached as high as 4.2 billion U.S. dollars.
With Ruixing Coffee’s model of selling coffee at almost a loss, is Wall Street’s investment stupid?
Of course he is not stupid, it can only be said that Lao Lu plays too much, and Wall Street investors did not expect that Lao Lu was less ethical than them.
While subsidizing users and maintaining it by making false accounts, it also released various good news to the outside world, such as its unmanned retail strategy, and started selling milk tea again. The story goes that Wall Street investors were excited, and the stock price soared, with a market value of 22.5 billion.
The height of the dollar.
As the saying goes, misfortune never comes singly. If Muddy Waters' "empty letter" report confused Wall Street investors and North American stockholders who hold Ruixing Coffee, and at 10 a.m. Lao Lu's self-explosion of the truck's godly operation made them stupid, then in the afternoon it happened again
The violent news that broke out made Wall Street investors and North American stockholders confused and dumbfounded.
News came out that Lao Lu cashed out more than 10 billion through equity pledges in October. Together with his current CEO and his sister, the three of them cashed out a total of 29.5 billion.
Generally speaking, after a company is listed, shareholders have two ways to cash out.
One is to sell the stocks in hand, but generally new stocks have a lock-up period and cannot be sold casually. Especially if the founder cashes out on a large scale, the stock price will basically collapse.
The other is equity pledge, which means that shareholders give their shares to a financial institution and redeem them after maturity. If they do not redeem them, the institution has the right to dispose of the shares, usually by selling them for cash.
North American stockholders and Wall Street investors who hold Ruixing Coffee, as well as several financial institutions that accepted equity pledges, felt chills from head to toe, and then from the soles of their feet to their hearts. Late at night, a large number of people were yelling at Hou Li Crab Tema.
Defark.
BlackRock, the group that endorsed Ruixing, is also buzzing. Money is secondary, the key is reputation.
The world's current CEO in the asset management industry, where can I put this face? BlackRock has also suffered a bit badly this time.
Now, a large number of domestic stock investors are waiting for the U.S. stock market to open tonight.
…
In the evening, Ruixing Coffee's situation before the market was no longer suspenseful.
At 21:30 in the evening, the North American stock market opened. Ruixing Coffee opened with a sharp -80% price, crashing to $11.237 per share, and announced a circuit breaker for ten minutes at the opening.
Two days ago, the company's stock price was still trading above US$80 per share. Two days later, it was just over US$11, and its market value had evaporated by more than US$18 billion, or about 127.5 billion yuan.
Wall Street investors and North American stockholders lost all their money. How can it be called miserable?
Ten minutes later, Ruixing Coffee resumed trading, and the short-selling Muddy Waters Company began to close its positions. At the same time, Qi Wei, who was watching the night market, also closed his positions. The intraday trading only lasted three minutes, and Ruixing Coffee's stock price melted again.
Trading resumed after a five-minute suspension, at which time the decline narrowed to -74.50%.
After the resumption of trading, it lasted only one minute and triggered the third intraday circuit breaker again. This time the circuit breaker resumed trading for ten minutes, and the stock price narrowed to -69.12%. Qiwei continued to close his short position.
There will definitely be lower prices in the future, but enough is enough.
Because the profit of short selling is limited and will not exceed 100% of the absolute short selling amount, the drop from 11 US dollars to 1 US dollar is a 90% drop, but for those who shorted at a high level, the actual short profit during this period of decline is even less than 10%.
Increase.
The profits from short selling cannot be unlimited, but the losses are unlimited.
If it is known by Wall Street that besides Muddy Waters, the real big player is Tiansheng Capital, it will definitely trigger a retaliatory squeeze and push the price into the atmosphere.
Because the price increase is unlimited and can rise to 80 US dollars, 800 US dollars or even 8,000 US dollars, then it will be a huge loss. When the time comes, you will come to collect the debt, or you will admit your loss and pay the money. If the other party finds out the reason for defaulting on the debt, it will
Quite passive.
After Ruixing Coffee resumed trading, it lasted two minutes and then shut down again for five minutes. The decline narrowed to -63.24%. Then it resumed trading and still went two minutes and then shut down again. However, this time the stock price did not rebound upwards, but went downwards.
Diving to -65.80% water level.
After the resumption of trading, the circuit breaker continued for ten minutes after one minute of trading, and the stock price further plunged to -69.92%. In the subsequent intraday trend, Ruixing Coffee also circuit breaker twice.
Back and forth, Ruixing Coffee had a total of eight meltdowns on the market today.
Wall Street investors who lost all their money went through liquidation sales in tears and prices dropped.
There is no trace of it, because they have already seen the outcome of Ruixing Coffee, either privatization and delisting and returning to A-shares, or direct suspension and delisting, and the probability of the latter is far greater than the former.
No one expects Ruixing Coffee to turn around.
But at this time, there is no one to take over the purchase. Ruixing Coffee will repurchase it by itself. Where does the money come from? How about taking the lead to repurchase it.
Then the only people who will take over at this time are short-selling institutions. To be precise, they are the two major short-selling players, Muddy Waters Company and Tiansheng Capital.
Short selling involves first borrowing stocks and then selling them at a high price. When the stock price plummets, you buy it back from the market at a low price and return the stocks. The difference between the bid and offer price is the profit of the short position.
Therefore, at this time, only the short positions that have been closed will take delivery in the market. If the short positions do not take delivery, the stock price will continue to fall until someone takes delivery.
After the close, Ruixing Coffee's stock price closed at US$13.664 per share, down -75.68%, and its market value shrank to US$3.44 billion.
This is the scariest part. It has collapsed like this. The market value of Ruixing Coffee is still US$3.4 billion, and the stock price is still over US$13. Judging from the current situation, even if it shrinks by another 90%, it is not an exaggeration.
The game in the capital market has temporarily come to an end. At present, the Wall Street capital and North American stock investors who invested in Ruixing Coffee have been bloodbathed, but the next battle in the public opinion field will soon begin on the weekends.
