RBCT Chapter 1454 Multiple Killings
Chapter 1454 Multiple Killings
Chapter 1454 Multiple Killings
When the news of Bingxin's suspension of production was further confirmed, following Russell, the short-selling pioneer, many financial giants on Wall Street finally showed their interest in Yike.
It seems that this legendary company from the East has fallen into unprecedented weakness.
and so……
Chanos, known as the "short-selling master" on Wall Street, appeared on a program discussing the situation of Yike. He declared that "financial statements are the most important criterion for measuring a company's stock price" and that "Yike's current stock price is still overvalued" and that "Knicks United Fund has joined the ranks of shorting Yike."
Chanos is the president and co-founder of Knicks Associates. He once openly questioned the financial fraud of Enron, which was ranked seventh on Fortune magazine's "US 500" and successfully shorted the company for profit.
The reason why he did not short YiKe immediately recently was that, firstly, he was observing the situation of this famous "short killer" company, and secondly, he was shorting another well-known Chinese company, Alibaba.
Although Yike’s stock price has fallen a lot, Chanos has always believed that it is better to pursue the correct profit rather than the maximum profit.
Now is the "right" moment for Yike. The company's decline is inevitable, and its breaking point is also quite clear.
It’s just that, due to complex factors such as Yike’s home market, its founder’s successful image, and the many transactions with affiliated companies, its stock price has remained relatively strong.
Chanos believes that this relative steadfastness is unhealthy and bound to break.
Also, because of Nasdaq's regulations, Yike's Q3 financial report had to be announced before October 10, which means that its collapse was due at that time.
Yike's third quarter is bound to be very bad, which will inevitably become the last straw that breaks the camel's back for the downward pressure on the stock price.
As for whether YiKe will recover or continue to sink after this, it has nothing to do with the short sellers, because the profits that should be made have already entered their pockets and the institutions have already withdrawn smoothly.
The voice of "short-selling master" Chanos and his emphasis on the importance of YiKe's Q3 financial report made Russell and others overjoyed, and they all hoped that there would be more forces to suppress YiKe's stock price together.
It seemed as if this was an agreement or a tacit understanding, or perhaps industry insiders who had seen Yi Ke's irreparable weakness, even surprised Russell, stood up.
Einhorn, the founder of Greenlight Capital, which once shorted Lehman Brothers, commented on Yike's current situation and believed that "an elephant cannot dance without its limbs," and clearly stated that he participated in the shorting of Yike.
Ackman, the founder of Pershing Square, became famous for his short-selling battle with the US municipal bond insurance MBIA. In recent years, he has been fighting with Herbalife. Now he has joined the camp of shorting Yike and expressed his point of view - "Mr. Fang is respectable, but Yike has encountered serious problems on both the supply and demand sides. No one should miss such an opportunity."
Steve Cohen, a hedge fund tycoon known as "Jordan", spoke on Twitter. On the one hand, he agreed with the views of his peers, and on the other hand, he also mentioned a little conflict in the past.
"Yi Ke should have been destroyed long ago. Its current size is the product of the collusion between power and money! Its performance in the secondary market back then was the result of shameful non-commercial factors!"
"Yi Ke has now come to this end due to non-commercial factors. I can only say that it deserves it!"
"Fang Zhuo swallowed my money, and this time he has to spit it all out!"
In fact, Steve Cohen's name did not appear on the list of people who were shorted by YiKe a few years ago, but since he was so indignant and tolerant, he must have secretly participated in the short selling of YiKe.
In addition to these bigwigs who spoke out publicly, there were also industry leaders who directly called Fang Zhuo on media programs to inform him of their short-selling move on YiKe.
Ken Griffin founded Citadel Investments in 1990, and subsequently made it one of the most successful hedge funds in the world. In 2007, it went public on the New York Stock Exchange, becoming the first hedge fund management company in the United States to conduct an IPO. Ken Griffin also became one of the top richest people in the United States.
As of the latest disclosed information in 2016, Citadel's net assets under management were US$347 billion, the regulatory assets reported to the SEC were US$2429 billion, and the leverage reached 7 times.
It can be said that although the others are already big shots, Griffin is still the one who can be called a big shot most clearly in recent times, and he also has Fang Zhuo's personal number.
"YiKe's success is undoubtedly incredible and extremely dazzling, but what I want to say is that no business can be free from setbacks."
"To this day, I still believe that Mr. Fang has extremely good leadership skills and is one of the best business leaders in the world."
"However, we must also acknowledge that a person and a company always have boundaries."
"I don't think Yike should be subject to the current political restrictions, but it has already happened and we can't ignore the existence of this situation, so Castle chose to join."
Griffin explained Citadel's reasons on the TV show. Of course, he did not mention that Citadel had played both sides in the "market maker" business in the last YiKe incident, and was subsequently damaged by it.
He then went on to talk about the other person's personal appreciation and called a private number in the address book.
Since the restrictions on Yi Ke, Fang Zhuo has rarely appeared or spoken in public. This scene undoubtedly made the TV station and the audience watching the show extremely looking forward to it.
The call to the private number went through.
Griffin knew Fang Zhuo, but he met the head of Yike through an introduction by a friend in Washington. They were not particularly familiar with each other and were just nodding acquaintances.
When he made the call, he didn't have any extra explanation in the first sentence. He just said in a relaxed tone: "Hi, Mr. Fang, I've joined them. Citadel really can't stop talking about business."
There was no immediate response from the other end of the phone, and after a moment of silence that allowed everyone to think, Fang Zhuo's calm voice came over.
"Gotcha, I see ya."
With just this sentence, the phone was hung up.
It's a slang expression - OK, I get it.
But "gotcha" not only means "I got you", but also means "I see ya", and "I see you", which means "I see you/I noticed you/take care/goodbye".
--Okay, I know.
——I got you, take care.
Fang Zhuo's voice was heard at the show, and a "oh-oh" sound was heard. It was a pity that we didn't get to chat more.
However, Griffin held the phone in his hand, Fang's calm voice still ringing in his ears, but he suddenly felt a chill in his heart. Was the person on the other end this "gotcha" or that "gotcha"?
He managed his emotions, put away his phone, and completed the final part of the show.
Subsequently, Griffin again asked the company to review the relevant information of Yike and Bingxin one by one to confirm whether there were any unexpected circumstances this time. The final conclusion did not overturn the previous decision.
Knicks United Fund, Greenlight Capital, Pershing Square, Point72, Citadel Investments...
When these world-famous hedge funds showed up and when bigwigs like Chanos, Einhorn, Ackman, Griffin, and Steve Cohen made their positions clear, their real money investment quickly produced results.
YiKe's market value was further pushed down to a new low of US$2400 billion. At the same time, the short positions announced by Nasdaq also rebounded rapidly after "the wolf is coming again", setting a new record and reaching a high of US$186 billion.
In just half a month, Yike not only became the world's number one, but also widened the gap with Alibaba, consolidating its position by surpassing the second place by US$61 billion.
On the first day of September, Yike still held the 2400 billion US dollar line, but Alibaba's market value had risen to 2449 billion US dollars, officially surpassing the company's market value.
This trend also caused quite a stir.
September is the last month of the third quarter, but Yike mobile phone products were almost completely exhausted in late August, proving the serious impact brought about by the suspension of Bingxin production.
Although Bingxin must have worked at full capacity before and left chip inventory for Yike, Yike faces demand from two huge markets in Europe and China, and even if it manages shipments, it will be of no avail.
The financial market has suffered the largest short-selling in history, the mobile phone market is facing increasingly fierce competition due to shortages, and the company's stock price and market value have been surpassed by local competitors...
Even domestic media feel a lot of pressure when seeing this situation.
Because of the significance of Yi Ke and Bing Xin, the mainland's reports were more tactful and expressed a little confidence, but the Hong Kong side was much more straightforward when explaining the current predicament of the Yi Ke system.
"Yi Ke might suffer a sudden and spectacular death."
"The Q10 earnings report on October 31 is likely to determine the significant fluctuations in Yike's stock price."
"Although we hope it will be a positive signal, facts from all sides continue to release similar conclusions. Yike's third quarter performance was very poor."
“It is undoubtedly too much to ask Yike to maintain good performance under multiple burdens and complex geopolitical interference, but the prediction of a rapid decline is also a deliberate pressure exerted by some institutions in order to grab profits.”
"YiKe has opportunities. Once its potential in China is fully realized, it will be enough to support the current market value and stock price."
"Sadly, the market tends to succumb to the instigation of certain institutions."
"Yi Ke may really be seriously injured, but I believe it will gradually recover. I wish it and Mr. Fang good luck."
The tone of Hong Kong's "Economic Herald" is very regrettable. Yi Ke has become a situation where he has been overkilled and it is beyond human control to reverse.
Coincidentally, on September 9, news from Taiwanese reporters once again brought negative news to the Yike Group.
——Taiji has completed the risk trial production of the 10nm process and is expected to go into production at the end of the year and achieve small-scale mass production in the first quarter of next year.
No matter what situation Yike and Bingxin encounter, the development of the industry will always inevitably move forward.
Yike has not held its autumn press conference yet. Although its out-of-stock Mars 9 is still competitive this year, next year will belong to 10nm. Bingxin does not even have the production capacity for 16nm, let alone more advanced processes.
From November last year to September this year, Yike's market value reached a peak of US$11 billion, and at its lowest point, it fell below US$9 billion due to the news about Taiji Technology, reaching a new historical low of US$4200 billion, a drop of 2400%.
Russell, a pioneer of RC Fund, posted a video of opening champagne on the emerging TikTok short video platform and gave his final evaluation.
"No, why are we waiting for a spectacular death? Isn't the halving of the stock price spectacular enough?"
"Yi Ke is already dead. Now he just needs a formal funeral."
"Interestingly, the tombstone for this funeral needs to be filled in by Yike itself using its Q3 financial report."
"Hoho, come on!!"
On September 9, YiKe's short positions exceeded the unprecedented US$15 billion, setting a new global record. There is only half a month left until the end of the third quarter, and only one and a half months until the financial report is released.
The mainland media remained unusually silent, seemingly silently waiting for or witnessing the possible final straw for Yi Ke as predicted by foreign media.
On September 9, Fang Zhuo, who had arrived in Xi'an, suddenly received a call from Bing Xin. He immediately ignored the local meeting he was going to attend the next day and boarded a plane to Luzhou.