Extraordinary Genius

After a while, Masahiro Tortoise returned with a smile. In fact, as long as he was interviewed, Business Weekly was satisfied. Of course, it would be better if Feng Yu could be interviewed.

Now even though Feng Yu did not receive an interview, Masahiro Tortoise said he wanted to sell it to Business Weekly, an exclusive breaking news that made Business Weekly immediately think of bankruptcy.

The shareholders of Business Weekly, but also a lot of wealthy people, know how profitable this news can be.

So they're going to fly to San Francisco tomorrow to interview Masahiro Tortoise. Had it not been for Masahiro Kajida, they would have wanted to come today.

Knowing that the matter of Eagle Weida was solved, Huang Jiansen didn't stay much, went busy again. The company is on the rise, you can't spare a moment. Building a cut-off advantage early in the company's development will be much easier in the future, and the company is ready to roll out the accelerator processor.

Only Feng Yu, Masahiro Tortoise and Ralph were left in the office, and Ralph made three cups of tea. After a long time with Feng Yu, he also found the entrance bitter, but the infinite taste of green tea is very good.

Masahiro Tortoise is an island country and enjoys tea very much.

After a sip of tea, Feng Yuzhu nodded satisfactorily. This tea... is quite thirst-quenching!

Masahiro Tortoise is actually a little anxious, but he can only bear to drink tea with Feng Yu.

Feng Yu dropped the teacup and asked, "Turtle fields, Shitong Company, you know? ”

“Shitong Corporation? You know, the second-largest telecom company in the United States, after ATT, had a peak share price of over $180 billion last year. But now that it's gone through the web bubble, it looks like it's only about $70 billion. Boss, the company you're talking about is not Shitong, right? ”

Masao Tortada felt wrong when he said it, but it shouldn't be. Shitong is a bigger company than Enron or the world's largest network service provider. If there is a fraudulent account scandal, then the share price will fall to the bottom like Enron. If no one buys it, then bankruptcy is the only way.

“That's right, Shitong. The development of Shitong is actually interesting. If you look at Shitong's reports, Shitong is a rapidly expanding company in a network bubble. How the company developed was through mergers and acquisitions. Mergers and acquisitions are financed not by their earnings, but by the issuance of stocks. In other words, Shitong uses investors' money to expand...”

Each of the companies that Shitong merged and acquired paid little cash and were held through equity swaps, either through their original shareholding swaps or through the issuance of new shares swaps, thus obtaining sufficient control. Even the vast majority of the cash they paid was raised through the issuance of new shares.

The advantage is that managers are under extremely low operating pressure to expand blindly at low cost. This behavior, in essence, is a money-making behavior that can hardly bring benefits to enterprise development. But if his mergers and acquisitions were large enough to achieve a monopoly, it would be profitable then.

Normally, an increase in stocks, which is equivalent to giving water to alcohol, is thrown away by the average investor to avoid risk. But Shitong has always “performed well” on the stock market, with a large number of bankers standing up. Instead of throwing away Shitong's stock, shareholders continued to come to the market and let Shitong's stock price blow up further.

The result is that Shitong, in just a few years, has gone from a billion dollars to more than 180 billion dollars. Feng Yu remembers that in his previous life, Shitong peaked at nearly $200 billion. However, because Microsoft stock was thrown earlier by Feng Yu, Nasdaq did not reach the peak of the previous life, which also led to the market value of Shitong, which was not as high as in previous life.

But the good news is that, while the stock price of Setong has fallen, it has not fallen as fast as it did in previous life.

Though the network bubble was quite severe this time, one of the original words of the CEO of Shitong gave the shareholders firm confidence.

Our goal is not to get market share, or globalization, our goal is to become NO.1 in Wall Street stock!

This is the sentence that keeps the stock owners of Shitong coming to the market.

But the turning point came at the end of last year.

At the end of last year, Shitong wanted to merge and acquire Sprint Communications, the third largest communications company in the United States, for nearly $130 billion!

This is the highest M&A amount ever, and once successful, Shitong will surpass ATT to become the world's largest telecommunications company.

Unfortunately, mergers and acquisitions have been targeted jointly by the European and US antimonopoly agencies, which, in their view, could lead to de facto monopolies. All companies suspected of monopolies want to be forced to split, let alone to merge and monopolize.

After this merger and acquisition abortion, Shitong Company's energy was badly damaged. As I said earlier, Shitong would have maintained its share price through constant mergers and acquisitions. If they succeed, then they become the number one in the industry and naturally make extremely high profits.

Mergers fail, and the shortcomings of previous merger and acquisition investments have been manifested. Without mergers and acquisitions, new shares cannot be issued, and without new shares, Shitong cannot survive.

At the time of the previous S&T mergers and acquisitions, there were high liabilities, and a set of data showed that there were more than 50 banks that lent more than $100 million to S&T. And Shitong is in touch, continue lending. They have consulted with some banks and intend to look again for 25 banks, with loans exceeding $2.5 billion.

Without loans, they would not be able to operate. By that time, the company's indebtedness rate was already significantly higher. But those banks had to lend him, otherwise those loans would not be repayable.

At this point, in order to maintain the stock price and continue to attract investors, they had to take risks by falsifying profits through accounting “tips”, thus creating the illusion that the company was still profitable.

Unlike Enron, however, the amount of false accounts of Enron is higher, and a falsification is higher than the amount of Enron for many years. I can't help it. The market value of Shitong is much higher than that of Ann, and there's a lot of expenditure.

After Feng Yu told Masao Torta about this, he took over the results of Ralph's covert investigation from Ralph.

“Here, this is the proof. ”

Masao Tortoise looked at Feng Yu incredibly: “Boss, what makes you think that Shitong might be making financial false? ”

Feng Yu lit the column of the company's financial audit: “Take a closer look, Shitong's auditing company is Enron's auditing company! ”

……