Global monopoly of technology

Yao Jianhong returned from North America and was formally promoted the next day. He was appointed as the global executive vice president of the Blue Coast Company and became the second person in the company's core management after Luo Sheng.

Originally, according to his treatment, his 0.2% of the Côte d'Azur company's equity would have to wait a few years before it could be converted into real shares, but because of his outstanding contribution, he was exceptionally made a real shareholder of the company in advance.

In addition, he also entered the board of directors of the Blue Coast Company and became a director. In the core management positions, he became the executive vice president, general manager of supply chain, global president of sales and service, director of semiconductor business department and other important positions. .

The Côte d’Azur company currently has no major new plans. The situation is initially opened. The first task is to consolidate the market and do a good job in sales. Earning money is the first task, and then the company’s debts are repaid, and the remaining profits will be invested in the new Research and development plan.

Especially in the semiconductor business sector, this requires tens of billions of budget investment. Without money, it is really impossible to play.

Regardless of the high profits of the Azure series of smartphones, if you want to prevent foreigners from getting stuck in the core technology and key supply chain in the future, you must embark on a path of technological independence. This road requires countless funds. Only by spreading the price forward can we find a road of independent research and development that is not controlled by others.

Such a development path requires high profits to maintain support, and it will not be achieved overnight.

In the following days, the Blue Coast company is operating as planned, and the R&D team has begun to enter the stage of demonstration and research and development of the next generation of products. The considerable sales have brought about the continuous return of funds, and financial enrichment will naturally not let the money lie in the account. Do not move, but invest in the research and development of new products.

...

The time comes to August, the headquarters of Bluestar Technology.

"Mr. Luo, the company's semi-annual report (second quarter report) has been audited." Zhang Bowen came to Luo Sheng's office and handed him a copy of the document for approval.

"How is the income? How much has the haze of the subprime mortgage crisis affected the company's performance?" Luo Sheng took the material and said, opening it for review.

Zhang Bowen replied: "Basically, the stock market is wailing, and the European stock market has plummeted across the board. However, it has not had much impact on the IT industry. After all, the relationship between the two is not big. The company's performance in the second quarter Good, even strong."

According to the results of the global business audit of Bluestar Technology Group, in the second quarter of 2007, the total revenue of the group company was 7.39 billion U.S. dollars (56.2 billion), a year-on-year increase of 199% and a month-on-month increase of 13.2%; net profit for the quarter was 18.17 Billion US dollars, an increase of 325.5% year-on-year and an increase of 11.27% month-on-month, in line with Wall Street analysts’ expectations.

The company's cash flow reserves are $15.7 billion.

"Not bad, let's post it this afternoon."

Luo Sheng quickly approved the title of the book and sealed it, closed the materials and handed it to Zhang Bowen, adding: "The North American subprime mortgage storm will not affect the IT industry, but if the subprime mortgage storm triggers a global system No one can stay out of the financial turmoil, and a large multinational company like ours will be no exception."

Zhang Bowen nodded: "I understand that the Operations Department has taken precautions against risks in this regard."

In fact, the method of prevention is very foolish, with cash reserves.

I don’t panic in my heart if I have surplus food.

Bluestar's second-quarter audited financial report was subsequently announced. On the second day, the company's stock rose sharply, and the after-hours trading market value reached a record high of 168.3 billion US dollars.

In the wailing environment of the financial industry, the trend of IT technology stocks has not been dragged down by the broader market, but has surprisingly risen against the trend. The market value of most IT giants has risen sharply, and the only exception is the IT industry. Microsoft, the top spot, is falling.

Among the world's top five listed IT companies, Microsoft continues to top the list with a total market value of US$269.4 billion, followed by Cisco's soaring to the second place with US$193.4 billion, and Bluestar Technology ranked third with US$168.3 billion.

Google followed closely, with a market value of US$151 billion.

Intel Corporation ranks fifth with a market value of $150.4 billion.

IBM has fallen out of the top five.

During this time, even Amazon's market value has doubled, reaching a market value of 33 billion U.S. dollars.

It can be said that IT technology stocks are in sharp contrast with the current stock market, but Luo Sheng is very clear that it will not be long before the entire world economy will collapse, and the IT industry will not be spared. Basically, Microsoft, Google, or Bluestar Technology is also helpless in the face of such a general trend, and its market value will be cut in half.

However, for Bluestar Technology, which holds more than US$10 billion in cash reserves, it is a good thing. Luo Sheng is thinking about buying back when the stock price drops to a trough period.

Only with cash in hand and enough cash to survive this difficult period, otherwise, even if it is not destroyed by this financial turmoil, people may be bargaining.

...

New York, heir to a hedge fund.

When Michael Barry came to the company to work on time, the employees sitting in the cubicles of the office area looked at him, and Michael’s assistants resisted the excitement and said: "BOSS, two mortgages under Bear Stearns Hedge funds declared bankruptcy, AHM filed for bankruptcy protection..."

"The prelude to the harvest has been opened, and we won after all... It seems that the economy is about to collapse, so let's start selling, for $4.2 billion." Michael said faintly and entered his office. I looked at the whiteboard hanging on the wall, with a string of negative numbers written on it:

-19.9%

The Churen Fund has so far recorded a loss of nearly one-fifth. Michael silently glanced at the negative numbers on the whiteboard and ignored them. The negative numbers written on the whiteboard are out of date.

Sitting in the desk, pulling out the keyboard and tapping on it for a while, the landline phone rang, Michael picked up and connected the phone, and a voice came from inside:

"I am Debord Winston of Goldman Sachs. I am evaluating your credit default swap. I want to confirm whether the value is reasonable."

"Wow, you mean you have already jumped down and bought the short position yourself? Great, I can finally evaluate my credit default swap. After all, this is good for Goldman Sachs." Michael said calmly, but he said When this was over, the corners of the mouth couldn't help but raised. Now everyone has to buy default swaps for insurance. The market has completely tilted towards him. This is the best time to cash out.

"I don't understand what you want to hear..." Debo Winston replied with a puzzled look.

"OK...I think you have said it." Michael smiled back, then ended the communication, and then showed a bright smile.

He is not in a hurry. Goldman Sachs can survive. Michael firmly believes that Goldman Sachs can definitely survive this crisis and is very moist. Because in this storm, Goldman Sachs shorted its own subprime mortgage assets and also drained other investment banks. Blood to fill their own shortfalls.

A moment later, Michael dialed another call to Reagan: "This is a descendant hedge fund. I want to sell default swaps."

"Which default swap?"

Michael: "Debt-collateralized bonds of AA-rated asset-backed securities."

"What is the nominal value?"

Michael: "The book is $300 million."

"Well, we will pay you 60 million dollars."

Michael: "No, no, I want 150 million dollars."

"We may not agree, it is difficult to reach a consensus."

Michael: "OK, $145 million."

"120 million dollars."

Michael: "140 million dollars."

"120 million dollars."

Michael: "$137 million."

"120 million dollars."

Michael: "$133 million, this is my final bottom line."

"Well, 133 million dollars."

The newsletter ended soon. The transaction was actually very complicated, but to put it simply, Michael bought a credit default swap of 15 million U.S. dollars, and the current nominal value is 300 million U.S. dollars. He is now selling it for 133 million U.S. dollars and got Real money is gone, and profits explode.

Michael continued to dial the contact information of the next bank.

"This is Churen Fund. We want to sell credit default swaps..."

"What is the nominal value?"

"208 million dollars."

...

In the following days, the successor hedge funds, including the Paulson hedge funds, began to trade credit default swaps one after another. This is also a heartbeat link, and their big shorts will leave the market. The transaction must be completed before the bank goes bankrupt, or they will explode in place with the bank.

Once the bank goes bankrupt, there is no money to lose, and Michael's investment will fall in vain.

But these big shorts are stubbornly squeezing time. Although some will be missed and lost, it is not harmful to lose one or two, because the contract is more than one or two points, and it is not a bet against a bank.

In the end, he left the game safely and made a lot of money.

...