In just a few days, several listed real estate and financial companies have suspended trading, and their stock prices have fallen too fast to stop.
Seeing this, Feng Yu was not very happy. It's not because he didn't short-sell the stocks of these companies, but Feng Yu didn't wait for the scene he wanted to see, that is, Fannie and Freddie Group came out to take over.
If Fannie and Freddie Group do not come out to take over, there will still be variables, which will have a great impact on Feng Yu's plan.
It seems that these companies that filed for bankruptcy protection are not big enough, their market value is not big enough, and their influence is not big enough. A top-ranked company must file for bankruptcy protection in order to prompt Fannie and Freddie to take over quickly.
As for this company, Feng Yu had already chosen it. It was New Century Financial Company, the second largest subprime loan company in the United States.
It's just that a lot of negative news about this company has been released, and the stock price has been falling, but it hasn't been suspended yet!
The influence of this company is too great to dare to suspend trading easily. And some people are also thinking of ways to use money to bail out the market.
Now there are some rumors emerging here, which are negative news about Feng Yu.
It was said that Fengyu Holding Group now had too much money to spend, and then Feng Yu fell in love with New Century Financial Company and wanted to acquire it.
So Feng Yu came up with these negative news and prepared to purchase the shares of New Century Financial Company at a low price in the stock market. This was clearly a hostile takeover!
Companies that are subject to hostile takeovers usually have to change their management and fire a large number of employees. Feng Yu is hurting everyone's interests.
But there is another paradox in this news, that is, many shares of New Century Financial Company are in the hands of those shareholders and are not circulated in the stock market.
Even if Fengyu Holdings could acquire all the shares circulating in the stock market, it would still be less than 50%, and it would not be able to form a de facto holding at all. In order to complete the hostile takeover, those shareholders must be willing to sell their stocks to Fengyu Holdings Group.
As a result, Fengyu Holdings Group is bound to increase the acquisition price, which is also a profit for shareholders. They should support it. Feng Yu has not harmed their interests.
It may be said that it is because the stock price has fallen now, but once it is truly proven that Fengyu Holdings is acquiring shares of New Century Company, the stock price may rise back at any time.
Who doesn't know that Fengyu Holding Group is Feng Yu's company, and what industry Feng Yu's company is in and what industry makes money. If he acquires New Century Financial Company, then this company will definitely make a lot of money.
At this time, Ralph also came out to explain the situation. Fengyu Holdings Group originally purchased some shares of New Century Financial Company, but quickly sold them because they believed that the company was about to go bankrupt and the shares would become useless. Paper!
As soon as this statement came out, it immediately caused an uproar. Especially the shareholders of New Century Financial Company, they immediately publicly rebutted, saying that Fengyu Holdings Group was suppressing their stocks and was clearly planning a hostile takeover. They firmly disagreed.
Moreover, their company will not go bankrupt. If investors continue to invest in their company's stocks, they will definitely receive generous returns.
But not many people believe this statement.
On one side is Fengyu Holdings Group, a world-famous large-scale comprehensive group company, and the company of Feng Yu, the god of investment. On the other side is New Century Financial Company, whose stock price continues to fall. From what they say, it feels like they are struggling to their death.
As a result, after such a commotion, the stock price of New Century Financial Company fell even faster, making those shareholders cry without tears.
Last year, there were many people who wanted to buy their shares, but none of them sold. Think this is a very good investment that will earn them more profits in the future.
But this year the trend suddenly changed, and they all knew that the company had suffered a lot of losses. Originally, even if they suffered losses, they could still get through it by issuing additional stocks or issuing more bonds.
But suddenly there was so much negative news in the media that they suddenly hit rock bottom.
They don't know when they offended Fengyu Holding Group, or Feng Yu, why should they target them? They are just a financial company with a market value of less than three billion US dollars, which is nothing compared to many subsidiaries of Fengyu Holdings.
After all this, their market value has dropped to only a few hundred million US dollars, and looking at the trend, it will continue to fall.
At this time, they have to find ways to apply for a temporary trading suspension, stop losses first, and then find ways to get some good news to bring the stock price back.
But they thought about it for a long time, but there was no good news. The company could be saved unless a large amount of capital was invested. But it would take billions of dollars, but who with billions of dollars would invest in a company like theirs.
Since those negative news reports came out, their real estate credit default rate has exceeded 50%!
This means that more than half of their money will not be recovered. No legal financial company can make 100% profit from lending. If more than half of the money cannot be recovered, it means that their capital chain is broken.
They have also seen it. At this time, they seem to have only one way, and that is to file for bankruptcy protection. Otherwise, if things get worse, the company's value will become even lower. Even if they are reluctant, there is no other way. Bankruptcy protection would also give them a chance to breathe a sigh of relief.
In this case, New Century Financial Company had to apply to the court for bankruptcy protection. At this time, their company's stock price had fallen to the bottom, with a market value of less than 100 million!
New Century Financial Company announced that it will sell most of its assets within one and a half months, including loans, securitized interests, etc., as well as their stores, business outlets, application centers, service platforms, etc., and at the same time Also includes computers and other equipment.
Of course, they will also lay off more than 3,500 employees in one fell swoop, but this does not include those brokers and staff who handle loan mortgages.
In other words, there are more than 3,500 insignificant staff members, which shows how serious the company's burden is. There are more than 55,000 brokers and staff who handle loan-related matters. These people are also considered assets of the company, and they are relatively high-quality assets.
In this way, the rights and interests of shareholders can be guaranteed, and the pot will be thrown away.
Who will take the blame? Not surprisingly, it is Fannie and Freddie Group.
When he saw the news, Feng Yu finally showed a relaxed smile. The plan was successful and he could finally rest assured.
… (To be continued.)