The most important thing in stock trading is how many chips you can bring into the market.
For people like Xu Yiyang who know the direction of the market, he is like a fisherman who knows where the fish schools will appear. If he wants to obtain the maximum benefit, he must build a big enough net before the fish schools appear.
Otherwise, even if you find tens of millions of fish, it will be in vain if the net is too small and you can only catch a few.
Looking at it this way, four million dollars was really too little in the final carnival stage before the U.S. stock market crashed.
Forty million dollars is barely enough;
It takes more than $400 million to really make a killing.
However, Xu Yiyang only has four million U.S. dollars in hand now, and the remaining RMB cannot be brought into the U.S. stock market, and it is quite troublesome to convert RMB into U.S. dollars.
Just when Xu Yiyang didn't know where to get enough chips, he suddenly thought of someone.
Li Zekai.
The second son of the Li family has a lot of money in his hands. It would be great if he could recycle some money and invest it in the US stock market to catch the Nvidia market.
However, I can’t sell Tengxun shares to him for stock trading, right
Wouldn’t that be a prodigal
Thinking of this, Xu Yiyang was suddenly inspired. It happened that the second young master of the Li family wanted to invite him to dinner, so he had a plan in mind.
…
After class in the afternoon, Xu Yiyang did not go to the cafeteria to eat with everyone, but went straight out of the school gate.
Li Zekai's Rolls-Royce motorcade arrived at the port gate ahead of him.
Xu Yiyang sat in the back seat of his Rolls-Royce, and Li Zekai smiled and said: "Mr. Xu, today I will show you the best Hong Kong-style restaurant in the world. You will definitely not find such an authentic one in the mainland or abroad."
Xu Yiyang nodded and said with a smile: "Thank you Mr. Li for your hospitality."
In a luxurious Hong Kong-style restaurant, Xu Yiyang and Li Zekai sat in front of a floor-to-ceiling window facing Victoria Harbor.
In the huge box, there were only two people doing it facing each other.
What is in front of you is Hong Kong’s most popular and top-notch seafood ingredients.
All you can see are rare abalone, shark fin, fish maw, bird's nest, yellow lip fish, grouper and other extremely expensive things.
Li Zekai did not talk about business at the beginning, but started to explain, telling Xu Yiyang the origin of various ingredients and their status in Hong Kong's catering industry.
Xu Yiyang listened nonchalantly, waiting in his heart for when he would get to the point.
The current situation is like this. Li Zekai has a lock set in his pocket, waiting to put Xu Yiyang in it, and Xu Yiyang has a shovel in his pocket, waiting to take Li Zekai into the pit.
Overall, Xu Yiyang has the advantage. After all, he belongs to the hexagram where the enemy is overt and we are in the dark.
After finishing the meal, Li Zekai wiped his mouth and finally got to the point.
He smiled and said: "Mr. Xu has the foresight to invest in Tengxun at a young age and can also help Tengxun turn losses into profits. I really admire this ability."
Xu Yiyang knew that the real thing was coming.
So he laughed and said: "Mr. Li, to tell you the truth, investing in Tengxun and helping Tengxun make money are all out of a playful heart."
Li Zekai asked curiously: "How do you say this?"
Xu Yiyang said: "You see, I am a Tengxun user. I often use Tengxun to chat with friends, or add some strange netizens to chat. I think this software is very interesting, and there will definitely be more and more users in the future. people liked the software, so I became interested in investing in it.”
Saying that, Xu Yiyang added: "As for the mobile QQ business, it is mainly because I feel that I have this need. I want to chat with netizens when I am not in front of the computer, but I cannot solve the problem of carrying the computer with me to surf the Internet. So I thought about mobile phones. How great would it be if I could chat with QQ friends through text messages? It happens that an uncle of mine is a senior executive of China Overseas Telecom, so I talked about this business with him and Boss Ma, and everyone thought it was useful. It had to be done, so I started doing it.”
Li Zekai nodded and said with a smile: "It seems that playing is also a major motivation for making money."
After a slight pause, Li Zekai added: "Actually, I personally predict that Tengxun will have great market potential in the future. Coupled with the current Internet boom, you see, the market value of these Internet companies that cannot make money is terrifyingly high, like Internet companies that can make money like Tencent will have a higher market value once they go public."
Xu Yiyang agreed: "It makes sense, I think so too."
Li Zekai continued: "So, now is the stage of rapid development of Tencent. Not only does it need a large amount of capital injection, but it also needs a stronger capital relationship to ensure that Tencent can be successfully listed in Hong Kong in the future."
"And new listed companies need the endorsement of a powerful old listed company. By then, my Yingke Digital has integrated Hong Kong Telecom, with a market value of at least tens of billions of dollars. If it endorses Tengxun, it will make Tengxun more popular. Capital loves it!"
Xu Yiyang said: "Master Li is right."
Li Zekai continued at this time: "So, I hope to successfully invest in Tengxun. I, you, and Mr. Ma, the three of us will each perform our duties and work together to create a future!"
Xu Yiyang asked: "Mr. Li, how much valuation are you willing to give for financing?"
Li Zekai said: "Two billion yuan, or the equivalent in US dollars."
Xu Yiyang said: "That's more than 240 million US dollars, right."
"Yes." Li Zekai nodded and said: "My ideal financing ratio is to hold 20% to 30% of Tengxun's shares. I heard that 15% of your shares are locked, so now the shareholdings of you and Mr. Ma's team The ratio is 40:45, which translates to 47:53. If the financing ratio is 20%, then the actual dilution points for you are about 9.4% for Mr. Xu and 10.6% for Mr. Ma’s team. For both of you, the diluted points are The points are not too many.”
Xu Yiyang smiled slightly and said: "Sacrificing a few shares is nothing, but to be honest, I think the valuation of more than 240 million US dollars is too little."
Li Zekai said in surprise: "Two hundred and forty million US dollars is already very high. NetEase will soon be listed on Nasdaq, but judging from their proposed issuance price, the market value after listing is estimated to be only around US$600 million."
Xu Yiyang said seriously: "Master Li just said that many Internet companies are losing money. I just saw NetEase's financial report last year a few days ago. The annual revenue was only 1.88 million US dollars, which is 156 million yuan. As for the net profit, there was no net profit at all, but a loss of US$6.27 million, equivalent to more than 50 million yuan."
Saying that, Xu Yiyang added: "It is precisely because of losses that NetEase has to go public now, even if the valuation is lower than expected. If we don't go public and raise some money from the secondary market, the company will be doomed if it continues to lose money like this."
At this point, Xu Yiyang glanced at Li Zekai and said with a smile: "This kind of operation is called a bloody listing in my eyes. The performance and development potential are far worse than Tengxun."
To use a more vivid metaphor to describe a bleeding IPO, a company can be compared to a pig farm, and the company's shares are the pigs raised by the pig farm itself;
Suppose this company raises 10,000 pigs, but the market price of pork is very poor and only costs 5 yuan per catty. Even if he knows that if he persists until next year, the price of pork will rise to 50 yuan per catty, he does not have any. We have no money and can no longer afford feed. If we don’t sell a batch of pigs, once the feed is not supplied, ten thousand pigs will die;
At this time, the primary capital market, that is, investors and investment institutions are not optimistic about the pork market, so they are unwilling to invest in pig farms, making pig farm owners even worse;
In order to survive, the owner of the pig farm can only select 1,500 to 2,000 pigs from the 10,000 pigs and put them on the secondary market at the current price of five yuan per pound or even lower. Sell it to consumers and get some of the money back, so that the company's remaining 8,000 to 8,500 pigs can thrive and persist until the market picks up.
Once the market picks up and the price of pork returns to more than ten or twenty yuan, the remaining 8,000 to 8,500 pigs can still bring in considerable profits.
This is equivalent to the company taking out 15 to 20% of its shares, conducting an IPO, and then converting the shares into issued shares at a very low price, in exchange for funds to continue to maintain the company's operations.
If you don't bleed, you will die. There is no other way.
Li Zekai was slightly surprised.
Unexpectedly, Xu Yiyang is very familiar with the current situation of the capital market at such a young age.
Even NetEase’s financial report data can be memorized!
It seems that he has really done in-depth research on the Internet and is not a fool.
However, he didn't want Xu Yiyang to have the mentality that Tengxun was better than other companies.
Because in this way, it will inevitably increase the cost of getting on the bus.
So, he smiled and said: "Mr. Xu, NetEase is not actually a bloody IPO. The valuation they got from their IPO is already very good in my opinion, and their business scope is larger than that of Tengxun, including portals and mailboxes. There are more users than Tencent, so it is normal for the valuation to be higher than Tencent, so I gave Tencent a valuation of US$240 million, which is actually quite reasonable."
Xu Yiyang shook his head and said: "Tengxun's mobile QQ business's net profit in January was just over 10 million; in February it is expected to be more than 15 million; in March it is not a problem to exceed 30 million; for the whole year, I expect at least With more than 300 million yuan, how clear is this monetization method? Can we still find a second player in the Chinese Internet market?"
"Look at NetEase again. If we can't find a stable and profitable business, this company will become obsolete. Therefore, compared to NetEase, Tencent is not bad at all. I even think it is a head above."
Speaking of this, Xu Yiyang said again: "Well, Mr. Li, we can not talk about financing in a hurry. You give Tengxun half a year. By July and August this year, you will see how much profit Tengxun can achieve. That By then, you should have a clearer understanding of Tencent’s valuation.”
Li Zekai had a headache.
Xu Yiyang didn't need to explain the value of Tengxun. He himself had already seen some clues through Tengxun's current profitability. Therefore, he also knew that Tengxun had great potential in the future.
However, he couldn't say this himself, as once he said it, Xu Yiyang's psychological value would be raised again.
Moreover, Xu Yiyang made it clear that he was unwilling to sell, or in other words, he made it clear that he was not interested in the valuation of US$240 million.
However, the valuation of US$240 million is already a bit high. It stands to reason that when investing in a company, one must continue to observe its revenue performance for at least one year in order to give a more reasonable and clear valuation.
But the problem is that Tengxun's current development potential is too great. Everyone can see that this company will skyrocket. If you still want to use a conservative valuation at this time, they will ignore you at all.
If a company is short of money, investors will naturally take this opportunity to lower the price as hard as they can. If something is worth 10,000 yuan, they will be tempted to sell it for 1,000 yuan. Do you want it
However, the reverse is also true.
If a company is not short of money, investors will chase each other and beg for investment. In this case, if something is worth ten thousand, they will be tempted to give it fifty thousand;
This is the situation now for Tengxun. One of its businesses has driven up Telecom's stock price by eight points in one day, which shows the development potential of this company.
Moreover, it has started to make money now, and it has made a lot of money from the beginning, and it will naturally make more and more money in the future.
The relationship with China Telecom is very good. Its own users are growing rapidly, and China Telecom's mobile phone users are also growing rapidly. The inevitable result of the joint growth of both sides is that both sides will usher in a period of rapid growth, with unlimited future.
Therefore, in Li Zekai's view, at this time, even if the premium is higher, you must get on the bus as soon as possible, otherwise you may not be able to get on after half a year.
But the only question now is, what is Xu Yiyang's appetite
Thinking of this, he asked Xu Yiyang: "Mr. Xu, if we raise financing, what valuation would you be satisfied with?"
Xu Yiyang smiled calmly and said: "If you ask me, it will be at least 500 million US dollars!"
(End of chapter)