Sunset and sunrise, for most people, it is just an ordinary day, but for Apple and its investors, it is another cruel trading day.

As yesterday, pre-market news slandered Apple in full. From yesterday's closing to today's trading today, Apple did not issue any more announcements, nor did it give investors an explanation about the stock price collapse. The media seized this point and said that Apple had completely given up resistance today.

In fact, whether Apple responds or does not respond, the result is the same. It does not respond. The media said that they have given up resistance. It responds. The media will say that they are helpless in the car.

In the pre-market news, a TV station's financial program said that according to rumors, Jobs had proposed to the board of directors to resign. Apple is now discussing the election of a new CEO, but no one seems to be interested in this position.

Before the opening, some financial experts predicted that Apple's stock price will fall at least 5% today, or even higher.

If there are any major negative news today, Apple's stock price will probably fall by more than 10%.

When the US stock market was about to open, Louis Martin, a senior VP of Sequoia Capital, got off the plane, hurriedly passed, took a special car sent by Sequoia China Branch, and went straight to Muye Technology to meet Li Mu.

Although Louis Martin flew all the way, fortunately it was a private plane, so the flight of more than ten hours was not tired at all, but gave him an excellent rest and relaxation experience. So he was on the way to Makino Technology and was full of energy.

Originally, Louis Martin was embarrassed to go to Li Mu to talk about things after landing at night, but Li Mu insisted that he would go to Muye Technology to meet immediately, so he could only go to meet Li Mu in the night without stopping.

Li Mu met Louis Martin, who came from the United States in his office. The two had an intersection when Makino Technology raised its last round of financing, but that was mainly aimed at Makino Technology's financing business.

Louis Martin is not only Sequoia's advanced VP, but also has a rich experience in the industry. He has been working in the securities industry and the IPO field in the early years, so he has a very in-depth understanding of the US stock market. Generally speaking, companies invested by Sequoia will eventually go public in the United States, and Louis Martin is the leader of them.

It can be said that Louis Martin is the one who understands the US stock market the most in the entire Sequoia system. In just one sentence, Sequoia sent such a trumpet to Yanjing from thousands of miles away. From this, we can also see how much Sequoia attaches importance to Muye Technology.

As soon as Louis Martin saw Li Mu, he immediately stepped forward to shake hands with Li Mu, and said to Li Mu in a relatively fluent Chinese: "Hello, Mr. Li, we are meeting again!"

Li Mu smiled slightly, shook hands with him, and said, "Thank you for your hard work, Louis, I can't rest for a moment when I flew over so far."

Louis Martin smiled and said, "Mr. Li, I came here to take our chairman's private plane this time. To be honest, it's much more comfortable than a five-star hotel."

"That's good." Li Mu nodded, and said to Li Ziwei with his palms, "This is my personal assistant Li Ziwei. You can leave a contact information to facilitate future information exchange."

Louis Martin hurriedly shook hands with Li Ziwei and said, "Hello Miss Li, I'm very happy to know you."

Li Ziwei also hurriedly shook hands with him and said hello, and then the two exchanged business cards.

Li Mu said to Louis Martin: "Louis, let's sit down and chat. You want to drink something, let Ziwei ask someone to prepare it for you."

Louis Martin said to Li Ziwei: "Miss Li, please give me a cup of coffee."

"Okay." Li Ziwei nodded and asked Li Mu again: "Mr. Li, where are you?"

Li Mu said: "Come on a bottle of Coke and replenish some sugar. I've been too tired these days."

After taking the seat in the reception area, Li Mu opened the way to Louis Martin and said: "Louis, I'm looking for you so far away. Actually, it's mainly to ask a question: How can I acquire most of Apple's equity, and then delist Apple from Nasdaq and achieve privatization?"

Louis Martin guessed that Li Mu was looking for him for this purpose. He hesitated for a moment and said, "Mr. Li, I want to ask you a presumptuous question, do you want to acquire Apple with full capital?"

Li Mu nodded: "That's right, I want every equity in Apple, every product line and related patent ownership, and even their team."

Louis Martin said: "Mr. Li, judging from Apple's current plunge trend, it is not impossible for the market value to fall below 3 billion US dollars. By that time, from investors to individual shareholders, the holding capital will go crazy. Even if these investors only buy 100 Apple shares, they are just to make money. However, the plunging stock price and market value will make them lose all their money, and it is very difficult to stop the loss. In this case, you only need to send Apple a written offer document, set an acquisition market value for Apple, and then let Apple's management and board of directors consider it."

"It's that simple?"

Louis Martin smiled and said, "This is the first level, because equity does not represent voting rights. If you want to acquire most of Apple's shares, you must first ensure that most of Apple's voting rights tend to agree to your acquisition. If these people with voting rights agree, then the shareholders behind it will have no meaning even if they disagree."

Li Mu asked again: "Where are the circulating stocks on the market?"

"Don't worry, on the road to privatization of large enterprises, small shareholders and retail investors have no say. As long as you offer to vote through Apple's management, privatization will be easy."

Speaking of this, Louis Martin added: "However, since it is privatization, basically most of them have to give a certain premium, some are 40-50%, and some are higher. With Apple's current situation, we cannot immediately make a number of premiums. We have to use in-depth investigation and evaluation to understand their operating conditions and the possibility of future recovery, and on the other hand, we also need to understand the current psychological state of their shareholders;

If most shareholders are eager to jump out of this fire pit, then privatization acquisition will be much easier. As long as they are given a certain premium, they will dump Apple's shares like they would get rid of hot potatoes. But if they are still optimistic about Apple's future when Apple's stock price plummets, then privatization acquisition will be relatively not so easy. Perhaps even if they give a 100% premium, they may not be able to succeed."

Li Mu nodded slightly and said, "The US stock market is opening. Let's see what Apple's opening price is today."

As soon as Li Mu finished speaking, Li Ziwei walked over with her laptop in her arms, retrieved the US stock trading software on it, and placed the computer in front of Li Mu.

Louis Martin couldn't see the computer screen and said, "I read some pre-market news on the way here. Overall, today's capital market is very unoptimistic about Apple's future. I think the stock price today will fall by at least 8 points."

Li Mu looked at the data on the screen and said in surprise: "It seems that your estimate is not wrong. Apple fell 7 points at the opening, from $5.47 to $5.08. It should be a foregone conclusion to fall below $5.08 today."

Louis Martin nodded and said, "Apple's pre-market news today has new negative news. The large number of returned ipods will force Apple to spit out the profits that have already been eaten. There are also a large number of users protesting, requiring Apple to provide returns or subsidies. At that time, the return and inventory backlog of ipods alone will cause Apple's entire supply chain to collapse. In addition to those users who are constantly protesting, Apple will be really hard to withstand this time."

Li Mu asked Louis Martin: "Do you know a lot about Apple? Do you know what their current inventory of ipod3 is?"

Louis Martin said: "Normal, for highly competitive electronic products, the inventory digestion cycle is at least 5-60 days. If a mobile phone brand sells 10 million units annually and sells 830,000 units monthly, then their inventory under normal circumstances should be around 1.5-1.6 million units."

Speaking of this, Louis Martin said: "But the sales of Apple IPODs were still very good before, so their inventory digestion cycle should be very short. I estimate that it will only last 30 days at most. Take five million units a year as an example. The inventory should be about one month's sales, about 400,000 units. In addition to the recent returns from users, it is estimated that it can reach 500,000 units."

Li Mu nodded and said, "If Apple's ipod inventory is 500,000 units and its current sales are greatly reduced, Apple will definitely not continue to maintain its previous production. It is very likely to reduce most of its production capacity, and then consume inventory through promotions and price reductions."

"Absolutely." Louis Martin shrugged and said: "At present, there is no other way to go except for a significant price reduction of ipod3. However, if Apple reduces prices significantly, the IPOD business line will have no money to make. So once Apple is preparing to cut prices significantly, it basically indicates that IPOD will stop production soon, because they cannot continue to make OEM manufacturers lose money, and OEM manufacturers also need enough orders to survive. If Apple reduces production or stops production, the IPOD production line may be stopped, and by that time, the IPOD will die completely."

Li Mu smiled and said, "If the inventory of 500,000 units is significantly reduced and liquidated, Apple may not be able to recover a penny of profits, and even pay it to dealers and OEMs, right?"

"That's right." Louis Martin nodded and said, "But Apple was very strong with dealers and OEMs before. Dealers paid the goods first and then picked up the goods, and OEMs delivered the goods first and settled the goods on a cycle. So if Apple is a scoundrel, it can first owe the dealer unsettled the goods, and then clear the inventory through its own apple-store, intercept the cash exchanged for the clear inventory, and continue to owe to OEMs. In this way, hundreds of thousands of units of inventory can even exchange Apple for hundreds of millions of dollars in cash flow."

After a pause, Louis Martin added: "But this will also bring Apple a debt of hundreds of millions of dollars. If Apple has any way to break the deadlock, it can use this money to help the emergency first. But if not, it doesn't make much sense to intercept the money. It depends on whether Apple has any secret weapons at hand."

Li Mu was a little shocked.

In contrast, I am far from professionals like Louis Martin. I only think about Apple's stock price plummeting, its market value plummeting, its profit plummeting, and all its businesses were hit hard. But I didn't expect that Apple could also use inventory as a starting, bearing, turning and closing. Although it broke up the walls of dealers and OEMs to make up for it, it could at least take out over 100 million US dollars of cash. This is what the saying goes, a lean camel is bigger than a horse...

Apple must still have a lot of cash flow at the moment. After all, what is affected is the stock price and current and future profits. Li Mu cannot reduce the liquid cash on Apple's account. In addition, the inventory may convert more than 100 million US dollars of cash, which is indeed a considerable amount. If Apple takes so much money and is forced to make a new thing, it may even make it break through in adversity. If that is the case, it would be really fucking!

Immediately, Li Mu asked Louis Martin: "If I want to acquire Apple as soon as possible, what good will I do?"
Chapter completed!