"PepsiCo will pay the price for this! And give you a satisfactory reward!"

"Please don't get excited, Mr. Black. The SEC has no intention of interfering with the normal operation of the market, but only a stable and active market is in the interest of all Americans."

Billmon and the others, who had been scolded by Carter, showed no signs of annoyance on their faces. Instead, they smiled politely to comfort Carter's mood.

As for the fact that the SEC has no intention of interfering with the normal operation of the market, just listen to it. Carter clearly remembers that the application for new stock issuance submitted by him has not been approved until now.

If it is a normal market operation, if the resolution of the HT board of directors is passed and the issuance of stocks is approved by the independent directors. For HT, whose credit rating and risk rating are both above the good line, there is almost no reason to fail.

It's just that after the total number of stocks is increased, the par value will fall back to a certain extent in the short term. It will not disturb the market at all, and it will not affect anything. However, such a normal application cannot be approved.

As for why he failed, Carter can really think of it with his butt.

Although HT issuance of new stocks, in a sense, its own vested interests are not obvious. Even in the period of value decline, its value will still drop. But if the false reputation is weakened, it will be exchanged for more development.

Funds, and the profit margin that will increase every year after these funds are spent.

During a short squeeze, when the value of the stock is much higher than the normal level, new stocks are issued. Carter is not worried at all that no one will buy it. After all, Pepsi has to pay off its debts, and it must buy it! In this way, he is likely to not lose money.

Even with a little so-called reduction in net worth, you can still reap the full development dividends of HT!

The abacus was making a snapping sound when suddenly someone smashed the abacus.

Carter had a hard time keeping calm:

“What will PepsiCo give?”

"You know, they were the first to instigate this incident. In addition, I am not just representing myself. You should know that Tiger, Quantum, Fidelity, and even State Street Bank and Boston First Bank"

"Needless to say, their interests are not deeply tied to yours. After all, they are just borrowing money. Let's take a look at the first few companies."

Directly exposing Carter's intention to expand, Billmon took a table from the attendant beside him:

"The actual outcome is Coca-Cola, you and your HT Corporation, Tiger Fund, Quantum Fund, Fidelity Magellan Fund, Fidelity Eckerlynn Fund, Fidelity. Let's all count them in Fidelity."

"Coca-Cola's current position is about 20 million shares, which includes almost all the HT stocks once held by Fidelity Investments and some of your personal shares. Tiger Fund, Quantum Fund, almost 1,400

Ten thousand shares, in addition to the stocks of other institutions, some of them are your original shares. The rest are basically in the hands of Pepsi, about 15 million shares, except for 2.86 million shares, which are owned by Pepsi.

remain"

"Pepsi borrowed a total of nearly 50 million shares at the beginning, based on an average interest rate of 30%. It has been a month now. The total number of shares payable is about 51.25 million shares. Even if we take all the shares they have now

All positions were cleared, and the deficit still reached 36 million shares."

"Under normal circumstances, the stocks held by Tiger Fund and Quantum Fund should not hold positions for too long. You and I know these two funds very well. In terms of their commonly used long and short strategies, such a large number of long positions

, it is not easy to find a suitable short hedge. As long as Pepsi can afford the price, the repurchase of these 20 million shares should not be a big problem."

"The first thing we want to know now is the shares held by Coca-Cola. Between you."

While handing the statistical sheet in his hand to Carter, Billmon's eyes roamed around Carter.

If Coca-Cola never sells its position and plans to hold it for a long time, then Pepsi will suffer a shortfall of tens of millions of shares! Such a large shortfall, even if all the stocks in the hands of retail investors in the market are eaten up at high prices,

Still can't fill this hole.

As a result, it is really a matter of how high HT's stock price will soar.

"So you are now paying attention to me, hoping that I will sell some stocks, or persuade Coca-Cola to clear some positions, so as to maintain the balance of supply and demand."

The data records on the statistical table are much more detailed than Billmon's dictation. Also attached is an application for new stock issuance, looking at the 20 million shares on the application.

Carter tapped his fingers on the table and threw the question back to the other party.

"As you can see, my new stock issuance time is scheduled in one and a half months. This is already taking care of the market, and I don't want to disrupt it. But before the new stock comes out and the supply side increases, HT's stock will definitely have a

There is a situation of price but no market. In such a situation, how much can we earn?”

"What can Pepsi do to compensate for this?!"

“Unknown benefits are always unknown”

While Billmon sighed, he spread his hands again.

Just when Carter thought this guy was trying to persuade him to settle for safety and give up as soon as possible, he heard him say again:

"Of course, this profit is already expected, and it is not excessive to include it as your loss. Including this application for new share issuance. How to put it! It is at this time that we decided to come to talk to you. From

When you apply, we can see what you think. That’s good.”

"Of course, we hope that this time can be earlier. As for the losses in the middle, Pepsi also submitted an application for the issuance of new shares. Take a look."

"My personal idea is a share exchange. During the share exchange, we will lower the stock price valuation of some PepsiCo as appropriate, or put a limit on the issuance price of these new shares."

"Use Pepsi's future earnings to cover your losses. As for the institutions, it's not that they can't earn, they just earn slightly less."

Issue new shares in advance and conduct share swap with PepsiCo

Carter didn't answer in a hurry, he just took out a cigarette, lit it and then quietly thought about the pros and cons of it.

It’s still the old rule, settle accounts first!

Tiger Fund and Quantum Fund, as Billmon said, Carter also knows very well. Neither Soros nor Julian will hold such a large number of HT stocks for a long time, and they will definitely sell them.

The cost of buying the stocks, which is almost 110 million US dollars, is currently lying in Pepsi's account. Once Pepsi officially admits defeat, it will start to buy back, even if it is only a very short-term increase.

It is not difficult for HT's stock price to exceed 9, and even the average cost of Pepsi's repurchase must be at least more than 9.4 US dollars. In other words, Pepsi would have to spend more than 131 million to buy these stocks.

The profit margin is only over 20 million

The profit rate is almost 19.6%. Considering the time cost, this profit rate is not unsatisfactory.

But the problem is, they could have made more!
Chapter completed!