Chapter 647 Compensation plan and sequelae

If all Carter's plans go ahead, it will be one month before the issuance of new shares.

Everyone tacitly chooses to hold positions and not sell stocks, or in other words, release a small amount from door to door. A little at a time, a little at a time, so that the supply of HT stocks in the market is always less than the demand.

Then this stock price increase may definitely become the biggest dark horse in 1983!

Gein, for retail investors, if you buy HT stocks, no matter how high the price is, there will be no shortage of takers! After all, Pepsi is still waiting for HT stocks to pay off its debt!

Do you think you should buy a stock that someone definitely knows the bottom line about?

Even in addition to retail investors, institutions have to rush to buy and participate in the big operation to harvest PepsiCo's wool. And PepsiCo itself is also anxious! They may even be more anxious than ordinary investors!

Because of interest!

The longer it takes, the higher the interest Pepsi will have to repay!

Not only do you have to compete with major financial institutions and retail investors for a few shares, you also have to face increasing interest rates.

If controlled properly, HT's stock can keep supply smaller than demand for at least several months. In this case, it's no wonder that the stock price is not so high!

But if you accept the mediation of the SEC and issue new shares in advance, this means that a large amount of supply will suddenly increase in the market. The original imbalance between supply and demand, resulting in a crazy rise in stock prices, will be less likely to occur, which means that Tiger,

Quantum and other financial institutions that have given themselves a "platform" may make less profits.

From an objective point of view, the reduction in profit margins of these financial institutions has indeed brought some stability to the market. After all, the sooner the serious imbalance between supply and demand is ended, the smaller the fluctuations will be for the market!

As a compensation plan, new shares will be exchanged for Pepsi shares.

On the basis of limiting the issuance price of PepsiCo's new shares, it is equivalent to giving itself more PepsiCo equity, which is a kind of compensation.

Is this compensation plan good?

Carter has to admit, it smells really good!

Today's Pepsi is not at all the so-called "counterfeit" that once only had a 4% share in the beverage market. With the help of Pepsi's challenge, Pepsi's beverage market share in the United States has already exceeded 16%.

And Coca-Cola only has 20%

Coca-Cola, with a 20% market share, has an annual profit of less than 500 million. PepsiCo has a profit of at least 400 million!

After adding 20 million shares, the total share capital of HT will be about 80 million shares, and almost a quarter of the shares will be given to PepsiCo.

If you don't look at the market value, just look at the actual value. These two million shares are roughly equivalent to a quarter of HT's future income rights. At present, the annual income is about more than 25 million. Exchange it to Pepsi.

It is almost clear that the price of Pepsi will be suppressed in order to feed itself and in exchange for backstabbing financial institutions. If these 20 million shares are issued at an issue price of five US dollars, then the theoretical value is US$100 million.

If you give shares to PepsiCo, you can at least get more than 3% of the equity of PepsiCo Group.

In fact, it is not impossible to talk about changing it to about 4%.

After all, Pepsi's current profit margin is incomparable to that of HT. Even if it is a 4% stake, in terms of income, it is only about 16 million, which is completely less than the part it gave up.

But influence, HT and Pepsi are not on the same level. Especially when Carter knows very well that HT's good days are coming to an end soon.

It’s 1983!

Although HT's gross profit margin can be controlled at a high level, cost reduction will inevitably lead to a smaller product chain. As market consumption gradually recovers, it is inevitable that HT's stable customers will decrease.

When demand decreases, profits will inevitably decrease. And on Pepsi's side

"I believe they will understand, right? Moreover, even if you issue new shares in advance, the value you bring to them is already very high! I don't mind you confessing to them at all. The reason why you did this is all because of the SEC

Pressure! They’ll understand!”

As if he saw Carter's moved expression, Billmon continued to smile and increase his chips.

And this time.

Carter couldn't help but admire the other party's thoughtfulness: he had found the purpose of transferring conflicts for himself!

Indeed, facing the pressure from the SEC’s top brother, even Morgan and Goldman Sachs dare not say that the SEC is nothing?!

They have spoken, asking everyone to hold back. It seems that there is really no way out.

And when facing themselves, they uncharacteristically spent money to feed themselves. As the center of the incident, the KOLs who connect these organizations, as long as they deal with themselves, it will be difficult for the rest of the people to cause trouble, even if they make trouble.

It seems that the other party has thought through all the situations.

"Pepsi, you should have communicated well, right?"

As for where the best people are, it’s hard to say in other places, but the SEC in the United States is definitely a gathering place that’s on the list!

In such a capitalist country, if the SEC, which represents public power, wants to stabilize the market, it must mediate among various types of capital. How can it survive in such a hellish place without two brushes?

Since the other party has figured out a way out for him, and there is not much loss to his own interests, Carter can no longer continue the fight.

"Of course! Twenty million HT shares were exchanged for equity. Counting what they currently hold, there are already more than 35 million shares. This does not require any additional cost."

"There are more than 15 million shares left. As long as the supply is there, it won't cost much to recover them from Tiger Fund and Quantum Fund. At most, if you pay about 30 million more, this matter can basically be solved.

The matter has landed smoothly!"

"It doesn't matter, I might as well go there early. To be honest, Yale has been back to school for a long time, so it's time for me to go back!"

Looking at Billmont, who borrowed the donkey to get off the slope, Carter also relaxed.

Thinking about it from another angle, on the eve of 1983 when the market was about to recover, it was really not worthwhile to focus all the energy on fighting with PepsiCo.

"I'll ask them to talk to them tomorrow, and then you guys can come forward. It should be better this way!"

"Hahaha, thank you very much Mr. Black!"

"In order to make America great again and stabilize the market, it is our duty to make America great again."

After shouting a few meaningless slogans and ending the conversation, Carter immediately approached Jim and Julian.

"There is no problem on my side. Within a week or two, I achieved a rate of return of nearly 20%. This is already very impressive! I am very satisfied, that is, Soros."

After listening to Carter's story, Julian took the lead in nodding, indicating that the Tiger Fund he represented recognized the plan and was willing to cooperate with Carter to complete the finishing work.

only

Compared with the familiar Julian Robertson, the head of an organization who was driven by profits but also had a lot of favors, Soros is not that easy to say.

If Soros knew, he could have made more, but because of this, his profits were reduced.

"I'll go and communicate with Soros, but I'm not sure how much weight I still have in his heart. Besides, in any case, based on my understanding of Soros, after this incident is over,"

"There must be a grudge! It's impossible for him to have no objection to this."
Chapter completed!