Extraordinary Genius

1166. 1166 Zhang Shitong’s decline

After a while, Kameido Masao came back with a smile. In fact, as long as he is interviewed, “Business Weekly” is very satisfied. Of course, it would be better if Feng Yu could accept an interview.

Although Feng Yu did not accept an interview, Kameido Masao said that he would sell it to Business Weekly, an exclusive news. This news made Business Weekly think of Enron, who was bankrupt soon.

The shareholders of Business Weekly, but also a lot of rich people, they know how much profit can be brought about by such a news.

So I made an appointment soon, and tomorrow their people will fly to San Francisco to give an exclusive interview with Kameido Masao. If it wasn’t for Kameido Masao that they had something to do today, they wanted to come today.

I knew that Nvidia’s business was solved, and Huang Jiansen didn’t stay much, and went to work. Corporation is on the rise and can’t be idle for a moment. In the early days of the development of the Corporation, a big advantage was established, so the future will be much easier, and the Corporation is preparing to introduce an acceleration processor.

The office left three people, Feng Yu, Kameido Masao and Ralph. Ralph drank three cups of tea. With Feng Yu for a long time, he also felt that this kind of entrance was bitter, but the green tea with good aftertaste is very good.

Kameido Masao is a Japanese, and I really like tea.

Feng Yu sipped a cup of tea, nodded with satisfaction, this tea… very thirsty!

Kameido Masao is actually anxious, but he can only bear the temper and accompany Feng Yu to drink tea.

Feng Yu put down the teacup and asked: “Kanda, WorldCom Corporation, do you know?”

“WorldCom Corporation? I know. United States’ second communication organization, second only to AT&T. At the peak of last year, WorldCom Corporation’s peak share price exceeded $180 billion. But now it has passed the network bubble, it seems that there are only seven About tens of billions of dollars. Boss, the company you said to be a fake account, it will not be a WorldCom Corporation?”

Kameido Masao said it was wrong, but shouldn’t it, WorldCom Corporation is a larger organization than Enron, or the world’s largest Internet service provider. If it is a false accounting scandal, the stock price is not the same as Enron. , fell to the bottom of the valley. Then if no one buys, bankruptcy is the only way.

“Yes, it is WorldCom Corporation. The development of WorldCom Corporation is actually very interesting. You can see through the WorldCom report that WorldCom is a rapidly expanding organization in the network bubble. How is Corporation developed? The merger is through mergers and acquisitions. The funds for mergers and acquisitions are not earned by them, but are financed by issuing stocks. That is to say, WorldCom uses the money of investors to expand…”

Every company in WorldCom’s mergers and acquisitions does not pay much cash. It is controlled by equity swaps, or it is exchanged through its own shareholding or issuance of new shares, so as to obtain sufficient control interest. Even the most of the cash they paid was raised through the issuance of new shares.

The advantage of this is that the manager’s operating pressure is extremely light, and blind expansion is carried out with low cost. This kind of behavior, in essence, is a kind of money-making behavior, which is difficult to bring benefits to the development of the company. But if the size of his merger is large enough to achieve a monopoly, then you can make a profit.

Under normal circumstances, the issuance of stocks is equivalent to watering the wine. The average investor will throw away the stock cash to avoid risks. However, WorldCom has always been “excellent in stockmarket”. There are a large number of banks in the market. Investors not only did not throw away the shares of WorldCom, but continued to come to the market, which further increased the share price of WorldCom.

The result is WorldCom’s company, in just a few years, from the billions dollar of the Corporation, to more than $18 billion in Corporation. Feng Yu remembers that in the past life, WorldCom Peak’s share price was close to two 100 billion dollars. However, because this Microsoft stock was thrown earlier by Feng Yu, Nasdaq did not reach the peak of past life, and also led to the market value of WorldCom, not as high as the previous life.

But the advantage is that although WorldCom’s share price has fallen, it has not fallen as fast as the previous life.

Although this network bubble is more serious, the original words of WorldCom CEO have made investors firm confidence.

Our goal is not to gain market share, or globalization, our goal is to become NO.1 in Wall Street stocks!

This is the sentence, let Shitong’s stock continue to have investors to support the market.

However, the turning point appeared at the end of last year.

At the end of last year, WorldCom Corporation wanted to acquire the sprint communication Corporation, sprint communication Corporation, which is the third largest communication organization in the country, and the amount of mergers and acquisitions, nearly 130 billion US dollars!

This is the highest M&A amount in history. Once successful, WorldCom will surpass AT&T to become the world’s largest communications company.

It is a pity that the merger case has been attacked by the anti-monopoly agencies of Europe and the United States. They believe that this will create a factual monopoly. Any organization that is suspected of monopoly, they want to force the split, let alone the monopoly that wants to merge.

After the abortion of the merger, WorldCom Corporation was seriously injured. As I said before, WorldCom has always maintained its share price through continuous mergers and acquisitions. If they succeed, then they will become the number one in the industry and naturally they will get a very high profit.

Can be merged, the drawbacks of those previous M&A investments are reflected. If you don’t buy, you can’t issue new shares, and you won’t be able to issue new shares.

Before the acquisition of WorldCom, there was a high debt, and a set of data could be reflected. More than 50 banks were loaned to WorldCom for more than 100 million US dollars. And WorldCom is in contact and continue to lend. They have discussed with some banks and plan to find 25 more banks with loans of more than $2.5 billion.

If there is no loan, they will not be able to operate. At this time, the debt ratio of Corporation has been seriously high. But those banks still have to lend to him, otherwise the previous loans will not be repaid.

At this time, in order to maintain the stock price and continue to attract investors, they have to take risks and use the “small skills” in accounting to inflate profits, thus creating the illusion that the Corporation is still profitable.

However, unlike WorldCom, WorldCom has a higher amount of false accounts, and a fraud is more expensive than Enron’s years. No way, WorldCom’s market value is much higher than Enron, and there are more expenses.

Feng Yu told Kameido Masao about this and took Ralph’s secret investigation from Ralph.

“Give, this is evidence.”

Kameido Masao looks incredibly at Feng Yu: “Boss, how do you think WorldCom may have financial fraud?”

Feng Yu pointed to the column of the financial audit: “You take a closer look, WorldCom’s auditing organization is Enron’s auditing organization!”

……