Chapter 440 Market Baptism

January 4, Mandarin Oriental Hotel at Time Warner Center.

Yu Hong hurriedly finished the company meeting in the afternoon and rushed here to understand the boss's spirit.

When she knocked on the door of the presidential suite, she unexpectedly found that Qi He, who was responsible for European business development, had arrived early, and before she sat down for two minutes, Pan Ben, who was responsible for both European and American business, also arrived in a dusty state.

"Pour your own tea."

"Oh, there are all kinds of wine in the refrigerator, such as whiskey and white wine. You can drink if you want."

Fang Zhuo put down the Wall Street Journal in his hand and smiled: "Qi He came from Italy and Pan Ben came from Germany. They have worked hard. Today we are just chatting casually. You should have a good rest tonight and we will have a meeting tomorrow."

Yu Hong asked directly: "So what are we going to talk about today?"

Fang Zhuo lit a cigarette casually, glanced at Xiao Yu again, crushed it in the ashtray, and smiled gently: "Just chatting casually. Qi He was the first batch to go to the United States to develop business from China and then transferred to Europe. Pan Ben came to Yike from IDG and did a lot of work. You two are now doing European business. Our Yike has just gone public. I am afraid that any fluctuations will make you think about it."

Yu Hong understood that today is to make a briefing.

Qi He also understood. He was also paying attention to the company's stock price in Europe, hoping that it would rise further.

Pan Ben was relatively stable when he heard this. After all, he was from IDG and knew that the stock price after listing was only one aspect of the reaction. For example, when Sina's stock price was at a low point, the book funds were higher than the market value. It was normal for the numbers to fluctuate within a certain range.

"This market is a high-growth market. Our business requires both speed and stability. We cannot lose our composure due to fluctuations."

Fang Zhuo mentioned a strategic attitude. Seeing that the three people listened carefully, he smiled and continued: "You three are usually in the market. President Yu has a more general view, but he is in the United States and may know some things vaguely."

"Goldman Sachs and other institutions have done a lot of work for the company's listing this time."

"If there is no institutional support, our issue price will be the lower limit of the inquiry range of US$19-23, that is, US$19, or the final issue price may be adjusted and lowered."

"US$19, the market value is about US$5.3 billion."

"If the number of roadshow subscriptions exceeds 5 times, the issue price can be taken as the upper limit of US$23, and the market value is US$6.4 billion, which is a difference of US$1.1 billion. Yuan."

"The support of the institutions eventually made this number continue to rise. Our No. 1 issue price is 25 US dollars, and the market value is 7 billion US dollars."

"53 to 70, the difference in the middle is almost the market value of 1 Sina."

Fang Zhuo said: "I don't really care whether the market value of Nasdaq is or not. The reason why we need the institutions to cooperate to raise the inquiry price of the roadshow is because there is a difference in the funds raised by our roadshow."

"In normal roadshows, it is difficult for us to raise 400 million US dollars. I personally estimate that 300 million US dollars is about the same."

"This roadshow, we actually raised 500 million US dollars."

"This is not a stock market number, but the actual operational funds of our company."

Without operation, the roadshow raised 300 million US dollars, and after operation, the number was 500 million US dollars, a difference of 200 million US dollars!

Just this price difference is enough to further widen the moat of music copyright, further expand market business, and further participate in industry competition.

What's more, it is far more than the price difference.

Yu Hong said nothing.

Qi He said excitedly: "Mr. Fang, then we can be more aggressive in the European market!"

Pan Ben had other concerns: "Mr. Fang, institutions want to make money."

Fang Zhuo nodded and answered: "Market expansion should be faster. So, although Yike's stock has risen a lot compared to the issue price, I guess there will still be fluctuations."

Pan Ben asked: "Have Goldman Sachs said hello to Mr. Fang? Washing the market, selling and so on."

Fang Zhuo shook his head: "They want to make money in the capital market, why would they say hello to me like this? The tacit cooperation between us ended when the listing was successful. I guess they will definitely not miss such an opportunity to make money."

What kind of money-making opportunity is this in the secondary market?

There is a good listed company that has a bottom line, and has used the media and even the institutions themselves to do a lot of propaganda. The leeks in the US stock market are one after another, which is a piece of cake for institutions.

If you want institutions not to make such money, it will cost them their lives.

Therefore, a period of market value fluctuation is not easy to avoid, but in the medium and long term, such fluctuations will eventually give way to the company's basic business and financial performance.

It's nothing to say. The current stock market fluctuations have little impact on company executives and shareholders such as Yu Hong and Pan Ben, because they have to wait for half a year before they can sell their shares, and the institutions have already left the market by then.

It doesn't matter to major shareholders like Fang Zhuo, because his lock-up period must comply with the "144 Regulations", which is up to 1 year and must meet certain conditions to prevent interest transfer.

Fang Zhuo chatted about the details of the roadshow that were not known to the outside world. For example, he found another third party to conduct a pricing assessment of the price-earnings ratio, and this number was different from that of Goldman Sachs.

That is, another company believes that Yike's reasonable market value is lower than that given by Goldman Sachs.

When everything that should be talked about was almost finished, Pan Ben and Qi He left, and Yu Hong stayed to communicate alone.

"Will the impact of stock price fluctuations be big?" Yu Hong asked a question that she hadn't asked before.

"For us, it's okay, but it may be bad for the heart?" Fang Zhuo said with a smile, "Unless you need funds to pledge equity, stock price fluctuations will affect the money you can get."

"Speaking of which, with Yike's listing, I finally don't have to find a Washington Mutual Bank like I did when I acquired Sina. Now that I really want to pledge equity, the liquidity will be much better."

Yu Hong asked again: "Then we can only sit back and watch this kind of fluctuation?"

"What else? Yike's listing will also have a much greater impact on related exchanges, and we have to act more in compliance." Fang Zhuo shrugged, "Besides, I don't really understand the operation of the secondary market."

Yu Hong frowned. Despite this, although the impact of short-term fluctuations will be attenuated in the medium and long term, she still feels a little unhappy in her heart.

"Don't worry about the market value. Time will make Yike return to a reasonable price. What we need to do is to continuously raise Yike's reasonable price through performance." Fang Zhuo encouraged, "The work you are doing is the most essential bargaining chip that affects the company's market value."

Yu Hong stared at her boss suspiciously and asked, "Really? You really don't have any other plans?"

"No, in fact, I am more thinking about domestic affairs." Fang Zhuo said affirmatively.

"Well, after all, it's just to spur me to work hard." Yu Hong stood up, "You said you don't understand the secondary market and capital operation, then I don't understand it even more. Indeed, all I can do is to manage the market business."

Fang Zhuo nodded repeatedly.

Yu Hong took two steps and suddenly turned back and said, "Smoke less, it's good for your health."

Fang Zhuo smiled, "Okay, Xiao Yu."

The marketing director left the suite with satisfaction.

Fang Zhuo put his mobile phone on the table, cut a cigar, flipped through the information in his hand, and fell into thought.

...

Regarding the fluctuation of Yike's stock price, Yike's president's prediction was not wrong.

If institutions want to make money, they have to create high and low prices.

Therefore, YIKE's stock price has been fluctuating since the 4th, breaking through $40 for a few consecutive days and falling below $30 again.

Shuffle, pull up, and sell.

Diving, rebound, and shake.

According to the stock price, YIKE's market value can rise from less than $8 billion to $10 billion in just a few days, and then fall in the opposite direction. This change of numbers is dizzying.

During this process, Fang Zhuo did not receive any notification from the institution. He also understood this very well, as this belonged to different departments of the institution.

On January 15, just half a month after YIKE went public, its stock price still did not stabilize. Fang Zhuo did not know why the same trick always worked in the stock market. It could only be attributed to the fact that the channels and media controlled by the institution had great power.

On this day, Nasdaq opened normally. After two rounds of baptism, YIKE's stock price was once again at the $28 price level for institutional replenishment.

However, just as YIKE's stock price was slowly rising, a major player suddenly appeared in the secondary market to dump the stock, and the stock price quickly dropped to around $26, and then the two parties began to compete at this price.

In the afternoon, YIKE's stock price fell below $26 and closed at $23.960 before the market closed.

That is, YIKE fell below the issue price for the first time after the company went public. According to today's trend, it is likely to fall to the initial IPO price of $22 or even below.

At 6 o'clock in the evening, Fang Zhuo, who was in a meeting at YIKE's New York headquarters, received a call from an old friend who wanted to discuss the maintenance of YIKE's market value.

Fang Zhuo agreed.

At 8 o'clock in the evening, he met several familiar allotropes.

However, he was still very surprised that people from IDG also came. They were the main force of the dumping. The news about Apple, YIKE's competitor, was released to IDG through him. They were not trapped in this wave, so what were they doing?

"Where is the good news now?"

"What can I do? Make up news for you?"

"You are stuck? What can I do? It's not my fault! I don't understand the stock market at all. I've been wondering about the ups and downs of our company's market value recently!"

"If you are stuck, then you are stuck. Didn't you make money before?"

"You can't just say that if you can't make more money, you will lose money."

"Even if it continues to fall tomorrow, isn't $22 your original cost price?"

"I think we have a common interest, which is to do a good job of Yike. If you have time to come to me, you might as well think of ways to help Yike, such as music copyrights."

On the evening of January 15, 2004, the president of Yike complained to several agency leaders in the conference room for half an hour. He finally agreed to release good news as soon as possible.

Anyway, the short-term stability of the stock price is what I want, and the company's market value is indeed a medium- and long-term goal.

...

A certain apartment in Chinatown.

Dongdongdong.

Dongdongdong.

Bang!

"Your name is Ji Longfen?"

"Mr. Fang wants to see you, let's go!"