Recast youth

Chapter 1708: Money is unreliable

So Scherr came here to correct his attitude this time, and proactively suggested that Ye Feng adjust the listing price of Lanshan Company from US$40 per share to US$45 per share. You must know that the listing price of Lanshan Company is very high for Goldman Sachs. The lower the better, not only does it mean it is easier to sell, but it also means that Goldman Sachs can take the opportunity to buy Lanshan's stock as an investment.

Scherr thought of the man who used to be a high-spirited man at Goldman Sachs, and then asked Ye Feng: "Three days ago, Maple Leaf Group acquired Hilton Hotel Group. This is the largest transaction in the history of the hotel industry. Do you want to engage in hotel business?" industry, or are you very optimistic about the hotel industry in the next few years?”

"What do you think?"

Ye Feng did not answer in a hurry, but asked back first. To be honest, he didn't have much confidence in whether the acquisition of Hilton Hotel Group was good or bad.

At best, you have a world-class five-star hotel in your hand, which is very respectable.

That's all.

Scherr's inquiry made Ye Feng want to see the third party's views on the Hilton Hotel Group's acquisition.

Scherr hesitated for a while, looked at Ye Feng and said, "To be honest, I'm not very optimistic about this acquisition."

"Oh, what do you say?"

Ye Feng looked at Scherr and asked.

Not only Ye Feng, but Wen Yueqi was also looking at Scherr, waiting for his opinion, because the Goldman Sachs Group department was very detailed and large, with a clear division of labor and dedicated people to analyze and research various industries.

So it's also a good choice to listen to Scherr's views.

"Because the market may not be very good in the next few years."

Scherr said: "Since 2006 last year, the subprime mortgage crisis in the United States has become more and more serious, and the subprime mortgage default rate of banks has also risen above the red line. This has affected not only the American people, but also many people engaged in financial loans. Companies, many established investment banks have also fallen into financial crisis. Among them, the two companies most affected are Freddie Mac and Fannie Mae. They previously purchased almost half of the private sector mortgage loans, and the potential crisis of these mortgage loans It has gradually exploded.”

Ye Feng nodded.

Wen Yueqi told him this when using credit default swaps to short the subprime mortgage market, but Wen Yueqi originally said that the two companies Freddie Mac and Fannie Mae were behind the Federal Reserve.

When something happens to Freddie Mac and Fannie Mae, the federal government will definitely come to the rescue.

Ye Feng is not sure whether the federal government can save these two companies, but what Ye Feng knows is that if the federal government can save these two companies, it will definitely not be able to save other companies. Moreover, after the subprime mortgage crisis broke out, the global financial crisis ushered in. crisis.

"In the financial field, many things have chain reactions, including customers, banks, loan companies... If there is a problem in one link, other links will definitely be affected, and the economic recession will inevitably affect the operation of the hotel industry. And Hilton Hotels Group also has competitors like Marriott and InterContinental, so I’m not very optimistic about this deal.”

At this point, Scherr paused and continued: "But Mr. Ye's vision is much stronger than mine, and Director Yang is also involved in this acquisition. Maybe my feeling is wrong."

In fact, Scherr is right.

Whether it's a business or an individual.

The financial crisis will definitely make many people bankrupt, but what does the hotel industry rely on?You rely on others to travel and stay. How can you travel and stay if you don’t have money?
During the Great Recession, all hotels will enter the cold winter.Yang Qingzhi wanted to acquire the Hilton Hotel, and Ye Feng actually agreed for two reasons. First, he did not know the true value of the Hilton Hotel, so 240 billion US dollars was just 240 billion US dollars. Anyway, 200 billion US dollars was included in it. With the loan, Ye Feng would really feel pain if he had to personally acquire 240 billion U.S. dollars. Then he gave up the acquisition because he couldn't afford so much money. After all, how could Ye Feng want to acquire a 5-star hotel like Hilton? It is impossible for a first-class group hotel to invest all Lanshan Hotels. After all, the future value of Lanshan Hotels will far exceed that of Hilton Hotels.

The second point is due to Ye Feng's self-confidence in himself. People are fearless because of their self-confidence. It can be predicted that in the next few years, he will be able to make a lot of money. So in the future, Hilton Hotel will make billions or lose money. It doesn’t matter if it’s billions of dollars, as long as it gets its reputation out there. Since an investment private equity fund like Maple Leaf Group has been established, it must do something, such as spending $240 billion to buy Hilton. The hotel group was acquired.

After thinking for a while, Ye Feng said to Scherr: "Actually, there are profits and losses when investing in this kind of thing. What the future will be like has to be verified by the market. Now I am not sure whether the acquisition of the Hilton Hotel is a good thing or not. bad."

"Also, if you can know, investment will not have so many risks."

Scherr nodded. In fact, he paid attention to Ye Feng mainly because of the existence of Yang Qingzhi. After chatting with Ye Feng for a while, Scherr shook hands with Ye Feng and said goodbye.

After Scherr, Ye Feng, Wen Yueqi and others also started to go back.

On the road.

Wang Xin and Chen Xiao were in a very good mood and had been discussing the change in the company's issue price. It was certain that the listing price of Lanshan Company would be as low as 45 US dollars per share.

Because there is an underwriter substrate.

Chen Xiao owns 375 million shares of Lanshan Company, and Wang Xin owns 1875 million shares of Lanshan Company. This means that before the company went public, Chen Xiao earned an additional US$1875 million, and Wang Xin earned even more, US$9375 million.

All have net worths of over [-] million.

To be precise, Chen Xiao earned RMB 1.5 million and Wang Xin earned RMB 7.5 million. How many days did this happen?It took less than two weeks to travel from China to New York. It can be said that I became rich overnight.

"1.5 billion."

Chen Xiao calculated the extra net worth he had gained out of thin air due to the change in the listing price. He was so excited that he couldn't control himself for a while, and felt a little guilty. He felt that the money was not secure.

After all, Mr. Ye had agreed with him at the beginning that the calculation would be based on the company's listing price.

And now the listing price has changed from 40 US dollars per share to 45 US dollars per share. It is impossible for other companies to have such a situation. Even with equity incentives, it is impossible to increase to so much all at once.

What's more, Lanshan Company has not actually gone public yet, and it is still unknown how high the stock price can rise. However, the underwriters at Goldman Sachs are willing to pay US$45 per share, which proves that these investment banks are generally optimistic about Lanshan Company's listing. of the stock price.

Chen Xiao glanced at Ye Feng and Wen Yueqi who were chatting in front, and couldn't help but whisper to Wang Xin next to him: "The issue price Mr. Ye gave us at that time was 40 US dollars per share, and now it has become 45 US dollars per share. There is an extra 1.5 million yuan. To be honest, Mr. Ye is not bad to us. Do you think we should reimburse Mr. Ye for the difference? After all, the company has not actually been listed yet. "

"Okay, let's get off the car and talk to him later."

Wang Xin and Chen Xiao looked at each other and had the same idea in their minds. It would not matter if she used money to subscribe for 1875 million shares. The key is that she did not take out most of the money, but used debt payment. To hold.

Therefore, Wang Xin made an extra 7.5 million yuan out of thin air before her company was listed on the market, and she was a little unsure.

(End of this chapter)