Chapter 129 Dancing with Lies
"This stock was listed in 2003 and has gone through the 2G era and the 3G era. Although it is now in decline, its technical accumulation in the communications industry is still profound." Seeing Su Yu's interest, Xu Zhongji hurriedly continued, "Of course... the focus is not on the current fundamentals of this stock, but on the potential shell company corresponding to it."
"As far as I know, Xinwei Communications is launching a listing plan..."
"Although there is no news yet, I guess that if they want to list on the A-share market, there are not many shell companies to choose from, and Huachuang Xince has the best chance."
"After all, Huachuang Xince's own business is complementary to Xinwei Group."
"Furthermore, both companies are located in Yanjing."
"Moreover, Huachuang Xince, as far as I know, the actual controller of the company also plans to sell the shell to clear the shares."
"According to the logical inference mentioned by Mr. Xu, it is also an opportunity." Su Yu pondered for a moment and said, "But you should bet on more than just this shell stock, right?"
Since Minghui Capital's layout direction is the concept of restructuring,
Well, with the size of Minghui Capital's private equity fund, it will definitely not bet on just this one stock.
"Of course there are seven or eight other shell stocks with the same concept." Xu Zhongji said, "But at present, I think the one with the best chance is Huachuang Xince. However, if Mr. Su is interested, we can also share and study the logic of other shell stocks together in the future."
"So... is this the one with the highest weight in your fund holdings?" Su Yu continued to ask.
Xu Zhongji saw that the conversation had come to this point, so there was no need to hide it anymore. He nodded and said, "We have a holding of nearly 100 million in this stock."
"You still have a holding of nearly 100 million at this time, which shows that you are really deeply involved." Su Yu sighed, "The market value of this check should not be small, right?"
Xu Zhongji nodded and continued, "It is indeed not small, and it is now worth nearly 2 billion."
"No wonder..." Su Yu laughed, "Before meeting me, Mr. Xu should have met with the principals of other private equity institutions and revealed this news, right?"
Xu Zhongji didn't know how Su Yu guessed it, and his face was a little embarrassed.
He smiled and said, "Since Mr. Su has said this, I won't hide it. Before meeting Mr. Su, I did mention this to a friend of Juyin Investment, but my friend didn't agree with my logic. He felt that a company with a market value of more than 1.5 billion or even more than 1 billion does not meet the conditions for a shell stock. After all, in the current stage where the primary and secondary financing markets are not prosperous and can be said to be bleak, there are very few companies seeking to go public through backdoor listing that can afford such high financial expenses and costs for listing."
"I understand!" Su Yu saw that Xu Zhongji was finally honest, so he said seriously, "If Mr. Xu said that the potential backdoor listing target was not Xinwei Group, the so-called domestic communications giant, I might not believe it, but this company... I believe that as long as they can achieve their desire to go public, they don't mind bearing more financial expenses and costs for going public. After all... they are not short of money."
Although looking at it from the rearview mirror of history.
Xinwei Group, which backdoor listed Huachuang Xince, is a complete scam company.
But at this moment, this fraudulent company is in its heyday. It not only won the so-called 3 billion communication base station and equipment contract in Cambodia, but also invested a large amount of money in Nicaragua, Ukraine and other countries. It even announced that it would launch 32 satellites within six years to cover 95% of the world's population distribution areas, and cooperate with the Nicaraguan government to dig a Nicaraguan Canal comparable to the Panama Canal to change the world's shipping pattern. It has become a domestic communication industry giant that exports technology to the country and is worshipped by major capitals.
Facing the capital market's valuation expectations of hundreds of billions and hundreds of billions.
Su Yu felt that the identity of Xinwei Group as a "fraudulent company" was far from being exposed, and the huge amount of funds raised by the other party through the forged major foreign investment projects was enough to support the company's continued fraud. Taking advantage of the other party's eager motivation to go public through a backdoor listing, it is not impossible to dance with lies.
"Yes!" Xu Zhongji laughed. "Once in Yanjing, I had the honor of meeting Chairman Wang of Xinwei Group. From the contact, I can see that he is indeed a big-picture and responsible entrepreneur. Currently, Xinwei Group has many project investments in Southeast Asia, Ukraine, the Middle East and other places. The entire world's communications situation is in the transition from 3G to 4G. With the talent reserve foundation of Huaqing University and the technical accumulation of so many years, Xinwei Group has entered the global communications infrastructure market and has a considerable share of competitiveness. This company is It has a very broad prospect and has the potential to become a giant in the domestic private communications industry. "
"And when it wants to go public on the A-share market through a backdoor listing. "
"Huachuang Xince is definitely its best choice. After all, in the entire market, apart from Huachuang Xince, there is no other shell company that can match it so well in terms of business, but happens to be located in Yanjing and is relatively clean. "
"Moreover, I can foresee..."
"If Xinwei Group really chooses Huachuang Xince in the end, it will be a grand capital feast, at least double the interest rate, there is no way. "
Su Yu listened to Xu Zhongji's words, nodded slightly, and said: "Such a backdoor listing plan that is like a snake swallowing an elephant is definitely not something that one or two capital institutions can take. If the whole thing goes according to Mr. Xu's expectations, there will definitely be additional shares issued at that time, and there will be sufficient time to participate. Why does Mr. Xu want to gamble so much?"
"Xinwei Group's IPO plan must be watched by countless institutions." Xu Zhongji said, "If the wind has really been leaked and the hidden cards have become open cards, Mr. Su thinks that private equity institutions like our "Minghui Capital" or your "Yuhang Investment" are qualified to participate in this almost guaranteed profit plan. ? Impossible! Such a cake is not enough for many large domestic institutions to share, how can it be our turn? "
"So..."
"We can only follow the clues of some information channels and make arrangements in advance according to logical speculation, and bet on the market probability chosen by the other party."
"It's just that I have a very clear feeling about the probability this time."
"Knowing that Xinwei Group will be listed through Huachuang Xince, a great concept will happen."
"Mr. Xu's investment path and courage in choosing targets really surprised me." Su Yu sighed, "But at the same time, this kind of seeing opportunities, heavy positions, and the spirit of unity of knowledge and action also make me sincerely admire."
He said the truth.
If he did not have the advantage of a reborn person, standing in Xu Zhongji's position, even if he caught this opportunity through some clues and information channels in the market, and judged that Xinwei Group's listing through Huachuang Xince was a high-probability event, I am afraid he would not dare to take the main fund and make such a heavy position.
After all, there is no 100% thing in the investment of the financial market.
If the final result is not satisfactory, facing Huachuang Xince, which is only worth a shell stock, in the long bear market, it is basically impossible to exit safely in the case of extremely scarce liquidity.
In other words...
Even if the bet is right, it is possible that it will not last until the dawn, just like Minghui Capital, which is currently facing the desperate situation of fund liquidation.
Just like this time.
If Xu Zhongji can't get reinforcements like him.
Then, before the news that Xinwei Group intends to use Huachuang Xince as a shell is settled, with the possible further decline of Huachuang Xince, Minghui Capital is very likely to explode, and thus have to liquidate the fund, recover funds, and give up continuing to gamble, leaving only a lot of losses in the end.
"Thank you for your recognition, Mr. Su." Xu Zhongji said with a smile.
"No need to thank me." Su Yu said with a smile, "I didn't agree to cooperate for Mr. Xu's sake, but I agreed with your logic and agreed that there is indeed huge game value and win-win basis in it. So... it's not impossible to raise your stock price and do you a favor."
"I understand!" Xu Zhongji nodded slightly, "I will remember this favor from Mr. Su."
"Then I wish you all a happy cooperation." Su Yu smiled and took the initiative to extend his hand after the other party finished speaking.
At least a doubling of investment opportunities, plus a favor from Minghui Capital, such a cooperation basis, in Su Yu's view, is the real sincerity.
In fact...
Su Yu knew that the investment opportunity of Xinwei Group's backdoor listing on Huachuang Xince was far more than the so-called doubling of profits, and triple or quadruple was not a problem at all.
When the two talked about this, the tense atmosphere that had been tense before completely dissipated.
Xu Zhongji and Manager Wang breathed a sigh of relief, and the worries that had accumulated for many days slowly dissipated between their brows.
In fact, if Su Yu did not agree...
They had no choice but to reduce their holdings in Huachuang Xince, so as to barely avoid the risk of liquidation of the fund and deal with the large redemption of investors.
But in this way, after months of hard work, the hope of seeing the light was completely shattered.
Moreover, in the case of such a large loss of funds, the net value settlement of the fund and the abandonment of the initial restructuring investment strategy that had been adhered to for a long time would be quite unfavorable for the future development of "Minghui Capital", which was something Xu Zhongji could not bear and was unwilling to bear.
Fortunately...
After a round of careful negotiations and hard discussions, Su Yu agreed with his investment logic and was willing to help and participate in this opportunity to help stabilize the share price of Huachuang Xince, and thus stabilize the net value of the main fund of "Minghui Capital" and the last trace of psychological confidence and hope of investors through the share price of Huachuang Xince.
Of course, during the conversation between the two.
Li Meng watched Su Yu gradually change from a tough refusal to acceptance. For a moment, she was still confused and confused, but it was not easy to ask at this moment.
So, she kept her words to herself.
When dinner was over, everyone said goodbye, walked out of the hotel, got in the car, and on the way back to the residence, she couldn't help but ask Su Yu: "Investment in the secondary market, restructuring and backdoor listing events, are the most difficult investment opportunities to seize, and also the most risky investment opportunities. How can you be sure that General Manager Xu is not fooling us so that we can enter the market to help them solve the problem of their "Minghui Capital" main fund being heavily invested?"
"At present, although the IPO market is stagnant, the company has only one way to go public, which is backdoor listing and restructuring."
"But Huachuang Xince's market value cannot be completely called a shell stock. It is a three-no junk stock whose main business has been in full decline. It has no performance and no concept story. If there is no news of restructuring in the end, it will be very difficult for us to exit after entering the market to take over the chips."
After the other party mentioned Huachuang Xince.
Li Meng checked this stock on her mobile phone while going to the bathroom during the dinner.
Knowing that this stock has been declining since the annual report was released last year, the market found that its revenue has been shrinking more and more, and it can be said that there is no prospect. Its stock price has been falling continuously. In the past two months, it has fallen by almost 40%, which is extremely tragic. In addition, the circulating market is huge, and the locked-in market is extremely heavy. The daily trading volume has shrunk to less than 10 million.
Such a situation...
In other words, private equity institutions like Minghui Capital that have a heavy position in this stock.
If you want to exit, if there are no other large capital investment institutions that take the initiative to take over and help, you can't get out without smashing the stock price further and continuing to plummet by 40 to 50 percent.
Until now, she still firmly believed that Su Yu's judgment at that time was correct.
That is, the main fund under Minghui Capital was heavily invested in Huachuang Xince, and it couldn't be sold off. It wanted to pull up the market but there was no follow-up funds to follow up, which would only lead to it getting deeper and deeper. So they found them and made up a beautiful story of restructuring and backdoor listing with kind words to trick them into entering the market to take over.
After all, according to her thinking, there is no such thing as pie in the sky in this market.
Intrigue and deception are often the norm.
Su Yu glanced at Li Meng's profile while driving and said with a smile: "When I first heard what the other party said, I also thought it might be a trap, but after careful analysis, I feel that there is... potential benefit, far greater than the risk. In other words, no matter what purpose Mr. Xu has for cooperating with us, the investment logic he said about Huachuang Xince's stock is correct, and as far as I know, Xinwei Group has been seeking to go public in China in the past six months."
"Moreover, this check can be used to cover the main funds of Minghui Capital, which is close to the liquidation line."
"It proves that it has fallen a lot."
"Indeed, it has fallen by almost 40% in the past two months." Li Meng continued.
"That's it." Su Yu nodded slightly and continued, "Intervening at this stage, even if it is a trap, we can easily distinguish it after the initial intervention, and we are more proactive than Minghui Capital, which is trapped in it on a large scale, so... there is nothing to be afraid of."
"Yeah!" Li Meng responded.
Su Yu thought about it and was ready to explain the logical relationship and the relationship between the profit and loss of the game in detail.
At this time, the phone in his pocket suddenly rang.
Su Yu thought that it was already past nine o'clock in the evening, and he didn't know who called him. He took out his phone and saw Shi Yuling's name on the caller ID. He was surprised and answered the call.
"Su... Brother Su..."
The voice coming from the connected microphone was not Shi Yuling.