Chapter 84: Rushing Towards the Crisis (5)
ps: I wish you all a happy Christmas Eve!
But the stock market is so good now that the tycoons on Wall Street are not satisfied with arranging the listing of United Oil and United Bank. They also hope that Contini can come up with more listed assets. This time they are eyeing United Motor and United Real Estate.
Contini was also surprised. United Motor is very small, with assets of less than 20 million US dollars. Although United Real Estate is a little larger, it has no unique advantages. It is purely a real estate company. Such a company is easy to imitate.
But the tycoons don’t think so. In their eyes, United Motor and United Real Estate are the products of the United Group that truly contact the market and do not rely on administrative and political backgrounds. In other words, these two are truly market-oriented products. Although United Motorcycle has few assets, they believe that the profit must be substantial, because up to now, United Motorcycle still produces on order, and each product has a schedule. Of course, it is not as crazy as before. The factory only operates one shift, because the waiting time is nothing more than a few days to two weeks, and there is no need to work three shifts and overtime. However, recently a large number of United Power sidecar motorcycles have been returned to the factory for repair, which has caused the factory production line to be busy for a long time.
This is a great feat. Most other companies' products are piled up in the warehouses of dealers, hoping to sell them as soon as possible. Usually, there are as few as 15 days and as long as 50 days of payment. There are not many good products like United Motorcycle that are sold directly from the place of origin and settled in cash in foreign distribution. Especially after United Motorcycle launched the elegant ladies' version of the motorcycle, it was very popular in the American market. American girls are proud to ride this motorcycle.
More importantly, there are no imitation products of this type of motorcycle in the United States: companies that have the ability to imitate and can guarantee quality are afraid of lawsuits, and CEOs are never soft in lawsuits, which is difficult in the American judicial system; imitation products of companies that don’t care about lawsuits cannot catch up with the elegance and quality of Italian products. After all, Italy is famous for its fashionable products for women. Therefore, investment bankers think it is a pity that United Motorcycle is not listed. Such a small-cap stock can be hyped up to the sky, and it doesn’t matter if the price-earnings ratio is set higher. Isn’t the United Power sidecar motorcycle very useful now, which shows that the future market is promising.
As for United Real Estate, it is purely because the image of this company as a middle-class brand of fashionable residences is too deeply rooted in the hearts of the people in Italy. Now, in addition to the high-end villa market and the low-end bungalow market, United Real Estate has the most distinctive and elegant image, which is most suitable for the taste of the petty bourgeoisie. This sense of superiority that permeates the bones cannot be dispelled for a while, and many investment bankers have also paid attention to the mall under United Real Estate. This newly designed place that integrates entertainment, shopping, culture, leisure and even communication has greatly stimulated the vitality of the entire community. With the supporting churches, post and telecommunications, education and security systems, the residential areas connected by urban rapid rail transit and developed in a continuous manner now have a new term: satellite city.
They think this is a new development ecology. United Real Estate is not simply developing houses, but building new cities. Unfortunately, this method cannot be used in the United States because all public utilities in the United States are controlled by different groups. It is very difficult to achieve interest division, unlike Italy where it is easy to build new cities: roads and public transportation systems are the responsibility of the Ministry of Transportation, which is in charge of the president's father. Light rail, electricity, tap water, and post and telecommunications are provided by the United Group itself. The church has a cooperation framework agreement with Contini, and education is sponsored by the United Group.
In the final analysis, when capitalists do business, they like this system where all power belongs to the party and a red-headed document can get things done. What about parliamentary deliberation, community approval, environmental assessment, and public opinion survey? That's nonsense. It delays making money, right? You see, the new district built by the president is neat and beautiful. From land purchase, development, operation and sales to later housing mortgages, move-in, maintenance and even life consumption, all one-stop service is provided to you. You just need to make enough money to buy it! Not enough money? Take more loans. Anyway, the real estate in Milan, Rome and Genoa will always rise. It's up to you whether you want to buy a house or not. How many people are there in the United States? More than 100 million, but there are more than 9 million square kilometers. Italy's population is one-third of that of the United States, and its area is less than one-thirtieth of that of the United States. The population density is 10 times higher. Now the leaders have implemented family planning and encouraged people to have more children. The density will only be higher in the future. Why don't you buy a house quickly?
Who does this system rely on? It relies on the full planning of the elite designers, planners and actuaries of the United Group, and the political power behind the group for coordination. How can you explain it clearly to the parliament, the people, and the general intellectuals? Just do it first, and then talk about it. Anyway, the president himself admits that "paying some tuition fees" is nothing. How can you do revolution and construction without taking detours and paying tuition fees?
Compared with these two market-oriented companies, United Bank is not actually a market-oriented enterprise. More than two-thirds of its main business depends on United Group. Rather than being a large commercial bank, it is more like a financing channel for United Group. In terms of risk, it is closely linked to United Group, and its market cap is too large to rise much. Its current share price is US$2.5, and its market value has exceeded US$800 million. If it doubles again, the market value will reach 1.6 billion, which is a shocking number.
As for the two oil companies, although their business does not need to rely too much on the United Group, security and other political risks are all placed on the United Group. The minefields in Algeria and the attitude of the French holding their noses in approval are known to the Americans, and the arrival of Libya They are also familiar with the guerrillas that have not been completely wiped out so far. Moreover, the price of crude oil fluctuates greatly due to political influence, which will bring violent shocks to the stock, so it cannot be regarded as a fully market-oriented enterprise.
Of course, there is no problem for ordinary Mongolian investors: United Bank has the lowest bad debt rate and the best profit margin in Europe, the Algerian oil field is the second largest oil field in Europe, and the Libyan oil field is the fourth largest oil field. Considering that the Baku oil field is not securities ized, this scale and ranking are still going up, can you recommend it without vomiting blood? Of course it’s a buy! Buy! Buy again!
"What do you think of this idea?"
Francisco mused: "I think it's not a bad idea for these two companies to go public, but these two companies are not too big, so the shares cannot be so dispersed. Even after the public offering, we have to find a way to ensure that we have more than 50% holding position.”
Contini quickly calculated: United Motorcycles is currently valued at US$20 million, Wall Street promises to help him get US$30 million, United Real Estate is US$50 million, and Wall Street thinks there is no problem in getting US$80 million, which adds up to US$110 million. Of the total valuation, if you release half of it, you can get back 55 million U.S. dollars. Although it is not comparable to the hundreds of millions of United Bank and United Petroleum, it is still a huge sum of money. The cost of at least two Veneto-class ships has been stabilized.
"In addition to the considerable market value, securities can make it easier for us to form close ties with major consortiums. If we want to withdraw funds in the future, it will not be extremely embarrassing." Francisco reminded, "If we are really convinced that there will be tragic events in the future If it plummets, we can just buy it back... United Group is a responsible world-class consortium.”
"Okay, then I agree to do it this way."
On April 24, Contini signed the listing agreement of these two companies on behalf of United Group, intending to complete it before the middle of next year. In the second half of this year, mainstream American consortiums will be introduced as strategic investors. In fact, these two companies are not short of money. These strategic investors will suddenly invest in the company in order to cash out the listing in the future, but if they are not allowed to invest in the company, then there will be no speculation in the future listing. Contini is already very familiar with this principle. Only when everyone is huddled in the same trench can we make a fortune together.
As for the United Group, they just need to wait for the trenches to be covered by artillery fire and run away. The rest, the unprecedented crisis will help the entire world to complete the cleansing..."