The Magician’s Memorial - Chapter 389



Only Krnovel

389. Timing (4)

The promised day has come.

To prove it to the hedge fund representative, Canos put all his money into short selling.

“Sir! Hess stock price is starting to fall rapidly.”

“It looks like Taewoo Group doesn’t even have a short-selling defense system in place. Still, a counterattack will come sooner or later, so we’re concentrating.”

“Individual investors are also starting to throw in some shares.”

“The chairman of Taewoo Group is someone who used to work on Wall Street. This will never end easily.”

Kanos’ blood boiled.

He attacked Hess using a variety of tactics, just as he did when he first entered Wall Street.

“It seems like they are moving from Taewoo Group.”

“What is the amount of funding?”

“We are initially purchasing short sales with $500 million.”

“Only 500 million dollars? It looks like Taewoo Group’s financial resources have dried up. Even if it is the first round of funds, it can only move 500 million dollars. Let’s break the spirit of the first person. We must throw in an additional 2 billion dollars! ”

It was the Kanos faction that short-sold more than $5 billion in one day.

Although Taewo Group attempted to defend itself several times, it was unable to stop the falling stock price due to the small amount of funds.

“It goes easier than I thought.”

“What are you going to do? The stock price fell by more than 7% today alone.”

“Would you have done this just to eat 7%? I have at least halved it, so it’s worth it for me to move. I have to keep attacking tomorrow, next week, and next month, so I’m preparing.”

“Okay, and the hedge fund representatives are here.”

Hedge fund representatives came as soon as the stock market closed.

They must have also seen Hess’ stock price fall by more than 7% today.

I came here in a hurry because I had to join hands as soon as possible to make a big profit.

“Take us inside. We can finally have a proper conversation now.”

Kanos enters the office first.

Unlike before, he leaned on his desk with a slightly arrogant attitude and waited for customers.

Hedge fund representatives also greeted Canos in a polite manner, unlike before.

“Congratulations. You have appreciated the majesty of the King. It looked like the heavyweight champion was toying with a lightweight amateur.”

“Hess’s stock price is falling like crazy, and Cheshire Peak’s stock price, which hasn’t been attacked yet, is falling as well.”

Hedge fund representatives were flattered.

Sweet words never came out of their mouths except when it came to money.

They were fluttering their lips because the smell of money was wafting around Kanos.

“This is just the beginning. Today it fell 7%, but our primary goal is to cut Hess’ stock price in half within six months.”

“Taewoo Corporation and the entire Taewo Group will be the second and third targets. In the case of Hess, it is a company on the verge of bankruptcy and has no power to defend itself, but wouldn’t it be difficult for the Taewoo Group?”

“We decided to send an activist fund to Korea. Since he is Korean-American, he is the perfect person to spread activism tailored to the Korean market.”

Activist fund.

It refers to a fund that actively seeks ways to increase shareholder value.

It was also a place that requested all measures to raise the stock price, such as share buybacks, mergers and acquisitions, and improvement of governance structure.

Although activist funds exist in Korea as well.

Compared to Wall Street, its intensity was weak, and the Korean market had not experienced a proper activist fund.

Therefore, Kanos expected that Taewo Group would be shaken the moment an activist fund from Wall Street landed in Korea.

“If the activist fund goes to Korea, it will be a headache for the Taewo Group. But isn’t the activist fund ultimately a group that wants the stock price to rise? If the stock price of the Taewo Group goes up, it won’t help short selling.”

“That will happen if we accept the demands of the activist fund. But in Korea, unlike the United States, one leader wields imperial power. We will never be dragged around by an activist fund. If that happens, the stock price will fall.”

It wasn’t a bad plan.

A corporate leader who does not accept the demands of activist funds at all.

It was a perfect situation to brand the company as a company that did not care for shareholders, and if that happened, the stock price would naturally fall.

“I have one last thing to say. Although Taewoo Group’s capital power has decreased significantly, isn’t there room for external capital to intervene?”

“Are you talking about Saudi Arabia’s sovereign wealth fund? Ugh.”

It was Kanos who gritted his teeth.

The reason the Tesla short-selling operation failed was because of the Saudi sovereign wealth fund.

Because it was a Saudi sovereign wealth fund that had failed him by pouring in a huge amount of money, Kanos gritted his teeth and endured his anger.

“I didn’t say this to provoke Representative Kanos. Isn’t it a known fact that Saudi Arabia and Taewo Group have a good relationship?”

“Under normal circumstances, we would have to keep in mind the Saudi sovereign wealth fund. But this time it is different. Because it is linked to an American oil company that is on the opposite side of Saudi Arabia, funds can never be moved in Saudi Arabia.”

The origin of this incident was the oil war.

Broadly speaking, the cause was the struggle for leadership between the United States and Saudi Arabia.

Therefore, it was not possible to help Taewo Group, which had acquired an American oil company.

“All conditions are unfavorable to the Taewo Group.”

“There is no way out. What if Saudi Arabia suddenly announces a reduction in oil production? The likelihood of that happening is less than 1%.”

“I want to help CEO Kanos and put pressure on the arrogant Taewoo Group.”

A hedge fund representative extends his hand.

Following him, other hedge fund representatives stood up and held out their hands.

Kanos paused for a moment and held their hands together.

“Think in advance about how to divide Taewoo Group. I will tear Taewoo Group into pieces.”

“I will trust and follow only Representative Kanos.”

“American financial companies operating in Korean financial towers will soon have to withdraw their burden.”

“Chairman Kim of Taewoo Group is going to be very upset. I wonder if he’s sitting on the toilet all day. Hahaha!”

It was already a short selling force holding a festival.

No matter how the simulation was run, it was a battle they won.

They were excited at the thought of joining Taewo Group, which is making a name for itself in the global financial market.

* * *

next day.

I was spending the morning relaxing with a cup of coffee.

However, President Han came to me swallowing his saliva repeatedly, wondering why he was so nervous.

“Chairman, Hess’s stock price fell by more than 7% in one day. And it is expected that short sellers will continue their attacks today.”

“Just keep acting defensive like you are now.”

“Is this really okay? I’m worried even though I know it’s a piece of cake to attract fish.”

Don’t worry too much.

Even if the stock price fell, we had nothing to lose.

It was acquired at a very low point, and even though the stock price had risen as much as it had risen since Taewoo Group took over, it was barely worth breaking even.

Even if it fell further, it didn’t matter.

Because we weren’t going to sell our shares right away.

“Just leave it until Hess’s stock price halves.”

“If that happens, the short-selling forces will point their guns at Taewoo Trading and Taewoo Group in earnest.”

“Let’s pretend to be tolerant of Taewoo bosses. Wouldn’t that attract more fish?”

“But wouldn’t you be suspicious of fintech banks and other financial companies in the consortium staying silent and not taking any action?”

Hess and Cheshire Peak Energy were not acquired solely in the name of Taewoo Group.

Since some funds from financial companies and IT companies, including fintech banks, were invested, short sellers could be scared.

“I have already finished talking with Dimon. Companies participating in the consortium, including fintech banks, have decided to issue an official statement saying that they will not participate in this short selling.”

“Then, the short sellers will definitely increase their bite.”

“It doesn’t end here. I asked David to release information that suggests there are signs of a split in the oil consortium. Shouldn’t this be enough for the short sellers to cling more aggressively?”

You can’t catch a fish just by biting.

The bait had to be swallowed in one gulp in order for the hook to entangle the fish.

In order to do so, the fish had to be reassured, and efforts were being made to reassure the short sellers through various methods.

“There will certainly be more forces attached to Hess short selling. But what if they only attack Hess and do not participate in the attack on Taewoo Trading Company and Taewoo Group?”

“They are people who are not as angry as Hess. They say things like that because they know it well because they have worked on Wall Street.”

“Taewoo Trading and Taewoo Group are Korean companies, so short selling is not easy. We have to definitely bring the short selling forces into Korea, so we can win, right?”

There was one thing that President Han did not know.

Even if the short sellers only attacked Hess, they could have achieved victory.

As for Taewo Group, I owned 70% of the shares, so of course I was able to win.

In the case of Hess, it was only possible to defeat the short sellers with a huge reversal card, and such a reversal card was already in my hand.

“I have already planned a way to win even if only Hess is attacked. So just keep pretending to defend like you are now. The stock price should fall further from here.”

“Dimon sent me news that Hess’s stock price will fall even further.”

“What news?”

“It is said that an oil consortium has acquired a 10% stake in the Guyana fund owned by ExxonMobil. It was acquired for a whopping $8 billion, so if this news becomes known, the stock price is likely to fall further.”

$8 billion in additional spending.

Funds that should have been used to defend against short selling were used to acquire shares in the Guyana fund.

Therefore, it was bound to have an impact on Hess’ stock price, and it was very good news for short sellers.

It was good news for me too.

Because the short selling forces will rush in with all their might.

* * *

Kanos, the core of the Hess short selling force.

More hedge fund representatives gathered in his office than ever before.

The majority of them had already participated in Hess short selling and made handsome profits, and other hedge fund representatives who heard the news also bowed to Canos to get a piece of the cake.

“I don’t know if we came too late. If it was something that CEO Kanos was doing, we should have done it together, but we were delayed because we had to understand the market trends.”

“It’s not too late. This is just the beginning. Hess’s stock price is still in a bubble. If we attack a little more here, even the Taewoo Group will be shaken. The Taewoo Group has more than enough to share in the pie. ”

It was Kanos who spoke with a kind smile.

However, he did not have a positive opinion of hedge fund representatives who joined late.

After setting the table, are you going to come and put the spoon in your hand?

Still, he needed more funds to attack the Taewo Group, so he decided to ignore it for now.

“We will not be greedy and will only eat as much as Representative Kanos allows.”

“No, you can be greedy. It’s enough for me to just get my honor back rather than money in this operation.”

Kanos believed that he had been resurrected.

Kanos believes that the reputation buried in the grave due to Tesla’s short-selling failure has now been revived.

And many hedge funds following him.

But all of this was just a huge fishing net.

They had no idea that what they were eating was bait in the fishing net.