Chapter 924
Good Words Are Hard to Persuade a Damn Ghost
Who could have imagined that the stock market crash caused by the bursting of the dot-com bubble would be so devastating and last so long that it would far exceed the most pessimistic expectations of all market participants?
It is not a short-lived storm, but a slow and cruel torture that will last for two years.
The Nasdaq's peak of 5000 points, which was dazzling and mesmerizing, will be stripped bare and slowly plummeted to around 1100 points in the long winter to come, with a cumulative drop of nearly 80%, which is despair-inducing.
And now?
Taking last night's closing as an example, the Nasdaq fell 350 points from the opening of 3670 points, like a kite with a broken string, and finally settled at 3320 points, with a single-day drop of a staggering 9.7%.
These numbers are chillingly cold and enough to cause countless fortunes to vanish into thin air.
However, in Lu Yang's deep eyes, this was merely a stumble on the edge of a bottomless abyss.
3320 points? There's still a long and desperate distance to reach the final, infernal end—around 1100 points.
"How much has it fallen so far?" Lu Yang's mind was calm and undisturbed, as if he were silently reciting a fact that had nothing to do with him. "From now on, it will no longer be this kind of devastating crash, but a slow and insidious decline like being cut by a dull knife. Two years is enough to erase all luck, exhaust all ammunition, and break even the most resilient nerves."
The core of this global financial tsunami is precisely those internet and technology stocks that were once shining brightly but have now become "original sins".
As a former leader in the Chinese technology stock sector, how could Little Prodigy Technology remain unaffected?
It was swept up in the great waves of the times, and its fate was already sealed.
Lu Yang turned around and his gaze fell on the briefing that Wei Shu had compiled on the coffee table. The closing price of "$40.1" on it was particularly glaring.
He tapped the table lightly, his tone carrying an almost cold certainty:
"No matter how Xiao Jun 'turned the tide' last night, or how smug he was about the 11% V-shaped rebound and the $36 million in unrealized profit, this company, which I founded and supported to go public, will ultimately face a 50% drop in its stock price. The only difference is whether the blow lands on the thigh, the knee, or severs the ankle... It all depends on luck." He paused, a subtle, enigmatic smile playing on his lips. "Of course, it also depends on whether our 'gambler' president can truly propel the little prodigy's development to a whole new level this year and defy fate."
Who is this "gambler"? The answer is self-evident.
Standing to the side, Wei Shu, dressed in a sharp business suit, looked solemn.
Although she couldn't predict the exact trajectory of the future like Lu Yang, after following him for many years, she had a deep understanding of the weight of his judgments and was even more aware of the deadly crisis hidden behind last night's terrifying bottom-fishing attempt.
She hesitated for a moment, then her cool voice broke the silence in the office: "But Mr. Lu, Mr. Xiao has... placed too big a bet this time."
She picked up a more detailed financial analysis report. "According to the accurate information we have, the nearly $6 million he used to buy at the bottom is extremely risky in structure. Of that, less than $2 million is cash that he can actually use personally. The vast majority of that is the profit he made from cashing out Little Prodigy shares at a high price when he followed you, and now he has just given it all back."
“The key lies in the other $400 million.” Wei Shu pointed to a key item on the report. “One hundred million of that was borrowed from HSBC Bank in Hong Kong by his mother, Madam Qian, using her shares in the Qian Group as collateral. This is a hard debt that needs to be repaid with interest.”
Her voice grew lower and lower, carrying a clear warning: "And the most dangerous thing is the remaining $3 million! Putting aside whether the $1 million loan from President Mu's Nande Group was harsh or not, the other $2 million was borrowed by President Xiao from several overseas investment banks and venture capital institutions using Little Prodigy shares held by him and his associates as collateral! These institutions only look at the market value and risk exposure of the collateral!"
Wei Shu raised her head, looking directly at Lu Yang, with the keen judgment of a professional manager: "If the stock price can maintain its current level, or even rise, then everything will be fine. But what if... I mean, what if the shockwaves of this global dot-com bubble burst continue to spread, slowing down the pace of economic development in mainland China, weakening consumer expectations, and ultimately causing Little Prodigy's product sales this year to fail to achieve the expected significant increase..."
She took a deep breath and voiced her core concern: "So, even without waiting for the year-end financial report, given the continued gloom and collapsing valuations of global tech stocks, the market sentiment and panic over the liquidity crunch alone are enough to drag Little Prodigy's stock price back into the abyss! Once the stock price falls below a certain key threshold, to the point where the total market value of all the Little Prodigy stocks he's pledged isn't enough to cover the principal and interest of that $2 million loan..."
Wei Shu didn't finish speaking, but the consequences were already obvious: those bloodthirsty foreign institutions would not hesitate to initiate forced liquidation clauses, like sharks smelling blood, demanding that Xiao Jun immediately add margin or directly dispose of the collateral—selling his mortgaged stocks at almost "cabbage prices" to repay the debt when the stock price was at its lowest point!
At that time, Xiao Jun will only have one way out: complete bankruptcy liquidation, which may even implicate his mother, Madam Qian.
At this critical juncture, Mu Qizhong's $1 million could very well be the final straw that breaks the camel's back.
“President Lu,” Wei Shu’s voice carried a barely perceptible hint of earnestness, “President Xiao is, after all… and the prodigy is your life’s work. If the situation really does deteriorate to that point, my suggestion is… perhaps you shouldn’t completely stand idly by? At least, at crucial moments, could you consider…”
"Help him?" Lu Yang interrupted her, his tone calm to the point of being cold, his eyes sharp as knives. "Why should I help him?"
He paced to the window, his back conveying an undeniable resolve: "This path was his own choice. Greed, wishful thinking, and an obsession with power blinded him. Last night's 'victory' was nothing more than a brief, final burst of light before the abyss devours its prey. If everything is indeed as I predict, and the prodigy's stock price continues to plummet to a level he cannot bear, then..."
Lu Yang turned around, his face devoid of any emotional fluctuation, only pure business rationality flashing within: "Naturally, someone will offer him a price to buy the remaining value of those stocks that have already depreciated significantly. Of course, he can also choose to hold on until he is forced to liquidate his positions and become penniless; that is his freedom as a shareholder and gambler."
Looking into Lu Yang's deep eyes, Wei Shu instantly understood the turbulent undercurrents and grand scheme beneath his calm words.
A knowing glint flashed in her eyes, and she nodded slightly: "I understand."
It's not just those covetous foreign capital... The boss, the true creator of this prodigy, has already turned his attention back to the "child" he personally incubated, which is now teetering on the brink of collapse in the capital market.
Yesterday's relatively high-level cash-out was a strategic retreat!
Today's indifferent observation is to wait for the best opportunity to attack!
Once the time is right, when panic reaches its peak and value is severely underestimated, the boss will personally step in with overwhelming force to complete a precise "bottom-fishing" operation—the goal being to completely acquire the prodigy!
Lu Yang caught the realization in her eyes, and a genuine, approving smile finally appeared on his lips: "Sister Wei Shu, you really get it right away. I can't personally handle this matter, and I'm sure you know why." He walked up to Wei Shu, his gaze intense, "So, I hope that you will take the lead, play the villain, and form a team to buy back as many of the Little Prodigy shares that are currently out there, especially those that Xiao Jun might be forced to sell, as well as those that have been dumped by panic sellers in the market, as much as possible."
Wei Shu already had a plan in mind, but when she heard Lu Yang's next words, she couldn't help but widen her eyes slightly.
"My ultimate goal," Lu Yang's voice wasn't loud, but it carried immense weight, "is to complete the privatization of this company. To free it from the constraints of overseas capital market fluctuations and short-term performance pressures, and to make it once again a wholly-owned core subsidiary of Century Group. A true, long-term focused technology 'unicorn,' not a plaything swayed by Wall Street sentiment and greed."
"Privatization? Full ownership?" Wei Shu repeated, making sure she hadn't misheard.
This is definitely a big undertaking, requiring massive funding, meticulous planning, and an exceptional grasp of timing.
Lu Yang nodded firmly: "Yes, this is a grand game, and now you are the most important player on the stage."
Wei Shu took a deep breath to suppress the shock in her heart.
Looking into Lu Yang's eyes, she saw an unwavering determination and trust, and her professionalism instantly overwhelmed all her doubts.
She straightened her back, her face regaining its usual calm and confidence, a determined smile playing on her lips: "Understood, boss. You've played a brilliant move. Alright, I, Wei Shu, will do my utmost to live up to your expectations!"
Although her answer sounded casual, Lu Yang knew that behind this promise was her determination to mobilize all resources, wisdom, and resilience to fight for it.
"It's indeed too early to say all this now." Lu Yang walked back to the sofa, picked up the slightly chilled tea, and regained his composure. "Things may not develop exactly as I predict. The market is always full of variables. What we need is patience and keen observation. Only when the stock price of Little Prodigy truly falls to a level that makes all investors despair, makes value investors hesitate, and makes its intrinsic value severely underestimated..."
He took a sip of tea, his eyes gleaming with a hunter's sharpness. "The perfect moment for us to 'enter' and 'retreat' that we've been waiting for will finally arrive. Isn't that right?"
Wei Shu understood immediately and bowed slightly: "Yes, President Lu. Observe the situation and act when the opportunity arises."
Just as the two were exchanging a few words, at a crucial moment when their seemingly casual conversation had already determined the future of the star listed company, Little Prodigy, Lu Yang's personal cell phone, which was on the coffee table, suddenly vibrated. The melodious ringtone broke the heavy strategic atmosphere in the office.
The name that appeared on the screen was: Mou Qizhong.
Lu Yang and Wei Shu exchanged a knowing glance.
He picked up his phone, answered the call, and pressed the speakerphone button.
On the other end of the phone, Mu Qizhong's signature loud, energetic laughter, tinged with a touch of江湖豪气 (a kind of chivalrous spirit), immediately came through, making the receiver vibrate loudly.
"Hahaha! Brother Lu! My dear Brother Lu! What are you busy with? I have some incredibly exciting news to share with you!"
Mu Qizhong's tone was full of exaggerated mockery and a strong sense of watching a show, "Guess what? Your cheap brother-in-law, our President Xiao! Oh my, this time he's really shown off his skills and made a big splash!"
He paused deliberately, as if to whet our appetites: "He just called me personally, he was so full of pride and high spirits! He insisted on dragging me, his older brother, and you, Brother Lu, along to go out to sea for some fun! The luxury yacht is all booked, and the champagne is probably already chilled! From what he said, haha, it seems that last night's 'miracle operation,' which turned the tide and earned him tens of millions of dollars, has made him so excited that he can't help but show off to us! Hahaha!"
Mu Qizhong's laughter was filled with knowing teasing and a kind of anticipation for a good show: "So, Brother Lu? President Xiao has even set up his 'victory celebration banquet' at sea. Should we give him face or not? I've already agreed on your behalf! Perfect timing, I really want to hear with my own ears how our 'stock market god' brother manages to snatch chestnuts from the fire during the stock market crash! I also want to see what 'brilliant insights' you, Brother Lu Yang, have on this matter! Hahaha!"
As Lu Yang listened to Mu Qizhong's undisguised provocation and probing over the phone, a playful smile slowly appeared on his face, and a knowing and cold amusement flashed in his deep eyes.
He picked up his phone, his tone relaxed, with a touch of languidness that was just right to give his "older brother" face: "Oh? Going out to sea? Champagne?"
Lu Yang chuckled lightly, his voice clear and steady through the microphone, "Sure. When have I, Lu Yang, ever refused your face, Brother Mu? I'll join in the fun. I also want to see just how loud and long our 'turning the tide' President Xiao can pop this champagne."
He hung up the phone, the smile on his face gradually fading, leaving only a deep calm in his eyes.
Ha ha.
He also wanted to see why some fool could still laugh.
Are you really that confident?
However, it was only a mere $3000 million in unrealized profit in a single day.
What if the stock price drops again tomorrow? What if it drops again the day after tomorrow? What if the day after tomorrow, and the day after that…?
For some, clinging to power and holding onto their stocks is a matter of life and death, a talisman protecting their position in the company.
Sooner or later, the stock price will continue to decline, eventually resulting in a complete loss of all capital.
"Fine, I'll try to persuade them again, though I might not be able to. It'll probably be a waste of time. There's a saying, 'Even good words can't persuade a damned ghost.'" (End of Chapter)