Chapter 82: Chapter 82: Something's Wrong
Sure enough, on this day, the stocks of the Tianyu Group plummeted at opening, dropping about two percentage points before being stabilized by a powerful force.
This deterred many investors who had planned to short Tianyu Group's stock but did not get the chance to do so.
Some of them continued to stay bearish on Tianyu Group's stock, but they wanted to pick a good entry point. They thought, wouldn't it be better to short the stock when it was pumped up to a higher price?
Some more cynical investors speculated that the scandalous videos of Tianyu Group that suddenly appeared on national portal websites might have been a self-directed act by the Tianyu Group itself.
They wondered if Tianyu Group had found a profitable project and its executives were planning to shake off the retail investors, buy back the stocks, and carry out this self-directed act.
After all, the scandalous videos of Tianyu Group had spread too quickly; nobody would believe that there wasn't a force behind it.
If it wasn't a self-directed act by the Tianyu Group's executives and someone was targeting them, there might be a constant increase in stock prices to stabilize market sentiment, or even a few big bullish news. There are many stocks in the market that rise despite the bearish news.
Some daring investors even bought stocks directly at this price point.
They had already dropped two percentage points. As long as they were pulled up a bit later, they could profit by timely short selling.
That's what the stock market is like. For the same stock, at the same time, with the same event, some people were bullish and some were bearish.
However, at this moment, most investors were bearish on Tianyu Group.
In Huaxia, only stocks that could be financed and margined could be shorted. This was also a reason why many investors were attracted to Tianyu Group's stock.
...
In the suite at Qingyun Hotel where the six traders were located.
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"Boss, Tianyu Group's share price is falling fast. We were only able to short more than 200,000 shares just now. Now that the stock price has fallen by 2 percent, should we continue to short it?" one trader asked Lin Yun quickly.
"Only managed to short more than 200,000 shares?" Lin Yun frowned.
At this point, Tianyu Group's stock was around 15 yuan. Over 200,000 shares were just over three million yuan.
"We have no choice. Everyone is bearish on Tianyu Group's stock today. Not many people are willing to take over. We were lucky to be able to short more than 200,000 shares at the beginning. If you return the stocks now, Boss, you can make about thirty to forty thousand yuan." The trader shook his head and said.
They shorted not at yesterday's closing price, but at today's significantly lower opening price. And the price they sold at dropped rapidly. They were lucky to secure a profit of one percent thanks to their speedy operation.
"If we return the stocks now, we can make about thirty to forty thousand yuan..." Although Lin Yun was no longer a novice in the stock market and had some proficiency, he still took a deep breath when he heard the trader's words.
Investing over three million yuan and making a profit of thirty to forty thousand yuan in just a minute or two—how long would an average person have to work to earn that amount of money?
At this moment, he seemed to understand why the stock market held such a great attraction for many people.
However, if there were losses, they would also come quickly, if not more so.
If they were borrowing several times the amount of capital, fortunes could change within a second—it was all too common.
The stock market was essentially a huge gambling den.
Naturally, he would not return the stocks. He had prepared several hundred million yuan and did not go to the Golden Dragon Building to absorb Spiritual Energy just to make these thirty to forty thousand yuan.
Thirty to forty thousand yuan was not even enough to pay these traders' wages.
"Continue to short slowly," Lin Yun said calmly.
Shorting consistently was his plan. Now, it was just the beginning. What did a two percent drop mean? It was still far from his target price.
...
In a conference room at Tianyu Group's headquarters.
"Heh, it's just online public opinion. It dropped just two percent and not many people dare to sell anymore. We've only spent over ten million yuan in total." A director sneered.
Tianyu Group's market value was now over 130 billion yuan. Although the two-percent drop was equivalent to a loss of over two billion in market value, such fluctuations in stock prices were normal in the stock market. It wasn't unusual for stocks to fluctuate by ten percent within a few days.
The executives of Tianyu Group, who had been manipulating their group's stocks and making profits, had done this many times before.
"In my opinion, we shouldn't have propped up the stock when it dropped two percent. Wouldn't it have been better to wait until it dropped ten percent and hit the limit down before we bought? We could have saved a lot of capital." Another director suggested.
"If it really drops ten percent, do you think we can still prop it up? Is our goal to buy stocks?" A director who had a better understanding of stocks gave the other two directors a sidelong glance and ungraciously said.
He had nothing good to say about these two idiots.
This was only a few minutes in, and they had already spent over ten million yuan. How was this a good thing?
The stock market had just started for the day, and many people were still watching!
If the stock fell ten percent, it would trigger a major panic. Many investors would rush to sell their Tianyu Group stocks, especially given that they could short these stocks. Some hedge funds would easily take advantage of the situation. In that case, without a massive amount of capital, they couldn't prop it up even if they wanted to.
The most important point was that Tianyu Group's current stock price was somewhat inflated. Was it easy for them to hype it up to the current high price?
A high price not only elevated Tianyu Group's reputation and status, but it also allowed them to borrow even more money!
Now, with negative news swirling around their group, once the price fell, it would be difficult for them to hype it up again!
Those two idiots thought that the current two percent drop was the same as the ups and downs they usually manipulated with the group's stocks?
Back then, whether the stock went up or down, everything was under their control. They could reap wave after wave of capital in the process of the stock's ups and downs!
But now, the drop was caused by unforeseen factors. Especially given the inflated stock price of Tianyu Group coupled with the continuous negative news, this money was practically evaporating!
Zhang Zhongguo, sitting at the head of the table, tapped his fingers on the table and frowned slightly.
The quality and ability of the directors varied greatly, which was a common problem in many listed companies.
When they encountered a director who was sensible and knew the big picture, things went smoothly. Such directors didn't meddle or move stocks much, and waited for their dividends every year. However, when they encountered active-minded directors, they had to pay them extra attention.
Just like now, he had to remind these directors not to randomly sell stocks.
"Something's not right, it seems like someone is selling our stocks in large quantities..."
Just then, among the few traders not far away, one of them suddenly frowned and said softly.
Theoretically, when the price stabilized, the trading volume should also decrease. Many investors should be watching the market, but the reality was not the case. Some people were still selling a lot of Tianyu Group's stocks.
PS: Thanks to "The Mountain Comes to Me," "Super Big White 121," and "Spiritual Map" for their rewards.
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