Hollywood Hunter

Chapter 434 Crazy stock price

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The bell-ringing ceremony ended, and when the inquiry stage began, seeing Cisco's soaring stock price, everyone involved in this listing even had an unreal feeling.

After two full hours and seven consecutive bidding rounds, Cisco's stock was officially traded, and the opening price finally reached $28, an increase of 55.5% compared to the issue price of $18.

Cisco's opening market value also directly rushed to 8.7 billion US dollars.

However.

The opening market value of $8.7 billion is still just the beginning.

In the following day, the entire capital market, and even the public who were a little concerned about the stock market in the United States, were against Cisco's continuous rising stock price.

In the end, not counting the beginning of the inquiry stage, Cisco's stock price reached a maximum of $49.75, which lasted for more than four hours, equivalent to 276% of the issue price, and the market value peaked at $154.7.

Such a market value has surpassed the relatively old Microsoft and Intel.

As of the close of the day, Cisco's stock price was finally set at $36.25, a single-day stock price increase of 101%, and a market value of $11.27 billion.

Just this day, a corporate giant with a market value of 10 billion US dollars was officially born.

In Simon's memory of Yahoo, on the first day of listing, the highest point of the stock price was more than three times the issue price. However, at the highest point of Yahoo's stock price, the market value was only about US$1 billion.

A company with a market value of $1 billion and a company with a market value of $10 billion are obviously not the same thing.

What's more, it's still 1991.

In this era, there is no corporate giant with a market value of 100 billion in North America.

A market value of tens of billions of dollars is already a threshold.

For example, Time Warner, a media giant with a corporate net worth of US$25 billion, had a market value of only more than US$8 billion last year due to its operating conditions and high debt. After the US stock market rebounded this year, it returned to a market value of 10 billion US dollars. club.

Therefore, Cisco's market value broke through the $10 billion mark in a single day, which can definitely be called a miracle.

Prior to this, many analysts on Wall Street predicted that Cisco's best IPO market value should be around $3 billion. After the listing, if the market feedback is good, the market value is expected to exceed $5 billion.

For Simon's one-time determination of the Cisco IPO market at $5 billion, Wall Street generally regarded this as a risky move of killing the chicken and the egg, and a stupid move by Simon Westeros.

The issue price is set too high, which limits the room for the stock price to rise. Even if the IPO barely succeeds, it is likely to cause a tragic break in the stock price after the listing.

Once the company's IPO breaks, the development in the next few years may be clouded.

The final result was obviously beyond everyone's expectations.

The highest single-day increase was 176%, and the highest market value was US$15.47 billion.

The closing increase reached 101%, and the closing market value was 11.27 billion US dollars.

Such an excellent start, even if the stock price will correct in the next period of time, it will not be able to hide the light that Cisco is favored by the capital market.

Looking back from the results, many people found that Cisco's first day of listing was not an accident.

The most significant point, this IPO, compared to the last AOL, Simon Westeros' public performance was obviously more high-profile and praised. The entire Westeros system is building momentum for this Cisco IPO, Simon Westeros. Westeros was the first to publish a feature article in the New York Times.

Young people who have accumulated tens of billions of dollars in wealth in just a few years are enough for the capital market to reach the level of superstition.

Simon Westeros' remarks at the bell ringing ceremony that Cisco's market value is expected to exceed 50 billion US dollars in the next five years completely ignited the market enthusiasm accumulated by the Westeros system for Cisco's IPO during this period.

Since the stock market crash in 1987, the average return of the U.S. stock market in recent years has been less than 10% due to the continued economic downturn in recent years.

Therefore, even if Cisco's market value of $11.27 billion at the close of the day is calculated, if the company's market value can reach $50 billion five years later, the rate of return will be enough to attract countless retirement funds, insurance funds and other capital forces in North America.

Affected by Cisco's surge on the first day of its listing, the technology sector of the U.S. stock market rose again across the board.

Shares of Microsoft rose 6.3% on the day, and closed with a market value of $13.39 billion.

Shares of Intel rose 3.7% on the day, closing the day with a market value of $11.09 billion.

AOL's stock price reached 7.1% on the same day, and its market value reached 7.19 billion US dollars, returning to the peak state on the first day of IPO in July.

Amid a surge of tech stocks, Motorola, which fell 3.9% in a single day, was like an alternative.

This result is only because Simon Westeros said in an interview that day, "I have sold Motorola's stock."

In fact, Motorola in memory, at the peak of the new technology wave around 2000, once reached a market value of 100 billion. Due to the rise of mobile communication in the past two years, the performance of this company has continued to rise, so it is very worthwhile to invest.

However, since the two sides have forged a relationship, Simon has no intention of easing.

What's more, Motorola is undoubtedly the biggest obstacle for Nokia to enter the North American market next. In the process of acquiring Bell Atlantic, it was precisely because of Motorola's operation that Simon had to publicly promise that Nokia would not enter the North American market unless the relevant laws were lifted.

This time, the retired Motorola chairman Robert Galvin did not let the outside world 'disappointed', and once again attacked Simon in the media, believing that Simon's remarks at the Cisco bell ringing ceremony were extremely irresponsible and an investment Misleading by the author, the sec should launch an investigation against Simon Westeros.

In the following weekend, Motorola's management had to once again publicly clarify that the company's operating conditions were very good, and also claimed that it would enter the Internet equipment market to break Cisco's monopoly in this field.

Because of Cisco's high stock price on its first day of listing, it is inevitable that there will be a short-selling phenomenon on Wall Street.

Robert Galvin's attack on Simon was clearly in the hands of some hedge funds.

Therefore, in the next few days, there was also a wave of news in the media attacking Simon's irresponsible remarks about Cisco's future stock price. However, predicting the future stock price trend of a company is basically what the entire Wall Street is doing.

Every Wall Street investment bank will regularly release corresponding stock buying and selling reference opinions.

Simon's rhetoric about Cisco's five-year market value of $50 billion, though outrageous to many, doesn't actually violate any stock market regulations. Many major shareholders of companies will make similar remarks about their own company's stock price forecast.

After another week of turbulence, Cisco's IPO has been a success.

With a financing of $720 million, Cisco finally got $660 million after all fees were removed.

The management team announced a series of corporate development measures in the following week.

Affected by this series of good news and active market transactions, Cisco's market value has remained steadily above 10 billion US dollars in the second week of its listing.

In addition, the green shoe program that was determined at the beginning was officially launched.

Some other Cisco shareholders sold an additional 6 million shares at the $18 offering price, cashing in $108 million.

At the beginning, these shareholders were complacent that Simon could agree to start the green shoe mechanism. As long as the IPO was successful, even if the stock price did not rise too high, it would not be difficult to cash out the additional 6 million shares.

However, when Cisco's market value exceeded 10 billion in a single day, many shareholders would inevitably regret it.

At the current stock price, these 6 million shares are completely equivalent to half-price gifts, and a one-time loss of hundreds of millions of dollars, how can it not make people feel distressed.

Not to mention, Simon Westeros' five-year prediction of $50 billion.

In fact, most investors are not short of patience. The reason why everyone chooses to cash out is not only because of the company's own capital needs, but also because of the uncertainty of the company's future.

Who knows what the future holds for a company?

However, if Simon Westeros' prediction of Cisco's five-year market value of $50 billion comes true, choosing to sell additional shares this time would be even more ill-advised.

For Westeros, the choice of other shareholders to cash out has actually brought some benefits.

According to the shareholding structure plan previously formulated by Cisco IPO, once the initial shareholders' Class A shares are sold, these shares will be automatically converted into Class B shares with only one-tenth of the voting rights of Class A shares, unless the parties agree in advance and obtain the controlling stake. The approval of shareholders and the board of directors, otherwise, includes shares held by The Westeros Corporation.

The Westeros Company certainly wouldn't agree to the nature of the equity that other shareholders sold their shares.

As a result, the sale of 6 million Class A shares means that Westeros has a further increase in Cisco's voting rights.

Following Cisco's successful IPO, another hot topic soon emerged as the media continued to discuss the company.

What is Simon Westeros' current net worth?

The reason for this is that Forbes magazine said it will publish its new annual list of America's 400 richest people in mid-September.

Although the U.S. stock market began to recover in the first half of the year and the Gulf War was fought neatly, the downturn in the U.S. economy did not improve immediately.

Affected by the general environment, the wealth growth of many top rich people has stagnated. Some wealthy people in the real estate field even went bankrupt and were completely kicked out of the North American Rich List.

Simon Westeros was clearly an accident.

In the past year, the Westeros system has swallowed up the corporate giants with a total market value of mca and Bell Atlantic worth 14 billion US dollars at one time, and the total debt of the entire Westeros system has exceeded 10 billion US dollars.

However, after the success of AOL and Cisco's IPOs, coupled with the fact that the stock prices of technology companies such as Microsoft and Intel, which are heavily held by Westeros, have risen in the past year, no one will think that Simon Westeros of personal assets will decline.

Simon Westeros has completely locked the richest man in North America and the richest man in the world, which is already a sure thing.

The question now is just how much is this super rich person worth?

Simon himself obviously didn't have time to take stock of this.

Although Cisco's IPO was a great success, John Chambers and other executives were also under pressure because of Simon's five-year $50 billion speech.

Now that the words have been said, Simon has to tell Cisco and even several other companies.

The company is more attentive. The weekend after the Cisco IPO and the first few days of the new week, Simon stayed in San Francisco to personally participate in Cisco's next steps.

So it wasn't until Thursday, September 12 that he was able to return to Los Angeles.

Naturally still can not relax.

Previously on September 6, the same day as Cisco's listing, Catherine's "The Endless Flower" opened on a 1,216-screen scale in North American theaters.

The $7.74 million in the first seven days of the week also basically met Daenerys Entertainment's expectations.

The film's reputation is very good, and it is expected to walk out of a pretty long-term line.

For a road movie that is biased towards literature and art, it is still in the cold period after the summer vacation, and no one can ask for more.

A series of film projects from Daenerys Entertainment are also continuing to advance.

Strictly speaking, Hollywood is not suited to the professional manager system, and the big studios have always preferred paternalistic decision-making.

The two current "professional managers" in Colombia, Peter Cooper and Jon Peters, are undoubtedly the most typical negative cases.

Even though Daenerys Entertainment was split into three production and distribution networks, Simon held the ultimate power over all projects, and even though he let go of the executive power of most projects, he still maintained his focus on all of his projects.

It is estimated that 40 films are produced and distributed each year, which is actually not much.

What's more, every film project often means millions or even tens of millions of dollars in investment.

The time has entered mid-September, and the end of the year is actually not too far away.

"Scream 3" at the end of October will be the beginning of the end of 1991 schedule.

During this time, Daenerys Entertainment completed a series of projects in late 1991.

The focus of the year-end schedule is undoubtedly Toy Story.

The box office of this 3D animated film itself is actually second, as long as it can achieve the success of the original time and space, the peripheral sales of the film can reach billions of dollars, which is the key.

In addition, "Toy Story" can also provide Universal Studios with an animated IP image that is enough to compete with Disney, which is equally important.

If it is not for the image authorization of the DC Superhero Universe, if it is not for the super gold mine of Marvel, if it is not for the planned "Toy Story" and next year's "Jurassic Park" and other projects, Simon In fact, I did not dare to rashly open the construction of Universal Studios Osaka.

The future of movie theme parks can only be imagined if they lack the iconic big-screen image that attracts tourists like Disney.

Before this, Universal Studios had been a big shortcoming in this regard.

Before Daenerys Entertainment took over mca, Universal Studios often had to buy licenses from other studios in order to compete with Disneyland, and thus forced itself to develop many animated film projects that were not very successful in the end. .

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