Chapter 158: Severing the Tail to Survive

Zhou Chen took a deep breath.

'Right now, I am basically looking at certain death. Come to think of it, I am a complete novice when it comes to the stock market. I am definitely going to get played to death.'

'But, if I change my perspective...'

'There is a saying that the marketplace is like a battlefield. Why don't I just use military strategy to crack this?'

'I am currently in a death trap. I need to achieve survival through desperation, which means I have to find that one path to life.'

'If I were the legal representative of Company No. 5 or Company No. 8, what would I do?'

'I wouldn't let Company No. 6 die!'

'The reason is simple. Company No. 6 holds a massive amount of shares in Company No. 5 and Company No. 8. If Company No. 6 goes under, those shares will flow right back into the stock market.'

'If production is expanded and new shares are issued, the ownership stakes of Company No. 5 and Company No. 8 would be severely diluted...'

'Furthermore, having just expanded production, they wouldn't have the cash on their books to buy back the shares. They would be in serious danger when that time comes.'

'Therefore, what they need to do right now isn't to just watch us bleed money and die.'

'Instead, they need to earn enough cash so that if new shares are suddenly issued after expanding production, they have the funds to buy their own company's stock.'

'In other words, they will continue to fleece me for all I am worth, but they won't let me die.'

'Of course, there is another possibility. Relying on the cash they have, they might be dead set on fighting a war of attrition with the other six companies to see whose funds dry up first, leading to bankruptcy.'

'However, the other six companies aren't fools either. They could sell off shares to each other, borrow funds, expand production, and keep all six of them afloat.'

'Simply put, the six companies could establish a Future Lie with one another: I buy your shares to let you expand production first; after you expand and make a larger profit, you buy my shares so I can afford to expand as well...'

'This means it is absolutely impossible for Company No. 5 and Company No. 8 to drag out a war of attrition with us.'

'After all, a single Future Lie is all it takes to counter their lethal move.'

'So, their best option is to keep milking me dry.'

'How will they milk me?'

'It is very simple. I hardly have any money left on my books. The moment I suffer a loss, my company goes bankrupt, and I die.'

'Because of that, I can only sever my tail to survive by taking preemptive action, such as laying off a massive number of employees. That will cause my company's stock price to plummet.'

'When it drops to a certain point, they will buy up my company's stock in bulk.'

'According to the rules of the stock market, the stock price can only return to normal if production is expanded. Therefore, the funds I obtain from selling shares at a low price can only be used to expand production; otherwise, my stock price won't go back up.'

'But once I have money in my hands, I can afford to fight a war of attrition with them. That is a scenario they absolutely do not want to see, so...'

'I must dump fifty-one percent of my shares. This way, if I choose not to expand production, they can join forces and interfere with my company's operations through the board of shareholders.'

'To summarize: my only path to survival is to drive down my stock price through layoffs, baiting them into buying. Furthermore, the combined shares held by other companies in my company must exceed fifty-one percent.'

'By doing this, I won't die. Once my company expands production, they will earn even more. On top of that, if I want to avoid being manipulated by the board of shareholders, I will be forced to buy back their shares after making a profit.'

'In short, they buy my company's stock at its lowest price and dump it at its highest.'

'By doing so, they can rake in massive wealth, which they can then use to expand their own companies and buy back any newly issued shares.'

'Damn it!'

'Fuck!'

'These bastards are trying to completely fleece me dry!'

'I can guarantee that the moment I dump my shares, not only will Company No. 5 and Company No. 8 scramble for them, but the other dormant companies will also pounce on them!'

'Just like a pack of starving wolves!'

Zhou Chen massaged his temples as a wave of powerlessness washed over him. He knew that if he didn't sell off his shares, he would be the first to die. If he did sell his shares and fed the others, even though he would still be the boss of the weakest company and would likely get played to death in the end, at least...

There was still hope for a comeback.

'I currently hold eighty percent of the shares!'

'That means I need to dump another thirty-one percent of my shares. And before dumping them, I have to execute massive layoffs to drive the stock price down to absolute rock bottom.'

'But it can't be too low. Otherwise, even if I dump my shares, the money I receive won't be enough to expand production...'

'I need to crunch the numbers.'

'I have 1.8 million left on the books. Buying equipment requires 8 million. If expanding production doesn't issue new shares, I also need to set aside 3 million for raw materials and 1 million for manual maintenance fees.'

'I need 10.2 million!'

His eyes widened. At Company No. 6's current stock price, even if he sold all eighty percent of his shares, he would only get 12 million.

'Holy shit!'

'Wait!'

'I still hold ten percent of the shares in both Company No. 5 and Company No. 8. That is roughly 2.4 million.'

'I definitely have to spit these out. If I spit them out first, no one will buy them. Only after I sell my own shares will they buy the shares of Company No. 5 and Company No. 8 that I dump.'

'So, in the worst-case scenario, I am still looking at a 7.8 million deficit.'

'Right now, my company hasn't even reached the break-even point yet. I can probably still make about a million...'

'Conclusion: a deficit of 6.8 million.'

'310,000 shares = 6.8 million.'

'So, per share: 21.9?'

'No! That is too high!'

'In other words, thirty-one percent of the shares still aren't enough to fill the hole.'

'If I dump sixty percent of the shares, that is 600,000 shares = 6.8 million, making it 11.3 per share.'

'Still not enough!'

'Damn it, the only path to survival they gave me is a gamble—gambling that my company will issue new shares after expanding production.'

'Damn it, the only path to survival they gave me is a gamble—gambling that my company will issue new shares after expanding production.'

'That way, once the newly issued shares are purchased, the money will go straight to my books. Which means right now, I don't need to prepare the funds for buying raw materials and manual maintenance.'

'6.8 million - 3 million - 1 million = 2.4 million. This means that by dumping thirty-one percent of my shares, I ultimately need to secure 2.4 million in cash. Per share, that is...'

'7.7!'

'Conclusion: I need to suppress my own company's stock down to around 8 before the other eight companies will make a move to buy.'

'Other than that, they won't even lift a finger to buy my company's stock.'

'Fuck!!'

'Screw you!'

'Screw you!'

'Screw you!'

Zhou Chen was furious. At this moment, he finally understood why profanity was judged as lying.

'In Hell, it has always been the wicked torturing the wicked. It operates in whatever way makes you suffer the most, forcing the players who come to Hell to repent for the sins they committed in life every waking second.'

'A stock valued at 15 being suppressed down to 8! Ahhh, how much of a loss is that?!'

'Wait!'

'What if I dump thirty-one percent of the shares and they still don't buy?'

'That shouldn't happen. After all, if I am dead set on desperate mutually assured destruction, the other companies will just join forces and borrow funds from one another after my death. Company No. 5 and Company No. 8 wouldn't make much of a profit then.'

'By the same logic, if the other companies want to maximize their profits, they definitely won't rely on borrowing funds. Instead, they will suck my blood...'

'Therefore, as long as I dump thirty-one percent of my shares at a price of 8...'

'Someone will definitely buy!'