Video Game Empire - Chapter 690
Just as the U.S. stock market was on the rise and the concept of the Internet was widely sought after, the four-yearly U.S. political drama—the national election, came to an end with incredible sounds. At the beginning of the year, he also won the Gulf War with Yu Wei, and the prestige in the country was so high that Bush Sr. unexpectedly lost to the Democratic Party’s hair-headed young man Clinton.
Although the Federal Reserve announced as early as the beginning of the year that the U.S. economy had ended its nearly one-year recession and began to resume growth, and the U.S. stock market has also entered a new round of bull market since the beginning of the year, voters can really feel it. Income increases and the employment situation improves, and there is still a long lag period.
However, the upcoming US election will obviously not give the Bush administration another chance to re-prove the effectiveness of its governing policy. Voters have attributed all the difficulties they have encountered in recent years due to the weak economy to the failure of the Republican Party to govern.
So they used one vote after another to not only let the Republicans lose their majority status in both the Senate and the House of Representatives, but also kick the Republican-born Bush Sr. out of the White House!
Fortunately, Li Xuan was well prepared for the failure of Bush Sr., and laid the groundwork for the Democratic Party in advance. After the election ended, most political commentators in the United States, when analyzing the reasons for Clinton’s victory, regarded him as a stroke of genius to invite popular Democratic Senator Al Gore as his running mate.
Although Gore was born in the Democratic Party, he has always adhered to the political views of the centrist, advocating reducing the government’s fiscal deficit, preventing the government’s power from becoming too large, and advocating the control of the size of the government. This is very different from the ruling idea of traditional Democrats’ big government, and has won the support of a large number of conservative voters in the central and southern regions for Clinton.
As one of Al Gore’s important sponsors, Li Xuan also took the opportunity to successfully connect with the new Clinton administration. Although the resignation of Bush Sr. will greatly alienate the relationship between the Oriental Group and the White House, Li Xuan also took this opportunity to wash away the image of a “hardcore Republican supporter” on his head.
After all, the really smart players have always been betting on both sides, so that they will always be in an invincible position!
However, changes in the political climate will still have a significant impact on the business environment of companies. For example, Li Xuan received a transoceanic call from New York from New York, shortly after the US election.
Peterson told him on the phone that there was a stock short agency on Wall Street that was eyeing the Oriental Game Company, which just went public on the New York Stock Exchange this year. They plan to wait until the new attorney general takes office next year to lobby the new minister to conduct an antitrust investigation of Dongfang Games.
In addition to allowing investors to make money when the stock price rises in Europe and the United States, there are also opportunities for profit when the stock price falls. This method of operation is called empty in professional terms. It is to borrow a large number of stocks of companies that will fall through securities companies, sell them in the market first, and then buy back the corresponding number of stocks when the stock price really plummets, and return them to securities. The company closes the position.
For individual investors, if they want to make money by short-selling stocks, they must have a precise vision and be able to make correct judgments about the future price of the stock price. But for institutions that specialize in short-selling games, there are some differences. As long as it is a company selected by them, even if the stock price is rising all the way, they can always find a way to create all kinds of bad news to suppress it and turn the stock price from up to down.
For example, Muddy Waters and Citron, two famous Wall Street short-selling institutions in another time and space, once made many Chinese companies listed in overseas capital markets tremble. They can always find various loopholes in the financial reports and other public information of listed companies – profit fraud, customer data fraud, etc., and then take the opportunity to cause panic among investors, and then make profits through the collapse of the target company’s stock price .
These listed companies under Li Xuan’s name have performed very well in themselves, and there is no need to use low-level means such as modifying financial statements to raise their stock prices. But even if you don’t have a problem yourself, short sellers can find ways to create problems for you.
For a multinational company with a large market share in the United States, it’s hard to find a company that hasn’t been plagued by antitrust issues. This has become one of the most common tactics that many small and medium-sized companies in the United States use against large companies in the same industry. It is not only inexpensive, but also often very effective.
Taking Dongfang Game Company as an example, its FC home video game console and Game-Boy handheld game console both occupy more than 70% of the market share in the US home and handheld field. Any game company that is interested in showing off its strengths on the two platforms is bound to cooperate with Dongfang Game Company.
However, many third-party game companies are reluctant to be scrapped by Dongfang Game Company for a large amount of platform royalties, so they often file antitrust complaints with the US Department of Justice on the grounds that Dongfang Game Company is abusing its dominant market position.
In the U.S. market alone, there are no less than 10 anti-monopoly complaints from other game companies every year. But whether these complaints will ultimately be investigated will depend on the view of the U.S. Department of Justice.
At least the U.S. Department of Justice during the Reagan administration and the Bush administration did not have too much entanglement with Eastern Game Company. But now that the Democratic Party is in control of the US government, many people naturally think that their chance is coming.
Like the Wall Street short-selling agency Peterson mentioned earlier, UU reading www. uukanshu. com They don’t even need to really convict Dongfang Game Company, but they only need to persuade the Ministry of Justice to agree to file an investigation on this issue, and they can use short-term bad news to profit from Dongfang Game Company’s stock price.
Peterson is naturally very aware of his boss’s deep connections in Washington, so he just took this as a joke and told Li Xuan to get closer to the boss. But in the opinion of some people who are not well-informed, the unexpected defeat of Bush Sr. is a major blow to Li Xuan and the Oriental Group. Naturally, we must seize this opportunity to beat the underdogs and take some advantage from the world’s richest man!
This may be the so-called big tree to attract the wind. The Dongfang Group will definitely enter an eventful period in the next period, and it may even take a few performances to kill chickens and monkeys in order to re-establish its tough image in the American market.
And this also gave Li Xuan an excuse to persuade the management of Oriental Group to temporarily shrink in overseas markets such as the United States, consolidate the current fruits of victory, and at the same time devote more energy to the development of the newly emerging Chinese market!
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