Extraordinary Genius - Chapter 747
Chapter 747 – Market Opens
KamedaMasao was wearing a smart-looking suit. He had combed his hair neatly and stoodon the stage speaking to the reporters.
This wasthe ceremony whenever a company was newly listed. A representative of thecompany will announce the company’s future plans and their forecast profits.This was to persuade more people to buy the company’s shares.
KamedaMasao spoke in perfect English and Feng Yu was standing in a corner sipping onhis champagne. Kameda Masao was moved when Feng Yu told him to go on the stageon his behalf.
KamedaMasao was very superstitious and wore a green colored shirt with a greencolored tie. He also had a green color handkerchief in his suit pocket. Many ofthe reporters were also wearing green ties. There was even one reporter with agreen hat.
Feng Yuwas speechless by their dressing. He did not have any green-colored item onhim, but he also did not wear anything red in color.
In the USmarket, green color represents prices going up, and red represents drop.
Feng Yudid not expect the people here to be so superstitious too. Kameda Masao toldFeng Yu that green was his lucky color and Feng Yu did not say anything much.
But inhis previous life, Feng Yu had seen representatives from companies wearing redfrom top to toe before their company was listed. Feng Yu does not care aboutwhat others think, but he felt dizzy looking at them.
Feng Yufelt that whether the share prices go up or down, have nothing to do with thecolor of the clothes they were wearing. What matters most was the financialreport and future development plans. Even if the boss of the company waswearing his lucky color, and the company does not have a good development planor announcements, the shares will also plunge after it got listed.
It mighteven get delisted!
KamedaMasao was a good speaker. He was well prepared for this opening speech. He evenadded a few jokes in between.
AfterKameda Masao finishes his speech, he was invited to sound the bell to announcethe opening of the market.
Startingfrom this year, NYSE began to invite special guests to sound the opening bell.Nasdaq also copied this ceremony. Those that sounded the bell in the past werethe stock exchange managers, and it was nothing special.
But aftersome special guests sounded the bell, it will be reported on the papers. Thiswas also a form of marketing. From then onwards, many bosses felt it was anhonor to sound the opening bell.
Who werethe special guests? They were the representatives of the companies that weregoing to be listed on that day. Usually, they were the company’s directors orCEO.
Today’s Nasdaq opening bell ceremony’sspecial guest was Kameda Masao. As usual, Feng Yu refused to be in thelimelight or being reported in the media.
Kameda Masao stood in front of the bell. Hefelt this was his greatest achievement. All the ones who had sounded the bellbefore him were all tycoons.
He will be sounding the bell and will beenvied by others.
The bell was sounded. Feng Yu was alsoexcited. This was his first listed company in this life. No. This was his firstlisted company in both his lifetimes. This company must not let him down.
Kameda Masao was in a daze and holding onto the hammer. It was as if time had stopped for him.
He was brought back to his senses by theapplause, and someone took the hammer from his hand. Kameda Masao took a deepbreath and waited for the initial share prices.
Sounding the bell only announces theopening of the market. It does not mean that there will be transactionsimmediately. Usually, it will be delayed for about 15 minutes.
When some big companies got listed, thedelay was longer. Some were even delayed for more than an hour.
Why was there a delay? It was the marketmakers setting the prices of the shares. They will discuss and settle on theopening price.
Many people were interested in the SixthSense Company as it was the first sex toy company to be listed and Feng Yu hadgotten top tier financial institutions to be their market makers to determinethe value of this company.
But there was no company for Sixth SenseCompany to be compared with. They were the first company of such nature to belisted. There was no benchmark or any companies as reference.
The market makers could only use thecompany’s past performance and their future earning capabilities as a gauge. Ofcourse, the brand value also played a big part in their considerations.
But the market was interested in the SixthSense Company during a market survey before the listing. Everyone had highhopes for this company, and this was why Feng Yu was confident that the shareprices will surge by 20%!
Kameda Masao was very nervous and kepttalking to the people beside him. He had wanted to go over to Feng Yu there,but when he looked over at Feng Yu, he saw him shaking his head.
Kameda Masao knew Feng Yu does not like tobe in the spotlight, and he just kept chatting with the people beside him. Thiswas to distract himself from the nervousness.
Although Feng Yu was calmer than KamedaMasao, the opening price of their company’s shares was still not announced.
Warren Buffett contacted the people atGoldman Sachs. He had a good relationship with the people at Goldman Sachs. Hetold that he wants to buy out all of the Sixth Sense Company’s shares.
Whowas Warren Buffett? He is the god of investment! If he wants to buy out all theshares, that means this company’s shares will inevitably rise!
There are several types of companies WarrenBuffett would not invest. The first type is the companies that have incrediblyhigh profits. Everyone will be curious why. If the profits are very high, thatmeans the dividends will be high too. Why did he avoid these companies? Theanswer given by him was high profits will attract competitors. If the companyis not ready for new competitors, their market share will be snatched away.
These companies’ financial reports onlylook good when they have high profits. But if their profits dropped, then thiscompany will not be worth investing.
Warren Buffett will also avoid high-riskcompanies, companies that monopolized the market, and tech shares. His favoritecompanies are those with long term prospects.
The type of shares Buffett avoided most isthe technology shares. This was because he does not understand such companies’development and their competitors. Thus, he does not know how to evaluate thecompany. In Feng Yu’s previous life, IBM was the only technology shares hebought.
Today, Warren Buffett wanted to buy theSixth Sense Company, and after this news was released by Goldman Sachs, manypeople had more confidence with this company. This also caused the marketmakers couldn’t decide on the opening price as there were more and more bidsfor the shares!
After more than an hour, the Sixth SenseCompany’s opening share prices were released……