Extraordinary Genius - Chapter 749
Chapter 749: 749
The Six Sense Company became the talk of the town after it got listed . After all, it was the world’s first sex toy manufacturer to be listed . Many media reported about this, and this was free promotion for the company . As the Sixth Sense Company’s share prices increases, their sales also increased .
The debt ratio of the Sixth Sense company was very high . It was because of bank loans . Feng Yu had supported Kameda Masao when he took loans from the banks .
Japan’s economy was still under recession, and this year, Japanese Electronics and Chemical companies had got into trouble . This further worsens their economy, resulting in negative growth .
Tomiichi Murayama made a radical decision . He cut the interest rates to stimulate economic growth . It was usual for countries to cut interest rates to stimulate their economy . But no other countries did it like what Japan did this year .
Japan’s saving interest rates had dropped to 0 . 08%, and people joked that they had to pay to put their money in the banks . As the saving rates fell, the lending rates will also be lowered .
So, Kameda Masao it was a pity if he did not take any loans from the banks because of the low-interest rates . He made use of his connections and took out a loan of 400 million USD . From the exchange rate in this era, it was 3 . 6 billion Yen!
The exchange rate between USD and Yen was 1:80 . Kameda Masao was able to change more USD with the yen he had . All he had to do was to exchange his yen for USD, and he will be able to get profits . Feng Yu was also tempted to get this easy profit . He called Heitaro Nakajima to get a loan in USD, and the repayment will be in Yen . He asked him to take the maximum loan . Even if they used the money to invest in the US market, they would also make a big profit .
Furthermore, Feng Yu had invested all his spare cash into the US market . Most of his money was in Microsoft, and even if he needs to use money, he will not sell his Microsoft shares . How will happen to his companies if this happened?
With low-interest bank loans, this problem will be solved! Aiwa was also not a listed company, and Feng Yu was the controlling shareholder . If he needs to use money, he could just transfer out this sum of money from the loans . Feng Yu had already taken out most of Aiwa’s money to invest in the US market, including Microsoft shares .
Many international investors had taken loans from Japanese banks during this period . Their motives were the same as Feng Yu . They used the loan amounts to invest in the US market . This also stimulates the US market .
Many people, including Feng Yu, felt the US market will be bullish this year . Feng Yu had analyzed all types of charts and graphs . It was almost the same as his previous life, except for some minor differences .
With so many funds entering the US stock markets, the Dow Jones Index had risen from about 3,800 early this year to more than 4,000 now . Even after the index broke through the 4,000 points, it was still rising .
Feng Yu predict the Dow Jones Index will reach more than 5,000 at the end of the year . It will be like what happened in his previous life . The US stock market will become a bull market and formed an economic bubble . This period was later described as a period of irrational exuberance by economists!
What Feng Yu wants to do was to earn a substantial profit and exit the market before the bubble burst!
This period was purposely created by President Clinton . The better the US economy, the higher his chances to be re-elected for another term .
Of course . In the final year of President Clinton’s term, the Dot-com bubble burst . But his term was over .
After the listing was over, Kameda Masao went to Europe . The Sixth Sense Company was building a new factory and many retail stores in Europe . He wants to oversee everything personally and make sure nothing goes wrong . Any mistake will cause their company’s shares to drop .
Other companies could still ride on other companies in the same industry . If any companies in one sector announce high profits, all other companies’ shares in that industry will also rise . But the Sixth Sense Company does not have this benefit, because there were no similar companies listed!
Any large listed company could become its industry indicator, especially the Nasdaq Composite . The Nasdaq Composite was an index based on 100 Nasdaq listed companies’ shares . The S&P was also an index measuring the performance of 500 large companies .
It is a great honor to be one of the companies to be used in these indices . Kameda Masao felt the Sixth Sense Company should be one of the companies under the Nasdaq Composite!
Feng Yu also supported this . In the future, the Nasdaq Composite will include more than 5,000 companies . Why can’t the Sixth Sense Company be one of them?
Although the Sixth Sense Company was not in the technology, financial or biotechnology sector, it should be considered under the manufacturing industry .
Who says manufacturing sex dolls, condoms, silicone, and rubber products are not un the manufacturing sector?
Even if the company does not fall under the manufacturing category, it should still be able to enter the index . After the Sixth Sense Company got listed, there will be many more companies in the same industry getting listed . The Sixth Sense Company was the first and biggest sex toy company to be listed . Why can’t it represent the industry?
Maybe no investors had expected a sex toy manufacturer to be one of the companies under the Nasdaq Composite in the future .
Even Feng Yu had never thought about this .
It was until when Kameda Masao suggested to Feng Yu, then he starts looking forward to this .
Feng Yu knew Kameda Masao was very ambitious for a long time ago . Someone once said that someone who was not ambitious will not achieve great things . Every famous man recorded in history were ambitious .
Ambitious can be in politics or business . Those in politics will want to be the country’s top leader, and those in business will want to be successful and be well known . No one without ambition will be successful .
Feng Yu was glad that Kameda Masao was very ambitious . This was because he will work hard to achieve his dreams and keep growing the Sixth Sense Company . He will also keep earning money for Feng Yu!
The Sixth Sense Company biggest shareholder was still Feng Yu after it got listed . After issuing 30% of the company’s shares, Feng Yu’s shares were still more than 51% . He still owns more than 2/3 of the voting rights .
That’s why Feng Yu was not afraid Kameda Masao will take over the company from him . As long as he still has control over the Sixth Sense Company, he will be able to control Kameda Masao!