Chapter 17
CHAPTER 17
Leaving notice regarding protagonist ability.
Financial Product: Red - Rise, Blue - Fall
(Please refer to author's words for details.)
Gang-hyeon's gaze headed to the monitor. Institution-exclusive trading system was running on the monitor.
[Execution Price: $52.30]
[Executed Quantity: 1,500,000 shares]
Order filled on first day was 1.5 million shares. Still far to target 6.6 million shares.
Is volume small because it's popular stock?
Short selling of this scale was first time for Gang-hyeon too. When in past investment company, mostly just executed buy or long/short on indices. Since no experience in large-scale short selling on single stock, waited calmly.
Stock price has no big fluctuation yet. Means JP Morgan side is entering well by splitting.
There was no case where stock price goes down straight at once just because doing short selling. Such price fluctuation was possible only when specific event occurred. Unless case where fraud is discovered like Nikola or corporate value plunges in IPO due diligence like WeWork, price fluctuation wasn't big.
Still glowing blue. This means corporate value plunges. Clear that some event will come out.
Couldn't know what that event is. But Gang-hyeon was certain that NextMove is hiding something unknown from outside. Since ability never betrayed him until now. Plus if light of this degree, that time wouldn't be long.
Interest of billion unit accumulating every day, but can endure this much.
Since short selling is structure borrowing stock and selling, have to pay interest when borrowing. Interest JP Morgan put out to him was annual 15 percent. Although daily 0.041 percent interest, since scale was 350 million dollars, interest of 140,000 dollars a day, 200 million in Korean Won occurred. Since interest payment is made on monthly basis, have to pay interest amounting to 6.2 billion. In other words, the longer holding position called short selling, becomes loss. So most short selling position participants hold long as hedge. But Gang-hyeon situation holding only short.
If caught timing wrong, would have to pay enormous interest.
Could have been dangerous if didn't make profit properly with Nasdaq long previously.
Since interest to pay immediately not many. Let's wait slowly.
Indeed how this giant enterprise will collapse. Gang-hyeon becoming curious already.
Took 3 days to fill all contracts.
6.6 million shares. Short sold volume corresponding to 5 percent of NextMove's issued shares. Average price 53.5 dollars. Although entered by splitting and took position dividing days, this fact soon started spreading to Wall Street.
"When did short selling accumulate like this on NextMove?"
"Someone took short selling volume massively recently?"
"Where is broker? Goldman? JP Morgan?"
"It's JP Morgan. Heard story that this order entered from Asia side."
"If Asia, means Japan or China?"
Big hands of Asia were Japan and China. Since there was no person who can short sell scale of this degree in Korea, wasn't mentioned.
"Since Chinese side capital entered NextMove, wouldn't it be Japan rather than China?"
"Why short sell NextMove in Japan? Those conservative humans?"
"Didn't some story go in? And hard to exclude Chinese side completely too. Since entangled with Chinese capital, information would be faster right?"
Wall Street literally turned upside down. 350 million dollars. Not big amount if viewing Nasdaq entirely, but big amount if limiting to single stock. Plus NextMove is company receiving enormous attention to extent called Tesla of truck. Fact that large-scale short selling was conducted here was enough to draw eyes of Wall Street traders. And this news crossed Pacific and was conveyed to Korea too.
"Heard someone in Japan short sold 350 million dollars on NextMove?"
"NextMove? What does that place do?"
"Enterprise listed on Nasdaq. Hot in US to extent called second Tesla."
Traders didn't memorize and carry all stocks. Since field with expertise was different per individual, there were more who didn't know NextMove.
"Ah, there? China looking after back, crazy to short sell there?"
"Does Section Chief Choi know something?"
At that time Choi Chang-wook listening to story stepped up and pretended to know. Naturally colleagues around asked him.
"That place very decent company. Funds come from China and heard UPS and Nvidia plus Navistar attached."
"At that level isn't it perfect?"
"Right. Some compare with Nikola. Completely different from there. Nikola was fraud altogether, but here does test at least."
"Then means not scam enterprise right?"
"Yeah. How much short sold?"
"Says scale over 300 million dollars."
Precisely 350 million dollars, but story didn't seem conveyed until there. Hearing scale Choi Chang-wook sneered.
"Don't know who but head will become hot soon. Will come out on news soon. That some stupid hedge fund in Japan saw all-time loss with short selling."
If by standard, had to become like that. But took less than a day for that expectation to collapse.
"Breaking news!"
Everyone's gaze headed to employee shouting sound.
"WSJ sent out exclusive article that NextMove is leaking secrets to foreign country!"
"What? What sound is that? Give that here!"
Choi Chang-wook snatched document held in man's hand nervously and checked content.
Title that will make all good news into bad news was stuck there. Then.
"Said confidently not scam."
Heard word someone said. Tried to find owner of that voice turning head, but everyone was avoiding gaze.
"Kuk...!"
Document crumpled as much as Choi Chang-wook's expression.
Trigger was pulled.
It was this.
NextMove leaked own technology overseas. Just that alone was fatal, but of all places that country was China. This wasn't matter to end quietly.
"US side situation?"
"Other media also spreading WSJ's exclusive report. Almost all economic media sharing related information."
"Not only media but bloggers also moving. As related article comes up on Reddit too voice of criticism becoming strong."
Unlike Korea power of blog was still strong in US. Famous people expressed own opinion through blog and exercised enormous influence. Since they are dealing in earnest, clear that state agency will also move in earnest.
"Breaking news! Goldwin uploaded post related to NextMove on his social media! Will display on main monitor!"
Soon as main monitor screen switched Goldwin's social media post was seen.
A whopping US President moved. What this meant was one thing.
"Stock price plunging!"
"Selling momentum pouring crazily!"
"Fell below 45 dollars! Selling momentum not dying and continuing to pour!"
Meant NextMove ended.
There were things listed stocks shouldn't do most. Exactly not making risk. Among them, shouldn't make risk entangling with government agency absolutely. Especially moment entangling with US government agency, literally stock price falls to hell. Representative cases were Enron and Nikola. When fact Enron committed accounting fraud was detected by FBI investigation stock price which was 90 dollars plunged and fell below 1 dollar. Nikola fell below 10 dollars and in other cases too stock price fell with tremendous speed.
"NextMove stock price continues sideways at 35 dollars."
NextMove was same too. NextMove which hit 60 dollars fell to 35 dollars in half day. Brake barely applied only after recording minus 41.3 percent decline.
"US side news?"
"News that FBI investigates is last."
FBI investigation. That was no different from death sentence to NextMove.
"Stock price smashed in just ten days."
10 days after taking short selling position. Death sentence descended on NextMove. And money shower poured on KH Capital.
"How much is our side profit?"
"Yield is 34.5 percent. Profit is... 123.42 million dollars. Converting with today's exchange rate, 175.256 billion won profit!"
Kim Seong-won rubbed eyes several times as if unable to believe while speaking himself. That much amounts stamped here were level not making sense.
Does this make sense with just two transactions?
Profit earned with first transaction 106.92 billion won. Second transaction 175.256 billion won. If clearing position right now and becoming fixed profit, becomes 282.176 billion won with two transactions. Since initial deposit was 60 billion, swelled 5 times in a month. To extent wondering if there was such history in Korean securities firms.
"CEO."
Gwang-ho listening to story at that time opened mouth.
"Contact came from Manager Lee Jong-hyeok of JP Morgan now. Says wants to discuss related to CDS."
Seong-won felt like head hit by hammer.
Forgot because profit too big. We had CDS too right?
20 billion won CDS. What is current value of that? If possessing value over 100 billion?
Profit approaches 400 billion with just two transactions?
Became amount unbelievable even more. But too early to be surprised.
"Say I will contact."
"Understood."
"And will maintain current position."
"Yes?! Maintain?"
Shouted too surprised this time too. As Gang-hyeon stared at him Seong-won covered mouth urgently.
"S... sorry. Confirmed position maintenance."
"Good. Since market closed too, let's pay attention only to news a little. Everyone good work today too."
Kim Seong-won watching Gang-hyeon entering CEO office with nonchalant face asked Gwang-ho.
"That... Department Head."
"Huh?"
"Was CEO strong heart like that in original company too?"
"Well. Don't know well since wasn't same company. But one thing certain is our CEO is not ordinary person."
"Agree."
Gwang-ho thought seeing Seong-won moving head up and down.
Not even surprising now.
Already fourth time. Finding Bitcoin 170 billion. Bitcoin futures 80 billion. Overseas stock 100 billion. Plus 175 billion this time. Once can be luck, but if repeated becomes not luck anymore. Guy changed.
While surprised at friend's change he finished his work.
"Now, put up US side news auto search and let's leave work slowly too."
"Yep!"
Gang-hyeon entering CEO office picked up phone immediately. And pressed opponent's number.
Opponent answered phone not long after.
"No. Because now is work time for us. Said have something to discuss related to CDS?"
CDS Gang-hyeon currently holds is 20 billion one. But as NextMove stock price smashed overnight naturally value of CDS also rose vertically. Although difficult to grasp value in current market exactly, answer to give was already decided.
"No thought to sell yet."
Knowing it will fall more. Absolutely no reason to sell.
(End of Chapter)
— Translated by Prime Works —