Investor That Can See The Future

Chapter 216

Where will autonomous driving technology be applied first?

The answer is logistics.

Unlike taxis or private cars, which move around the alleys intricately tangled like a spider’s web, large trucks only follow a set path.

You load your cargo at the port or warehouse and follow the set route to your destination. There is no need to eat, sleep, and rest in between like humans.

Therefore, the first job that will disappear when driverless cars come out is not a taxi driver, but a truck driver.

Autonomous driving is also self-driving, but electric trucks are also promising. Running long distances can significantly reduce fuel costs and change the logistics system.

Currently, cargo loading and unloading takes place outside the warehouse. This is because of the exhaust gases emitted by diesel engines. However, electric trucks do not emit exhaust fumes, so vehicles may enter the warehouse.

It is not well known to the public, but related companies are already fiercely competing. There are places where development is in full swing and experimental runs have been completed.

Nikola also has an eye on this and said that he would announce the Colon, an electric truck capable of autonomous driving within a year (though it is currently postponed indefinitely).

Instead of answering right away, Han Min-goo asked me.

“Then how can you help?”

“The surest way to solve many problems quickly is to start at the beginning.”

The problem starts with the airbag.

Important parts such as airbags are not ordered from time to time, but long-term contracts are made according to the vehicle production plan.

From the producer’s point of view, the order of additional orders is inevitably pushed back as they must first supply the quantity of existing contracts. This is why Eunsung Motors is having difficulties in supply and demand.

“First, we will shift some of the airbags that Karos is receiving to Eunsung Motors, and order production expansion.”

Currently, Karos has supply contracts with three companies. As the production of new cars is ahead, the number of orders has increased. However, the launch of the new car was delayed due to the occurrence of the Big One. So even if you change the quantity, there is no problem.

“After solving the airbag problem, we need to eliminate short selling. Then the stock price will go up and the dissatisfaction of shareholders will subside.”

“The condition would be to sell the truck division first.”

“Eunsung Motor’s heavy truck division produces very little profit, so if you sell it, the market will take it as a good thing. We may be able to secure that much money.”

After all, he would have thought of selling some of the businesses for a governance restructuring.

After thinking for a moment, he nodded.

“I think we need to talk more deeply.”

* * *

Back at the office, I called Seo Sang-won, the team leader.

“Are you very busy?”

“Fine.”

Recruited as an M&A expert, he was tasked with linking with his team members so that their subsidiaries could work together. It’s just that the stakes don’t come and go, and it’s quite a brain thing to adjust the conditions.

“I have one more thing to do.”

“what happened?”

“Go to Eunsung Motor and adjust the terms of the sale.”

Hearing my explanation, he smiled bitterly.

Team leader Seo Sang-won came out of the Eunseong car and joined us after wearing the stigma of a traitor after losing the X-Cop acquisition.

But this time, we have to negotiate with Eunsung.

“If you feel uncomfortable, I will leave it to someone else.”

“no. Work is work.”

After team leader Seo Sang-won left, this time he called Sang-yeop senior.

Sangyeop, who came up to the CEO’s office, asked.

“Chairman Jin-yong Lim gave me a car? Did you have any presents for me?”

I shook my head.

“I didn’t.”

Senior Sangyeop had a sad expression on his face.

“Ah… … I like tea too.”

“You just picked up a Porsche 918.”

“That’s it. So, can’t you just rent a Bugatti Veyron for a month? It’s a car that is hard to get even with money.”

“Can that car drive on public roads? The car was so low that it didn’t seem like it would be able to go over the bumps.”

“So there is a separate navigation system that only shows roads without bumps. You can’t go into the alleys at all.”

“… … .”

Do I have to endure this much inconvenience to get an expensive car?

“I really want to drive one. Is there no way?”

“I’ll ask if you can test drive on the circuit.”

Sangyeop’s expression brightened at my words.

“Really?”

“Before that, I have work to do.”

“What?”

“Buy some stock.”

After talking with Sang-yeop senior, I called Chairman Im Jin-yong.

“The car you gave me is running well. Ellie and Hyunjoo noona want to say thank you.”

[Haha, I’m glad you liked it too.]

“I got tea as a gift, so I thought I’d give you a present in return.”

[I’m looking forward to it. What kind of gift is it?]

“In terms of the amount, it will be more than 1 billion.”

Most of Chairman Im Jin-yong’s assets are tied up in stocks. You won’t have any money though. There must also be a slush fund hidden in an overseas account by the late Chairman Im Il-kwon.

After hearing my story, Chairman Im Jin-yong burst out laughing and said.

[I received a gift that is too big for what I gave. Thank you.]

When I said goodbye and hung up the phone, Taek-gyu asked.

“We only need to earn, do we need to tell you all this?”

“That’s a very good point.”

Again, short selling itself is not bad. It’s a problem to play around with it. This is not the first time that either an institution or a foreigner has robbed individual investors in this way.

This is why the Korean stock market is said to be a graveyard of ants.

“This time, we need to take a look at the hands of those who play tricks on the stock market.”

I then called the US.

“Hello, this is Jinhoo Kang.”

The other party welcomed the call.

[Long time no see, CEO Kang. how are you?]

“Yes. Is the president holding it well?”

[of course. I was bored, so I was thinking about going to Seoul to meet CEO Kang.]

“I want to go to Atlanta, too.”

[Haha, come anytime. Let’s take a tour of Coca-Cola’s headquarters. You can drink cola from all over the world as much as you want in it. I also occasionally go out to play and drink a few cups.]

We talked for a while and then brought up the main topic.

“I wanted to tell you about a good investment destination.”

Then he said as a joke.

[I don’t know if I can listen. These words are usually fraudulent.]

That’s right.

If there is a good investment place, why would you tell others if you only know it and invest?

I said with a smile.

“Listen once and judge for yourself. Speculators are playing a bit of a prank on the Korean stock market right now, do you know?”

[of course. They said Albert was leading the way.]

The concept of value investing has been around for a long time, but it was Benjamin Graham who first theorized it.

Warren Bot was so impressed with his lectures as a student that he developed the theory further and created his own way of investing.

Warren Boat’s investment method is simple enough that anyone can follow it. It is simply buying undervalued stocks at a low price and holding them for a long time.

Of course, he also sells short, but it is for hedging only, not for the purpose of making a profit in itself.

Rather, it is very negative about speculative capital. He has criticized Carl Singer on several occasions, and he has argued that the government should step in and regulate it.

“So I mean… … .”

I explained my plans. Then Warren Boat burst into laughter.

[Haha, that would be really fun.]

“It’s fun, but it’s also an opportunity to make money. If the president helps, it will be much easier.”

[Okay. You can’t miss this great opportunity.]

* * *

The best way to make money with stocks is to buy when the stock price goes down and sell when the stock goes up.

In reality, however, the opposite happens.

When the stock price falls, fewer people want to buy and the trading volume decreases, and when the stock price rises, more people want to buy and the trading volume increases.

As the Korean stock market continued to fall, the trading volume also decreased significantly, and the stock price fluctuated even with a small sale.

When individuals who can no longer withstand the decline in the share price start selling, they can buy the stock and repay the short sale.

However, without realizing it, the trading volume gradually increased. As someone continued to accept the supply, the stock price rose little by little despite the short sale.

When hedge funds felt something strange, Eunsung Motors suddenly announced a free capital increase.

“As part of our shareholder-friendly policy, we will implement a free capital increase with a dividend of 0.1 per common share.”

If there is a change in the number of shares, such as a par merger or a free issue, the shareholder list is closed. According to the regulations, in this case, the loan transaction must be liquidated.

Although free stock offering is used as a response to short selling, it is not a fundamental solution. This is because, unlike a rights issue, a bonus issue is only a change in the financial statements and there is no change in the total capital.

Still, it has the effect of raising the stock price by temporarily short-covering it.

The short selling of silver cars accounts for 25% of the total trading volume. This is the highest figure including the KOSPI as well as the KOSDAQ.

Anyway, there was no big problem because I could make enough profit even if I liquidated the short sale now.

But this was not the end.

Suddenly, Jin-hoo Kang appeared in front of the press and made an announcement.

“… … Recently, the domestic automobile industry is facing many difficulties. Accordingly, we negotiated with Eunsung Motor to support the airbag volume that Karos has signed a contract with. I think the delays and recall issues will be resolved soon.”

The market was shocked by the unexpected announcement.(Read more @ wuxiax.com)

Airbags were the biggest cause of the silver car’s share price drop. I was surprised that they came up with a solution to the supply-demand problem, which I thought would take several months, but I was more shocked that OTK Company took the initiative.

I hope Kang Jin-hoo will help Eun-seong-cha!

The share price of Eunsung Motors skyrocketed as soon as the announcement was made. Hedge funds that have been selling short in the meantime were bewildered.

All at once they started buying for short covering, but somehow, a lot of the circulation volume disappeared somewhere. There was no selling, only buying, so the price went up even more.

The silver car, which rose 17 percent on the day of the announcement alone, rose 11 percent the next day, but the trading volume continued to decline.

Subsequently, OTK Company posted an announcement.

[OTK Company, Cell Twins, Biogen, SLJ Acquisition of Shares!][Is it a simple investment or is it entering the bio industry?][According to a company official, we are open to all possibilities such as mergers and acquisitions… … ][Which stocks will benefit from OTK Company’s investment?]

If hedge funds’ primary target for short selling was silver car, the secondary target was bio stocks. Bio stocks, which have relatively small market caps compared to silver car, suffered more damage from short selling.

When you buy a stock, you want the price to go up, when you short sell, you want the stock to go down.

For this reason, the short selling forces have spread all kinds of false information in the market, leading to a decline in the stock price. Fraudulent accounting theory, large shareholder selling theory, new drug approval rejection theory, clinical experimenter death theory, etc.

It actually worked, so bio stocks plummeted more than 40 percent in a short period of time without any bad news.

However, OTK Company suddenly started buying stocks.

Has Jinhoo Kang ever failed in investing? This meant that bio stocks were undervalued.

As the facts became known, bio stocks, which had been plunging repeatedly, rose by 20% all at once.

Short selling is a structure where the higher the stock price, the higher the loss. Hedge funds were bewildered by the sudden situation, and executives and shareholders of bio companies who suffered from short selling cheered with their arms raised.

People responded that it was absurd and that it was ridiculous.

Who is Jinhoo Kang?

During the L6 crisis, Suseong Electronics first appeared in the financial market by short selling and put options, and during Brexit, it earned tens of billions of dollars in foreign exchange markets in the UK and Japan. And when Ronald was elected, he raked money around the world in a similar way during the Big One.

It is no exaggeration to say that Jinhu Kang is the most famous financial speculator of the 21st century.

-Otaku VS Hedge Fund?

– Isn’t it just speculators vs speculators?

-Are you pretending to be kind to the subject of short selling of Seoseong Electronics?

– Am I Nambul?

– Whatever it is, let’s fight short selling.

– Short coverings will keep coming.

-If you look at the amount they have sold so far, this is just the beginning. Never sell, save.

– Cell Twins minority shareholders, let’s do our best!