Chapter 1172

Feng Yu calls Kirilenko and Fu Rongqi to sell shares of WorldCom.

When Ralph uses BusinessWeek to expose WorldCom's fake account scandal, WorldCom will be as complete as Enron.

Three days later, a new issue of business week was released.

The head of an investment institution on Wall Street is sitting in his chair after work, just like every day, grabbing new business newspapers and magazines to get the latest business information.

He suddenly saw the cover of BusinessWeek, an Asian.

This gave him a lot of interest, so he opened the issue of business week first, which saved him from a huge loss.

Oh, this is Kameda Zhengxiong, President of wind and rain holding group. Wind and rain holding group is not Feng's company. Eh, this Kameda Zhengxiong or he immediately grabbed the phone on the table: "the stock of WorldCom company, all of it. Don't worry about the loss, now, now! "

At the same time, many people who get this news are selling WorldCom's shares. Think about Enron's lessons, and wait for WorldCom to turn over? Then wait for the stock of WorldCom to become waste paper!

In fact, securities regulators in the United States have noticed that WorldCom has a high debt ratio. The legend of small fish eating big fish has been staged again and again, relying on loans and new issues. Now it's not small horses pulling big cars, but small horses pulling trains!

Today, they also took note of the article published in business week, which said that WorldCom had provided a huge loan of 366 million US dollars to its CEO, eboth, but eboth had no mortgage. This loan, obviously, was a problem. It was eboth's pocket.

At the end of last year and the beginning of this year, a large number of engineering costs for WorldCom's expansion of its telecommunication system were not recorded as normal costs, but rather treated as capital expenditures. Such an accounting skill brought WorldCom a huge profit of nearly $3 billion.

But last year's profit of nearly one billion dollars and the first quarter's profit of about three hundred million dollars are nothing. They actually paid a lot of money.

What's more, the interest they need to repay every day is not a small amount due to a large number of loans, let alone the general nature of their business, where are the profits from?

If there is any profit, will they apply for another 2.5 billion dollars loan from 25 banks?

If other magazines break out this news, others will wonder if there is any problem in it? But if it's business week, you can believe it instinctively.

What's more, that one is not evidence: WorldCom's audit company, like Enron, is also Anxinda.

All in all, these two false accounting scandals have brought an almost total disaster to Anxinda. Before, they were the world's top audit companies. Now, no one dares to invite them.

If you hire Anxinda, then other people don't suspect that their company has also made false accounts? Even if you prove that you haven't, others may not believe it.

The day after the scandal broke out in BusinessWeek, the U.S. Securities and Exchange Commission announced an investigation into the past merger of WorldCom, as well as an investigation into the company's $366 million loan to ebox.

And they immediately sued WorldCom for civil fraud. Those false accounts have to be investigated in detail. Maybe there is more in it.

And xiaobushi, who is visiting abroad, is furious. This is the world's largest Internet provider, the second largest long-distance telephone company in the United States, which has developed by fraud. What will others think of their country? Scorched by the flames of the Internet bubble,

's economic collapse has been itself in a terrible state. As a result, the previous one's economy was good, which was a complete illusion. It was all hyped by these so-called companies.

if there are no such companies as Enron and WorldCom, will the network have such a big bubble? Is he in such a mess now? In order to develop an economy and look for cooperation with other countries, this president is too oppressive!

WorldCom's credit rating was quickly adjusted to the lowest level, not to mention loans. It has been said that the company is going to die!

At the same time, the 25 banks that originally intended to lend 2.5 billion US dollars to WorldCom also jointly sued WorldCom for fraud. Even some banks that had not recovered their loans before joined in the lawsuit, believing that WorldCom was defrauding their loans by falsely increasing profits.

WorldCom's share price plunged faster than Enron's. It also shows that investors are very nervous about such things as fake accounts.

However, in a few days, several audit companies found out that WorldCom had two more wrong accounts. The evidence of Mr. tortoida before was proved to be true. The problem of WorldCom's accounts has increased to nearly 8 billion dollars!

The stock price of WorldCom fell rapidly, from $70 billion in the previous period to $20 billion, and it is still falling rapidly.

We have formed a concentrated sell-off, many people's shares can not be sold out at all, but WorldCom's share price has been constantly falling as a result.

WorldCom quickly changed its CEO, but it didn't help. Although the new CEO claims that they have negotiated about $2 billion in financing and will continue to provide customers with high-quality services, no one believes it at all.Now the punishment decision that WorldCom faces has not come out yet. WorldCom's share price has fallen all the way and has already fallen below the issue price.

Even lower than the real value of WorldCom. After all, WorldCom still has a lot of fixed assets. How can the value of these assets be worth more than 20 billion dollars? Unfortunately, WorldCom has higher liabilities. These fixed assets are not enough to meet the liabilities.

As a result, WorldCom applied for bankruptcy protection faster than Enron.

Feng Yu bought WorldCom's shares in time to close their positions. This time, they made a small profit. If it wasn't for WorldCom's high debt ratio, they would have earned more.

This time, Kameda Zhengxiong, Ralph and so on also made a profit. At the same time, some shareholders of BusinessWeek also made a profit. It was also their participation that made Feng Yu fail to sell out more shares of WorldCom.

However, it doesn't matter. BusinessWeek invited Feng Yu to become an independent director, and even promised to sell part of his shares to him.

Frankly speaking, those shareholders want to have a relationship with Feng Yu. I hope there will be such a good business to make money next time. Feng Yu can bring them!

What Feng Yu didn't expect was that the scandal of false accounting began to spread more and more.

…… (to be continued. )