Chapter 1417

Sunset, sunrise, for most people, it's just an ordinary day, but for apple and its investors, it's another brutal trading day.

As was the case yesterday, the news before the opening of the stock market failed apple in an all-round way. From yesterday's closing to today's opening of the stock market, apple did not issue any more announcements, nor did it give shareholders a statement about the collapse of the stock price. The media seized on this point and made a big fuss, saying that Apple has given up resistance completely today.

In fact, whether Apple responds or does not respond, the result is the same. It does not respond. The media say that they have given up resistance. It responds, and the media will say that they are helpless.

In the news before the set, a financial program of a TV station said that according to the gossip, jobs had proposed to the board of directors to leave, and apple was now discussing the selection of a new CEO, but no one seemed interested in the position.

Before opening, some financial experts predicted that Apple's share price would fall at least 5% or more today.

If there is any major bad news today, it is estimated that Apple's share price will fall more than 10%.

When the US stock market was about to open, Louis Martin, senior VP of Sequoia Capital, got off the plane and hurried through the customs. He took the special car sent by Sequoia Huaxia branch and went straight to Muye technology to meet with Li Mu.

Although Louis Martin has been flying all the way, it's good that he is a private plane. So for him, the flight of more than ten hours is not fatigue at all, but gives him an excellent rest and relaxation experience. So he is on his way to the science and technology of pastoral area, and the whole human spirit is full.

Originally, Louis Martin was too embarrassed to talk to Li Mu after landing at night, but Li Mu insisted that he meet with Muye technology at the first time, so he had to keep on meeting with Li Mu in the night.

Li Mu met Luis Martin from the United States in his office. During the last round of financing, the two had a meeting, but that was mainly for the financing business of Makino technology.

Louis Martin is not only a senior VP of Sequoia, but also has rich experience. He has been working in the securities industry and IPO field in the early years, so he has a very deep understanding of the U.S. stock market. In general, the enterprises invested by Sequoia ultimately want to operate and list in the U.S., which is led by Louis Martin.

It can be said that Louis Martin is the one who knows the most about American stock market in the whole Sequoia system. In a word, Sequoia sent such trump card to Yanjing in a long distance. It can also be seen that Sequoia attaches great importance to Muye technology.

As soon as Louis Martin saw Li Mu, he immediately shook hands with him and said to him in fluent Chinese, "Hello, Mr. Li, we have met again!"

Li Mu smiled and shook hands with him. He said, "you've worked so hard, Louis. You can't rest for a moment after flying so far."

Louis Martin said with a smile, "Mr. Li, I'm here on our chairman's private plane. To be honest, it's more comfortable than a five-star hotel."

"That's good." Li Mu nodded, palmed to Li Ziwei, and said, "this is my personal assistant Li Ziwei. You can leave a contact information for each other, which is also convenient for future information exchange."

Louis Martin quickly shook hands with Li Ziwei and said, "Hello, Miss Li. Nice to meet you."

Li Ziwei also quickly shook hands with him to say hello, and then the two exchanged business cards.

Li Mu said to Louis Martin, "Louis, let's sit down and talk. What would you like to drink? Let Ziwei tell someone to prepare for you."

Louis Martin said to Ziwei Li, "Miss Li, please let me have a cup of coffee."

"OK." Li Ziwei nodded and asked Li Mu, "how about you, Mr. Li?"

Li Mu said, "I'll have a coke and add some sugar. I'm too tired these days."

After taking a seat in the reception area, Li Mu said to Louis Martin, "Louis, I'm looking for you so far. In fact, I want to ask a question. How can I buy most of Apple's shares, and then let Apple delist from Nasdaq to realize privatization?"

Louis Martin guessed that Li Mu wanted to find himself. He hesitated and said, "Mr. Li, I want to venture to ask, do you want to buy Apple wholly?"

Li Mu nodded, "yes, I want every share of apple, every product line and related patent ownership, and even their team."

Louis Martin said: "President Li, judging from the current plummeting trend of apple, it is not impossible for the market value to fall below $3 billion. At that time, from shareholders to individual shareholders and controlling capital will go mad. Even if these investors only buy 100 shares of apple stock, they will also make money, but the plummeting stock price and market value will make them lose their lives, and they will lose money It's very difficult to stop the loss. In this case, you just need to send a written offer document to apple, set a market value for the acquisition, and then let the management and the board of directors of Apple think about it. "

"That's it?"Louis Martin said with a smile: "this is the first level, because equity does not represent voting rights. If you want to acquire a majority of Apple's shares, you need to ensure that the majority of voting rights of Apple tend to agree with your acquisition. If these people with voting rights agree, then the shareholders behind do not have any meaning even if they do not agree."

Li Mu asked again, "what about the circulating stocks on the market?"

"Those who don't have to worry about, on the road of large-scale enterprise privatization, small shareholders and retail investors have no say. As long as the offer is voted by Apple's management, privatization will be easy," said Louis Martin

Speaking of this, Louis Martin added: "however, since it's privatization, most of them have to give a certain premium, some of which are 40-50% and some are higher. Based on the current situation of apple, we can't give them a number immediately. We have to understand him through in-depth investigation and evaluation On the one hand, we need to understand the current psychological state of their shareholders; if most shareholders are eager to jump out of this fire pit, it will be much easier for them to be privatized. As long as we give them a certain premium, they will get rid of Apple's shares as if they were hot potatoes, but if they were in the apple stock price explosion In the case of a fall, apple is still optimistic about its future, so privatization is not so easy. Maybe even if a premium of 100% is given, it may not succeed. "

Li Mu nodded softly and said, "it's just time for US stocks to open. Let's see how much Apple's opening price is today."

As soon as Li Mu's voice fell, Li Ziwei came over with her laptop, took out the U.S. stock trading software on it, and put the computer in front of Li Mu.

Louis Martin, unable to see the computer screen, said, "I read some pre market news on my way here. On the whole, today's capital market is not optimistic about Apple's future. I think today's stock price will fall at least 8 points."

Li Mu looked at the data on the screen and said in surprise, "it seems that your estimation is correct. Apple fell 7 points at the beginning of the opening, from $5.47 to $5.08. Today's drop below $5 should be a sure thing."

Louis Martin nodded and said: "today's Apple's news before the disk has a new bad news. A large number of returned iPods will force apple to spit out the profits it has already eaten into its mouth. In addition, a large number of users are protesting, asking apple to give a return or subsidy policy. When it comes to iPod returns and overstocked inventory, Apple will have the whole supply chain The crash, coupled with the constant protests from users, is really hard for apple to bear this time. "

Li Mu asked Louis Martin, "do you know much about apple? Do you know what their current inventory of iPod 3 is? "

Louis Martin said: "normally, the inventory digestion cycle of competitive electronic products is at least 5-60 days. If a mobile phone brand has an annual sales volume of 10 million units and a monthly sales volume of 830000 units, their normal inventory should be about 1.5-1.6 million units."

Speaking of this, Louis Martin added: "but Apple's iPod sales were still very good before, so their inventory digestion cycle should be very short. I estimate that it can only take 30 days at most. Take 5 million units a year as an example, the inventory sales should be about one month, about 400000 units, plus the recent return of users, it is estimated that it can reach 500000 units."

Li Mu nodded and said, "if Apple's iPod stock is 500000 units, and the sales volume is greatly reduced now, Apple will certainly not continue to maintain the previous production capacity, and it is likely to reduce most of the production capacity, and then use the inventory through promotion and price reduction."

"Almost." Louis Martin shrugged and said: "at present, there is no other way for the iPod 3 to go, except for a substantial price reduction. However, if Apple makes a substantial price reduction, the iPod business line will have no money to earn. So once apple is ready to make a substantial price reduction to clear its inventory, it basically indicates that the iPod will soon stop production, because they can not continue to let the OEM lose money production, and the OEM should be enough If Apple cuts production or stops production, the iPod production line may stop. By then, the iPod will die completely. "

Li Mu said with a smile, "if the stock of 500000 units is greatly reduced and liquidated, Apple may not be able to take back a dime of profits, and even have to pay back dealers and agents?"

"That's it." Louis Martin nodded and said, "but Apple was very strong with the dealers and the agent industry and commerce. The dealers paid for the goods first, then picked up the goods, and the agent industry and Commerce delivered the goods first, then settled the money according to the cycle. So if Apple plays a rogue, it can first default the unsettled payment of the dealers, then clear the inventory through its own Apple store, retain the cash returned from clearing the inventory, and continue to default Acting industry and commerce, in this case, how can hundreds of thousands of units of inventory give Apple back hundreds of millions of dollars in cash flow? "

After a pause, Louis Martin added: "but it will also bring Apple hundreds of millions of dollars of debt. If Apple has any way to break the situation, it can take the money to rescue first, but if not, it doesn't make much sense for them to intercept the money. It depends on whether Apple has any secret weapons."Li Mu was shocked.

By contrast, I'm far from a professional like Louis Martin. I only think of Apple's stock price plummeting, market value plummeting, profits plummeting, and all businesses suffering heavy losses. But I didn't expect that Apple could also use inventory as a starting point and a connecting point. Although it broke down the walls of dealers and agents to make up for itself, it could also lend over $100 million in cash As the saying goes, a skinny camel is bigger than a horse

Apple still has a huge cash flow. After all, what is impacted is the stock price and the current and future profits. Li Mu can't reduce the current cash on Apple's account, plus the cash that may be converted into over 100 million dollars from inventory, which is indeed a large amount. If Apple holds so much money, it is urgent to find out what will come out suddenly What a new thing! I can't make it break through in adversity. If that's the case, it's too fucking!

Then Li asked Louis Martin, "if I want to buy Apple as soon as possible, what's the best way?"