Chapter 1089 - Share prices are inflated
Chapter 1089 – Share prices are inflated
“Boss, these are the invitations from the media. Are you going to reject them?” Ralph place a stack of document neatly on Feng Yu’s desk.
“I am not interested. If you are interested, you can attend on my behalf.” Feng Yu laughed.
“My investment foresight is not good enough to attend the interviews. Everything I have now is given by you.” Ralph replied modestly.
“Alright. Everyone knows you are the Deputy CEO of Wind and Rain Holdings. It’s fine if you want to be in the limelight. Which young man does not want to be under the spotlight?” Feng Yu patted Ralph’s shoulder.
The corner of Ralph’s lips twitched. Young man?! Boss, you are much younger than me.
Ralph had set Feng Yu as his role model and is determined to learn from him. Although he knows he can never be better than Feng Yu, everything he learns will benefit him in the future.
“Boss, a few of the interviews are telephone interviews, and you don’t need to show your face. Are you interested? They are from respectable media.” Ralph asked.
Telephone interviews? Feng Yu is slightly interested.
“What media are they?”
“New York Times, Wall Street Journal, The Times, and some TV stations like CNN…”
“Alright. I will accept the interview from CNN. Help me contact them, and I will spare ten minutes for their interview in an hour.”
Feng Yu suddenly thought that if he gives Microsoft another blow now, it will make things worse.
Since Feng Yu had fallen out with Microsoft, he doesn’t mind being slightly more ruthless. As for that Gbox cooperation with Microsoft, Feng Yu had heard that Paul Allen had proposed to sell away their shares.
Luckily for Feng Yu, his agreement with Microsoft states that he will have the priority to buy the shares from Microsoft. The right to stop Microsoft from selling the shares of Gbox to a company he does not want.
Of course, this agreement is both sided. It also applies to Aiwa Little Tyrant.
An hour later, the excited CNN reporter called the number Ralph gave. “Hi, are you Mr. Feng Yu?”
“Yes. Are you the reporter from CNN?”
“Mr. Feng, I am Jack. A reporter with CNN. It is an honor to interview you over the phone.” Feng Yu could tell Jack is very excited over the phone.
“Hi, Jack.”
“Mr. Feng, many reporters are curious why did you pick our station for the interview?”
Not only Jack, the higher management staff of the TV station are listening attentively to the interview. They are also curious why Feng Yu accepted the invitation from their station.
“Because I remember that your TV station had bought the broadcasting rights of LA Wind and Rain Team.”
Huh?
Jack and the higher management of the TV station thought Feng Yu will mention about their TV station’s long history, reputation, ratings, etc.
But in the end, the reason is just that they had bought the broadcasting rights of Feng Yu’s basketball team. Luckily, this is a recorded interview, and they can cut out this part in the future.
“Mr. Feng, there are rumors that you had sold all your Microsoft shares after you left Microsoft. Is this true?” Jack asked the questions he prepared.
“That’s right. This is true. My company had sold all their Microsoft shares.”
“Can I ask if this is related to you leaving Microsoft?” This is a pointed question, hinting that Feng Yu had sold Microsoft shares in a fit of anger.
“If I say it is unrelated, will you all believe me? But the truth is… it is not related. No matter if I am still with Microsoft or not, I will still sell Microsoft shares for other investments.”
“Can I ask why? That is Microsoft. What other investment can yield better returns than Microsoft?” Jack asked, exaggeratedly.
“I think you should have heard that Mr. Buffett is very close to Bill Gates. But Mr. Buffett had never bought Microsoft or any other tech-related stocks. This is because he knows the prices of these stocks are overvalued.”
Jack is overjoyed. Feng Yu is implying that Microsoft share prices are inflated!?
Microsoft’s former shareholder, Director, and the World’s Second Richest man, Feng Yu, says Microsoft shares are overvalued! This is definitely tomorrow’s headlines!
Jack is the one who interviewed Feng Yu, and he will be famous! Even if Feng Yu does not mean that he can also use that part from the recording.
“Mr. Feng, can take it that you are saying Microsoft shares are overvalued?”
“Yes!”
This time, not only Jack is overjoyed. All the higher management are cheering in their heart.
Terrific! This is an earth-shattering headline! Feng Yu had admitted that he felt Microsoft shares are overvalued!
“Mr. Feng, can you explain why you thought so?”
“I think all tech-related share prices are all inflated. Have you all read the financial reports from those companies listed last year? Even their first-quarter financial reports are showing the companies are seriously in debt. Only a handful are making profits. For example, Yahoo. Why are the shares of this company worth so much? It is the result of speculators inflating the prices for their own benefits.”
Jack and his colleagues got more excited. Feng Yu had just attacked the leader of the tech stocks, Microsoft, and is not attacking Yahoo. Will he be attacking the hardware companies or PC manufacturers next?
“Do you think those hardware manufacturers’ share prices are also overvalued?” Jack asked.
“That’s right. I also think so.” Feng Yu gave a firm reply.
“Then, can you give an example?”
“Do I still need to give any examples? Just look at Nasdaq. Which company’s shares are being dumped the most now, and which share prices fall the most? Why are the financial institutions and brokerages dumping these companies’ shares? Those tech companies, and even some blue-chip companies, had indicated high profits in their financial reports. But one look, you will know there are some problems with the figures. The experienced financial experts should know what companies I am talking about.”
Feng Yu exposed some companies are fabricating their financial reports. Enron and MCI Communications are the prominent cases of accounting fraud. Of course, many other smaller companies are doing the same, but they are not worth mentioning.
In Feng Yu’s previous life, these two companies will be bankrupt within the next two years. They are the representatives of companies’ accounting fraud and are the first victims of the bursting of the internet bubble.
“Alright. I will stop here as I still have something on.” Feng Yu did not let Jack continue with the interview and hang up.
After this news is reported, Microsoft, Yahoo, and many other companies’ share prices plunged.
Enron