RPAGF Chapter 50 The Mad Dog's Thoughts on Antenna Rights
Chapter 50 The Mad Dog's Thoughts on Antenna Rights
Friday, July 1, 1972.
Suitable for: travel, transactions, alliances, and establishing foundations.
Avoid: treating illnesses, building stoves, felling trees, and constructing beams.
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Mandarin Oriental Hotel, banquet hall.
Chen Pu pretended to be an expert, holding an iron wire and giving a speech, claiming that only one "antenna" was needed to receive television channels, and that this was an epoch-making invention.
OMG! Take a picture of him!
Chen Guanjiang used a Hasselblad 500EL camera to record Chen Pufen's enthusiasm on stage.
"Xiangjiang Antenna has a total share capital of 50 million shares, with 5000 million shares to be issued at HK$1 per share, including an initial public offering of 2500 million shares and a rights issue of 500 shares..."
"Zhongyu Real Estate subscribes to 50 shares!"
"Sihai Real Estate subscribes to 30 shares!"
"The Chung family subscribed to 30 shares..."
“…………”
I have to say, this old man in his fifties really knows how to have fun.
Xiangjiang Antenna's registered capital is only HK$500 million, which is also HK$500 million based on its issuance volume. Since it acts as both referee and player, its actual paid-in capital is probably only HK$100 million.
Given their status in Hong Kong, these three individuals could have easily obtained loans from banks without paying anything themselves; in reality, they only had to bear the interest and didn't have to pay a single penny.
Interestingly, the company managed to get 500 million shares subscribed by people from all walks of life in Hong Kong alone, allowing them to bear the risk of the loan, while the company gained a listed company for free without contributing anything.
The issuance of these 500 million shares replenished the registered capital. Apart from the 2500 million shares already raised and the 50 shares issued through a rights issue, there are still 1950 million shares yet to be issued.
Based on the issue price of HK$1 per share, the shares in my hand are worth HK$1950 million. The question is whether I can fool retail investors into taking over.
"Sniper Capital, subscribing to 100 million shares!!"
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“…………”
The crowd below turned their heads and saw that it was a teenager who had made the purchase. They immediately started whispering among themselves, trying to find out who this person was.
Li Guoneng, who was traveling with them, whispered, "Buying so much to prop up the market? Be careful you don't end up in trouble!"
Those invited to the subscription dinner naturally know what it is, and those who are not sure will remind them what it is, but smart people never say anything about it.
Attending the dinner and subscribing to new shares is merely out of respect for the three founders, hoping they will remember this favor and provide assistance in the future in areas such as public affairs, education, and healthcare.
It's just a matter of giving face; a few tens of thousands of Hong Kong dollars is enough. There's no need to put on a show.
You need to be strong yourself to succeed; if you don't have the strength, no amount of flattery will help.
"No problem!" Chen Guanjiang said with a smile.
Following the "Jackson Yee Milk" incident, the stock market has already been hyped up and will soon reach a point where "everything rises," with Hong Kong Antenna also riding this wave and soaring out of control.
He figured he wouldn't lose money no matter what, and would even make a fortune, so Chen Guanjiang was naturally willing to subscribe to more, hoping to make money while also befriending the three fraudsters.
As for the shareholders who bought in at the top, and the capital that got trapped? Who cares!
It's unrealistic to buy them all. Antenna stocks are used to trap investors. How stupid would you be to put a noose around your own neck?
Even though Chen Guanjiang took one-fifth of the initial subscription, it only accounted for one percent of the total share capital, leaving him with ample circulating shares to extract funds from shareholders.
Exquisite dishes and various snacks were served to the table in a continuous stream, but the people present did not pay any attention to them, and just chatted and laughed in twos and threes with their wine glasses in hand.
The three founders walked through the crowd, expressing their gratitude to each person and exchanging messages discreetly. Before long, they found Chen Guanjiang in a corner.
Chen Pu raised his glass in greeting, saying, "Financial prodigy, it's a pleasure to meet you! We both share the surname Chen, so let's collaborate and make real money sometime; we're practically from the same clan."
Chen Guanjiang immediately seized the opportunity and said, "President Chen, you flatter me. I was just lucky. Since we are from the same clan, I will need your help in the future."
"My newspaper is preparing to publish a financial report. If it's convenient, could you help me with an interview? Or perhaps interview some agents from the Kowloon Club?"
"As for an exclusive interview... forget it! I can ask the brokerage firm to cooperate with you to report some inside information," Chen Pufen replied after a moment's thought.
Antenna Stock is designed to exploit shareholders. Chen Pufen is just an honorary director who gets some benefits. As a district councilor in Kowloon Peninsula, he should care about his reputation.
However, Kowloon Club's trading volume is the lowest among the four exchanges, only one-tenth of the other three. It would be good if a newspaper could help with publicity and reporting, but he himself cannot appear in person.
"So I'm going to bother you a lot?"
"Sure! You're welcome anytime."
"…………"
One needed to boost the exchange's profile, and the other needed information on securities investment; the two were a perfect match.
As the host, Chen Pu didn't want to neglect the others, so he simply exchanged contact information with everyone, agreed to meet again for a more in-depth discussion, and then hurriedly left.
After she left, Li Guoneng couldn't help but say, "You've oversimplified this matter. Those agents will give Chen Pu a one-sided interview, but they won't provide information for a long time."
Prior to this, the brokerage licenses of Xiangjiang Club were priced as high as HK$30 and were still unavailable.
When Far East Club was first established, a brokerage license cost HK$8. By 70, it had been inflated to HK$10. Last year, it cost HK$20, and this year it has jumped to HK$80.
The Gold and Silver Club is equally impressive, starting with HK$8 and exceeding HK$60 this year.
Kowloon Club has relatively few businesses and its brokerage licenses are the least valuable, yet the license fee has risen from HK$5 at its inception to HK$30 now.
Pan Jin-she, Jian Ri-lin, Wu Yao-sheng, Wang De-hui, Li Jia-cheng, Qiu De-gen, and Hu Ying-xiang all purchased brokerage licenses for their wives within three years.
Of course, a wealthy socialite can't go on stage to write on the board and shout, much less disregard her image by crowding around to buy stocks. Buying a brokerage license is just a way to speculate and resell for profit.
The Far East Brokers Association started with 46 brokers and now has 289.
When the Gold and Silver Association was founded, it had 72 brokers; now it has 248.
When the Kowloon Club was founded, it had 143 brokers; now it has over a thousand.
They made a fortune just selling brokerage licenses. Those brokers who spent a lot of money to buy the licenses were so busy trying to recoup their investment that they had no time for interviews.
"If you really mean inside information, then please, Chairman Lee!"
Chen Guanjiang narrowed his eyes and said, "I just want to cultivate a good relationship with Chairman Chen..."
With the Hang Seng Index poised for a surge, and the property market following suit, what need is there for insider information?
Any real estate stock will do; just ignore the nausea and blindly praise it. Even if one out of ten stocks falls, the prediction success rate can still reach 90%.
Knowing what kind of person this was, but not knowing what mischief he was plotting, Li Guoneng simply asked, "Come on! I'll introduce you to some people who will be helpful for your future!"
"That's great, please!"
"You and my brother, please don't be polite!"
From tax evasion to establishing a dog lovers' association, and then applying for five times leverage through East Asia Bank.
As the cooperation between the two parties deepened, Li Guoneng was also willing to invite the other party into the family circle...