Chapter 747 – Market Opens
Kameda Masao was wearing a smart-looking suit. He had combed his hair neatly and stood on the stage speaking to the reporters.
This was the ceremony whenever a company was newly listed. A representative of the company will announce the company’s future plans and their forecast profits. This was to persuade more people to buy the company’s shares.
Kameda Masao spoke in perfect English and Feng Yu was standing in a corner sipping on his champagne. Kameda Masao was moved when Feng Yu told him to go on the stage on his behalf.
Kameda Masao was very superstitious and wore a green colored shirt with a green colored tie. He also had a green color handkerchief in his suit pocket. Many of the reporters were also wearing green ties. There was even one reporter with a green hat.
Feng Yu was speechless by their dressing. He did not have any green-colored item on him, but he also did not wear anything red in color.
In the US market, green color represents prices going up, and red represents drop.
Feng Yu did not expect the people here to be so superstitious too. Kameda Masao told Feng Yu that green was his lucky color and Feng Yu did not say anything much.
But in his previous life, Feng Yu had seen representatives from companies wearing red from top to toe before their company was listed. Feng Yu does not care about what others think, but he felt dizzy looking at them.
Feng Yu felt that whether the share prices go up or down, have nothing to do with the color of the clothes they were wearing. What matters most was the financial report and future development plans. Even if the boss of the company was wearing his lucky color, and the company does not have a good development plan or announcements, the shares will also plunge after it got listed.
It might even get delisted!
Kameda Masao was a good speaker. He was well prepared for this opening speech. He even added a few jokes in between.
After Kameda Masao finishes his speech, he was invited to sound the bell to announce the opening of the market.
Starting from this year, NYSE began to invite special guests to sound the opening bell. Nasdaq also copied this ceremony. Those that sounded the bell in the past were the stock exchange managers, and it was nothing special.
But after some special guests sounded the bell, it will be reported on the papers. This was also a form of marketing. From then onwards, many bosses felt it was an honor to sound the opening bell.
Who were the special guests? They were the representatives of the companies that were going to be listed on that day. Usually, they were the company’s directors or CEO.
Today’s Nasdaq opening bell ceremony’s special guest was Kameda Masao. As usual, Feng Yu refused to be in the limelight or being reported in the media.
Kameda Masao stood in front of the bell. He felt this was his greatest achievement. All the ones who had sounded the bell before him were all tycoons.
He will be sounding the bell and will be envied by others.
Dang!!!!
The bell was sounded. Feng Yu was also excited. This was his first listed company in this life. No. This was his first listed company in both his lifetimes. This company must not let him down.
Kameda Masao was in a daze and holding on to the hammer. It was as if time had stopped for him.
He was brought back to his senses by the applause, and someone took the hammer from his hand. Kameda Masao took a deep breath and waited for the initial share prices.
Sounding the bell only announces the opening of the market. It does not mean that there will be transactions immediately. Usually, it will be delayed for about 15 minutes.
When some big companies got listed, the delay was longer. Some were even delayed for more than an hour.
Why was there a delay? It was the market makers setting the prices of the shares. They will discuss and settle on the opening price.
Many people were interested in the Sixth Sense Company as it was the first sex toy company to be listed and Feng Yu had gotten top tier financial institutions to be their market makers to determine the value of this company.
But there was no company for Sixth Sense Company to be compared with. They were the first company of such nature to be listed. There was no benchmark or any companies as reference.
The market makers could only use the company’s past performance and their future earning capabilities as a gauge. Of course, the brand value also played a big part in their considerations.
But the market was interested in the Sixth Sense Company during a market survey before the listing. Everyone had high hopes for this company, and this was why Feng Yu was confident that the share prices will surge by 20%!
Kameda Masao was very nervous and kept talking to the people beside him. He had wanted to go over to Feng Yu there, but when he looked over at Feng Yu, he saw him shaking his head.
Kameda Masao knew Feng Yu does not like to be in the spotlight, and he just kept chatting with the people beside him. This was to distract himself from the nervousness.
Although Feng Yu was calmer than Kameda Masao, the opening price of their company’s shares was still not announced.
……
Warren Buffett contacted the people at Goldman Sachs. He had a good relationship with the people at Goldman Sachs. He told that he wants to buy out all of the Sixth Sense Company’s shares.
Who was Warren Buffett? He is the god of investment! If he wants to buy out all the shares, that means this company’s shares will inevitably rise!
There are several types of companies Warren Buffett would not invest. The first type is the companies that have incredibly high profits. Everyone will be curious why. If the profits are very high, that means the dividends will be high too. Why did he avoid these companies? The answer given by him was high profits will attract competitors. If the company is not ready for new competitors, their market share will be snatched away.
These companies’ financial reports only look good when they have high profits. But if their profits dropped, then this company will not be worth investing.
Warren Buffett will also avoid high-risk companies, companies that monopolized the market, and tech shares. His favorite companies are those with long term prospects.
The type of shares Buffett avoided most is the technology shares. This was because he does not understand such companies’ development and their competitors. Thus, he does not know how to evaluate the company. In Feng Yu’s previous life, IBM was the only technology shares he bought.
Today, Warren Buffett wanted to buy the Sixth Sense Company, and after this news was released by Goldman Sachs, many people had more confidence with this company. This also caused the market makers couldn’t decide on the opening price as there were more and more bids for the shares!
After more than an hour, the Sixth Sense Company’s opening share prices were released……