mchenry-crisis.org Chapter 107 Mr. Ford's Latest Car
Chapter 107 Mr. Ford's Latest Car
Chapter 107 Mr. Ford's Latest Car (5k-word long chapter, please vote for monthly tickets)
At noon, Larry returned to Paine Weber Securities.
Mr. Wallace had already left a message for the new front desk manager, asking Larry to come to his office as soon as he returned.
Larry glanced back at the price chart, where Colt Firearms' stock price had risen to $92, but it had remained at that level for a day and a half without showing any sign of further increase.
Today's closing price for Colt firearms is 91.75 yuan.
It seems Mr. Wallace was also very conflicted about whether he should liquidate his position in the stock.
Larry thought for a few seconds, then walked to the general manager's office and knocked on the red-lacquered door.
"Come in!" Mr. Wallace's voice was very close to the door.
Larry opened the door and saw that Mr. Wallace was not sitting behind the walnut desk, but pacing back and forth in the middle of the room. When he saw Larry, Mr. Wallace was delighted and quickly invited Larry to sit on the sofa, and sat down next to him.
"Larry, have you been watching Colt's stock price these past few days?" Mr. Wallace asked bluntly.
"It's doing well. I mean, for a stock that has just had a rights issue, a gain of more than 50 points in a week is quite surprising," Larry replied with a smile.
Mr. Wallace nodded and smiled, saying, "If you hadn't flushed out the insider trading before, this stock wouldn't have been able to rise so rapidly."
Larry smiled but didn't say anything.
"However, this upward trend has recently stopped. I think it's been hovering above $90 for quite some time now," Mr. Wallace said, his smile fading and his brows furrowing slightly.
"Colter's stock price looks like it's losing momentum. Should we liquidate our position?"
Larry turned to Mr. Wallace and said solemnly, "I think it's almost time to liquidate the position. A stock launching a financing plan is a double-edged sword. Colt's financing plan will certainly announce increased orders and potential for explosive growth, but for many Wall Street investors, it also means that Colt will stop paying dividends for the next year. Colt previously had a dividend stock, but without a stable dividend payout, where is the stock's value?"
Wallace nodded solemnly after listening.
Larry continued, "Actually, the insider trading that washed out Colt's stock price in this surge only accounted for a small part of the increase. The most important factor was the public's discounted expectation that Colt would win the U.S. Navy contract. After learning this news, investors naturally reflected Colt's expansion and the completion of the contract in the stock price. After the stock price rose sharply, people naturally worried about when this expectation would be realized. Therefore, it was a wise move for us to sell at the right time."
Mr. Wallace continued nodding, then after a few seconds of silence, he looked up at Larry and asked,
"When will we deliver on our promise?"
Larry countered, "Has the Colt bond underwriting team completed its task? When will this news be officially announced to the public?"
"Tomorrow! Saturday morning. The underwriting team's task is complete, and Colt will announce its financing plan on the New York Stock Exchange and in major newspapers across the country," Mr. Wallace affirmed.
Larry nodded after listening, then smiled and held up three fingers. "The three waves of Colt shareholders are very clear. The first wave is us insiders, who can position ourselves before the stock price rises. The second wave consists of Wall Street bigwigs and well-informed funds; they are the main contributors to this Colt surge. When the news reaches the public..."
Larry flicked his third finger in the air and replied,
"...When the reasons for a stock's surge become widely known after such sudden insider information, it's just public investors left to take the fall. Therefore, my personal suggestion is to observe the stock price movement tomorrow. If Colt's stock price can smoothly break through $100 and continue to rise, then we can gradually sell our shares over the next week; but if the stock cannot stay above $100, we should close our positions tomorrow while there is sufficient buying pressure!"
"Great!" Mr. Wallace slapped the armrest of the sofa, then laughed, "I'll give you the morning off tomorrow. Go take care of your own business..."
After saying that, the two looked at each other and laughed together.
.
The next morning, Larry had no intention of going to Paine Weber Securities, but went directly to Reading's Boston branch.
But while riding his bicycle, Larry was so preoccupied with thinking about how to liquidate his positions and what to do if he encountered any problems that he unknowingly rode his bike back to the entrance of Paine Weber Securities Company.
By the time Larry realized what was happening, the car was already parked in front of the company.
Larry was a little dazed. Just as he was about to turn the car around, he saw a person in a khaki shirt waving at him from the intersection.
"Hi, Mr. Livingston! We've finally been waiting for you..."
Larry was startled and looked up, only to see that the person standing in front of him was none other than Henry Ford, the middle-aged inventor who invented the American "horseless carriage".
"Oh, Mr. Ford! You've finally arrived! I've been waiting for you for so long!"
Larry quickly jumped off his bicycle, walked a few steps to Henry Ford, and shook his hand tightly.
Henry Ford's excitement was no less than Larry's, and he smiled at Larry, saying...
"I've come twice already, and they both said you were away on business. I'm so lucky to see you today! By the way, I brought my latest, improved car with me. Would you like to take a look?"
Larry paused for two seconds, then, remembering that the stock market wouldn't open for at least half an hour, quickly smiled and said, "I couldn't be happier!"
Henry Ford pointed ahead, and Larry noticed a strange-looking machine parked on the side of the road opposite the Paine Webber Securities Company. Compared to the "cars" Larry remembered, Henry Ford's "car" was still a bit odd, but it was clearly much better than the clumsy horse-drawn carriage from before.
Henry Ford led Larry to his new car.
Ford's assistant, who was urgently adjusting the equipment in the driver's seat, jumped out of the car and stood by the roadside when he saw Larry approaching.
"This is my improved new car, which uses a twin-cylinder internal combustion engine. I have simplified the car as much as possible according to your improvement suggestions. Now, the actual weight of this car is only 500 pounds," Henry Ford proudly introduced.
Larry nodded, thinking to himself that 500 pounds was equivalent to 227 kilograms. It seemed that Mr. Ford had indeed taken his advice to heart, making a car weigh as much as a motorcycle.
This car is still based on a horse-drawn carriage chassis, but the previous bulky carriage has been discarded. The car uses bicycle wheels and the transmission is still a chain. It still looks a bit like a makeshift vehicle, but it is much better than its predecessor, the Clara No. 1.
Larry walked around the car twice, nodding repeatedly.
Henry Ford opened the car door and smiled, gesturing for Larry to get in the driver's seat and experience it for himself.
Larry, undeterred, sat in the driver's seat and felt the four bicycle tires squeaking and groaning as they struggled to support his weight. Then, following his memories from his previous life, he subconsciously reached for the steering wheel and stepped on the brakes.
However, he missed a step.
Larry suddenly realized that perhaps the brakes of this era were not yet on their feet.
"Mr. Livingston, you just need to press here... and the car will start!" Henry Ford pressed a brass button, and the internal combustion engine in front of the car started turning with a "split, split, split".
Larry nodded, gripping the steering wheel, thinking to himself that this car was much better than the last one; at least it looked decent!
I really want to test drive it now!
Larry was ready. He looked around the car, then turned to Henry Ford and asked,
"Mr. Ford, where are the brakes on this car?"
Henry Ford looked confused for a few seconds, then instinctively asked, "What's a brake?"
"...Um, so what should I do if I want it to stop?" Larry had a bad feeling and hurriedly explained to Henry Ford what the brakes were.
Henry Ford looked confused for a few seconds, then said, "But you haven't even gotten him moving yet... why are you stopping him?"
Larry was also confused and hurriedly said, "No, let's... let's re-examine the logic. If your car is driving and encounters a wall or pedestrian in front of it, it has to stop, right? That requires braking, doesn't it?"
Henry Ford thought for a moment, then said seriously, "Oh, we haven't encountered something like that before!"
Larry narrowed his eyes and looked at Henry Ford, asking, "So how did you manage to get this car here this morning?"
"It was brought by two horses!" Henry Ford admitted shamelessly.
Larry bit his lip slightly and continued, "Even if it was brought by a horse-drawn carriage, it should be able to stop, right? Otherwise, if the horse stops but the carriage doesn't, wouldn't the carriage hit the horse's leg?"
Henry Ford smiled wisely and patiently explained to Larry,
"Here's how it is. We made the horse's rope extra long from the start. When we got close to Paine Weber Securities Company, we slowed down. When we were almost at your company's entrance, my assistant and I placed red bricks in front of the bicycle wheels, and the car naturally stopped!"
Larry swallowed hard, thinking to himself, "I understand!"
I was still the guinea pig. Henry Ford was the first to test drive his car, and it was a car without brakes!
The first-ever car accident in human history is about to happen!!
Taking advantage of Henry Ford's inattention, Larry suddenly stood up from the driver's seat, jumped out of the car, and said to Henry Ford with a smile,
"Mr. Ford! I suddenly remembered I need to go to the brokerage firm to take care of some things. I personally suggest you install brakes on the car first, and then we can find another time for a test drive..."
Upon hearing this, Henry Ford's face changed color. He quickly stepped forward, grabbed Larry tightly, and said with a worried expression,
"Mr. Livingston, the biggest problem is... I'm broke! I used all the money I earned at Edison Electric Light Company, and I even mortgaged my house, to scrape together this latest, improved car... Now I've come to you so you can test drive it and then raise some money from the Wall Street bosses..."
Larry, looking equally troubled, said with a pained expression, "Sir, you should at least install brakes, shouldn't you?"
Henry Ford pointed to his khaki overalls, frowned, and said, "...Cute Edison Electric Company fired me for slacking off and delaying work. Now I don't even have the money to go back to Detroit..."
Larry paused for a few seconds, looked at the Henry Ford again, and asked, "How much do you need?"
Henry Ford's eyes lit up, and he quickly exclaimed, "$5!!"
Larry nearly spat out a mouthful of blood.
No, you're asking for $5 for your mouth? Isn't that a bit too stingy? I thought it was only a few hundred dollars, but I'd sponsor it then, since you're Ford.
But $5 is just too much!
Let alone me, even other wealthy suckers on Wall Street wouldn't hand over $5 based on your appearance, which suggests you've never even tried driving or parking!
Seeing Larry's hesitant expression, Henry Ford realized his request was a bit excessive and quickly continued,
"What I mean is... if you help me raise funds from Wall Street, I'm willing to give up some equity!"
Larry looked worried, took out his pocket watch and checked the time; there were less than twenty minutes left before the market opened.
Then he patiently explained to Henry Ford that Wall Street funding inventors came with conditions, at the very least requiring that the invention be of some semblance of quality.
You haven't even test-driven this car without brakes... How are you going to explain this to those big bosses?
Forget about letting them tour it, how are you going to drive this car all the way to Wall Street? Are you going to pull it to New York with just two horses?
Henry Ford, looking distressed, explained to Larry, "I couldn't install brakes because I didn't have the funds."
Besides, the reason I let you test drive it today is because we don't have enough gas, so we have to let you drive it first, right?
The reason I didn't dare to test drive it myself first was because I was afraid that if the chain broke, I wouldn't have the money to replace it.
I need to let you see what the finished car looks like before I feel comfortable taking it for a test drive!
Larry's eyes widened when he heard this, thinking to himself, "You didn't tell me there was a possibility that the chain might break!"
The two of them talked at length, each saying their own thing. Larry, with only five minutes left until the opening bell, gritted his teeth and said...
"Mr. Ford, I really have something to do today! It's Saturday, the last trading day of the week, and I only have two hours. How about this... I'll go take care of my business first, and I'll be back after 12 o'clock, then we can discuss this test drive!"
Henry Ford's face flushed red and then turned pale, but he held onto Larry's arm tightly, unwilling to let go.
After a few seconds, he made his decision and solemnly said to Larry,
"Mr. Livingston, that's settled then... I'll have my assistant stay here and watch the car, and I'll go with you to run errands... We'll test drive it together after we return at midnight!"
Larry glanced at his pocket watch and thought that this was the only way; otherwise, Ford would grab his arm and not let him leave.
"Okay, Mr. Ford! Let's run errands together. We can test drive your car together when we get back at noon, how about that?"
"Great!" Henry Ford smiled, but he still held Larry's hand tightly with one hand, showing no intention of letting go.
The two then walked hand in hand to the Boston branch of Reading Securities.
Once inside the business hall, Larry told Henry Ford that he had something to do, and then, amidst the suspicious gazes of everyone, he broke free from Mr. Ford's grasp.
Mr. Ford sat brazenly near the entrance of the sales hall, blocking Larry's escape route.
Larry didn't have time to worry about Henry Ford; there were only two minutes left until the market opened, and he hadn't even shown his account card to the Reading trader yet!
"Sir, this is my account card. Please verify it quickly, I need to make a transaction soon!!"
Larry handed over his gold-embossed account card.
The Boston receptionist was a chubby man, the kind of person who looked kind and harmless.
He took Larry's account card, smiled and nodded, and calmly instructed the trader to verify it. Then he arranged for someone to retrieve the transaction order for Larry.
It was already 10:02 a.m. on Saturday!
Reading's four quoting machines were clicking away relentlessly, and a dozen customers sat in front of the quotation boards, watching the quoting clerk fill in the first batch of stock quotes after the stock names...
"United Pacific, $80.5!"
"Barton Mining, 3 and 3/4 dollars!"
"European express shipping, $7.5!"
"Morgan Trust, $32.6!"
……
As Larry watched various familiar stocks begin to show their first quotes, he waited for Reading's traders to verify his account while simultaneously awaiting Colt Firearms' first offer...
Finally, the young man guarding the telegraph machine pulled out a strip of paper, shouted towards the price list,
"Collt firearms, $102 and a quarter of a dollar!!"
Larry bit his lip and nodded: The stock price is over 100!
It seems that Colt did indeed officially announce its financing plan to the public today, and enthusiastic public investors have begun to snap up Colt stock.
Larry had considered two possibilities: if the opening price in the morning was not significantly higher, or did not exceed 100 yuan, he would close his position immediately.
However, whether Colt opens higher today or jumps 10 points above the round number, it suggests that Colt may still have the potential to climb again.
Larry previously bought the stock in Hartford at a cost of $26.50. To date, each share has generated a profit of $75, and the 1500 shares have generated a profit of over $112,000!
This is the biggest profit Larry has ever made.
The current situation is good, so I don't need to close my position immediately. I can wait for a better closing position.
Larry glanced back at Henry Ford almost instinctively.
After another 5 minutes, the trader finally came to the counter with the transaction slip, smiling as he handed over the account card and the transaction slip.
"Mr. Livingston, your trading order has been retrieved. You are ready to begin trading at any time!"
Larry carefully put the account card back into his wallet, unfolded the transaction form, and filled in words such as "close position" and "1500 shares" before holding the transaction form in his hand.
Larry decided not to go back to his seat, fearing that Henry Ford would bother him again, so he simply stood there waiting for the latest Colt offer.
"Carnegie Steel, $72.1!"
"New York Commercial District, $5.25!"
"American tobacco, $1.95!"
"Collt firearms, $105 each!!"
The release schedule for chapters is still uncertain for the next couple of days, but it should be able to be released on time starting around next week.
(End of this chapter)