Chapter 18: Chapter 18. An Orphan Adopted Into A Chaebol Family, Part II
Translator: Khan
Editor: RED
Before the purchase of Jiwoo Entertainnt, there was one thing I was worried about.
‘What if the initial price is too high?’
‘Soone may have acquired this rger and acquisition information. Brokers and institutional investors who are looking for stock information are sensitive to this information, because it is big money. Prior to that, the major shareholder, his acquaintances, and senior executives also use internal information to trade stocks.
‘Of course, in this case, it is illegal, and if they get caught by the Fair Trade Commission, they will be handcuffed imdiately, but that is not so much because they use a nickna account such as a distant relative or acquaintance. The use of a nickna account is not only open to KOSDAQ, but also to the KOSPI.’
Thirty seconds before the opening, I checked how much the initial price was.
‘Isn’t the price running from the start?’
I feel uneasy. Until yesterday, there was no movent, but if the rger and acquisition information were to spread, the stock price could begin at the upper limit price of the market, around 30%. And then, I would not buy a stock, and I could not help but look at the stock at the upper limit price, like a dog chasing a chicken.
‘Please, let it not go up more than ten percent at the start...’
My concern was complete, baseless anxiety. The initial price was $2.94. The deal was about to start at the -2% level.
‘What is this?’
As a result, I was in a situation where I was afraid of getting off and could not buy, rather than worrying about getting up.
‘No, it surely said that the acquisition would take place today...’
Like the incident of Yuhwan Securities, which went down to -30%, and then was over at -3%, there was no clear information. I had no choice but to look at the stock price in a state of anxiety. I checked the article of 12 Hours After again. I scrolled down and quickly scanned the lower part, not the part I read earlier.
——————
[Jiwoo Entertainnt has been a stock under Issues of Administration due to a sudden deterioration in financial statents and the recent unreasonable investnt failure. It has solved the current financial problems by receiving the funds of the BEU group. According to an official in the company, this M&A was conducted as a secret matter known only to Kim Dong-il and several board mbers, and employees of the company, including the famous girl group Nine Tails’ mbers, were also embarrassed to hear this news in the afternoon.
But as if predicting this confusion, Wang Wei, CEO of the BEU Group, who beca the major shareholder through the rger, held a press conference at around 6 pm today and said, “We will make generous investnts and support for Jiwoo Entertainnt to enter China. I expect that the combination of Jiwoo Entertainnt’s excellent human resources and BEU Group’s network in China will create a great synergy.” He reassured Jiwoo Entertainnt shareholders, Jiwoo Entertainnt artists, and artists’ fans.]
——————–
‘This M&A was conducted as a secret matter...’
I was sowhat convinced that people in the company did not know, and it was very likely that this would not have been revealed to institutional investors yet.
‘Institutional investors and foreigners in the first place have little interest in stocks selected as Issues of Administration. If stocks bought with custor’s money are delisted, they will write an apology and explanation.’
‘So… is it just a simple adjustnt to go down today? If it is falling as a stock of Issues of Administration… it’s not strange to lose two percent a day… If so, it’s a great opportunity.’
The mont I concluded, the stock market started at 9:00, and the initial price was -2%, $2.94. Unfortunately, the color of the chart was red. In other words, so people were selling their stocks while crying. If they stayed one more day, they might make a profit, but ants could not see a day ahead of them.
I started to buy from there, sharing a little bit of my money, fifty-eight thousand dollars.
‘Yiing. Yiing. Yiing.’ My cell phone was starting to vibrate.
[Buy order is completed.]
[Buy order is completed.]
[Buy order is completed.]
It was the very sound of money-making vibrations that took place at the last eting. What was a little disappointing was that as it was a stock in Issues of Administration, I could not use a margin account like I did last ti. The securities companies implented the policy in the na of protecting investors, but it was clear that they were afraid of not being able to receive money back if they were delisted, after they lent investors money at margin.
‘Anyway, it doesn’t help a lot...’
I grumbled and continued to put in the buy orders. It was a bit of a pain to do so and I glanced at the other office workers. Everyone was busy with their work. Heo, who was a hindrance in everything, did not bother today. I put up my work screen and kept buying stocks.
Jiwoo Entertainnt’s market capitalization was about thirty million dollars. As it was a very small company in the KOSDAQ, which was crowded with small and dium-sized companies, the stock price edged up 0.1 percent and 0.2 percent with my fifty-eight thousand dollars. But I didn’t care, and I kept buying little by little. But then, by 9:10, suddenly soone else’s buying ca in, and the stock price suddenly popped up.
Until just now, it was at -3%, $2.91, but the share prices playing under the negative line turned fast into a plus, at 2%, $3.06. I was a little embarrassed.
‘Who is this all of a sudden?’
The stock that I bought so far was only forty thousand dollars worth, just over two-thirds of the fifty-eight thousand dollars. I still had to buy eighteen thousand dollars more, but the price had gone up because soone else had bought the stock. I swiped through the trading by trade agents.
[The Upper Trading Agents
Duri Finance 168,500
Jinsung Securities 13,100
rritt 4,000
Jooin Securities 2,000
Kiwi Securities 500]
My account was Jinsung Securities. In a word, I was the second person on that table. But soone was buying stocks at random with a Duri Finance account. I had no choice but to suspect.
‘Soone’s using a borrowed account?’
But there was nothing I could do about it, even if I doubted it. I started buying without looking at the price like before. However, the stock price increased more and more at 3%, 4%, and 5%. I saw every trade volu by trade agents as if a racing player was looking at a rival ahead of him.
Duri Finance 215,500
Hanshin Securities 137,000
rritt 64,100
PJ Securities 40,000
Jinsung Securities 15,100
Other securities accounts are now scrambling to buy the shares. Now I was sure. Information on rger and acquisition was open on the market. It was just that they didn’t buy it because they were afraid of soone. Then there was only one choice I could make: I would buy shares at market price with all the rest of the money. It was like a custor taking all the money out of his wallet and giving it to a rchant, saying “Give everything you got.”
But I did not have ti to think. I had to buy it cheaper than others.
[Buy order at the market price, full.]
[Buy order is completed.]
My cell phone rang again from my hand. After the buying, I saw my account balance.
Holding Stock
Jiwoo Entertainnt
Shares: 19,141
Purchase Price: $3.03( 1%)
Purchase Amount: $57,997
Current Price: $3.21( 7%)
Current Value: $61,442
Profit and Loss: $3,445
I barely bought the shares at $3.03. I started to buy it when it was at -2%, but it beca 1% as I bought it with the price increase.
‘Huh... There was soone who had the information...’
But then, the mont I thought about it, the price of Jiwoo Entertainnt skyrocketed, triggering VI, the Volatility Interruption. The current price was $3.33( 11%). The Volatility Interruption was a system that temporarily stopped transactions when the volu of purchases or sales was too high.
‘What is it?’ I saw a trading window. Now it had stopped at the current price of 11%. By the way, the remaining purchase amount was at 30%. It was hung at the upper limit price. I clenched my fist. ‘I hit the jackpot!’
After a while, as VI was released, a little deal took place at the upper limit price of 30%, and after that, the volu of people trying to buy any more stocks was scrambling up to the upper limit price. It was like they seed to cry out, “Please! Please! Please sell it to !”
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