Chapter 1168: Chapter 1074: The Worst News
Bolton took a deep breath and continued to ask, “If we start developing now, how long will it take to produce this pressure gauge?”
Technician Belle looked down at his toes, “Perhaps three months, perhaps half a year…”
He indeed could not provide a precise ti because the entire Bolton-Watt Company had never paid attention to this easily obtainable component from the beginning.
“Can we buy it from other places?”
“France should have them.” Belle replied, “It’s said that their high-pressure steam engine boiler pressure is already close to 0.6MPa.”
Bolton nodded, “Imdiately go to France for procurent, buy more.”
The company’s funds are very ample, with 370,000 British Pounds in cash on the books, as long as money can solve it, it’s nothing.
He then looked at Watt, “You have to spare so ti to oversee the developnt of the pressure gauge. I know, this small matter surely won’t trouble you.”
An inexplicable comfort surged in Watt’s heart. Since Sandler ca, he had never received such attention.
He proudly nodded, “Leave it to . In three months at most, we’ll be using our own pressure gauges.”
Finally, Bolton sternly warned, “This matter must not be told to anyone, including your family. Whoever dares to leak a word will face dismissal!”
However, that very afternoon, major newspapers in London learned about Bolton-Watt Company’s pressure gauge shortage due to the supplier’s bankruptcy.
The news was naturally spread by people from the Security Bureau.
Joseph set up the Hasman chanical Manufacturing Plant in Holland to “ignite” the Bolton-Watt Company.
The so-called fire was actually just the Security Bureau burning so empty houses there.
Montes, in high spirits, walked out of Jonathan Cafe with Grebe, discussing recent stock price trends.
Because of their accurate prediction of Bolton-Watt Company’s collapse, their clients avoided massive losses, and now they are celebrities in stock trading circles, with more entrusted orders than they can handle.
Nearby, a newsboy waved The Tis as he walked past the duo, shouting, “Latest news, Bolton-Watt Company may halt steam engine deliveries due to component shortages.”
Montes froze, tossed a few pennies to the newsboy, and snatched the newspaper open.
When he saw words like “sole pressure gauge supplier,” “bankrupted due to fire,” and “covers almost all steam engine models,” his pupils suddenly shrank, “Damn it!”
He grabbed Grebe and ran frantically back to the London Stock Exchange, hearing curses and wails from the hall before even entering.
Then, he saw on the bulletin board that Bolton-Watt Company’s stock price had already fallen to 33 British Pounds per share.
Compared to 57 British Pounds per share a week ago, it dropped a whopping 42%!
Imdiately, exchange employees changed Bolton-Watt Company’s stock price to 32 British Pounds and 7 shillings.
In this era, stock prices don’t fluctuate like in the 21st century, and due to cumberso trading procedures coupled with poor information flow, there might not be a movent all day.
But at this mont, the stock price jumped within just a few minutes.
This indicates there are currently a large number of stock trades involving Bolton-Watt Company.
When Montes saw Bolton-Watt’s stock price change to 32 British Pounds, he was jolted awake, dashed to the Bank of England clerk, pushed aside those in the queue, and grabbed the clerk shouting, “Tarren, has Lord Sesk’s contract been settled? It’s contract number 96-1458.”
Stock trading in this era wasn’t completed in real-ti—the efficiency of bank transfers also couldn’t support massive fund real-ti trading—usually, it would take 2 to 5 days after signing a contract for actual settlent.
The clerk nad Tarren recognized the familiar face and quickly searched the drawer files, pulling out one after ten seconds, shaking his head, “Regrettably, Lord Sesk backed out.”
Montes wiped cold sweat, stamring, “Then Mrs. Hubert’s, and Sir Lesfoot’s…oh, contract numbers are 96-1461 and 96-1463.”
Tarren adjusted his glasses, helped find those two contracts, and shook his head again, “Sorry, they have all chosen to back out.”
Montes was struck by thunder and almost collapsed.
Those engaged in stock trading must submit a margin to the exchange to ensure they will execute the contract for settlent.
But if they find the stock they bought has fallen too sharply, causing them massive losses, they may choose to default on the settlent, even though it ans losing the margin or even facing a penalty of not being able to trade stocks in the future.
Montes had been smug these days for quickly selling off all Bolton-Watt stocks before the price dropped, preserving thousands of pounds in client losses, including his own over 1,000 pounds.
But after Bolton-Watt’s 42% plunge, all these contract buyers chose to default.
Now he and his clients received about 3,000 pounds in margin but had already lost over 23,000 pounds!
And the stock price continues to decline…
Of course, he could choose to sue the defaulting buyers, but such lawsuits usually drag on for years, and if the compensation amount is too large, the other party may resort to underhanded tricks or flee overseas.
Not long after, Grebe also walked over looking ashen, obviously his contracts were also backed out.
Montes forced his spirit up, comforting his friend, “Don’t worry, things should still have a turnaround.
“The Bolton-Watt Company will surely find replacent components, by then stock prices will rebound.”
Half a month later.
In Bolton’s office, Hope pressed both hands on the desk, staring at Bolton, “You promised that there would be no issues with steam engine supply!”
“Don’t worry, I’ve already sent people to France for procurent. There are many similar pressure gauges there.” Bolton hurriedly smiled, “Mr. Watt will adapt the components at the fastest speed, by the end of the month, no, by next week we can resu delivery.”
Hope nodded with a sullen face, “I’ll believe you one more ti.
“I can help delay things a bit for civilian paddle stears, but for Navy orders, you know the consequences of failing to deliver on ti.”
“I swear, such a situation will never occur.”
Less than two hours after Hope left, a procurent officer who traveled to France knocked on Bolton’s office door, entered, lowing his head, “General Manager, I t people from Leon chanical Manufacturing Company, they refused to sell pressure gauges even if I offered 20 British Pounds each.”
Previously Dutch companies sold pressure gauges for only 1 pound 7 shillings each.
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