Chapter 628: Woe is not a single one
Chapter 615: Woe is me
It was the last Friday of May, and the entrance to the Vienna Stock Exchange was now crowded.
The Austrian Securities Regulation Act has a clear provision that listed companies must publish their financial statements once every three months, which is the following month.
Because companies are listed at different times, the cycle of publishing statements varies, and a number of companies publish their financial statements at the end of each month.
Pick Friday, that is Saturday and Sunday stock market closed, can give the market to leave reaction time, lest the stockholders impulse, a brain sell.
If it is good news, naturally, do not wait until the end of the month, at any time can be announced to the public.
The financial statements of enterprises, financial newspapers will also be published, just an hour or so later than the time of the exchange announcement, the usual period is not so many people.
Now is obviously an exception, in the past few months all over Europe are on strike, the performance of companies on strike is naturally not good, everyone is prepared for it.
Maldonado is also one of the investors, usually he does not look at the announcement of the stock exchange, anyway, it is Friday, even if you look at it, the time is too late.
Today is an exception, he holds the largest number of shares in the Dacor textile factory to publish financial statements. Deep down, Maldonado was already expecting Dacor to lose a little less money.
There was no way around it, he was already trapped. From the time the strike broke out, Dacor’s share price has been going down, and it’s still selling more than it’s buying.
The stock price did not fall to the bottom, that is the Dacor textile mills family is big, has a supporting industry chain, anti-risk ability, investors still have confidence.
Looking at the crowd, Maldonado decisively entered the opposite door of the cafe to wait. Just entering the third floor, I heard someone greeting.
“Maldonado, this way!”
Maldonado answered and walked over, “You’re all here, it looks like today’s result is not optimistic.”
Several people were old friends who knew each other from playing stocks, and had been in this industry for some years, and only in the case of an unpromising market would everyone gather here to wait for companies to release their financial statements.
A balding middle-aged man complained, “Damn it, can’t you say something nice? That’s better than being so direct, even if it’s just a bit of fooling around.”
Maldonado shrugged, “Forget it, Karen. It’s not easy to fool you. If you were bullish on the stock market, you wouldn’t be here today.”
Obviously, the two were already very familiar with each other and spoke very casually.
As the stock market on the retail investors, they are only on the surface looks beautiful, in fact, every day in fear, a little wind and grass do not dare to relax.
Look at the hairline of a few people know that usually there is no less worry.
An old man next to them pointed to the exchange across the street, “It seems to have been announced.”
As old stockholders, they had their own set of methods of discernment. Just like right now, for example, the others were still squeezing below, and they knew by looking at the crowd’s reaction here.
Karen put down the coffee in her hand and said helplessly, “It’s really bad news, Maldonado has to say your mouth stinks!”
Maldonado had a bitter look on his face, “I didn’t want to, now I’m going down there to make sure just how bad the bad news is, is anyone with me?”
A few people looked at each other, the old man spoke, “Wait a little longer, the stock market has stopped trading now, there are so many people down there, it’s not that bad.”
Time rushed by, and the coffee on the table was already cold. Seeing that the crowd below had dispersed more or less, a few people went downstairs.
At this time, they realized that they were not only retail investors, but also some “big names” in the circle. Obviously, not a few people are concerned about corporate earnings reports.
With apprehension, Maldonado viewed the statement of the textile factory of Dacor, looking at the above specially labeled “loss of 1,248,000”, he closed his eyes, no longer look down.
The reason is no longer important, this astronomical loss, has far exceeded his heart expectations, only one idea left in his heart “cut meat stop loss”.
To know, last year, Dakoer textile factory’s profit for a year, are less than 1.5 million guilders. Now this loss, can be announced this year Dakor Textile Factory wipe out the loss can not be done.
Maldonado had already heard some people cursing and denouncing the management of Dacor Textile Factory as brain-dead, not even able to adapt.
……
Given the choice, the old Llano wouldn’t want to release the financial statements at this time. But there’s no way, not publishing the financial report on time will not only be fined, but will also usher in the regulatory authorities to investigate.
Not many companies can withstand the investigation, and Dacor Textile Factory is no exception. Anything that can be found out may be a fatal blow to the company.
Now the outside world is staring at them too much, a little problem may be magnified, and even the old Leno do not dare to financial statement falsification.
After more than a month of continuous strikes, it would be difficult for the company not to incur losses.
The amount of shipments, the total amount of transactions, the amount of tax payments, all these data can be checked, it is not easy to fake.
Theoretically, a shipment of one God’s Guilders could be sold for 10,000 God’s Guilders, all permitted by law, except that the enterprise would have to pay taxes according to the amount of the transaction.
When the transaction is far beyond the market price, the goods become luxury goods, and what needs to be paid is the luxury tax. This tax rate is much higher than normal taxes.
Theoretically, as long as the enterprise is willing to spend money to rush performance, turn losses into profits is very simple. In practice, such a fool simply does not exist. The cost of counterfeiting is too high, far beyond the limit of capitalists.
On Monday, the Vienna Stock Exchange opened with a wave of sell-offs as soon as the bad news about the severe losses of the Dacor textile factory hit the market.
The exchange only saw sell orders, no one at all to take over, the stock price naturally fell wildly. By the close of trading in the afternoon, the share price of Dacel Textile Mills had fallen by 14.7 percent.
This seems to be an acceptable rate of decline, but in fact, this is the nth time since the outbreak of the strike at Dacor Textile Mills that the stock price has fallen.
The stock price itself has already reached the bottom, after another drop, the market value of Dacor Textile Mills is only 63 percent of its peak.
It was not only Dacor that suffered a fall in its share price, but also all companies, especially those that went on strike, which suffered the most.
Investors believed that the companies that went on strike would lose as much money as Dacor.
In a market economy, it is already a matter of pulling the strings. Once a company’s production is affected, the supply of raw materials upstream and sales channels downstream, no one should be left alone.
The fall in share prices is also contagious, and many well-performing enterprises have likewise suffered an unmitigated disaster. By the end of the day, the Vienna Stock Exchange’s broader market as a whole had fallen by 4.2%, and the market was wailing.
Affected by the unfavorable factors in the market, in the next few days, the Vienna stock market continued to have blood avalanches, many enterprise stocks directly fell into the cabbage price, the stock market crash has officially come.
As of Friday’s close, the Vienna Stock Exchange broad market fell eleven eighteen percent, in just five days, the Austrian stock market evaporated hundreds of millions of sacred guilders.
The stock market crash is here!
Under the effect of the newspaper, the news of the outbreak of the stock market crash in Vienna quickly spread throughout the entire European continent, and the investors who had a good head on their shoulders, sold off their stocks at the first opportunity.
With the development of the economy, to date, the economic ties between the European countries more and more closely, the outbreak of the Austrian stock market crash, the European countries can not be alone.
A strange scene appeared, whether it is London, or Paris, the stock market is constantly appearing sell-off, but very few buyers. Any experts and scholars how to advocate, the stock market all the way down.
The “bailout” has become another hot topic after the “strike”, but before the “bailout”, the strike must also be resolved.
If companies can’t resume production, how can stock prices be guaranteed? The capitalists are in a hurry, and only a very small number of them are qualified to shear sheep on the stock market, and most of them are sheep being sheared.
In order to resume production as soon as possible, the capitalists also showed their skills.
Some capitalists chose to negotiate and compromise with workers; some capitalists chose to bribe and disintegrate; some capitalists directly let their thugs arrest their family members and force workers to go to work; some even directly sacrificed Gatling and swept the striking crowd, relying on bloody slaughter to force workers to return to work ……
Various kinds of god operation, constantly staged in the European continent, to the people to bring laughter at the same time, but also full of blood.
Where there is oppression, there is resistance. The bloody slaughter brought not only the return to work, but also a succession of workers’ uprisings.
Chaos, complete chaos, the entire continent of Europe is in disarray. All sorts of messy ideas took advantage of the opportunity to spread rapidly, and for a time the gods and devils were in turmoil.
Vienna Palace, looking at the chaotic situation, Franz also headache. Vienna government intervention early, Austria did not break out in a large-scale workers’ uprising, but the stock market crash is also enough to suffer.
Affected by the stock market crash, many enterprises are in the plight of insufficient funds. If not resolved, it is likely to trigger a new round of economic crisis.
If it is just a lack of capital, it is not a big deal, they can seek bank loans. On the contrary, these underfunded enterprises have a large number of problems.
For example: chaotic management, unresolved strikes, conservative business ideas, old machinery and equipment ……
With all these problems coming together, banks naturally come to the conclusion that the business is high risk.
When the market is doing well, banks naturally don’t mind high-risk business. High risk is often accompanied by high return, as long as the benefits are large enough, banks are not lacking in risk-taking spirit.
Now the situation is different, the stock market crash broke out, many of the bank’s business has been implicated, most banks are shrinking the silver root.
Not to mention high-risk business, even low-risk business loans, it is difficult to do down. Without collateral loans, banks simply do not take.
Franz couldn’t do anything about it, he couldn’t let the banks lend money knowing that there were problems, could he?
If you play that way, you’re not solving the crisis, you’re prolonging its outbreak.
It’s true that it’s good for the economy in the short term, but in the long term, it’s dragging the nation’s economy down to hell with it.
Expecting these businesses to bathe in fire? Franz thought it would be better to push to rebuild, at least it would require less investment and consume less social resources.
The survival of the fittest was the law of the market, and the Austrian market was not infinite. Saving these businesses at the expense of some of their peers essentially breaks the principle of fairness.
……
(End of chapter)