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«Extraordinary Genius (Web Novel) - Chapter 1090 – Financial Fraud

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Chapter 1090 - Financial Fraud

This chapter is updated by Novels.pl

“Microsoft’s former shareholder, Director, and the World’s Second Richest man, Feng Yu, states that Microsoft’s shares are overvalued!”

“Feng Yu questioned Yahoo. “Why are you all worth so much?!”

“Feng Yu states that the hardware manufacturers’ share prices are inflated!”

“Feng Yu states some blue-chip companies are fabricating their financial reports!”

……

The headlines of major newspapers had gotten first-hand news from CNN. CNN had made high profits by selling this information, and their exclusive interview with Feng Yu made their ratings skyrocketed!

But after the interview, Ralph’s phone had been ringing non-stop.

“Boss, did you really say all those things?” Ralph asked.

“Yes, and I will take responsibility for what I said.” Feng Yu replied calmly.

“It is not a problem if you said those share prices are overvalued. But you mentioned that a blue-chip company is involved in accounting fraud… what should we do?” Ralph panics.

“I am not wrong. A blue-chip company had fabricated their financial report.” Feng Yu replied.

“What? Boss, how is this possible? That is a blue-chip company!” Ralph looks at Feng Yu. Only strong and powerful companies can be labeled as blue-chip companies.

“Why is it impossible? I had let my men investigate secretly. Although I don’t have concrete evidence, once those two people step forward, Enron will be bankrupt!”

“What? Enron? Really? Enron had just started their broadband services last year, and their share prices had been rising. It is worth over 60 USD per share now, and their shares are sought after by investors.”

Feng Yu looks at Ralph. “So what? Even if their shares are highly sought after by investors, can it prove that they had not fabricated their financial reports? If you look into this company, you will know that they had set up many off-shore companies to escape taxes and increase the company’s profits. Another reason is to move their funds to cover up their losses.”

“Move their funds? You are saying that they are using their own money to cover up their losses and inflate their profits?”

“That’s right. When the audit is on one of their subsidiaries, they will transfer their funds into that company to show high profits on their accounts. When the auditors leave, they will transfer the funds away. This way, their subsidiaries will always be profitable, but actually, they are only an empty shell.”

“Boss, should we short Enron shares now? When this is exposed, we can make high profits!” Ralph said excitedly.

“You should be focusing on the negotiations with AMD to acquire their shares. I will not forget your hard work if we acquire this company. But remember, you must not use any illegal means to acquire their shares.” Feng Yu emphasized.

If they can acquire AMD legally and not use any underhand methods, no one has penalized them in the future!

“Boss, I understand. But AMD is not interested in negotiating with us. They kept dragging us, and it is affecting our cash flow.”

“The funds we got from selling Microsoft and Yahoo shares are for acquiring AMD. Their share prices are also overvalued, and there will not be serious fluctuations these two days. You can also drag it out until next year. After their share prices crash, they will beg us to acquire them. You don’t have to worry about other investments.”

Acquiring AMD is very important to Feng Yu. This is the only CPU company that can rival Intel in the future. Although AMD cannot win Intel, after they turn their focus on graphic cards, they are better than Nvidia.

Another reason for AMD’s failure is they had made a few wrong moves in their research. If not, their market share will not be so low.

In the future, one of intel’s shareholder also become AMD’s shareholder. Many people speculate that AMD can still exist is because Intel allows them to. This is to prevent Intel from being sue for monopolizing the market.

But that shareholder does not have any voting rights, and AMD had poached people from Intel.

If Feng Yu has enough funds, he will acquire Intel directly.

But Intel’s share prices are overpriced now. All the Intel shareholders are making lots of money now, and none of them are willing to sell their shares to Feng Yu.

It’s almost impossible to buy the shares from others when they are making money. Feng Yu must offer premium rates if he wants to buy the shares, but he cannot afford even half the current price, let alone premium rates.

Even AMD is worth over 70 billion USD now. Of course, there are not many voting shares around, and Feng Yu’s target is these shares.

But it is not easy to acquire those shares. The shareholders had blind faith that AMD will catch up and even exceed Intel. Feng Yu also will not pay premium prices for those shares as the share prices will plunge soon.

“Go back to work, and don’t let anyone else know that we had contacted AMD.”

“Yes, Boss.”

Once this information is leaked, AMD’s share prices will rise, which is not beneficial for Feng Yu’s takeover bid. The market value of AMD is overvalued, and why would Feng Yu help them increase their share prices and increase their cost?

Now, Feng Yu is waiting for AMD’s share prices to crash and then contact those investors.

Feng Yu asked Ralph to contact AMD’s shareholders is to let them know that he is interested in their shares. He knows the shareholders will not sell their shares to him now.

But when the shareholders want to sell their shares, they will think of Feng Yu first.

When Feng Yu is relaxing and drinking his tea in his office, New York is in chaos. Countless media are trying to contact Feng Yu but were blocked by Ralph.

Lots of reporters are waiting outside of the Empire State Building for Feng Yu. They want to interview him and verified what he said to CNN.

Feng Yu regrated coming to his office and should have returned to China now.

……

Bam!

Paul Allen punched the desk in Bill Gates’s office. “This is too much! How can Feng announce to the public that our Microsoft shares are overvalued?!”

Bill Gates is also looking terrible. He also did not expect Feng Yu to say those things. Seems like they had fallen out for real, and Feng Yu is not holding back.

“Steve, call for a press conference. Tell the reporters that Microsoft is making high profits, and the share prices will continue to rise. Also, Paul, Steve, both of you, will take out a sum of money each with me to push our share prices up to stabilize the market!” Bill Gates ordered.

After Ballmer left, Bill Gates looks at Paul Allen. “Do you think what Feng said about the blue-chip company fabricating their financial report is real?”

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