Reborn Capital Empire

Vol 2 Chapter 724: Future Investment

Chapter 724 Future Investment

…

When Guo Shouyun was chatting with his friends, he did not forget to pay attention to Unocal’s stock price. The upward curve is pleasant.

By the time the New York Stock Exchange closed at 3 pm, Unocal’s $62 issue price had risen to $73.4, an increase of 18.39% in one day. This growth rate is modest compared to when companies such as Microsoft, Apple, Amazon, Yahoo and others went public. However, Guo Shouyun is very satisfied. Unocal is just a traditional oil company, not a technology company. It’s not a much-anticipated investment for Wall Street, which is now focused on short-term gains and fickle with real estate. The ability to rise so much all at once is also thanks to the background of rising oil prices.

But in any case, with the stock exchange closed, Unocal’s market value of one billion shares increased to $73.4 billion.

“Time”, “Business Week”, “Bloomberg” and other business media have used their own front pages to report Unocal’s listing in detail.

Guo Shouyun, who has always been low-key, has once again become the focus of the global business community.

As Unocal, which entered the top 100 of the world’s top 500 as soon as it went public, was known to everyone, it once again raised the question of how much wealth this Chinese rich man has.

Kuo Business Group, Phoenix Bank, Thunder Fund, Unocal, Universal, Matrix, Pacific Energy Group, Ruby, Apple, Google, not counting Tesla Motors, which is still in the research and development state, and has not been listed on the market. , Among the many well-known assets of Guo Shouyun, LinkedIn is listed as an independent subsidiary of Ruby and now has a market value of 13.7 billion US dollars, ranking after Microsoft, Yahoo, eBay, AOL and Amazon. It is the United States and the sixth largest Internet in the world. company.

Unocal, with a market value of $73.4 billion, is the fourth largest U.S. oil company after Exxon Mobil, ChevronTexaco and ConocoPhillips. However, there are many giants in the oil field, and Unocal is not in the top ten in the world. But even so, in the oil field, it is also a giant-level existence.

Just looking at the list of shareholders announced by Unocal, people can’t find any information about Guo Shouyun’s shareholding. What the **** is Red Diamond Fund and Recco Investments?

Of course, as long as people with certain financial knowledge know that some of these holding institutions must be shell companies controlled by Guo Shouyun. However, these shell companies are not listed and do not need to disclose information to the public. So how many of them belong to Guo Shouyun, and how many are real investment companies, I am afraid no one knows except Guo Shouyun himself and a few people.

This has also created enormous difficulties for business survey agencies, especially Forbes.

Because more than 95% of Guo Shouyun’s assets in the United States are under the names of two public welfare funds, Bruce Foundation and Guo’s Charity Fund, they no longer bother to investigate Guo Shouyun’s American assets, which are covered by many mists, but only for his Assets in Asia are ranked after they are assessed.

Guo Shouyun’s assets in Asia are also not listed, and the scale is far from comparable to that of the United States. Therefore, after a conservative assessment, in 2003, his wealth on the Forbes list in the United States was 9.83 billion US dollars.

Such a ranking is naturally unsatisfactory when compared with the huge scale and influence of Guo’s Business Group, Phoenix Bank, Thunder Fund, Unocal, Universal, Matrix, Pacific Energy Group, Ruby, Apple, and Google.

However, Forbes also made a certain explanation, but the effect was very limited. Of course, the Forbes rich list is full of loopholes, and no one would really think that the rankings represent real personal wealth, except for the people who eat melons to watch the fun and have a real understanding of the inside story.

Guo Shouyun didn’t care about the disturbance from the outside world. After receiving phone calls from many friends and thanking them one by one, he began to push forward with the things he really cared about.

“Boss, this is the hiring list for outside directors.”

He took over the document in Rebecca’s hand and glanced at it, “Have you communicated in advance?”

“It has been confirmed that there are no strong figures, and they are all business elites who have some knowledge of the oil industry or who have worked in oil companies.”

According to the U.S. Securities Act, public companies must establish external boards of directors, boards of supervisors and other institutions to oversee the operation and management of the company.

In addition, the financial scandals of Enron, WorldCom and other companies in 2001 and 2002 directly contributed to the promulgation of the Sarbanes-Oxley Act, according to which outside directors have more participation and prosecutorial powers in company operations .

This means that Guo Shouyun’s management of Unocal will be subject to more external constraints. Although he still holds 57.78% of Unocal’s shares, he has absolute control and absolute control of the board of directors, but he also needs to consider the opinions of the board of directors and outside directors. This is the price of listing, to obtain public funds, but also to accept public, or external supervision.

“Since there is no problem, just follow this list.”

“The funds raised in this listing are 9.3 billion US dollars. Have you thought about how to use it?”

Rebecca nodded, “Boss, the rapid development of the global economy, including the United States, has increased the demand for oil. In the context of rising oil prices, the price of acquiring oil companies is too high, and the premium is too high. So I suggest temporarily abandoning mergers and acquisitions of oil companies in favor of oil exploration and investment in refined oil options.”

Generally speaking, there are more mergers and acquisitions in the industry during periods of industry downturn. When the industry booms, M&A activity decreases. The main reason is because of the premium. During the boom period of the industry, acquiring a company often pays a premium of more than 20% on the basis of the company’s market value, which will cause great financial pressure for the acquiring company.

Unocal started from its predecessor, Enron Oil, and has been focusing on mergers and acquisitions until now. As he said when Unocal went public, the company’s assets have soared from less than $10 billion to nearly $100 billion in three years.

And this period was also a downturn in the U.S. economy, and the premium for mergers and acquisitions was very low. But since 2004, things have changed.

“How much Unocal is investing in futures now?”

“The principal of US$3.47 billion, and the oil futures contract of US$10.41 billion held under 3x leverage, has achieved a total net income increase of 43.78% over the past three years.”

According to Guo Shouyun’s request, Unocal will invest 20% of its net income into oil futures every month, and now this fund has accumulated to 3.47 billion US dollars. If the position is closed, it will receive a net gain of $4.56 billion, and after deducting capital gains, Unocal has doubled its gain in three years.

From an operational point of view, financial investment can yield much higher returns and rates of return than oil development. That’s why Rebecca wants to put all $9.3 billion into oil futures.

What’s more, she knows her boss well, who has been a staunch supporter of long-term rising oil prices. Her suggestion is in line with Guo Shouyun’s investment philosophy, and the probability of being allowed is huge.

Guo Shouyun shook his head slightly after thinking about it.

“It is not appropriate to invest all in oil futures. If all goes well, Iraq’s oil resources will be officially allocated next year, and we will most likely get the Majinu oilfield, but the war has destroyed the oilfield’s extraction facilities, we need to reinvest, and I plan to To increase the daily production of the Majinu field to 500,000 barrels, which requires us to invest at least 4 billion US dollars. In addition, I am ready to expand the exploration speed of the ultra-deep water blocks in Brazil. If we find oil, we also need to invest heavily in extraction, These all require a large amount of capital, and the revenue of Unocal alone may not be enough.”

“Then how much capital reserve are you going to keep?” Rebecca nodded.

“Make up the company’s investment in futures by 10 billion US dollars, and put the rest in the company’s currency account.” Although we are not going to invest it, we must ensure that the money will not depreciate.

“I understand.”

“Will there be any prospecting tenders for Petrobras this year?”

“No news yet!”

“Keep an eye out if they keep bidding~www.readwn.com~ you know what I’m asking.”

Looking at the majestic eyes of the big boss, Rebecca nodded. She really couldn’t figure out why Guo Shouyun was so interested in the ultra-deep water area of the Sao Paulo Basin in Brazil. Perhaps as rumored, he is betting that there is a large oil field in the ultra-deep water area offshore Brazil. But the stakes are too high. In the past year, Unocal has invested 150 million US dollars in Brazil’s ultra-deepwater exploration, but it has not seen a single oil seed. If the scale of exploration is expanded this year, the investment will double several times. If you can’t find oil fields again…!

Thinking of this, after hesitating for a moment, “Boss, we will expand investment in oil exploration in Brazil. I am afraid that the board of directors will have great opinions. After all, we have not made any surprising discoveries there in the past year or so.”

“I’ll handle the pressure on the board of directors, you just need to do as I say.” After a pause, Guo Shouyun narrowed his eyes and said slowly, “Rebecca, I trust my intuition, that place There is oil, and there are big fields! God will give us a big surprise as long as we keep at it.”

Looking at the big boss’s determined expression, Rebecca sighed in her heart, and she guessed that the big boss would answer like this. In the past year, Guo Shouyun said the same every time he talked about this issue. In fact, Guo Shouyun didn’t have much to say. I can’t tell the other person directly, I am a reborn person, and there was a big oil field there in my previous life. We must seize the pit as soon as possible, and not let others rob it.

Guo Shouyun reckoned that Rebecca regarded him as a neurotic.

By contrast, pushing everything to your own intuition is a more reliable answer. Anyway, this is not the first time he has used this to prevaricate other people’s questions, it can be said that he is familiar with it.

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