Chapter 234, see Cisco from Apple
Just as Alice was working hard for her secret experiment, global stock markets were also experiencing changes.
As a Jordan Belford who is aspiring to work on Wall Street but can only cheat with fake certificates, his life in the past few months is like a dream.
Because he witnessed the rise of one myth and the fall of another myth.
In just three months, Microsoft, which went public in March, has become one of the hottest stocks in the whole United States. When there is only one month left before the day of the Broadcasting Day, too many people are turning their expectations for products into priceless stocks, constantly prompting the company's stocks to be sold again and again and again, becoming the most popular gold ingot on the Nasdaq Exchange.
At the same time, as a listed company, Microsoft also made their financial statements in April and May public. This big shot that earned $60 million on the day of listing has caused rounds of evaluations by Wall Street experts with its monthly net profit of tens of millions. Although this revenue is much worse than that of old-fashioned companies such as Dell, HP and even Apple, it was just the first quarter of its listing!
At the same time, as many Wall Street people do, Jordan is also comparing Microsoft and Apple.
To be honest, Jordan doesn't understand what Apple is doing now.
Or, he doesn't want to understand.
According to news not long ago, the CEO in power in Apple is John Sculley, or he is still the one in charge.
The former Coca-Cola company BSP Jordan feels that this guy is planning to replicate his marketing experience at Pepsi.
He was reducing the cost and selling price of Apple computers, placing them on the same water level as M to compete to grab M's personal customers. Based on the fundamental analysis method he had practiced since his student days, Jordan studied Scully's practices, and then threw away Apple's stock without hesitation.
Scully's strategy is actually very correct in the soft drink industry, because Pepsi or Coca-Cola are standardized fast-moving consumer goods, with low prices and quick purchases, and dominant behaviors. However, the biggest selling point of Apple computers is its uniqueness and superiority in experience. This is the product highland that Jobs has been trying hard to maintain from beginning to end. When Apple loses this biggest selling point, can it still have a future?
The fuse that made Jordan sell off Apple's stock was the new product list he received not long ago, which Apple distributed to every shareholder.
"Teresa, see what they are selling!"
At the dinner table in the morning, Jordan threw the newspaper in front of his wife angrily.
"They call this clothes? Theresa, look carefully, can this kind of shit be called clothes even if it's a bad style??"
Theresa just finished her breakfast, and she had not had time to sort out her fluffy rolls of black: "Wait a minute... Oh my God, it's really ugly!"
Seeing the product picture displayed by her husband, she frowned in disgust: "Why is it so ugly?"
The solid color and almost untouched gowns look completely a corporate cultural shirt, not a popular product. And the shorts that match it, the too soft fabric makes them look like beach pants.
"It's like a solid-color top that is as untouched as a suit and shirt, plus rustic formal trousers, or a monochrome skirt that is above the knee. What the hell are these? Including this hat!"
Jordan pointed to the model on a certain page in anger: "A solid-color pullover with no baseball cap or a little pattern modification, is this a working class who just got off work in the last century? Theresa, look at this one again!"
Turning another page, a female model was wearing an extremely loose blue-green sportswear and posing in a tactful posture: "It's a good thing that they still print the letters appe on their chest! What does this set of clothes mean? Is it a special outfit for female workers in farms who pick apples? What shit!?"
Theresa stared at the model pictures, looking at her look of being unable to bear it: "Apple is a computer company? What does it mean to suddenly get involved in the clothing brand industry? Computer engineers... Oh my God, do I know what those people wear all day long, and they design clothing?"
"Apple has a lot of financial resources. The year that Jobs left, their annual sales were $100 million."
Jordan said: "If such a big company really wants to show in the clothing field, don't you know if you should hire some senior designers? Look at these clothes, Theresa, and even a three-year-old child can design them!"
"A single color, no style, pullovers, trousers, uniforms, and baseball caps, is this Apple's product? Is this the perfect product of Apple that designs app1e?"
Theresa felt her husband was still a little too excited, and said in turn: "Maybe they are just too good at designing computers, so they will fail after changing into the clothing field, right?"
"But the problem is, Teresa, my baby."
Jordan calmed down a little and sat back on the chair: "You and I can tell that it is a garbage product, don't Apple know?"
"You mean..."
"Obviously, after driving out Jobs, Scully also realized that the new business methods would bring about a decline in profits, but he was unable to design excellent products from the Jobs era. Therefore, in the main business of computers, he could only allow his own products and M mass production machines to compete for the market, and the profits were seen falling."
"So, the launch of this clothing product is purely what he used to make up for financial statements, and there will be no future at all. Then you say, Theresa, since Apple has even used this trick, will its development prospects be better??"
“So…”
Theresa looked at the clothing pictures on the product list. As a woman, she swore to the sky that she would never buy these things: "You no longer have a good eye for Apple, are you planning to give up on it?"
Jordan's eyebrows had already been frowning, and he nodded vigorously, "Maybe it will usher in a new show after Jobs comes back, but if CEO has always been John Scully, I would have to give up this blue chip stock."
As early as when he was a student, Jordan made a lot of money with the rise in Apple's stock price. At that time, he didn't even have a forged license from a stock trader. He just used a clever way to persuade his companions to buy it, and then earned a little commission from his friends in private. Not to mention how much dividends he earned from the stocks he directly held, just this small share made him make 10,000 dollars in one semester!
But now, it's time to throw away old friends.
Not only because Apple will definitely decline with John Scully, but also the rise of Microsoft, and another gold medal potential stock that is extremely optimistic about Jordan, but has not yet made any news of listing.
Cisco.
Although the listing plan has not been announced yet, for this current industry leader, many banks and institutions of Wall Street's financial analysts have analyzed it a hundred times in advance.
Everyone is discussing wildly how Cisco has grown so quickly. From its establishment in May of the previous year to now, it has only been two years since it has achieved an annual profit of nearly 300,000!
Since the current foundation of the Internet hardware industry is blank, except for Cisco, several other companies have only changed careers around last summer, and there are only a few dozen companies, so most economic observers focus on a Cisco company. Of course, no matter Wall Street, countless companies that intend to develop similar products are also staring at Cisco's exhibition model, hoping to get even a little inspiration from it.
As far as Jordan knows, this company is definitely taking the elite route. As of today, the number of people has just reached 200, the proportion of software engineers accounted for more than 90 a year ago. As for now, the technical team has not expanded again, but not only has it launched a new generation of routers before November last year, but also launched a new product called switches this spring. Such research can only make people think that Cisco is implementing the elite route such an exhibition model.
"Teresa, this is actually a good thing."
After deciding to sell Apple's stock, he said to his wife: "Analyzing Apple's current corporate situation and stock market fluctuations has taken up the most time. Now that I have freed it up, I have the energy to study Cisco's prospects. This is a company established by King Alice himself. The Patent Administration's application for routers is all her! With such a genius, once Cisco goes public, it will definitely be the second Microsoft!"
"Jordan, so I have an idea."
Theresa gave her husband an idea: "Since you can persuade James Cameron to buy Microsoft stocks now, what about Alice King Po? If you set up an investment company right now, with your ability, you should be able to develop the company to the point where she can take on this job before she decides to do it, right?"
This is obviously a very attractive idea.
"The investment companies that can do poker are all big shots..."
Jordan thought: "You make sense. If the company's first po project is a guy like Cisco with unlimited potential... it depends on my eloquence, otherwise she would definitely be looking for Citi and others."
"Then we'll..."
"New plan! Theresa!"
Jordan kissed his wife excitedly and laughed: "It's not the time to set up a company. After all, I haven't worked in an investment company yet. In this way, my dear, I'll go to an interview with a bank immediately. After having some work experience, just like you said, open an investment company!"
As he said that, he didn't even have time to give his wife a sweet kiss, and he rushed to the bedroom like crazy, because the suit and tie were all in the closet. To be continued.
Chapter completed!