America 1919

If it falls to 45 cents, that would mean ABC's market value has shrunk by 25% since its listing.

Donnie continued to ask, "So what do you think about this whole situation?"

Jesse Livermore shook his head and said, "It's a completely illogical act, to be honest, I still can't understand why they would do such a thing. According to normal business logic, it's normal for ABC's stock price to surge and its market value to increase after listing."

You have to realize that shorting a war that defies normal business logic absolutely comes at a cost many times more difficult than shorting a company with real business flaws, and the expenditure is the same."

Donnie first nodded in agreement with Jesse Livermore's statement, then shook his head in his heart, rejecting Livermore's statement.

He was still explaining this matter purely in terms of business theory, but now, the situation was that the other party had clearly used means beyond business theory.

Perhaps this was why Livermore couldn't always maintain his solvency throughout his career, going bankrupt multiple times.
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The other party was only considering business theory, neglecting the influence of factors outside of business on the matter.

"Then, in this matter, do you plan to take action?" Donnie asked Jesse Livermore.

Jesse Livermore shook his head and said, "I cannot see through this matter; I won't make a move!"

Donnie revealed a smile and said, "A wise choice!"

Of course, Donnie's invitation to Jesse Livermore wasn't just to ask a few questions like these; Donnie had more important questions for Livermore.

"Then, if you were to do this, how would you do it?"

That was the question Donnie was most eager to ask Jesse Livermore. Although Donnie had led the short selling of Sinclair Oil Corporation, that was entirely Donnie leveraging his advanced understanding of stock market warfare, and additionally there was the powerful weapon of ABC.

In actuality, Donnie was not very familiar with the methods of corporate warfare of this era, especially in terms of specific operations.

"My methods are now outdated, especially after Mr. Block designed the short-selling battle of Sinclair Oil Corporation, wowing the entire Wall Street. Many people have come to see that battle as the most classic short-selling war of the new century. I heard that several Wall Street securities firms are studying your plan."

If so, I can't imagine how they would improve upon your plan. In fact, at this time, they have already made some enhancements.

First, they published Barry Company's investigative report in "The Wall Street Journal," then gradually led everyone to believe the credibility of this report through major newspapers.

In the end, they even got Goldman Sachs to drop out of the underwriters.

To put it plainly, all of this was actually just another way of carrying out the public opinion war you previously waged, Mr. Block.

Of course, these methods can only be supplementary. The decisive factor in the stock market, in reality, is cash.

Cash is king!

If I'm not wrong in my deduction, in order to win in such an extreme situation, Mr. Donnie, you'll need to prepare at least $15 million in cash, and this money might even end up in the hands of your opponents, making them seem like the losers, but in fact, they don't really lose, while Mr. Block, you seem to win with difficulty, but you don't really win!"

Donnie pondered for a moment, then said, "Please explain in detail, Jesse!"

Jesse Livermore explained, "We can now be certain that your partners, Mr. Block, have definitely sided with the opposition. So, as ABC goes public, those people will have enough shares to sell off and short ABC. During this process, Mr. Block, you would need to invest more funds to push ABC's stock price to your anticipated level."

In this way, it seems like the opposition is at a loss, but in reality, Mr. Block, the shares you repurchase in the stock market will definitely need to be sold at some point in the future, otherwise the listing of ABC would be meaningless.

Mr. Block, since you chose to list ABC, I believe, you have a larger cash plan, which means you need cash.

So, to maintain your plan, when you sell ABC's shares, it will inevitably cause its stock price to fall.

And what are your opponents doing during this process?

They use the low-priced shares obtained from the underwriter, sell them at a high price, and then repurchase them at a low price when you sell, thus completing a seemingly illegal but actually indifferent closed-loop logic."

As for the underwriters, there is even less to worry about. With the current gloomy outlook for ABC, the stock they are responsible for underwriting might not sell at all.

And precisely because you, Mr. Block, need to keep ABC's stock price up, your repurchase will suffice to complete their mission. I suppose that's why your underwriters are willing to stand against you, no matter what they do, they won't lose money."

Donnie gently tapped on the table, then asked, "So this battle, given the current situation, seems like no matter what methods I use, in the end, I'm the one losing!"