Bab 169: Chapter 169: Bargain-Hunting High-Quality Assets
Hardy's mind brimmed with creative TV show concepts, including ideas like "The Talent Show" and "Millionaire." However, he chose to introduce only a few at a time, knowing that the television landscape in this era was still in its infancy. NBC and CBS, the dominant networks, primarily aired variety shows featuring song and dance troupes, which were popular but lacked the innovation Hardy envisioned.
The execution of TV show production was under the capable hands of Fox and Edward, but several key aspects required Hardy's direct involvement, such as logistics for the TV shopping programs. Given that the express delivery services of the time were far less developed than in future generations, handling the surge in orders from TV shopping would pose a significant challenge.
Hardy pondered the solution for a long time and gradually began to piece together a plan.
One idea involved partnering with Estee Lauder, which had counters in shopping malls across more than 20 major cities in the United States. When customers placed an order through TV shopping, they could receive a purchase code that allowed them to pick up their items at a nearby counter at a discounted price. This direct-selling approach would offer customers a price advantage of about 10% to 20% over regular counter prices.
While this method could impact counter sales, Hardy believed it would ultimately boost overall sales. A counter that typically sold 10 boxes of cosmetics daily might sell 100 or even 200 boxes thanks to TV shopping's broad reach.
However, this strategy was only feasible for companies with a nationwide sales presence. For a long-term solution, Hardy knew he would need to establish his own logistics and transportation network or set up large-scale distribution centers across the country.
The idea of "Walmart" popped into Hardy's mind—a retail giant that would later become the world's largest by market capitalization, with extensive cash reserves and sales channels, and over 10,000 stores worldwide. However, Walmart wouldn't be founded until 1962, and Hardy already had too many irons in the fire. He decided to focus on his current ventures before diving into large-scale retail.
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Hardy then turned his attention to Andy, discussing the idea of creating a financial stocks show. "You'll host the show, where you'll start by educating viewers on financial concepts, then offer commentary on the current stock market, and finally analyze a few select stocks," Hardy suggested.
Andy quickly grasped the potential. "With a national platform like this, our analysis could influence stock prices. Positive reviews could drive prices up, while negative ones could cause a sharp decline. We could make significant profits by anticipating these movements."
Hardy smiled, pleased with Andy's quick understanding. "Exactly, that's the plan. I'll leave the execution to you."
"Consider it done, boss," Andy replied confidently.
"One more thing," Hardy added. "I need you to compile a list of consumer-oriented companies that are undervalued due to poor sales. I've got a plan for them."
Andy was curious. "What are you planning?"
"We're launching a TV shopping segment to directly promote products on air. This will massively boost the visibility of those companies. If a product catches on, its stock price could skyrocket, providing a huge opportunity for profit—potentially more so than simple stock market speculation," Hardy explained.
Andy understood immediately. Companies like Barbie and Playboy, which were once on the verge of bankruptcy, had been transformed into highly successful businesses under Hardy's guidance. A few more success stories like these could easily fund the purchase of an entire broadcasting network.
"I'll get you a list of companies that fit the bill as soon as possible," Andy assured him.
Two days later, Andy presented Hardy with a list of companies.
"Boss, these companies match your criteria: they're publicly traded, produce consumer goods, have decent production capacity, but struggle due to limited exposure and geographic constraints," Andy explained.
Hardy reviewed the list.
"Little Hornet Motorcycle, a ladies' scooter company with an annual output of 10,000 units, has struggled with sales. Over 5,000 units are currently unsold, and the company is operating at a reduced capacity. The stock price is currently $0.58," Andy noted.
Hardy looked at a photo of the scooter, which bore a striking resemblance to the iconic Vespa scooter Audrey Hepburn rode in "Roman Holiday."
"How much does this scooter cost to produce?" Hardy asked.
"The production cost is about $50, and the retail price is $118," Andy replied.
Hardy stroked his chin thoughtfully. He saw potential in the product. "Andy, negotiate with the owner to buy shares in the company. Also, start acquiring stocks on the open market."
"Do you really think this scooter will sell?" Andy inquired.
"I believe it has great potential. Try to negotiate the lowest possible price. Once we've revitalized the factory, we can sell it at a premium," Hardy said confidently.
The next company on the list was a hair dryer manufacturer. The current model looked more like a bulky blower than a sleek appliance.
"This hair dryer is hideous, no wonder it's not selling. We need to hire a designer to create a more attractive model. If it looks good, sales will definitely increase," Hardy commented.
"Do you want to buy this factory as well?" Andy asked.
Hardy noticed the stock price was a mere $0.20, making the entire factory's market value only tens of thousands of dollars. It was a small investment with potential for a big return.
"Yes, let's buy it. The brand name alone could be valuable," Hardy decided, thinking ahead to the success of Dyson hair dryers.
The list included other businesses as well: a clothing factory, a ladies' handbag manufacturer, a bedding set producer, a shoe factory, a juicer factory, and even a chocolate factory.
Seeing potential in many of these ventures, Hardy instructed Andy to acquire shares in the companies. They would be among the first products featured in the TV shopping program.
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Andy, along with a team, visited the Little Hornet Motorcycle Factory. The factory owner, eager to make a deal, welcomed them warmly. As they toured the warehouse, Andy observed the piles of unsold scooters.
"I can buy all of these, but I'll need a significant discount," Andy stated.
The owner was delighted at the prospect of offloading his unsold inventory. "I can offer them at cost—$55 each," he proposed.
Andy shook his head. "I'm thinking $30 per unit."
The owner's eyes widened in shock. "That's half my production cost! There's no way I can agree to that."
Andy smiled calmly. "Products sitting in a warehouse are worthless. Selling them, even at a loss, is the only way to recoup some of your investment."
The owner understood the harsh reality. After further negotiation, they settled on a price of $38 per unit for the 5,000 unsold scooters.
With the deal signed, Andy turned to the owner with another offer. "Mr. Weiss, would you be interested in selling shares of your motorcycle company?"
The owner was taken aback but quickly considered the proposal. After some haggling, Andy managed to acquire 40% of the factory's shares, while simultaneously purchasing more on the open market, making Hardy's financial company the largest shareholder of the Little Hornet Motorcycle Factory.
This approach was repeated with other factories: negotiating for product purchases, then acquiring shares at the lowest possible price. Once the products were featured in TV shopping segments, Hardy anticipated a surge in demand, which would increase the value of his investments.
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While the business deals were underway, Bill contacted Hardy with an intriguing update. "Boss, the Mexicans took the bait. We're planning to make the exchange tonight. Do you want to be there?"
"Absolutely," Hardy replied. He wouldn't miss the opportunity to see such a thrilling operation firsthand.
That evening, Hardy's bodyguard drove him to a Los Angeles gang hideout. There, Victor, the French con artist working for Hardy, greeted him.
"Is everything ready?" Hardy asked.
"Yes, boss. The trade is set for midnight, just outside Los Angeles. I'll lead the team," Victor confirmed.
"Are you sure there won't be any issues?"
"Those Mexicans are fully convinced of my cover story," Victor said confidently.
Hardy turned to Bill. "Have you notified Lanster and his team?"
"Yes, they'll be lying in wait. As soon as the transaction is complete, they'll move in to arrest the Mexicans," Bill assured him.
The trap was set, and it seemed unlikely the Mexican cartel would escape this time.
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In the current Los Angeles drug market, the Mexican cartel held a near monopoly, leading to a surge in drug prices. They struggled to meet demand through their usual supply chains, making Victor's proposition incredibly enticing. The first transaction had gone smoothly, with the Mexicans selling 50 kilograms of drugs at a significant profit.
This success led them to trust Victor completely, and they eagerly placed an order for 250 kilograms, worth $900,000.
Late that night, two cars pulled up on the outskirts of Los Angeles. The Mexican leader and his men, eager for the lucrative deal, waited by their vehicles, smoking as they kept an eye out for Victor.
After about 20 minutes, headlights appeared in the distance. Two cars approached and stopped 20 meters away, their headlights shining on each other. Victor and his team stepped out of their vehicles.
The Mexican leader smiled as he approached Victor. "Good to see you, Mr. Macron. We've been looking forward to this."
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The trap was about to be sprung, and Hardy watched with anticipation, knowing that the careful planning and execution would soon pay off.
Bab 170: Chapter 170: California Congressman
Victor, whose real name was Macron, was accustomed to using various aliases. With a smile, he greeted Nieto, "Hello, Nieto. We meet again. I've brought the goods. Are you ready for the payment?"
"Of course," Nieto replied, signaling one of his men to bring forward a suitcase. They opened the suitcase under the car lights, revealing stacks of dollars.
Victor motioned to his men, who retrieved several large packages from the trunk and placed them in front of the lights. Both parties inspected the cash and drugs to confirm the transaction.
"The deal is concluded. I hope next time Mr. Macron can bring us more goods. As much as we need, Los Angeles is now our market," Nieto said proudly.
"No problem, we'll discuss the details next time," Victor responded with a smile.
Both groups departed, with Victor's convoy heading back while the Mexicans drove into a slum area, where the second-in-command of the Mexican gang was waiting. They unloaded the drugs into the house, and the second-in-command sampled the white powder from a bag with a dagger.
"This batch is still very pure. We'll mix it with glucose powder, sell one serving for three, and make three times the profit," he said with satisfaction.
Suddenly, there was a loud crash in the yard. A large truck burst through the door, startling the Mexican gang. Before they could react, a team of HD security personnel in black uniforms stormed in with submachine guns.
The HD security team wasted no time. They shot anyone they saw, and the Mexicans, though armed, were quickly overpowered. Within minutes, the security team had neutralized eleven gang members, with none surviving, and seized 250 kilograms of drugs.
As the scene was secured, two reporters arrived, followed by Los Angeles Police Department Chief Ed, who posed for photographs and conducted interviews at the drug dealer's lair.
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Back at his Los Angeles office, Victor handed over the suitcase to Bill. Bill opened it, seeing the money inside, and laughed.
"Boss, this must be the entire fortune of those crooks. Now, we have it all."
"Distribute the prize money to the relevant personnel, and the rest will be accounted for by the company," Hardy instructed, adhering to the formalities of their newly established organization.
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The next day, the Los Angeles Times headline read: "Los Angeles Police Department and HD Security Team Up to Bust Massive Drug Deal."
"Just yesterday, HD Security received a tip about a planned drug deal involving Mexicans. They tracked them down and broke into a tightly secured hideout using a large truck," the article detailed.
"The drug dealers resisted and opened fire, but the HD security team engaged in a fierce gun battle, resulting in the deaths of all the drug dealers and the seizure of 250 kilograms of drugs."
"This is the largest drug bust in Los Angeles history, with the seized drugs valued at over one million dollars."
"Chief Ed of the Los Angeles Police Department announced that due to HD Security's outstanding performance, the city government will award them."
Public reaction was positive.
"Since HD Security took over, Los Angeles has felt much safer. I used to be afraid to go out at night, but now I feel secure."
"Their patrols make me feel at ease. They even helped with a car accident by taking the injured to the hospital."
HD Security's reputation soared. They had outperformed the police, who were known for fining people. HD Security was praised for not only maintaining order but also actively assisting the community.
Two days later, the Los Angeles City Government awarded HD Security a bonus of $20,000 for their contributions and renewed their contract to increase their staffing, leading to higher salaries.
Unexpectedly, two days later, Lanster informed Hardy that a California congressman wanted to visit HD Security and meet with him.
"Which congressman?" Hardy inquired.
"Congressman Nicholson."
Hardy was taken aback. Having recently encountered future President Lee Gen, now another future President Nicholson sought to meet him. Nicholson was known to become the youngest vice president in history at just 39.
Hardy wondered if Nicholson's visit was due to his growing influence and wanted to make connections with prominent figures.
"Lanster, reply to Congressman Nicholson and confirm that I would be pleased to meet him. Also, have Henry prepare the most detailed report on Nicholson," Hardy instructed.
"Understood."
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Two days later, Nicholson, accompanied by his assistant, flew from Sacramento to Los Angeles. Upon arriving, Nicholson noticed several planes with the HD logo parked nearby.
"Hall, are these planes owned by Hardy?" Nicholson asked.
"Yes, Congressman. Mr. Hardy owns an airline company currently in its trial phase with 50 aircraft," the assistant replied.
"Mr. Hardy is indeed impressive, running such a large business so quickly after his military service. I hope our meeting will be fruitful," Nicholson said, preparing for his visit to HD Security.
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