Capítulo 103: Chapter 103: Wall Street is the Biggest Gold Mine
Looking back at the "Wolf of Wall Street," Hardy admired Jordan's operations. They targeted junk small and micro stocks, packaged exaggerated publicity, and tricked retail investors into buying them.
For instance, the so-called "U.S. Future Communications Leadership" in the movie was actually a rudimentary workshop on a remote rural road.
As they sold stocks, the price soared rapidly, creating a false impression and drawing in more investors' money. When the stock price peaked, they sold their shares and made substantial profits, leaving those who bought at high prices locked in.
This type of operation is definitely financial fraud. If investigated by regulatory authorities, it would lead to imprisonment. However, in 1946, transactions were done with paper, pen, and telephone. There were no effective methods to supervise communications, accounts, or assets.
Due to technological limitations, the regulatory authorities lacked effective measures. As long as the operation wasn't too crude, it was difficult to verify.
In fact, this was the case in the U.S. until the 1970s and 1980s. Even in modern times, such operations are not uncommon. Even with supercomputers and extensive data retention, some still manipulate stock prices.
Walsh Mining, which Hardy controlled, was a junk small and micro stock, and he was the major shareholder, making it easier to manipulate.
"Andy, this matter is in your hands. Is the $200,000 in the account enough?" Hardy asked with a smile.
"Hehe, it's enough," Andy replied.
Andy instructed the security company personnel to open new accounts. He avoided using the existing ones due to traces of previous operations.
A total of 60 new accounts were opened, each with a few thousand dollars.
Andy didn't rush to buy stocks. With Walsh Mining's current value being too low, a few thousand dollars could potentially raise the stock price.
Two days later, Walsh Mining released its quarterly earnings report.
The report showed:
In the last three months, Walsh Mining's income was zero, and its debts increased by $110,000 for wages and other expenses, raising the company's liabilities to $346,000.
Originally, Walsh Mining was a junk stock with no investment value. Its stock price hovered around $0.03, mainly because the price was too low, and some investors hoped for a future increase.
With the new financial report showing no improvement, investors grew increasingly disappointed. The stock price fell from $0.03 to $0.02, with a large number of sell orders.
Andy took the opportunity to acquire the circulating shares of Walsh Mining. He bought whatever was available.
This pushed the stock price up to $0.03.
Despite the increase, many investors remained skeptical. Some said, "Maybe the major shareholders are buying it themselves. It's probably their last struggle."
A few days later, Walsh Mining's stock price stabilized. Although its value was small, some investors were still hopeful.
At this moment, an article was published in a financial newspaper about Walsh Mining.
The article stated:
"Walsh Mining, headquartered in San Francisco, has no profitable projects except for its headquarters. The only foreign investment is land in New Mexico, which turned out to be barren."
"However, Walsh Mining has recently discovered high-quality water resources on this land. The mineral water company, in cooperation with Walsh Mining, is preparing to build a large enterprise with an annual output of 50,000 tons of mineral water."
"If the mineral water company performs well, Walsh Mining could see significant annual profits. Previously a junk stock, Walsh Mining now has a continuous income source."
As soon as the report was released, many investors took notice.
"Walsh Mining has come back to life with a new revenue stream. Even though copper and iron ore weren't found, high-quality mineral water was."
"Half a month ago, their financial report was poor, but now there's good news. The stock price will likely rise."
"Why wasn't this information in the earnings report? It only came out after I sold the stock. It's frustrating."
"That's normal. Financial reports cover previous quarters, and this cooperation agreement was finalized recently. The income might not show up immediately."
"I regret selling early. Now that there's a stable way to make money, Walsh Mining's stock price will definitely rise."
"Then buy it now!"
Countless investors began buying Walsh Mining stocks. However, they discovered that Walsh Mining stocks were not listed.
Most of the outstanding shares were held by Andy, who remained unmoved as the stock price began to climb from $0.03 to $0.55 per share. The price rise continued, but eventually stabilized as the market awaited actual profits from the mineral water company.
Even so, the stock price had surged 18 times from its lowest point.
Many investors had turned a profit, with some seeing their investments increase from $1,000 to $18,000.
Hardy, however, made the most money. Holding 75% of the shares and 80% of the outstanding shares, Hardy owned 92.5% of Walsh Mining's stock. With the stock price soaring, the value of his shares reached $5 million.
Seeing the data, Hardy smiled comfortably. Making money with Andy as his financial expert was remarkably easy.
In his previous life, he had heard the saying that Wall Street's gold mine dwarfs all others. Wall Street truly is the world's largest gold mine.
"Andy, are you planning to sell the circulating shares for cash next?" Hardy asked.
Andy shook his head. "Walsh Mining still has room to grow. If you need cash, I can help you secure a bank loan against the shares. It's easy to borrow two or three million."
"Okay, then help me borrow one million first," Hardy said.
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