December 15th, Thursday…
Jingzhou, Fu Hui Investments.
Xue Zhebin came to the door of the guest room, knocked lightly, and entered.
“Boss Li, what’s so urgent?” Xue Zhebin sat down on the sofa, still confused.
The weather was not bad today. Xue Zhebin was driving his convertible sports car around the outskirts of the city. However, Li Shi called him over. It seemed like something urgent had happened.
Xue Zhebin did not ask any more questions. He drove directly to Fu Hui Investments.
Li Shi poured a cup of tea for Xue Zhebin. “Don’t invest the money that we prepared previously to invest in the Cold-Faced Lady, we’ll wait and see!”
Xue Zhebin was stunned. He was a little confused. “Boss Li, haven’t you been researching for a long time? Did something happen again?”
Xue Zhebin had been learning how to invest with Li Shixue. During this period, the Cold-Faced Lady had been their focus.
Previously, Xue Zhebin and Li Shi had specially made a trip to Beijing to take a look at the Cold-Faced Lady store. They had personally eaten all sorts of food and checked on the shop’s situation.
After that, Meng Chang started to burn money faster. He opened new branches and gave speeches. The Cold-Faced Lady became more and more well-known as he crazily increased his exposure.
Two days ago, Li Shi finally decided to invest in the Cold-Faced Lady after much consideration.
On one hand, it was because Cold-Faced Lady had indeed done well. Whether it was in terms of popularity or in terms of media reviews. The stores were done up pretty well and it looked like a high-quality investment project without any flaws.
On the other hand, Li Shi guessed that Meng Chang must have gotten the money from an investor. However, since Meng Chang did not publicize it openly, it probably meant that the source of funds was from Boss Pei given Meng Chang’s character.
Boss Pei had invested twice, and Tengda had even sent a finance manager to Cold-Faced Lady. This made the Cold-Faced Lady much more reliable in Li Shi’s eyes.
That was why Li Shi decided to invest a little money after some observation. It was not too early to enter nor was it too late. There shouldn’t be a problem to earn a little from it.
Li Shi was not a greedy investor. He pursued making a small profit for each project. Over time, that became a very considerable figure.
Xue Zhebin naturally intended to invest two to three million yuan with Li Shi. It did not matter how much he earned as long as he did not lose everything, he would have good investment experience.
Li Shi sipped his tea and said to Xue Zhebin, “The situation has changed.”
“According to the latest information, Boss Pei is selling the shares of the Cold-Faced Lady. In fact, he is selling them in large quantities without leaving a single cent!”
“What’s more, Boss Pei’s price is obviously lower than the Cold-Faced Lady’s current valuation. He’s selling them for cheap.”
“This proves that Boss Pei had indeed added on to his investment in the Cold-Faced Lady previously. What’s more, he had quite a lot of shares. However, the fact that Boss Pei is selling his shares… is a very dangerous sign!”
“We definitely cannot go against Boss Pei.”
Xue Zhebin was a little surprised. “Huh? I don’t understand what Boss Pei is doing. From investing, to adding on his investments, and then to retreating, isn’t this too fast? Weren’t investments supposed to adopt a long-term view?”
Li Shi chuckled. “Taking a long term view for investments is only for ordinary people. That’s because ordinary people have limited information and can’t predict what’s going to happen in the near future. Therefore, short term investment meant trying your luck.”
“However, is Boss Pei an ordinary person?”
“Boss Pei would definitely be able to see the information that we can’t, he definitely knows some insider information about the Cold-Faced Lady. He would definitely be able to make a decision about entering or exiting investments after obtaining enough information.”
“At least this time, Boss Pei’s sell off of Cold-Faced Lady’s shares has given us a very clear message: Cold-Faced Lady is not suitable for long term investment. In fact, problems might be exposed within a short period of time!”
“Otherwise, why would Boss Pei sell so quickly?”
Xue Zhebin nodded. “Yes, that makes sense! How’s the sales going?”
Li Shi sipped his tea and said slowly, “The transaction should have been completed. It has only been a short time, but the situation is more complicated. The investors have different reactions.”
“If it was someone like us who had absolute faith in Boss Pei’s investment myths, they would definitely not take over these shares and would instead, adopt a wait-and-see approach.”
“However, Cold-Faced Lady is in Beijing, and Meng Chang has been active in Beijing as well. There are many investors in Beijing who don’t believe in Boss Pei as much as we do. They think that Lady Cold Face is a good investment project. It’s a good opportunity to buy at a low price.”
“Of course, there are also many people who doubt the Cold-Faced Lady and decide to continue watching.”
“Meng Chang deserved it.”
“When the Cold Faced Lady brand was first established, he had been showing off as a project that Tengda’s Boss Pei had invested in. That was because the success rate of the project that Boss Pei had invested in was extremely high. By forcing a link, he could give others the feeling that the success rate of this project was very high because Boss Pei had invested in it.”
“However, Meng Chang probably did not expect Boss Pei to be so resolute and merciless in selling all his shares.”
“That way, the content that he had advertised previously would be completely counterproductive. The attention that he had gained through Boss Pei would instantly turn against him when he left. It could be said that he had dug his own grave.”
“Therefore, the situation has become very confusing. Boss Pei may be selling at a low price, but he is still profiting. On the other hand, Cold-Faced Lady’s situation is not looking good.”
Xue Zhebin nodded and said emotionally, “At first, I thought that this was just an ordinary investment project. Why does it look more and more exciting now?”
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Cold-Faced Lady’s development had always been good. If it continued to develop according to this script, with a few more rounds of financing, it might expand rapidly and become a legend of wealth for Chinese fast food.
In the end, no one expected Boss Pei to suddenly do something like that while the Cold-Faced Lady seemed to be still doing well.
Meng Chang had been trying to ride on Tengda’s popularity but he managed to screw it up.
Even so, many investors in Beijing did not believe in Boss Pei’s investment myth. They felt that this was a good opportunity to enter at a low price.
Xue Zhebin asked again, “So, Meng Chang isn’t in a good situation now?”
Li Shi nodded. “Very bad.”
“If Boss Pei sells all of his shares at a lower price, he would definitely be able to find someone to take over. However, the problem is that the money will not enter Meng Chang’s hands.”
“In other words, based on the rate that the Cold-Faced Lady is burning money now, Meng Chang has to continue thinking of ways to find money.”
“However, the problem is that those who don’t believe in Boss Pei and want to invest in the Cold-Faced Lady would choose to buy shares from Boss Pei. After all, they are cheap and are value for money. Those who believe in Boss Pei would not invest at this juncture.”
“In other words… for a long time to come, no investors would hand the money directly to Meng Chang. Cold-Faced Lady might not be able to obtain the financing they need. There might be problems with liquidity.”
“Of course, this is just my guess. If Meng Chang really had other channels to get the money, Boss Pei’s withdrawal would not have much of an impact.”
“If Cold Faced Lady’s shop has really made profits, Meng Chang can also choose to tighten his belt and reduce the expenses. It should be able to survive as long as they do not need to spend so much money on marketing…”
Li Shi briefly explained the current situation to Xue Zhebin.
Boss Pei’s sudden withdrawal would obviously cause a lot of trouble for Meng Chang. However, Meng Chang should be able to hold out as long as Cold-Faced Lady is strong enough financially.
Xue Zhebin asked, “Boss Li, should we invest or not? Since Boss Pei is not optimistic about the cold-faced lady, let’s not throw money in, right?”
Li Shi took a sip of tea and shook his head slightly. “Boss Pei sold all his shares but it does not mean he won’t enter again.”
“Do you remember the Top Student, Come Quick application?”
“On the surface, Boss Pei wanted to leave and sell his shares. However, after the educational corporations took over at a high price and the Top Student, Come Quick application collapsed, Boss Pei forcefully entered the market and took over at a low price. Then, he completely modified the Top Student, Come Quick application…”
Xue Zhebin’s eyes lit up. “Boss Li, are you saying that Boss Pei might be bluffing? That he might try again?”
Li Shi nodded. “We cannot rule out the possibility of Boss Pei repeating the same trick.”
“If Boss Pei wants to re-enter the venue after the Cold-Faced Lady is in danger, we can follow Boss Pei and aim for the best investment opportunity!”
Xue Zhebin nodded in realization. “Boss Li, I seem to be beginning to understand your way of investment…”
…
At the same time, Dream Realization Ventures.
He Desheng was reporting the current situation to Pei Qian.
“Boss Pei, I’ve found a suitable buyer for Cold-Faced Lady’s shares. The price for all of them is 15 million yuan. The return on investment was not as high as before, but it’s not too bad to be able to get such a price since we are selling them with such urgency…”
Pei Qian nearly vomited blood.
You call this not too bad?
I invested eight million yuan and earned 15 million yuan!
This f*cking Cold-Faced Lady had only been operating for a few days, and I have already earned so much?
It was a good thing that he exited fast. Wouldn’t he have earned more in the future if he exited slower?
While the sale had been done in a hurry and the price had been lowered by quite a bit, Dream Realization Ventures had invested too early and received too many shares. Thus, Pei Qian still found it hard to accept even if they were in a hurry to sell and the price had been lowered.
Pei Qian’s heart was bleeding as he asked, “How did Meng Chang react?”
He Desheng pondered for a moment. “He did not have much of an intense reaction. He remained confident and high-spirited in front of the investors. Otherwise, the deal would not have been so successful.”
Pei Qian nodded. Indeed, Meng Chang was very confident in Cold-Faced Lady. It was the right decision to leave as soon as possible.
He Desheng asked, “Boss Pei, what should we do with this sum of money? Are we going to continue investing in the companies in the queue?”
Pei Qian sighed silently.
That’s right, what should he do with the money?
Logically speaking, there were many ways to spend money. However, Pei Qian felt that his luck was really bad.
“Wait, let me think about it.” Pei Qian looked at the date. “If there are no new developments at the end of the month, Dream Realization Ventures can continue investing in the companies in the queue.”
He Desheng nodded. “Alright, Boss Pei.”
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