Add Bookmark | Recommend this book | Back to the book page | My bookshelf | Mobile Reading

Free Web Novel,Novel online - All in oicq.net -> Romance -> The Legend of Coquettish Rebirth

Text Chapter 4022 Reconciliation

Previous page        Return to Catalog        Next page

    "Mr. Jia, thank you so much this time! If it weren't for your help, I would have had to die to prove my innocence this time" Lao Zhang stood in front of Jia Hongjian, very  Said with emotion.  ¡ó¡ý¡ó¡ýС¡ó¡ý said, yes, the lawsuit between Laozhang¡¯s Rieter and Mattel, which sells Barbie dolls, has now been settled.  Mattel has been evading evidence from China Hi-Tech and Rieter, and has publicly shown it to various media outlets. It turns out that most of the Mattel toy recall issues are caused by Mattel's own design errors, and it turns out that  It was Mattel who "framed the blame" in order to shirk responsibility and avoid losses!  When such a thing is fermented in the media, the pressure of public opinion immediately rises.

    After the pressure of public opinion increased, the stock price went down somewhat. After all, the stock price is actually the expected value of investors for the company's future earnings.  For a company like Mattel, when evidence was exposed by the other party before the trial, and then the media made it known to the whole United States, investors analyzed it through various analysts and found that 99%  It is possible that Mattel will lose money, so who can be optimistic about Mattel's profitability this year?  After all, the problem with Rieter is only 900,000 toys, while Mattel wants to recall 18 million toys, not to mention punitive damages from the United States.  So in this matter, if Mattel is eventually ordered by the court to compensate the other party for US$3.5 billion or something, that is really not a big deal!  It¡¯s so normal!

    As for a company like Mattel, although it is famous all over the world for its Barbie dolls and seems to be a very, very big company, such a company is actually not very profitable. For example, when the performance was the best in the past two years, the net profit of that quarter was  The income is only US$300-400 million.  If it really loses US$3.5 billion, doesn't Mattel lose a quarter or even more of its annual profit in 2008?  This immediately means that Mattel will have to work for a quarter this year in vain!  And this is only the compensation that Mattel paid to Rieter, not counting the cost of the 18 million toy recalls that Mattel itself incurred!  18 million toys were recalled. These toys were originally scheduled to be sold in the next few years. However, they could not be sold all of a sudden and had to be destroyed.  Since then.  It doesn¡¯t mean that the cost invested in these products is simply wasted. The money that could have been earned by these products is also lost!  In the business world, if the money that could have been transferred is not earned, it is equivalent to a loss!

    Of course.  This kind of less money will not really be included in the financial report as a "loss", but it will put a lot of pressure on investors' confidence.  Investors considered that the investment in 18 million toys was in vain, and they would have to redesign and place orders later. All the problems caused by 1,800 toys would have to be paid for by Mattel, and the money that was supposed to be earned was not earned.  Now we have to start all over again. Everyone expects that Mattel's stock price will fall, and everyone expects that Mattel's profitability in the past two years will not be good.  If everyone expects this, the stock will naturally fall, and because everyone thinks that Mattel's stock will fall, it will cause the stock price to fall beyond the amount it should fall!

    Why is this happening?  This is similar to panic!  To be honest, if human beings are so rational that they are terrifying, then the decline in Mattel's stock price may only be a part of the decline they should have.  But humans always have panic. When an investor knows that the price of the Mattel stock he invested in is going to fall, he will of course be eager to sell.  No matter what price he bought it for.  Now that the price is going to fall, if he sells it one minute later, he will lose more money!  For retail investors, of course, the earlier they sell, the better. It is best when no one knows that something is going to happen to Mattel, and it is best for him to run away first.  But this is impossible!  All retail investors knew the news at about the same time, and started preparing to sell it together. After seeing this news, there were few new fools who entered the market and wanted to buy Mattel. So how to sell this stock?

    You must know that when you want to sell stocks, you don¡¯t just have to make a phone call to a securities company or set the selling price on your computer, and you will be able to cash out immediately!  Stocks.  You really need someone else to buy it before you can sell it.  If a stock investor A wants to sell 100 shares of Mattel, he must have someone else buy the shares of Mattel before he can sell the 100 shares!  When everyone could see that Mattel was going to be in trouble.  Even people who want to buy the bottom feel that this is just about to start falling and it is not a good time to exit. What will happen to the stock price?  It can only go down all the way!  And the decline is getting more and more outrageous!  Because stock prices usually fall in the stock market, and after various news comes out, many people may feel that the prospects are not good, but there are still people who do not believe in evil.  I think it's a good opportunity, so the stock price doesn't fall too much.  But now, after analysis by the media, everyone has found that Mattel is definitely going to lose money. So everyone is holding back and wants to sell, and no one rushes in to buy Doesn't this mean that it is going to fall?The market is closed and there is no way to sell at all?

    When the limit fell, Mattel's board of directors and executives held meetings overnight. Early the next morning, they held a press conference before the stock market started trading. They said they would have an out-of-court dispute with Rieter.  Reconciliation, and at the same time take various measures to try to ensure profits this year!  What does it mean?  This means giving investors confidence and supporting the stock price!  For Mattel, such a thing is like being cut into pieces. The longer it takes, the more unlucky they will be!  Now that the first knife of a thousand cuts has just been scratched on their body, if they immediately admit their mistake and immediately seek to stop the loss with a good attitude, the loss may not be too serious. But if they hold on to the end, they really have to wait until the court pronounces the verdict, or even  If you wait three to five years or something, then Mattel may be dragged down. Who among the major shareholders wants to see the stocks in their hands turn into junk stocks?  They also invested real money!  So if the CEO wants to hold on, these major shareholders will immediately kill the CEO!

    Speaking of getting rid of the CEO, Mattel actually announced one thing at the end of the press conference, that is, the CEO who was still blamed for the previous product recalls was fired!  No matter whether such a decision was made by the CEO himself at that time, or the board of directors asked the CEO to say so, the result now is that Mattel needs a scapegoat, and such a CEO is the best candidate!  Recruiting such a CEO makes it seem like Mattel is trying to reinvent itself, doesn't it?  He immediately changed his past!

    So, after such a press conference, as soon as the stock market opened, Mattel's stock price really did not fall to the limit!  Although it still fell a bit, at least it has stabilized temporarily and no longer keeps going down!  This is the confidence that Mattel and their press conference gave investors, telling investors that they will try not to let the decline in earnings be too exaggerated. Therefore, when investors are not so panicked, the stock price will naturally be stable.

    ¡°Then the next step is for Mattel to contact Rieter Lao Zhang to prepare for out-of-court settlement negotiations.  For investors outside the market, out-of-court settlement negotiations are about to take place, which means that the matter will soon come to an end and a result will soon be achieved. However, for both parties involved in the negotiation, this is not the case at all.  Because Rieter's luxurious legal team saw Mattel's news conference and knew they had caught Mattel's trap!  Because for Mattel, the most important thing now is to stop losses and maintain the confidence of investors, but for Rieter, they can delay longer to seek a higher amount of compensation!

    For Rieter, it doesn¡¯t matter whether an out-of-court settlement is reached today or tomorrow. It doesn¡¯t even matter whether an agreement is reached this month or next month. Although thousands of workers in the Rieter factory still have to receive wages, the old  They can still afford it!  So Mattel actually made a statement to the outside world, which stabilized the confidence of investors, but on the other hand, it also made them lose the initiative!  This is a game where whoever can't help it first loses!  Mattel couldn't help it, so they became passive, and they were going to be led by Rieter!  From this perspective, Jia Hongjian felt that such a luxurious team of lawyers that he hired for Rieter could help raise the compensation amount to at least 500 million!

    That¡¯s right, although to ordinary people¡¯s understanding, the amount of money provided for an out-of-court settlement is definitely not as high as the upper limit of the court¡¯s judgment, otherwise the party who loses money would not need to settle out of court.  But the key point in this matter is not how much money to pay, everything is time!  For Mattel, settling this matter quickly is the top priority!  And since Rieter knows that Mattel wants to seize the time and solve it quickly, of course they have to ask for more money!  Since it is expected that the court's final ruling may require Mattel to compensate US$300-500 million, when Rieter's legal team settles out of court, the psychological price is naturally at least US$500 million!  Otherwise, why would they settle out of court so quickly?  If everyone delays, maybe they can get 500 million in the end!

    So even if the reconciliation has not been successful at this time, the two parties have just started reconciliation negotiations, and Lao Zhang is already grateful to Jia Hongjian, which cannot be expressed in words!  This dark-skinned man looked at Jia Hongjian, and his knees were really weak. Jia Hongjian felt as if the old Zhang would kneel down and kowtow at any time when he got excited!  (To be continued.)
Didn't finish reading? Add this book to your favoritesI'm a member and bookmarked this chapterCopy the address of this book and recommend it to your friends for pointsChapter error? Click here to report