"Zhao Zong, are you looking for us?" Chen Xi asked.
"Apple, what is the current profit situation of those 5.7 million shares?"
Chen Xi's fingers tapped on the keyboard a few times, and the data on the screen jumped out.
"I opened a position at the beginning of last year, invested about one billion US Dollar, and bought 5.7 million shares. The cost was about 175.3 US Dollar."
She paused for a moment, and her eyes paused for a moment on the line of floating loss numbers on the screen.
"The current stock price of Apple - the closing price of Friday is around 152 US Dollar.
There has been a slight rebound in the past few days, but not much. Calculated based on 152 US Dollar, the current market value of the position is approximately 866 million US Dollar.
From the establishment of the position to the present, the accumulated dividends received are approximately 1.4 US Dollar per share, and the total pre-tax dividend is approximately 8 million US Dollar.
After deducting the 10% withholding tax, the after-tax dividend is approximately 7.2 million US Dollar."
She raised her head.
"After including after-tax dividends, the holding cost dilutes from 175.3 US Dollar to approximately 174 US Dollar.
The current stock price is 152 US Dollar, and the floating loss is about 12.6%. The total floating loss before tax is about 133 million US Dollar."
Zhao Chen's brow moved almost imperceptibly.
When I opened the position Apple at the beginning of last year, the stock price had just retreated from its historical high. The cost of 175 US Dollar was not expensive in the market environment at that time.
But no one expected that Apple would issue its first profit warning in sixteen years after the market closed on January 2 this year--
Greater China's revenue fell off a cliff, iPhone sales were far lower than expected, and Cook personally admitted that it underestimated the slowdown in demand in emerging markets.
On January 3, the stock price plummeted by nearly 10%, from 158 US Dollar to around 142 US Dollar.
The market value evaporated by more than 70 billion US Dollar in one day, which is equivalent to the loss of an entire Facebook.
Although this week it has slowly climbed back to above 150 US Dollar from the low of 142 US Dollar, it is still nearly 20 US Dollar away from the cost line.
One billion US Dollar went in, and now there are only 866 million left.
He put the tea cup down and slowly turned his fingers around the rim of the cup.
The floating loss is 1.33 billion US Dollar, which is not a small amount.
From the opening of the position at the beginning of last year to now, the money has been placed in Apple for nearly a whole year. Not only did it not make any money, it actually lost more than 12%.
The investment was his idea.
At the beginning of last year, he let Era Vanguard be allocated in US Stocks, Tesla is a heavy position, and Apple is a hedge - one for offense and one for defense.
As a result, the offensive end Tesla doubled in the privatization incident, but the defensive end Apple became a drag.
"One hundred and thirty-three million."
He repeated the number, his voice was low, but everyone in the room could hear the calmness after rapid digestion in his tone.
"Not much. In the previous Tesla privatization incident, Era Vanguard's Put Option earned more than 1.1 billion US Dollar in one order.
Apple This little floating loss is not even a fraction."
Chen Xi was stunned for a moment.
She thought that Zhao Chen would frown, ask why he didn't reduce his position in advance before the profit warning, and ask her to bring up Apple's trading records for this year for review.
But he didn't.
He just drank the cool Pu'er in the cup and put the cup back on the coffee table. The bottom of the cup hit the glass surface with a light and clear crisp sound.
"Starting from tomorrow, we will clear out Apple in batches."
Living Room was quiet for a moment.
Chen Xi's fingers are hanging above the keyboard and have not fallen down.
Zhang Qingxue's hand turning over the file stopped in mid-air, and he raised his head and looked at Zhao Chen.
Su Wantang was holding a teapot that had just been filled with hot water. The spout was hanging above the teacup and he forgot to pour it.
"Zhao Zong," Chen Xi was the first to speak, with an undisguised surprise in his voice.
"The current stock price of Apple is one hundred and fifty-two US Dollar, and our cost is one hundred and seventy-five.
A floating loss of 1.33 billion.
Anyone with a discerning eye can see that this position is seriously underestimated--
The profit warning on January 2 caused a hole. Cook himself said that the slowdown in demand for Greater China was a cyclical factor, not a structural recession.
Even a position as heavy as Berkshire was not moved. The cost of Buffett was higher than ours, and they did not sell a single share."
She spoke a little faster than usual, and it was obvious that this question had been going through her mind more than once.
"Now that we are clearing our positions, all floating losses will turn into actual losses. Zhao Zong, what's the reason?"
Zhao Chen looked into her eyes.
Chen Xi rarely speaks to him in this tone - not questioning, just confused.
She can accept any investment being cut off under stop-loss discipline, but she cannot accept cutting off an asset that is obviously undervalued.
It's not that she doesn't understand risk control, it's that she understands the value of Apple too well.
"It's not a clearance at this price."
Zhao Chen's tone was slower than before,
"Apple From the lowest point of 142 US Dollar on January 3, it has slowly climbed back to above 150. The recovery of the oversold rebound has not yet been completed.
The impact of the profit warning has been almost digested by the market, and there is a high probability that it will continue to pick up in the next few weeks.
One hundred and fifty-two is the current price, not the price I want you to sell it for."
Chen Xi's brows relaxed slightly.
"I want you to clear your position Apple, not to stop losses."
Zhao Chen stood up and walked to the window.
The snow New York outside the window was still falling silently. He turned his head and looked back from the Manhattan skyline.
"Lawyer Lin, tell me about HSR again."
Lin Shicheng leaned forward from the sofa and turned the notebook to the page with the tick marks.
"Zhao Zong's plan is to continue Add Position Nvidia and increase the shareholding ratio from the current 10.8% to between 15 and 20%.
To complete this step, HSR Filing must first be submitted to Federal Trade Commission and Department of Justice--
This is the antitrust review provided for in the Hart-Scott-Rodino Antitrust Improvements Act.
After HSR Filing is submitted, there is a legal waiting period of thirty days. During these thirty days, no purchase of Nvidia stocks can be completed on Secondary Market.
After the waiting period is over and the FTC releases it, you can proceed with Add Position."
He paused and turned his eyes to Chen Xi.
"So, Zhao Zong is not asking you to clear Apple at the current price.
You have a thirty-day window to complete the clearance - and when I say 'complete', I mean everything is sold out.
After the HSR is released, all the Add Position funds of Nvidia must be in place, and the repayment of Apple is part of it.
You have thirty days to wait for a good price and try to smooth out any floating losses or even make a small profit.
Apple's stock price is recovering. It has returned ten points from 142 to 152. A few more points and the cost line will be crossed."
Chen Xi was silent for a few seconds and tapped his fingers twice on the keyboard.
Then she closed the laptop and her voice returned to its usual calmness.
"Understood. Within thirty days, the warehouse will be cleared in batches.
As long as the stock price of Apple continues to recover during this period, the floating losses can be smoothed out and even a small profit can be made."
Su Wantang put the teapot back on the coffee table and sat down on the armrest of the sofa next to Zhao Chen.
She never sits on the armrest during meetings in the company, but there are no outsiders in Suite at the moment.