Chapter 819 - Rumors from Financial District (1) – Part 2
Chapter 819: Rumors from Financial District (1) – Part 2
It was Thursday, but Gun-Ho stayed in Seoul instead of going to work in GH Mobile in Jiksan Town and Dyeon Korea in Asan City, because he wanted to continue to play with the stock.
When Gun-Ho went into the stock market that day, Dyeon Korea’s stock price had already increased by 12%, maybe because of the rumor that flowed out of the financial district. The price broke through 30,000 won, and the market closed that day with the closing price of 28,600 won; it seemed that many little investors, who were holding Dyeon Korea’s stock, sold their once the price hit 30,000 won because that probably was the price with which they could make profit, and that was why the price decreased a little bit.
Gun-Ho received a call from Dyeon Korea’s Director Kim.
“Sir, I thought you would come to work in Dyeon Korea today.”
“I had some business that I needed to take care of here.”
“You won’t come to Dyeon Korea tomorrow either, will you, sir?”
“No, I can’t. I won’t be there tomorrow.”
“I’m leaving for India, sir. I just wanted to see you before leaving. I will stay there for four nights and five days. I guess I will see you after the trip, sir.”
“Oh, that’s right. I almost forgot. India is a bit far, and you will have to spend long hours in the flight, and you might not have enough time working in India.”
“I’m aware of it. I’m planning to visit several Korean companies there in the Chennai area, and also want to visit Delhi and Noida. My schedule will be very tight.”
“I believe so.”
“I asked Manager Jong-Geun Lee to go to Chennai and wait for me. I want to visit the factory in Chennai with him, and he will have to interpret for me while I’m there.”
“Good. I know that it won’t be an easy trip.”
“I will do what I can do. If I see any changes, I will give you a call, sir.”
The stock price on Friday dropped a little bit by 2% since it had increased a lot on the previous day.
Gun-Ho spent the following weekend at home taking a deep rest again as he had done the previous weekend. He then went to work in GH Building, Sinsa Town on Monday. He was supposed to go to work in Jiksan Town on Monday, but he didn’t. It was not an enormous increase in price with Dyeon Korea yet, but since the price increased anyway, Gun-Ho expected to see people including the stock manipulators started selling their stock, and Gun-Ho intended to sell his along with them. Gun-Ho was intensively glaring at his computer monitor observing the movement with Dyeon Korea stock when the secretary— Ms. Yeon-Soo Oh— entered the office with a cup of tea.
She asked, “You seem to be extremely busy, sir. Could I ask what it is about?”
Gun-Ho had recently stayed in his office quietly without stepping out of his office, but he had sat at his desk, not on the sofa, looking at the computer monitor all day long. Secretary Yeon-Soo Oh thought that there was something intense going on with Gun-Ho’s business.
“I’m working on something. Please do not let anyone come into my office.”
“Yes, sir.”
When it was around 2 pm, Gun-Ho detected movement with Dyeon Korea’s tick chart.
“The stock manipulators seemed to just join. I will move along with them.”
As they did, Gun-Ho constantly bought Dyeon Korea’s stock, one share after another. Its bar chart started showing red lights indicating price movements upward. Gun-Ho continued to buy the stock as the small investors placed theirs on the market to sell, and that helped what the stock manipulators were doing— raising the stock price. After the price increased by more than 15%, the trading volume started growing noticeably as well. The market closed that day with 32,000 won.
Gun-Ho made a call to Dyeon Korea’s Accounting Manager Myeong-Sook Jo.
“I want you to publish our financial documents for the third quarter tomorrow.”
“Yes, sir.”
“Also, post the announcement that our sales have increased by 30%, separately.”
“Yes, sir.”
“You know how to do it, right?”
“I do, sir.”
“Since our stock price is on the rise, I guess we are not getting calls from dissatisfied investors, are we?”
“No, sir. Assistant Manager Kim, who is in charge of handling matters related to our stock, told me that her workload significantly decreased recently.”
“Haha, really? Okay.”
The following day on Tuesday, Dyeon Korea’s financial documents for the third quarter period were posted along with a separate posting about its sales increase by more than 30%. With news like this, usually, the company’s stock price would go downward because people would think that the company was out of good news then that would increase the stock price again. However, Dyeon Korea’s stock price didn’t drop. That was because there was no large quantity selling yet.
“Dyeon Korea will grow tremendously in the future.”
“Dyeon Korea is heading towards achieving a sales revenue of 3 trillion won, and it will succeed within 3 years. We’d better buy Dyeon Korea’s stock now; this might be the lowest price.”
Groundless rumors were spread out, which were made by the stock manipulators. The price started going up fiercely. Its tick chart began moving again as if someone was pushing hard. Gun-Ho participated in the movement. Since the number of Dyeon Korea’s stock available to be traded in the stock market was relatively low, the price hit the ceiling quickly.
“Dyeon Korea finally hit its upper limit price for the first time.”
The price hit the ceiling at 2 pm that day, and a request to buy the stock started accumulating.
“Haha. We will keep this price for the rest of today.”
Dyeon Korea’s closing price that day was 41,600 won. The price stayed the same during the after-hours trading as well. Gun-Ho had purchased 215,000 shares with 4.1 billion won. His shares were now worth 8.944 billion won.
Once the stock market closed for the day, Gun-Ho let out a sigh, and he put in eye drops. He then drank a bottle of Ssanghwa-tang*, and walked to the sofa and sit on it. He then closed his eyes to feel relaxed.
It was Wednesday.
Yellow discharge appeared from Gun-Ho’s eyes. His eyes were red and swollen. Young-Eun was worried, and she said, “You probably worked too much these days. You should go and see a doctor. Your eyes are swollen.”
“It’s alright. All these symptoms will go away by the end of today. I will be fine.”
On the way to work, Chan-Ho showed his concern as well.
“Sir, your eyes are swollen. Are you sure that you don’t want to see a doctor?”
“I’m good.”
Gun-Ho leaned back in the rear seat with his eyes closed, and he thought about the strategy that he would execute today. At that moment, he felt pain in the eyes. But, he didn’t have time to see a doctor because it was a critical day for Dyeon Korea’s stock. He was going to sit at his desk and observe the stock movement by glaring at the computer monitor again.
When he arrived at his office, Gun-Ho turned on his computer. The price of the first Dyeon Korea’s stock trade that day was the upper limit price. Most of the little investors couldn’t afford the price, and their requests to buy it at a lower price were being accumulated.
Gun-Ho felt like, after today Dyeon Korea’s stock might be designated as a stock that must be traded with extra care. This sort of warning was issued by the Korea Stock Exchange when a particular stock whose price had continuously increased for the past 15 days, and the trade was mostly managed by a few investors. The warning was also issued in the event where the closing price was more than 75% higher than the closing price 15 days ago. The purpose of the warning was to protect investors in general.
“Dyeon Korea’s stock price yesterday was 41,600 won, and it increased even higher to 54,080 won with a 30% price increase. I should start selling my stock slowly before the stock manipulators start selling theirs.”
Gun-Ho carefully began selling his stock at around the upper limit price, and he sold 100,000 shares. The stock manipulators, at first, tried to maintain the price by buying the stock that Gun-Ho was selling, and then once they realized that the number of stock that Gun-Ho was selling was too great, they started selling theirs too.
“Huh? They are shaking off theirs too.”
Gun-Ho then began to sell all of his shares aggressively. The market closed that day with the closing price which increased by 6%. Gun-Ho sold all he had. He sold all of his 215,000 shares for 50,000 won more or less, and his cash available in the stock account now was 10.6 billion won. He had invested 4.1 billion won, and he made a profit of 6.5 billion won. He suddenly felt a craving for a glass of draft beer.
Note.
Ssanghwa-tang – A traditional Korean tea which is known to help recover from fatigue.