Rebirth of England.

Chapter 947 Hitting the bottom

"At present, China has announced the punishment of GlaxoSmithKline, and issued a fine of 30 billion Chinese yuan to them. This is also the highest fine ever issued by China against a company..."

Daisy elegantly pushed up her gold-rimmed glasses and continued:

"As the results came out, GlaxoSmithKline's share price continued to fall after the opening, and has now fallen by nearly 5%."

"We can take this opportunity to close our positions and buy some GSK (GlaxoSmithKline) shares."

"I think so too, and we have already started buying."

Although the 30 billion Chinese yuan fine issued by China to GlaxoSmithKline seems like a lot.

But you have to know that last year, in 2012, GlaxoSmithKline also paid 30 billion...but it was US dollars!

This is also the largest settlement in history to date.

The U.S. Department of Justice said at the time that GlaxoSmithKline pleaded guilty to three criminal charges and was suspected of bribing doctors in the United States to prescribe the company's products to patients through luxury trips to Hawaii and million-dollar academic lecture tours.

Andrew Witty, CEO of GlaxoSmithKline at the time, later said, "We have learned from our mistakes."

Well, judging from what happened in China, GlaxoSmithKline still hasn’t learned thoroughly enough.

But for now, the "shoe has dropped" from the Chinese side also means that the biggest negative news for GlaxoSmithKline in these events has been confirmed - although it will inevitably affect GlaxoSmithKline's stock price again, but after this, there is a possibility of bottoming out.

This is why both Barron and Daisy thought they could close their short positions on GlaxoSmithKline's stock price and use the profits to continue buying its shares.

GlaxoSmithKline's current market value has fallen from last year's high of over $1200 billion to less than $800 billion.

According to calculations, DS Group's short-selling action on GlaxoSmithKline's stock price will eventually generate a profit of approximately US$80 billion.

This means that if these profits are invested in purchasing its shares, nearly 10% of GlaxoSmithKline's shares can be obtained.

But in reality, it is not calculated this way.

Although the current market value of GlaxoSmithKline is less than 800 billion US dollars, as they close their positions and subsequently absorb GlaxoSmithKline shares, with the amount of funds involved being tens of billions, it is inevitable that it will rise significantly.

Therefore, even if all the $80 billion in profits were invested, according to estimates, they would only be able to obtain approximately 8-8.5% of the shares, and the specific proportion would depend on market conditions.

As for buying GlaxoSmithKline shares from some institutions?

This is certainly possible, but it is certainly impossible to buy at the current price - those institutions will not cut their losses so easily. Since Daisy can see that GlaxoSmithKline's stock price may have bottomed out, those institutions naturally cannot have failed to see it.

The DS Group was able to successfully short GlaxoSmithKline's share price. The difference was that they had already established a position before this "sudden" incident...

What if things have changed, and GlaxoSmithKline's bribery incident in China did not break out on schedule as in the original time and space?

Such a large-scale short-selling has already begun to be arranged. If this incident had not happened, Barron would have sent someone to report it directly to China...

After all, with the current amount of capital invested by the DS Group, it is very rare to be able to carry out such operations against a single company, and only large companies with a market value of more than 1000 billion are possible.

This kind of opportunity is rare, so of course we can't miss it.

……

On September 9, Hangyu Seiko officially released the latest drone in the Hummingbird series, the HUM-20 drone.

This is also the third Hummingbird series drone launched by Hangyu Seiko. They launched the HUM-1 and HUM-1 Pro Hummingbird series drones last year and early this year respectively, both of which received good responses.

Especially the HUM-1 Pro, which has upgraded the performance of the first-generation HUM-1 drone, and optimized its controllability and flight posture, but is priced at only 1999 euros. Like the HUM-1, this has also increased the sales of the HUM-1 Pro.

However, compared with the previous two Hummingbird drones, the launch of HUM-2 is subversive.

Not only has the HUM-2 continued to improve in performance, but like its competitor DJI's Phantom series of drones, this time it comes with a high-definition lens, which can be said to have greatly improved its cost-effectiveness.

Thanks to the fact that Hangyu Precision has established an advanced "robot production workshop" in Birmingham, and most of its parts have been sourced from long-term partners in China, its cost control has made great progress.

Of course, this is also related to the fact that after the first two Hummingbird series UAVs, Hangyu Precision has gained scale advantages in the supply chain and reduced procurement costs.

In the end, with the performance greatly improved, the price of HUM-2 was directly reduced to 1599 euros, allowing it to compete with DJI's Phantom series of drones.

Therefore, on the day when the HUM-2 drone of Hangyu Seiko went on sale, there was a grand scene of users lining up to buy it in front of the Hangyu Seiko experience stores in London and New York.

As mentioned before, the HUM (Hummingbird) series is an entry-level drone product model produced by Hangyu Seiko for families and non-professional groups. It is easy to operate and carry.

In addition, Hangyu Precision also launched the first product of the Griffin series of UAVs, the G1, at the end of last year.

The G1 is larger in size and can carry professional camera equipment, so it is popular with professional photographers.

After all, before this, if aerial photography was needed, it was often necessary to use a helicopter or a hot air balloon to shoot, which was not only extremely expensive, but also had its own limitations.

But the emergence of DJI's Hot Wheels and Aerospace Seiko G1 has made aerial photography a more convenient option for everyone from film and television crews to travel photography teams.

The second product of the Griffin series, G2, will also be launched around Christmas. For this purpose, they will also build a new "robot production line" at the Hangyu Precision Manufacturing Base in Birmingham...

Currently, the two main rotor unmanned aerial products of Hangyu Precision are the Hummingbird series and the Lion Egret series. In the future, the company will maintain the pace of launching 1-2 new products each year.

To this end, Hangyu Precision continued to expand the scale of their R&D center in London, recruiting more technicians and professionals to reserve technology and talents.

No doubt, Barron's kids will get their new toys after the HUM-2 is released...