Chapter 227

Chapter 227: Kind mistress, little Laura

As for the gold mine located in Qualcomm's vault, Abel of course really wants to buy it back.

If you can get Qualcomm at that time.

This is equivalent to pinching the mobile Internet bubble more than ten years later.

Even if you stop investing in scientific research after ten years, you can still collect taxes for another ten years if you own Qualcomm.

It is as strong as a chrysanthemum, even if the patents authorize each other. Finally, the company will still have to pay patent taxes to Qualcomm.

Abel came here this time of course for this purpose.

And Owen Jacobs, founder and chairman of Qualcomm.

There is also other Qualcomm management that naturally hopes to receive investment from Abel.

Especially in the last two years, the high pass has been really miserable. The stock market refers to a decline from over US$35 billion to US$3 billion in one year.

This shocking plunge is rare in global stock history.

This is Qualcomm's main building.

After traveling, Abel is accompanied by Owen Jacob.

Everyone flocked to the large meeting room on the 8th floor of Qualcomm headquarters. When everyone sat down, Owen Jacob still hadn't said anything.

Abel got straight to the point:

"I think Qualcomm is a good company. But I won't keep it in the near future because it will continue to lose money."

Abel's frank and direct comments made Qualcomm's founders and managers look bad.

Owen Jacob became even more worried about Abel's words and broadcast them outside.

Over the past two years, the market has been very pessimistic towards Qualcomm. Otherwise, Qualcomm's stock price would not have dropped so much.

If Abel's words, "Financial Moses", were transmitted outside at this time.

The market does not have much information about Qualcomm and will certainly collapse immediately.

At that time, it is estimated that the stock price will halve again.

If this happens two or three more times, Qualcomm could declare bankruptcy and delist. Fortunately, there were no outsiders in this meeting room except Abel and Qualcomm.

Irving Jacob is only worried that Abel will say this to the outside world, but he is not worried that Qualcomm people will reveal this statement.

"Mr. Smith" Owen Jacob's tone was softer, lest he offend the young man and let him say nonsense on the outside.

"So when do you think Qualcomm will be able to get out of this difficult situation?"

However, Abel directly avoided talking about this issue. He told Irving Jacob:

"I don't own Qualcomm anytime soon, but Smith Capital can help Qualcomm."

What Irving Jacob said above was essentially to get Abel's good words about Qualcomm. This is a real media leak case.

You can also use the good things Abel said later to counter Abel's negative words about Qualcomm.

Unexpectedly, as soon as Abel said this, Owen Jacob immediately asked with interest:

"Oh, Mr. Smith, how do you want to help Qualcomm?"

"Duty".

"Qualcomm could issue PERCS bonds to Smith Capital," Abel said.

PERCS bonds are essentially a type of convertible preferred stock with upper and lower limits.

"PERCS Bond"

Erwin Jacob understood what Abel meant.

That is, Abel currently has no interest in Qualcomm but is willing to lend to Qualcomm. And his interest in Qualcomm's future.

So does Qualcomm need to borrow money now?

Very necessary!

Qualcomm is currently worth about 2.6 billion USD on the stock market.

But their debt is up to 2.2 billion US dollars.

Currently, Qualcomm is so embarrassed that very few banks and financial companies are willing to lend to it. But Qualcomm itself also knows that its scientific research activities cannot stop at all.

Once it stops, other competitors in the industry may overtake it.

By then, Qualcomm's leading advantage will be lost.

This is not too far from the complete death of Qualcomm.

Qualcomm is currently at a time when it needs capital the most. Gritting his teeth, Owen Jacob said softly: "What about the conditions? What are the conditions of Smith Capital's PERCS?

"The annual interest rate is 7.85%, much lower than most PERCS on the market."

"The conversion period is two years. When the common stock price per share does not exceed 10.8 US dollars, the conversion price is 4.5 US dollars, corresponding to the price-to-book ratio of Qualcomm in 2000 was about 1.7 times, and the price-to-earnings ratio was about 15 times."

Abel continued to speak clearly.

"If the common stock price exceeds $10.80, the conversion price is $10.80."

"That means the yield on this PERCS bond has an upper limit. In addition to the annual interest income of 7.85%, the investment income from converting common shares after two years is a maximum of 58%.

"In addition, I need preferred stock with a safe harbor clause. If after two years, i.e. 2003, the common stock price is below $4.50, the conversion period will be extended by six months.

Under this set of rules, Qualcomm will pay interest at 7.85% per year for two years.

Two years later, if Qualcomm's stock price does not exceed $10.80.

Then sell the corresponding number of shares to Abel for $4.50 per share.

If it can raise more than US$13 or more than US$0.80 per share, it can only be sold to Abel for US$10.80 per share.

This is equivalent to Abel signing a two-year investment and gaming agreement with Qualcomm.

Similar PERCS bonds of this type are not uncommon in the United States and Europe. For example, Buffett invested in American Express in 1991, also using the PERCS bond model.

Generally, only listed companies like Qualcomm, which are currently facing difficulties, can agree to such conditions.

This is a type of unfair loan sharking between businesses when there is nothing to borrow and there really is no other way.

Abel smiled: "If I want, I can use $500 million in capital to support Qualcomm in the form of PERCS bonds.

After Owen Jacob heard this, his complexion changed.

Other Qualcomm executives present also had different expressions. But most of them have not very good expressions.

It's not because Abel's conditions are too strict.

actually predates Abrew.

Qualcomm has also reached out to several financial groups multiple times over the past year.

But most banking alliances rejected Qualcomm's request for funding. A small number of banks are willing to use Abel's similar PERCS bond model to support them.

But these banks have stricter conditions and higher interest rates.

As Abel said, 7.85% annual interest is really not that high in this model.

Buffett's interest in American Express at the time was 8.85%.

For those willing to donate Qualcomm PERCS bonds, the interest rate offered can be up to 10% or more. Thinking of this, Owen Jacob trembled and said:

"Mr. Smith, thank you for your conditions. But I have to report to the shareholders' meeting, you must understand."

"Correct." Abel smiled and stood up: "Five months, five more months, this state is fine."

Owen Jacob nodded, his voice dry, "Thank you for your kindness."

"Yes, that's it." Abel nodded, stood up and said he wanted to leave.

Owen Jacob and others still want to keep it, but Abel has little interest in Qualcomm, which is still a pain in the ass right now.

Before 2003, Qualcomm was a small, bankrupt company. It was really successful till 2006-07.

At that time, the prototype of the smartphone will appear.

Only a few investors with good vision see Qualcomm as invincible on this race.

At that time, Qualcomm suddenly became a stock, from a deadlock to becoming the gold mine that everyone wanted.

Soon after, Abel left Qualcomm. On the way to the airport, Edward said one more thing to Abel.

It was Laura who left Arlington for Austin, Houston.

Abel remembered the Herbert family who often lived in Austin, Houston.

Little Laura went to Houston and Austin, so she should have stayed home.

Abel was a little paralyzed by this question. He just let Edward continue to send people to watch, not paying attention to the next developments.

I waited until eight o'clock at night.

Abel returned to the mansion at 812 North Bedford Street in Beverly Hills.

Annie isn't coming back, she's flying to New York tonight.

Tomorrow she will be in New York as well as several major cities on the East Coast to promote "The Princess Diaries." In addition, the first day box office revenue of "The Princess Diaries" was also announced.

Under the hype of the entertainment media, Abel had his first television interview.

and received the support of many big names in the Hollywood media.

The Princess Diaries achieved box office revenue of 15.6 million USD on its first day of release.

Abel, the boss of a large media group, of course knows that the first day's box office revenue is very good. Like last year's Fox movie "X-Men," with a global box office of $296 million.

Box office revenue on the first day only reached about 13 million US dollars.

If this rule is followed, the estimated box office revenue of The Princess Diaries will be no less than that of X-Men.

But know that the cost of "X-Men" is up to 75 million dollars.

The budget of The Princess Diaries is only 30 million USD. The difference is more than double if box office receipts are the same.

We think Fox will be angry.

But that doesn't matter to Abel.

Smith Capital in the capital market only fluctuates a few points, and sometimes the floating profit and loss figures are even more exaggerated than that.

He just glanced at it and forgot about it. Since Annie wasn't there, Annie's bodyguard naturally followed.

In the evening, Abel was a little hungry.

He told Edward to go into the kitchen and make him something to eat.

Half an hour later, a tall, thin, blonde girl brought the food.

Abel tilted his head to look at Edward. Edward gently explained:

"She is Gina Korshunova's niece. Her mother is currently working as a chef here. Miss Anne promised her mother that she would perform certain tasks here within her ability and that she could receive a reward.

Abel nodded, he also remembered what Jinna asked him to do before.

Confirming this, he smiled at the girl.

She seems a bit shy and introverted. She didn't dare look at him, bowed her head and placed the food on the table. Abel checked and discovered that it was grilled lamb, horse meat of all kinds.

It's good to change his taste, he thought about it and started doing it.

As soon as he finished eating, Abel immediately felt that the meal was delicious.

"Oh very good." Abel smiled and said to the girl standing next to him:

"This meal is very delicious, I am very satisfied. By the way, my daughter, what is your name? My name is Abel Smith. You can call me Abel or Mr. Smith.

"Sir." Edward next to him said softly: "She just returned from Europe." His English is not very good.

"OH." Abel nodded: "So what language does she speak?" Russian?

"It seems to be Russian and Haksa."

"Do you know?"

"I'm sorry, BOSS. I won't do it. Edward said: "But there will be someone, do you need me to send him in to translate for you?" »

"Forget." Abel shook his head: "Let's talk about it until she learns English well."

Abel finished eating quickly and then signaled.

The little girl who didn't understand English understood his movements and came to get the plate and so on.

After eating, Abel turned around and went to the office, took out his cell phone and called his grandfather.

The call was quickly connected.

"Good evening, my dear grandfather."

"Good evening, my mean nephew."

"Alright." Abel said:

"I don't need to be so polite to you. Did little Laura come to see you yesterday? I heard she left today."

"Correct."

"Um" Abel repeated: "So you have nothing to say to me?"

"ARE NOT."

Aberdeen paused for a moment and said somewhat dissatisfiedly:

"Dear grandpa, you weren't like that two days ago. At that time you said that you and Dad would always be my support!"

"Hahahaha~"

In the cell phone receiver, Alex's long laugh rang out.

Abel is helpless when he learns that his old child wants to play tricks on him.

He must wait silently. Alex gently said after laughing enough:

"Okay, okay. Little Laura came to my house, yesterday she came and slept overnight in the room she stayed in last night. The bed that her grandmother made for her was even attended by her." continues to use, she doesn't mind." I must say that it is a very good shrub. His personality is too similar to Herbert's."

"And after that?" Abel did not commit.

Alex said, "Then I think she's especially suitable for you."

"Judging by what?" Just because it's a good shrub? » Abel asked.

"Little Laura is different from your grandmother and mother." Alex said over the phone:

"Your grandmother and mother are good mothers, grandmothers and wives."

"But they cannot become good wives. Do you understand what I mean, daughter? Little Laura could make a good wife. »

Hearing his grandfather praise Laura Bush Lauren, Abel was a little surprised.

He knew that his grandfather always looked down on the Bush family because of Herbert.

If it weren't for Herbert and his son, they would have climbed to such high positions and led their family so successfully.

Given Alex's erratic temper, it is estimated that he will no longer want to contact Herbert.

Now that Alex was raving about little Laura, Abel knew there had to be a reason. Facing his grandfather, he asked directly.

"Okay. I knew you were going to ask."

Alex said: "The reason I feel this way is because little Laura said something to me."

"What words?"

"She said, 'If I marry a Smith, I want every fourth-generation Smith to have 'Lauren' as their middle name."

Alex said: "Do you know what that means? My dear boy.

Abel remains silent here.

Alex's voice rang out again. "She confessed in front of me and Arya that she knew about you and that starlet. She only asked one thing about it. And it was that starlet, if she wanted a daughter . This name cannot be" Ella Lauren Smith. "If a new star gives birth to a son, it should be Abadi Lauren Smith."

After listening to his grandfather's long speech, Abel was a little speechless. Little Laura What does that mean?

Addicted to strange names?

But from what grandpa said, it seems like these things about her don't bother her?

Abel was a bit hesitant, he really didn't believe that such a good thing would happen.

"That's why I said she would be a good wife. Because I think she really means it. Unless she acts better she can fool Arya and me. »

Alex's voice rang out from there while Abel remained silent.

"call"

Abel took a deep breath and after a few seconds he spoke.

"So what do you and grandma mean?"

"Child, this matter is not my opinion or anyone else's. It is your own opinion."

"Whether Smith merged with the bush or with another family," Alex said. The most stable path is marriage and social welfare. The ultimate beneficiary and contributor will also be you. »

"Alexander can help you for a few more years. But I can't, I'm old."

"Abel, my good boy. The most important thing is what you think or what you want to do."

"That is the most important thing."

When his grandfather said this, Abel remained completely silent.

He held the phone for a few minutes without speaking, then a few minutes later he gently said:

"Alright. I understand what you mean. Already late. Good night, grandpa."

"Good night, kid."

Hanging up the phone, Abel hung up.

In the office, he walked to the floor-to-ceiling window and looked out at the night view of Los Angeles in the distance.

As night falls, the entire City of Angels is brightly lit, with the sky glowing above, revealing the capital's more obscure side. Seeing this scene, Abel was bewildered for a long time.

Standing for more than ten minutes, Abel turned around, walked to the desk, and picked up the phone again.

He found a "Little Laura" contact note in his cell phone for personal communication.

After hesitating for a few seconds, he called.

A few seconds later. Laura Bush Lauren's lively voice rang out through the cell phone receiver.

"Abel?"

"Yeah."

"Wait a minute, I'm talking to my father, my uncle and my grandfather, wait for me to change seats."

"GOOD."

After a short time.

"Do you still have enough courage to call me?"

"Why are you embarrassed. Laura Lauren Smith."

What answered him was a long silence there.

And a few minutes later, she smiled softly. (end of this chapter)