Henry stood on the top floor of a high-rise building, gazing through the glass windows at the endless streams of people below. It felt as if their fates were in his control!
"I'm here; the world is changing because of me!!!"
"I want to hold the throat of fate; I want to stand on the bones of my enemies; I want to become the master of the world of technology!!!"
The sharp light in Henry's eyes flickered as he glanced down at the manuscript on the table and murmured, "Since the goal of reclaiming Cisco's shares has been achieved, it's time to elevate Cisco's stock price!"
He picked up the phone and called John Chambers. "Chambers, execute the UP plan immediately!"
"Okay, I'll arrange it right now!!!" John Chambers quickly responded.
The UP plan was a stock recovery strategy developed by Henry and John Chambers, aimed primarily at addressing the negative public sentiment surrounding Cisco.
All relevant materials had been prepared. Cisco subsequently notified the media and scheduled a press conference. At the meeting, John Chambers delivered an important speech.
"Cisco's stock price has plummeted recently, but the main reason is that someone has deliberately spread false information, rumors, and slanders against Cisco. The impact has been detrimental!!! The report that Cisco lost $200 million last quarter is pure nonsense and completely fabricated! Yes, Cisco utilized $200 million, but that was for normal operating costs, intended to generate future profits!!!" John Chambers's tone was impassioned and contagious!
He paused and continued, "So, where did we spend the two hundred million dollars?"
John Chambers surveyed the crowd and declared loudly, "The network we all use—the broader the coverage, the more revenue Cisco can generate! If we spend $200 million, Cisco could potentially earn one billion or even more. Shouldn't we invest that $200 million?!"
Chambers's statement was met with a round of applause.
After a moment, he raised his hand to signal for silence and stated, "The news claims Cisco's management is in conflict and that some senior leaders are looking to quit! This is clearly a rumor. I'll announce to everyone that, according to the data, Cisco's management options are the highest among all listed companies, with a share ratio as high as 10%! Do you know how much a 10% stake means? Cisco's stock price hasn't plummeted; it's $5 billion!!! Think about it—$5 billion! Which executive would willingly leave Cisco, relinquish their options, and join another company? No one!!!"
"Regarding the negative news about factory accidents that resulted in casualties, this is also a deliberate slander against Cisco! We have gathered information and verified the truth: the factory did experience an accident, but it was not a Cisco factory. It was a factory that produces television sets. As we all know, Cisco develops network equipment and has never manufactured television sets. We strongly condemn such low-level slander, and we will pursue legal action against those responsible!!!"
"At the end of this conference, I will reveal some of Cisco's financial performance for 1989 in advance!"
With that, John Chambers produced a document and announced, "In 1989, Cisco's revenue exceeded $3 billion, and its profits reached $600 million! With the robust expansion of the nation's network backbone, we anticipate Cisco's revenue will double next year!!!"
Cheers erupted!
The flashes from cameras were incessant as John Chambers smiled slightly. He offered a polite bow of gratitude before exiting the stage.
"Chambers, great job!!!" Henry observed the speech from below, giving Chambers a thumbs-up once it concluded.
The next day, major media outlets reported on the press conference held by Cisco.
"New York Times": "The Most Expensive Slander of This Century: $20 Billion!"
"Silicon Valley Magazine": "We Know That Cisco is Exceptional!!!"
American ABC Television: "This station reported that Cisco held a press conference yesterday. The company's CEO, John Chambers, responded to the recent plunge in Cisco's share price, claiming that the main reason for the decline was a targeted defamation campaign. He explained and countered the negative news item by item!... It turns out Cisco was indeed a victim of slander. As for who deliberately targeted Cisco, that investigation is still ongoing. At the end of the conference, CEO John Chambers announced Cisco's financial results for 1989: revenues of over $4 billion and profits of $800 million, with an expectation to double next year's income!!! I'm Frank Wilde, host of this station, signing off..."
With this news, Cisco's stock price began to rise, exhibiting a remarkable increase!
A week later, Cisco's market value climbed back to $50 billion. The signs indicated a potential upward trend continuing!
As expected, Cisco's stock price surged, surpassing the anticipated $60 billion mark, only to settle at $56 billion.
The AOL team was already aware that Cisco's stock drop was atypical, prompting them to close out their short positions swiftly. If they had continued to short-sell, it would have resulted in significant losses!
AOL Headquarters.
Steve Case stated, "I must admit, Cisco is a skilled player!!!"
Ford Brook quickly deduced what Steve meant and added, "Could it be that all of this is a self-directed performance by Cisco?"
Steve nodded. "It seems likely. They understood that they lacked the funds to stabilize their stock price. Instead of resisting, they let it fall faster, taking the opportunity to recover more shares! Once they clarified the situation, their stock price naturally rebounded, and I didn't expect their market value to surpass previous heights!"
Ford Brook replied, "Thank goodness we exited early. If we had been greedy, we might have suffered significant losses!"
Steve sneered, "The risks of short selling are significant, but the potential rewards can also be immense. While AOL and Sequoia Capital managed to bow out, I can't guarantee that everyone in the alliance did the same!!!"
"Are you referring to CEO Bernard Ebers?" Ford Brook mused aloud, suddenly stating a name.
"Yes!" Steve Case affirmed, "I notified him previously, but he seemed unconcerned. I suspect he may have miscalculated..."