Reborn in America, I am a legendary short seller on Wall Street.

Chapter 86 A Born Stock Operator (Thank you for your donations and support)

On Friday morning, Larry's train stopped at New Haven station. As usual, Larry rested for a while in the first-class lounge before locking up his luggage and heading to the betting shop in the city center.

At 9:45 a.m., the betting shop officially opened. Larry walked into the betting shop with his hands in his pockets and the transaction slip in his hand.

This time, he went straight to the drawer containing the paper tapes for each stock, found the long drawer of Colt, and began to browse the stock price trend of the past two days.

Larry last came here on Wednesday. From Wednesday to Thursday afternoon, the stock fluctuated between $50.25 and $53.25, accumulating shares, without any unusual price action.

This means that Larry didn't make much profit from the $600 he invested in the betting company, but Larry wasn't interested in making that small amount of money from the betting company anyway.

Larry then secretly put the stack of small strips of paper cut from Colt's quote into his pocket.

As soon as the market opened at 10 a.m., Larry slammed the transaction slip on the table and politely addressed the teller at the counter.

"I bought 600 shares the day before yesterday, and I closed them out today."

The teller glanced at the transaction slip in Larry's hand, frowned, and turned to look at the quote board, where there was no first quote for Colt stock yet.

The price quote machine clicked incessantly, and the young man reading the slips of paper soon announced Colt Firearms Company's first quote.
"Colt, $53 exactly!"

The price met Larry's expectations, and Larry didn't expect these market makers who were accumulating positions to push the price up further, so he chose to exit at the first offer.

The teller frowned, carefully checking that Colt's price hadn't fallen below the margin stop-loss point in the past two days. Under the transaction slip, which stated "Buy 600 shares at $50.25, margin $1 per share,"
He wrote "Closed position at $53" and then signed his name.

The teller looked up at Larry and smiled, saying, "Congratulations, Mr. Edward Robinson, your studies at Yale have had a lucky start."

Larry smiled and thanked him, then went to the teller's counter to cash out his profit, which totaled $1650.

Adding the initial investment of $600, that makes $2250.

Larry put the money into his wallet, where there was a little over $180 left, bringing the total to $2437.

Larry put the money into his wallet and then into his pocket. He made a small discovery: this time he no longer felt guilty about having more than $2000 on him.
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After Larry left the betting shop, the front desk manager frowned, walked up to the teller, avoided the customer, and asked in a low voice,

"Who is this person? How did he earn so much money from us in just three days?"

The receptionist looked puzzled and said, "His name is Edward Robinson. He's from Cambridge and a student at Yale. Mr. Manager, he's just lucky..."

After hearing this, the front desk manager's face was filled with anger. He stared into the eyes of the receptionist and muttered a curse under his breath.

"Harvard is in Cambridge! Do you think rich people in Cambridge would go to Yale? Use your pig brain! You damn idiot, you made us lose $1650!"
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At 6:05 p.m., Larry's train arrived at Hartford train station a little late.

Larry, carrying his luggage and a small leather suitcase containing documents, followed the crowd out of the station.

As soon as Larry arrived outside the train station, he spotted Mr. Wallace pacing anxiously in the small square around the station.

At the same time, Mr. Wallace also saw Larry. He jogged a few steps over to Larry, grabbed his hand, and hurriedly asked,
“Larry Livingston, what happened? Is Mr. Morgan willing to invest in Colt? Why do you insist on a meeting to tell me the truth?” Larry smiled without speaking, pulled Mr. Wallace to a secluded corner, raised his hand in a comforting gesture, and then whispered to Mr. Wallace…

“You needn’t be in a hurry, Mr. Wallace! However, before I recount the situation to you, I need to ask you a question, and I ask you to answer it honestly, as it will affect both of our interests.”

Mr. Wallace frowned at Larry's mysterious look. "What's the problem?"

Larry leaned forward slightly and asked in a low voice, "Have you made any moves in that stock beforehand? Did you send someone to collect shares ahead of time?"

“No!” Mr. Wallace denied categorically, then stared sharply at Larry.
"You know, this project is involving more and more people and there are more variables now; besides, I'm in charge of this project. Why would I be foolish enough to build a position before things are 80% likely to succeed?"

Larry nodded, thinking to himself that this proved Mr. Wallace was on his side, and the subsequent actions would be very logical!

Then, Larry looked into Mr. Wallace's eyes and said seriously,
"I discovered that the news of Colt's financing has been leaked. The stock has been heavily bought up by insiders since last Saturday, and it's already at a relatively high level of over $50. If I had told you about Colt on the telegram, the stock price would have skyrocketed yesterday afternoon or this morning, and we wouldn't have had a chance!"

Upon hearing this news, Mr. Wallace's pupils dilated dramatically, his face filled with astonishment and disbelief, and he muttered to himself,

"Impossible! I've done a very good job of keeping things confidential here, and the debt underwriting team from Paine Weber Securities here are all trustworthy people."

Larry knew he wouldn't believe him, so he casually pulled out a stack of price quotes from his pocket.

Mr. Wallace hurriedly picked up the stack of paper strips, frowned as he examined them, and grew increasingly angry, his face contorted with rage. He gritted his teeth and cursed.
"Damn it! That son of a bitch who deserves to go to hell leaked the information!"

Larry smiled, then raised his hand in a reassuring gesture, and softly said to Mr. Wallace,

"Don't worry, first I want to tell you that Mr. Morgan has agreed to participate in Colt's stock offering plan and has indicated that he is willing to be a bigger partner. He has also offered additional financial investment in the company, which means that Colt's stock offering plan and bond financing plan will be perfectly oversubscribed."

Upon hearing this news, Mr. Wallace's face immediately lit up with a smile, but the smile vanished in an instant, and he frowned, saying...
"Isn't this just giving away free information to those leakers who are trying to steal our chips?"

Larry looked at Mr. Wallace and realized that he was an excellent securities professional, but not a qualified trader. How could a real master trader waste such a good opportunity to make money when the "advantage is in my hands"?
Seeing Larry's smile, Mr. Wallace's eyebrows furrowed involuntarily, and he asked anxiously, "Then what should we do? Give me a suggestion!"

Larry, still smiling, leaned forward and whispered his plan into Mr. Wallace's ear.

Mr. Wallace's eyes lit up upon hearing this, and the corners of his mouth involuntarily turned up. He grabbed Larry's hand and asked eagerly, "Will this work?"

“I’m 90% sure!” Larry said confidently, then whispered to Mr. Wallace, “But you need to inform someone you trust to coordinate the operation at 11:45 a.m. on Saturday.”

Mr. Wallace lowered his head and went over his thoughts, agreeing that the plan was feasible. He then looked up at Larry, nodded firmly, and
“Alright! We’ll do it your way! I’ll send a telegram home right now and tell them to follow your plan and act at the close of trading on Saturday morning!” After saying that, Mr. Wallace thought through the whole process again before letting out a sigh of relief.

Then, Mr. Wallace raised his fist and gently tapped Larry's chest, sighing,

"Larry, you're a fucking born stock trader!"

(End of this chapter)