January 18. Despite all efforts by the Hassenfeld family to maintain the stock price, extensive media coverage undermined the confidence of many investors.
At 4 p.m., by the time the market closed, Hasbro's stock had fallen by 10%, experiencing two trading halts. Fortunately, this happened towards the end of the day; otherwise, the decline would have been even more significant. But this was just the beginning. Since the announcement of the Transformers movie, Hasbro's stock had risen by 21% over a few months.
Currently, the news was spreading only through the internet, and print media had not yet started covering the events. Most investors were office workers, many of whom were not yet accustomed to online news. Therefore, the real impact was yet to be felt. Further decline in Hasbro's stock could be expected tomorrow.
As the sun rose, newspapers began delivering across America. The entertainment news section was always popular during breakfast, and Eric's interview did not go unnoticed.
It was no surprise that when the New York Stock Exchange opened at 9:30, Hasbro's stock started falling again. Investors who hadn't sold their shares yesterday were now in a panic.
After a few hours, the graph showed another sharp drop, and the stock trading was halted again. The stock price fell to $30.3 per share, almost returning to its level from several months ago.
Meanwhile, at The Chateaux Deer Valley, Eric was lying on the bed, enjoying Chloë Sevigny's services.
"Eric, Serge Hassenfeld can't find me, so he's probably already in Park City looking for you. They are in a panic right now."
"Don't worry, Dad. I'm in a safe place; he won't find me. And even if he does, he can't do anything. We are all respectable people, not thugs."
"Yes, but be careful. Hasbro's stock has returned to its original price, and even the most respectable people might want to kill you."
"Ha-ha-ha! I'm just a spoiled kid dreaming of becoming a director, as the media say. He should blame those tabloids!"
Charlie Cooper's voice became anxious: "By the way, was that interview a joke? Did you deliberately spread false information?"
Eric understood that no one believed in his directing abilities; even his father thought it was a cunning plan. Only his mother probably believed in him unconditionally and supported him in all his endeavors.
"Of course not. I'm serious. Even if it's a game, I'm playing it big. Otherwise, Serge and Allen might actually kill us!"
"But how are you going to do it? It's a $150 million production, Eric, this isn't child's play!"
"Dad, did you forget? I hired an assistant director and several assistants. On the set, I'll just be a nominal leader; they'll help me manage."
Charlie sighed with relief: "If you have a plan, I won't interfere in the film. Hasbro's stock will likely fall by a few more percent tomorrow, but that will be the limit. Get ready to reap the rewards."
"How much money can we use now?"
Charlie, after a brief pause, replied: "$1.1 billion. That's the maximum amount; we need to leave funds for this year's projects. The investments won't pay off until the end of the year."
"$1.1 billion again? It seems to be my lucky number. Ouch!"
"Eric, what happened?"
"Nothing, a mosquito bit me."
"Dad, I have to hang up, I need to go kill the mosquito."
"Mosquitoes at this time of year?"
"Yes, a very big mosquito."
"What are you going to hit it with?"
...
January 20, New York Stock Exchange.
The new trading session began, and as expected, Hasbro's stock continued to fall. However, today the pace of the decline noticeably slowed down. By noon, the stock had fallen only by 6%, and it seemed to have reached the bottom.
As time went on, the decline slowed even more, and by 1 p.m., the graph started to look like a wavy line. After a 6.6% drop, the stock began to rise.
Half an hour later, the stock recovered by 1.5%. Then the growth accelerated, and by 3 p.m., Hasbro's stock had almost returned to its initial price. The graph fluctuated more than a cardiogram.
Clearly, someone had intervened in the situation. The public suspected the Hassenfeld family.
However, the Cooper family's role was more significant. Charlie Cooper was secretly buying shares as small investors sold them. The current price was significantly lower than a few days ago.
In just a few hours, he invested over $600 million.
But there's a saying in the market: "Confidence is more important than gold." When investor confidence falls, it's hard to regain it. Many small investors continued to sell their shares, fearing another drop. With an hour left before the market closed, their anxiety intensified.
If the stock falls again tomorrow, and the major players exhaust their resources, no one will be left to support the market. Selling now might result in a small loss, but tomorrow the losses could be greater.
Half an hour before the market closed, the graph started to fluctuate sharply. By 4 p.m., Charlie Cooper had fully spent his resources.
All $1.1 billion were invested, and Hasbro's stock finally returned to its original price, even rising by 2%.
These $1.1 billion account for about 16% of Hasbro's market value. If the Coopers gather all these scattered shares, they could become the second-largest shareholders of Hasbro.
Of course, the issue of paying taxes during the process is solved through gifting, using the non-taxable amount for reasonable tax avoidance.
As the trading session ended and the stock market game concluded, the Coopers discussed the situation over the phone.
"Don't worry, Dad, I know what to do. Now it's my turn to act."
"You'll see tomorrow."
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