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CH92 | DI
🕑 Added 2025-05-06 13:43:35 +0000 UTCOn Monday, Pierce and I headed back to Florida.
This trip was expected to take a bit longer.
A rather important task was waiting for us.
First, there was a scheduled press conference.
After remaining silent since the sale, Epicura was finally going to announce its official stance.
Whitmer had prepared thoroughly for this, even organizing a mock press conference.
He gathered about thirty ordinary people, had them watch White Shark’s broadcasts, then asked them to compare their reactions to Whitmer’s mock press conference.
After the 30-minute mock press conference ended and opinions were being compiled, Whitmer looked nervously back and forth between Pierce and me.
“What did you think?”
I couldn’t bring myself to respond.
To be honest, it wasn’t very good.
Whitmer lacked the charisma to sway a crowd.
He seemed to sense that his performance was lackluster.
That must be why he’s asking with those eyes.
‘How do I sugarcoat this…?’
As I hesitated, Pierce unflinchingly went straight to the point.
“It was too honest.”
“Honest?”
Whitmer looked puzzled.
He seemed to think, “What’s wrong with being honest?”
After all, he considered honesty and transparency to be the greatest virtues of a CEO.
But Pierce was blunt.
“What we need right now is to ignite the betting spirit of the investors. But if an honest and principled person tells them to bet, would they be inclined to do so?”
“……”
“We need to twist reality a bit, exaggerate, and sell them a dream. In other words, this is the moment we need a salesman, not a doctor.”
“A salesman…”
Whitmer’s face twisted in disapproval.
He seemed to be silently protesting, ‘Are you asking me to become a con artist?’
Pierce then turned to me and continued.
“In matters like this, it’s better to take Sean’s advice than mine.”
He was asking me to share the art of persuasion.
‘Is he subtly testing me right now…?’
If I offered advice here, it would be tantamount to admitting I was a salesman or a swindler.
But Pierce wouldn’t be giving such instructions just to mess with me, especially with the press conference imminent and Whitmer in dire need of help.
I did have a few tricks up my sleeve, but…
“Are you really asking me to be a clown…?”
Even if I told him, I wasn’t sure Whitmer would follow through.
It was hard enough to succeed even with full enthusiasm, and with him in such a resistant state, any advice would be futile.
Teaching Whitmer was out of the question.
In situations like this, another approach was necessary.
“No, sir. You should stick to your usual style.”
“Really?”
“Yes. Trying to act differently would only backfire. It would inevitably come across as awkward.”
“Right.”
Whitmer seemed momentarily relieved but soon voiced his anxiety again.
“Then are we just going with this?”
“No. If we proceed like this, we’ll lose.”
“Then what on earth…”
“We need to find a way to solve the problem without acting.”
“And what would that be?”
Both of them looked at me with curiosity.
‘How should I phrase this…?’
If I explained it too bluntly, I’d come across as a shrewd con artist.
At times like this, the best approach was to use a bit of mystique.
I smiled with a wise, enigmatic expression.
“People have a saying: The most entertaining things in the world are watching fires and fights.”
True sages communicate through riddles.
I threw out the riddle first, then began to unravel it.
“The biggest issue right now is that the press conference is too dull. To capture the audience’s attention, we need something intense.”
“I… understand that much.”
“It’s fine. If we can’t make the content or delivery exciting enough, we can make the situation itself compelling.”
“The situation?”
“When people witness an accident on the street, they instinctively stop to see what’s going on.”
“……?”
“Humans are naturally drawn to conflict and controversy. Regardless of the severity, whenever there’s a fight, it captures attention. If we can create such a clash…”
I couldn’t finish my explanation.
Suddenly, the meeting room door burst open, and a man walked in.
It was Whitmer’s secretary.
“I told you not to disturb us.”
Whitmer frowned in displeasure, but the secretary ignored him and picked up a remote from the wall.
“Apologies, but you need to see this right now…”
As he spoke, the large monitor on the wall lit up.
On the screen was none other than White Shark.
He was appearing on another broadcast.
But the face of the host sitting across from him was familiar.
It was a famous figure, after all.
Jim Clayton.
The host of ‘Crazy Money’.
Pierce frowned deeply at the sight.
“They’re coming out full force.”
***
‘Crazy Money’ is a show with tremendous influence over individual investors.
Stocks recommended on the program often saw sudden surges of 2-3%, as there were always retail investors waiting to act on its tips.
It was the most powerful channel for swaying retail investor sentiment.
White Shark had appeared on just such a program.
Why was this significant?
Because Epicura was a company with an unusually high proportion of retail investors.
In 2014, the average participation rate of retail investors in the stock market was 10-13%.
However, for Epicura, that figure reached an impressive 17%.
In an election, 17% is a voter base that cannot be ignored.
White Shark’s strategy was clear: capture the hearts of these retail investors.
This was a bold and unconventional move.
Most elections overlook retail investors.
They are often seen as dormant voters.
While institutional investors’ shareholder meeting participation rates reach up to 80%, retail investors’ participation hovers at a mere 12%.
Retail investors rarely vote.
The reason was simple.
Those investing small amounts held only a tiny stake in the company.
With such negligible weight, they often didn’t feel it was worth the hassle to participate in voting.
But White Shark was determined to awaken even these dormant retail investors.
His persistence revealed a determination not to let a single vote slip through his fingers.
How, then, did he plan to seduce these retail investors?
To find out, we paused our meeting and focused on White Shark’s broadcast.
[In your last broadcast, you mentioned potential misconduct within Epicura…]
Clayton began the interview in his signature rapid-fire tone and straightforward manner.
[Haha, I never said that. To be precise, I didn’t claim there was misconduct; rather, I suggested they behaved as if there were.]
[You’re being cautious all of a sudden.]
[It’s true that the sensitivity of the issue demands prudence. I’m not here to attack anyone but simply to uncover the truth.]
[Since when have hedge funds been so keen on seeking the truth?]
White Shark once again tried to frame himself as a righteous investigator uncovering the truth, but Clayton swiftly stripped away that façade.
Still, White Shark didn’t flinch.
As if anticipating the question, he calmly replied.
[You’re right. I’m not interested in the truth for its own sake. I’m only interested when the truth can be profitable.]
[So, you believe this is profitable?]
[Absolutely.]
White Shark admitted that his actions weren’t driven by goodwill or a sense of justice.
He then elaborated on his logic: ‘truth is profitable.’
[Improving a healthy company is challenging. But problematic companies, once you identify and fix the issues, present opportunities for dramatic rebounds. Epicura is just such a case.]
[So, you’re saying you’ll fix Epicura’s problems and drive up its stock price?]
[Exactly. By uncovering the core issues through the board, offering solutions, the stock price could soar. According to our team’s analysis, within a year, it could reach at least $67, potentially as high as $86.]
Like any election, a compelling promise was essential to capture voters’ hearts.
White Shark had just unveiled his first campaign promise: raising the stock price to at least $67, potentially $86, within a year.
Epicura’s current stock price was $45.
This represented an increase of 48% to 91%.
But he didn’t stop there.
[Additionally, I believe the proceeds from the sale of Harbor Lobster should be returned to shareholders. We estimate a special dividend of at least $6 per share is warranted.]
White Shark promised a $6-per-share special dividend.
[$6 per share! That’s practically a bribe.]
[Given how the sale was handled, it’s a necessary measure.]
To summarize, White Shark’s promises were twofold:
First, to provide $6 per share within a couple of months.
Second, to increase the stock price by at least $22 per share within a year.
But White Shark didn’t stop with promises.
Every election involves not only promises but also negative campaigning.
[The reason Epicura has been underperforming is that its management and board are completely stagnant. Whitmer has been CEO for 20 years, and the board has remained unchanged for three years. With leaders stuck in the past, it’s hard to expect a new leap forward.]
[So, you’re saying they’re obsolete?]
[I wouldn’t go that far, but something similar. They’re clinging to past glory, unable to read the changing tides, which is why they sold off their legacy brands instead of improving them.]
The interview was short and concise.
It lasted just over 10 minutes, yet the broadcast caused a massive stir among retail investors.
– Holding out pays off.
– I win because I bought in during the dip, haha.
– I trust White Shark, adding $2,000 more.
– But $28 per share is too exaggerated, isn’t it? Haha. Shark inflated Office Depot 140% last year in just one year.
White Shark was a problem-solving expert.
Not just in words, but with a proven track record.
In the case of his most recent target, Office Depot, its stock price had skyrocketed from $3.50 to $8.40.
What if he could recreate the same miracle?
Many were already harboring such hopes.
However, his second promise was even more critical than the first.
– How long will it take for the special dividend to come out?
– Will they really return $6 per share?
Retail investors have an unwritten rule:
They are obsessed with breaking even.
While institutional investors also avoid losses, they have internal rules requiring them to cut losses when certain thresholds are met.
They typically set stop-loss points before making an investment.
Retail investors, however, don’t use such safeguards.
They hope for gains while failing to set a limit for losses.
When losses occur, they desperately cling to the hope of breaking even.
Most of Epicura’s retail investors were currently in this situation.
After the sale of Harbor Lobster, the stock price had plummeted by 20%.
They were desperately hoping to recover their losses and break even, and White Shark promised just that.
He vowed to deliver $6 per share within a couple of months.
But there was a condition.
All these promises were contingent on voting for him.
– How do I vote in the board election?
– Check your mail. Haha. Just send the enclosed proxy form before the deadline.
– If you use a broker, you can notify them through that channel too.
Guides on how to vote flooded various online communities.
It was evident that these posts weren’t from regular community users but part of an organized campaign by Shark Capital’s hired commenters.
—To receive the special dividend, vote for White Shark.
That sentiment was solidifying into a dominant trend when a bombshell announcement shook the scene.
<Epicura Acquires Double Crab House>
The headline broke like a thunderbolt.
– A brand acquisition? In this situation?
– Where’d they get the money…?
– Could it be…?
– The proceeds from the Harbor Lobster sale?
Indeed, Epicura had funneled the entire amount raised from selling Harbor Lobster into this new acquisition.
– What about the special dividend?
– Wasn’t that money supposed to be returned to shareholders?
The $6 per share special dividend White Shark had promised was effectively spent by Epicura.
In other words, Epicura had openly defied White Shark’s promise.
With everyone’s attention locked on the unfolding drama, Epicura held its first official press conference.
