Chapter 216 Bright Future 2
Many still did not know that these two companies sponsored Jake, after all the brands even if they were in Jake’s uniform were not recognized, so this commercial would serve to make the two companies known as were the companies of Tiffany and Clara.
So they thought this commercial was very important to them, this commercial would be broadcast all over the country, after that, it was certain that Jake would be famous one way or another, after all, there weren’t many people who appeared in 2 commercials at the same time in the country.
The company was thinking of focusing on its sales in Miami, Chicago, and New York, which were the places where Jake was best known and the commercial would have more effect in all the country.
Jake thought it was a pity that Tiffany and Clara’s companies couldn’t do the same, after all, as John and Alan thought, this was a very good chance of advertising for the companies that sponsored Jake.
But he knew it was impossible because Clara was trying so hard that the company wouldn’t value until she could buy more stock, she couldn’t boycott the company to diminish the value because Robert and the opposing company wouldn’t allow it and could even get Clara out of the presidency.
But she wouldn’t make a commercial to further increase the company’s sales and value the value of Robert’s stock, Robert certainly didn’t like it, but he had no right to complain about how his stock was practically sold.
The company that was trying to buy Clara’s company, on the contrary, was happy, after all, Clara’s company was competing with them and if they didn’t improve in those five years it would be worth it even if the company couldn’t be bought.
After a few more days Matthew had called Jake to his house, Jake could hear from Matthew’s voice that it was good news, so he was excited because he wanted to know how much Matthew’s company had invoiced so far.
"Hi Jake, congratulations on your birthday, you’re 17 now, I never thought I’d see someone as talented as you being so young."
"Thank you."
"I swear you’re excited about it too, I confess I didn’t expect us to be that successful, and it was all thanks to you."
"Glad to have helped."
"I think even you’re curious how much we sold last year."
"I have to confess that not even I expected us to sell so much, but thanks to your county I made a strong investment and even a partnership with several major retail stores around the world."
"So we sell just over 2 million digital cameras worldwide, only in Europe we sell 1.5 million cameras, so thanks to your county we could sell so many cameras."
Matthew was very impressed by this too, he took out a $ 100 million loan by placing 32 percent of his shares as collateral, it was crazy that no one would normally be able to do.
But with that money he can make a commercial to advertise his digital camera and also the company’s brand, he bought advertising space for television channels across the country and also in Europe.
In addition, Matthew bought some new machines and hired some temporary workers to make 1 million digital cameras for inventory, he believes Jake said they would sell this 1 million camera.
So he spent all the money and still went into debt because it would cost 500 million to make these 1 million cameras, in a few days the first sales reports excited Matthew, he used all the revenue he received from the cameras to pay for the manufacture of these 1 million of cameras.
After 1 month he had already paid the cost of the cameras and had almost no more stock, so he saw that his effort was paying off, after manufacturing the first million cameras he kept manufacturing and can repay his loan and recoup the stock.
Just as he had thought before, the more cameras he sold, the lower the total cost became, because most of the cost was technology development and employee salaries, and selling more than 2 million cameras would get lower and lower.
So by the end of the year, Matthew had sold 2 million cameras and was still manufacturing more, he expected to sell at least 4 million more cameras in 1996 and that year he didn’t even think about making the new camera anymore.
With the new 1995 earnings review, the stock value will increase greatly and the value of the company will be valued at $ 4 billion, that’s over 10 times the value of the company last year, just as Jake said the company would completely change if it followed the advances in technology.
This was a big hit for Matthew and the entire company, it was hard to even for the biggest companies in the world to sell this much of cameras a year if they kept selling well after they developed cameras to put their company on smartphones and notebook the best in the world.
Jake knew that Sony would have a total value of almost $ 100 billion in 2000, of course Sony does a lot of things besides selling cameras, they sell all kinds of electronics, but if Matthew’s company could be worth $ 10 billion he would be very happy.
Jake was also happy and surprised by all this, so Matthew’s company was completely out of danger, and with this new valuation of the company, Matthew was now a billionaire with over 70 percent of the company.
Since they made half of the sales value as a profit they made $ 1 billion this year, so Jake could get 5 percent, which was $ 50 million, so Jake could repay the loan without any interest and still have a lot of money.
Of course Jake hoped that Matthew’s company would use all the profit to reinvest in the company, after all, they had the best chance of appreciating before this bubble burst in 2000, it would affect Matthew’s company as well and it’s market value would fall again.
"As with a loan I made I already increased the company and this year we are not going to start selling the new camera that’s almost ready, I will only reinvest half of the profit I received this year."
"So we can pay for the development of the new camera and also the inventory, next year we will earn more, I will use the profit better to invest and improve our company."
Jake was surprised and happy about it, so he would receive 25 million profit distribution and still be able to easily repay his loan and the new home, he began to regret not taking a bigger loan to get more equity from the company.
Of course Jake remembered that in a few years he would have another good investment opportunity, and it was always good to have a lot of money for emergencies that had happened a lot in those years, after all, he couldn’t count on the sponsorship that would be invested in cisco stocks.
After that Jake was very relaxed about having no problem to worry about this year if he got more money maybe he could even buy Robert’s stock to help Clara, but maybe he had to wait a little longer for that.
So Jake went back to running his 50 km marathon run every day, he went back to running the same time he did in Chicago for 30 minutes every 10 km, so he would no longer risk another injury.
When he increased his stamina, even more, he could try to increase this time more, but he would not risk it now, after all, he had a good enough time to win any marathon in the world.
He was also training with the football team whenever he could, he was just doing the physical training, and then he would leave as promised to Coach Jim.
Also, Jake had gone back to training with the basketball team, he was just playing training because he warned coach Mike that he was doing physical training on the football team, coach Mike knew well that the physical training of the basketball team football was harder so it was not opposed to Jake’s decision.
It was soon going to be the basketball team’s first match in the national championship and this was the last year with this team playing together, so Jake hoped he could win after all the NCAA championship.
Now Jake no longer had to worry about his investments because he knew the future and had trusted people running his business, Emily had been annoyed with Jake when he made the $ 12 million investment in Amazon by even borrowing money from Amazon that.
After all, investing in the Cisco technology company was much safer and more profitable in Emily’s vision for Jake to make, and this loan was very risky because Jake didn’t know when he could afford it.
But soon after Jake would get the dividends from Matthew’s company and could pay back the loan and still have 13 million, so Emily understood that Jake knew what to do and stopped meddling in his decisions.
Even though she thought Jake could earn a lot more if he invested all that money in Cisco stock, Jake also knew that this could be true in the short term, in 5 years he could invest that 25 million in Cisco stock and earn more of $ 1 billion.
But that wasn’t necessarily true in the future, Jake could with that 12 million Amazon stock invested over $ 57 billion over another 20 years, and Jake could still hold on to that money by making more smart investments before 2000 and receiving many more billions of dollars more.
An example of this was Google that the creators tried to sell in 1999, Jake was just wondering how he could make the most out of it without changing the future so much so that if he bought Google the creators wouldn’t just stay for work.
So Jake could end up destroying one of the biggest tech companies of the future, but if he couldn’t get at least a few billion of it he would forever regret it.
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