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Sugar Jugs
Juggalicious
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Posted - 2010.03.02 23:23:00 -
[1]
Worrying end of month with carrier sales in last half of Feb coming to a standstill almost. Some last minute purchasing (albeit at reduced margins for Atima Ind) helped us to fatten the wallet, pay off the mineral debt and pay a dividend. :)
I've started a BPO replacement program, to swap out the lower specced component BPOs. Cap Const Parts BPO has been upgraded (pre-researhed print) and the old one sold (for a profit! :p). Cap Drone Bay BPO is in research, should be finished in time for next build cycle. Once this is subbed in, we will sub the lowest drone bay out and start to standardise those prints (a few of those are quite poor), until such time as all drone bays are good. Then we can sell off the additional print to regain working capital. The value of the drone bay BPO (815m atm, will increase to 105% NPC price once its finished research) has been added to cash at hand, since its not under lockdown or any form.
Now the good/bad stuff. I'm looking to offload my duties with Atima industries, either via a handover to another manager or liquidation of the business. I would prefer to do a handover as I believe that with a little more time (mostly spamming ships channel with contracts) this business can remain profitable. I have spoken to several cap ship builders, none of which are interested in purchasing the business lock stock, and one of which is winding up his own enterprise (20 carrier BPOs w/ comps to suit) which should help alleviate oversupply. This leaves the way open to install another manager (expressions of interest welcome) and to consider any and all takeover offers for the business (buyout of all capital). In the event neight of these are achieved, the business will be broken down and sold in separate parcels.
I'll be at uni all day today, if you have any queries about the business or are interested in financials, please dont hesitate to contact me, atimaindustries-at-gmail.com (I can answer this through the day, and ***** forums too).
February NAV sheet can be found here, on Chribba's eve-files.
You can find the January report here.
Regards, Sugar
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Breaker77
Gallente Reclamation Industries
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Posted - 2010.03.02 23:32:00 -
[2]
Edited by: Breaker77 on 02/03/2010 23:32:19 Thanks for the quick report.
Originally by: Sugar Jugs I've started a BPO replacement program, to swap out the lower specced component BPOs. Cap Const Parts BPO has been upgraded (pre-researhed print) and the old one sold (for a profit! :p). Cap Drone Bay BPO is in research, should be finished in time for next build cycle. Once this is subbed in, we will sub the lowest drone bay out and start to standardise those prints (a few of those are quite poor), until such time as all drone bays are good. Then we can sell off the additional print to regain working capital.
Oddly enough since we've been talking, I was thinking exactly that. Get all the BPOs to a standard level as I've heard you mention that some were not the best.
Quote: I'm looking to offload my duties with Atima industries, either via a handover to another manager or liquidation of the business. I would prefer to do a handover as I believe that with a little more time (mostly spamming ships channel with contracts) this business can remain profitable.
I've been thinking about it all day about it. Of course I would need more info on it, mainly verification of BPOs with ME/PE levels, location of current build site, ect...
Then again liquidation might just be the best thing
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Atima
Minmatar Atima Corp
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Posted - 2010.03.02 23:56:00 -
[3]
I would reccomend liquidation, the business is profitable but just to time consuming and not worth it for the manager. I would applaud sugar jugs for the job he has done with this, well done mate.
Although I would like to see this continue on for sentimentallity, it is just not profitable enough.
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Sugar Jugs
Juggalicious
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Posted - 2010.03.03 02:59:00 -
[4]
Edited by: Sugar Jugs on 03/03/2010 03:01:02 Have talked with some interested parties, and general information they need:
Located in Caldari lowsec space. BPO inventory: Eve-files + drone bay in research (ME50/PE10 in a week).
One builder supplying 11 slots, paid 128-130m/cycle. You would need to supply 21 slots to get by with trickery, 22 slots to make life easy (one login/cycle). One char would need cap ship const 3, one with cap ship const 1.
Ships are sold via contract usually, so contracting 2-3, and some tax evasion skills/standings would be good.
Kazuo offers mineral compression service, however I think the price is prohibitive given the tight profit margins Atima faces. Access to your own compression or pre-compressed minerals would be ideal. Perfect refine in Spacelane Patrol would be necessary (unless you bug Kazuo nicely).
Kazuo offers very well prices research slots in corp, which makes the BPO research/changover program very simple, plus lets your build chars do useful things with lab slots while in House Of Marbles.
You will need 1, ideally 2 freighters and a webbing alt, ideally a rapier. Hyena or huginn if you must. System is very quiet generally, never seen >8 in there, usually 0-3.
60b is not enough to run the business without IOUs to mineral suppliers. 65b would be fine, 66-67b would be ideal.
Negotiating the business to a 3.6% minimum return would allow ample room for a management fee to give a return for your hard work. IMO payout should be based on NAV increase each month, above a set value (that being 65-67b). 10% of NAV increase to management, 90% to shareholders. You are taking freighters into lowsec twice a month. They are your freighters. Expect a return for the risk associated with this (yes, there is ALWAYS a risk in lowsec).
All enquiries will remain confidential of course.
I hope this information helps.
Regards, Sugar Jugs
EDIT: Clicky link to BPO inventory.
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cosmoray
Bella Vista Holdings Corp
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Posted - 2010.03.03 03:45:00 -
[5]
Sugar you have done a good job with what you have been given.
The problem I see is that the business is not very profitable, and a 3.6% return on nearly 70B is a big buy-in for someone. One stop seemed to make much more ROI so I could understand the interest in getting an IPO together.
Couple this fact that the buyer needs to be skilled in low sec running with freighters and ideally needs 2 skilled indy alts it is a lot of work.
What I recommend:
1. Put up a thread here that you are looking for a buyer, with a price (don't accept below NAV) 2. Set a deadline of 7-10 days from now (say March 10th) 3. If interested parties can prove financing extend another 7-10 to get financing 4. If no interested parties or any deadline is reached - liquidate
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Kazuo Ishiguro
House of Marbles
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Posted - 2010.03.03 08:13:00 -
[6]
Most of my compression customers these days are building supercaps out in 0.0, which for them justifies the costs, but for a regular, long-term commitment I'm sure a deal could be reached which would suit all concerned. --- 34.4:1 mineral compression |
Grozen
Caldari Titan Core
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Posted - 2010.03.03 16:59:00 -
[7]
Liquidation is your best bet sure you don't need to log much to run this but profits are tiny.For that sum one could make 40-50% instead of 3.6. knowledge is power |
Skarii TuThess
Lansez Innovations
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Posted - 2010.03.04 08:14:00 -
[8]
Originally by: Grozen Liquidation is your best bet sure you don't need to log much to run this but profits are tiny.For that sum one could make 40-50% instead of 3.6.
40% per month on 65bn?
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Sugar Jugs
Juggalicious
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Posted - 2010.03.05 05:10:00 -
[9]
Shareholder vote created to draw attention to this thread (no binding resolution contained in vote, just notification).
Changed over 2nd Cap Jump Drive BPO for a researched print, will top off research on current print and resell asap.
Most negotiations so far have been relatively slow to progress, some have ended. Currently, liquidation appears the most likely outcome.
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Vaerah Vahrokha
Minmatar Vahrokh Consulting
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Posted - 2010.03.05 07:48:00 -
[10]
Quote:
40% per month on 65bn?
He read the missioning forum, where to divert the requests for income nerf, they LOL at the riskless trading, where you can make double digits EASY (no amount specified) and everyone makes 20B like overnight. - Auditing and consulting
Before asking for investors, please read http://tinyurl.com/n5ys4h and http://tinyurl.com/lrg4oz
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alexxr
Gallente Red Mist Inc.
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Posted - 2010.03.05 15:14:00 -
[11]
As a investor since pretty much day one, i think its time to liquidate, i am surprised it has kept going this long, but its too much work for a little bit of money, and thus just isn't worth it so i think you should liquidate
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Murixo
M. Corp Mostly Harmless
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Posted - 2010.03.05 15:40:00 -
[12]
Had quite a lot invested in this since day 1 - kudos for keeping it up so long, it's been nice pocket money. I think that liquidation would be the best option at this stage.
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Breaker77
Gallente Reclamation Industries
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Posted - 2010.03.05 15:48:00 -
[13]
Originally by: Sugar Jugs Shareholder vote created to draw attention to this thread
Do not ever underestimate the taste of honeydew or watermelon!
I would have to agree that liquidation would probably be the best option right now.
If you do liquidate and you have a Capital Corp Hangar BPO to get rid of let me know, it's the last one I need.
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Etara Silverblade
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Posted - 2010.03.05 15:50:00 -
[14]
I agree with liquidating. It had a good run but it's time to kill this thing.
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Bad Bobby
The Dirty Rotten Scoundrels
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Posted - 2010.03.05 16:28:00 -
[15]
I'm not invested. My opinion means nothing, but I'd liquidate it.
I don't see the returns as worth the effort when done in this way. I run similar operations in hi-sec, low-sec and 0.0 that all yield better returns than this one, but they are handled somewhat differently, are better resourced, benefit from friendly locals and have all the other pluses that this specific implementation lacks. I see the future of this is to be broken up to benefit other operations that also have those pluses taken care of.
I do not believe there will be a benefit from simply replacing the manager, particularly with one any less experienced than the current one.
BTW I've helped out by buying up some of those shoddy cap comp BPOs and researching them up to more useable levels for my own operations!
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Sen Gyounen
Eve University
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Posted - 2010.03.05 17:14:00 -
[16]
Edited by: Sen Gyounen on 05/03/2010 17:14:46 I agree with the Kudos to Sugar Jugs, thanks for taking over and running it as long as you did.
And I guess I will also (reluctantly) vote for liquidation.
Sen Gyounen "For all your days, prepare, and meet them ever alike; When you are the anvil, bear - when the hammer, strike." |
Skarii TuThess
Lansez Innovations
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Posted - 2010.03.05 18:34:00 -
[17]
I'm a late investor, picking up a few hundred mil in shares a couple months ago, but I think it's fair to say that the appetite for this is not what it was. The market does not seem like recovering, and anyone interested in picking up this business can just as well wait until profits are better before doing so.
They say a sign of a good poker player is knowing when to fold, and I think one sign of a good businessman is knowing when to close a business before it becomes unsustainable. Sad to lose a good investment that is run as well as this but I have to agree that it's time to liquidate.
Thanks for your efforts SJ.
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Jackie Fisher
Syrkos Technologies Joint Venture Conglomerate
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Posted - 2010.03.05 18:34:00 -
[18]
I vote for watermelon/liquidation.
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Sugar Jugs
Juggalicious
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Posted - 2010.03.06 04:19:00 -
[19]
Well, looks like we're liquidating. :) Process started to get this rolling asap, expect a large sale on eve-o sale forums in the coming weeks. Anyone wants an archon, nid or chim or 5 below pub contracts, hit me up ingame. Private contracts only.
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Krathos Morpheus
Legion Infernal
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Posted - 2010.03.06 13:04:00 -
[20]
I agree, if you don't want to continue the best is liquidation, thanks for the work until now.
EVEwatch Sidebar soon "It is the unofficial force ù the Jita irregulars. " |
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Elektra Cute
Caldari
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Posted - 2010.03.06 15:47:00 -
[21]
Liquidation does seem the best option. It has been a nice venture, thanks for the hard work!
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Sugar Jugs
Juggalicious
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Posted - 2010.03.07 15:12:00 -
[22]
Edited by: Sugar Jugs on 07/03/2010 15:12:58 Eve-o for sale thread.
There may be some small delays (up to 24 hours) getting prints to you as they are still undergoing unlock procedures. Hull prints are 8-9 days away (currently still building).
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Kazuo Ishiguro
House of Marbles
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Posted - 2010.03.19 12:10:00 -
[23]
Liquidation is nearly complete- all our carrier and component BPOs have either been sold or are out on contracts waiting to be picked up.
So far just under 48.5bn isk has been raised from sales of prints and carriers. The remaining unsold stock and assets total roughly 14bn isk, including 12 carriers. Once these have all sold, isk will be transferred to the holding corp and paid out in dividends of 10bn isk. --- 34.4:1 mineral compression |
Jackie Fisher
Syrkos Technologies Joint Venture Conglomerate
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Posted - 2010.03.19 12:49:00 -
[24]
Thanks for the update Kazuo.
How much ISK is needed to payback the shareholders at 100% of original share purchase price?
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TheBlueMonkey
Gallente Priory Of The Lemon Atlas Alliance
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Posted - 2010.03.19 16:39:00 -
[25]
Damn you all, I'm gonna have to find somewhere else for my money now :P
Nice job suggar, hope what ever your next venture is is just as successful --
Nothing is worthless, you may have gotten it for free but it still has an inherent value
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Kazuo Ishiguro
House of Marbles
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Posted - 2010.03.19 22:16:00 -
[26]
Originally by: Jackie Fisher Thanks for the update Kazuo.
How much ISK is needed to payback the shareholders at 100% of original share purchase price?
60bn isk. I think we're going to beat that by about 2bn isk, depending on what prices we get for the remaining carriers. Shareholders are encouraged to place orders for the last few carriers if they want to speed things up a bit - I've bought a Thanatos that I might be able to fly in a few weeks
Remaining stock inc. units currently on contracts: 3x Archon 5x Chimera 3x Nidhoggur --- 34.4:1 mineral compression |
Sen Gyounen
Eve University
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Posted - 2010.03.20 13:45:00 -
[27]
Originally by: Kazuo Ishiguro 60bn isk. I think we're going to beat that by about 2bn isk..
Assuming we do - I vote that anything over 60bn be posted as a bonus to Sugar Jugs, for taking over and making the IPO as successful as it has been. :) Any seconds?
Sen Gyounen "For all your days, prepare, and meet them ever alike; When you are the anvil, bear - when the hammer, strike." |
Breaker77
Gallente Reclamation Industries
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Posted - 2010.03.20 16:13:00 -
[28]
Originally by: Sen Gyounen Assuming we do - I vote that anything over 60bn be posted as a bonus to Sugar Jugs, for taking over and making the IPO as successful as it has been. :) Any seconds?
I second this as Sugar Jugs was kind enough to devote countless hours for practically nothing.
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Elektra Cute
Caldari
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Posted - 2010.03.20 19:35:00 -
[29]
I second that.
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Jackie Fisher
Syrkos Technologies Joint Venture Conglomerate
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Posted - 2010.03.21 09:34:00 -
[30]
Originally by: Sen Gyounen Assuming we do - I vote that anything over 60bn be posted as a bonus to Sugar Jugs, for taking over and making the IPO as successful as it has been. :) Any seconds?
Happy to support that proposal.
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