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Felix Jugo
Aliastra
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Posted - 2010.05.03 21:22:00 -
[1]
My trade alt is going to reach Wholesale V in two weeks. I want to make full use of the new market orders the Tycoon skill will give me. For that reason, I intend to issue 20 100MM bonds (2B total) at a coupon rate of 10%/month, maturing three months from issue.
Before I can do that, I'm in need of an audit. If you'd like to audit me, please contact me in this thread or in game.
Detailed prospectus below.
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Felix Jugo
Aliastra
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Posted - 2010.05.03 21:34:00 -
[2]
Prospectus
1) Status
2) About Me
3) Business Model
4) Risks
- a) Death
- b) Boredom
- c) Fraud
- d) Explosions
- e) Incompetence
- f) Illiquidity
5) Edit History
1) Status
Bonds available: 20 of 20.
Face value per bond: $100MM.
Maturity: 3 months
Interest: 10%/month
Date of issuance: To be determined (awaiting audit).
Date of maturity: To be determined.
2) About Me
Up until now my trading activity has been limited to some casual region trading well away from the hubs. As it turned out, that provided far more income than I needed to support my very modest PvP habit (flying with RvB is very cheap). I currently have a net worth of ~2B. Around half of that is tied up in sell orders, much of that slow turnover orders. IĘm currently quite liquid (~600MM cash in hand). I can do a lot with what I have available, but IĘd prefer to have additional funds so that I can grow even faster.
IĘve dropped out of RvB to focus on this project. IĘll be acting as sole proprietor.
3) Business Model
I have a two part plan.
In my experience, one of the nice things about having lots of trade slots is that I can turn them into a source of passive income. I find some medium-high profit margin items, place them on a three month sell order, and watch them sell themselves very slowly. The nice thing about slow-selling is that once the setup is done IĘm free to focus on other things.
The other part of my plan is an industrial expansion. IĘve done some penny ante industrial work in the past; IĘm more than ready to scale up. IĘve identified some items I could be profitably manufacturing, but need additional seed money to get started.
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Felix Jugo
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Posted - 2010.05.03 21:41:00 -
[3]
4) Risks
a) I could die!
Die in real life, that is. Do not ask for whom the bell tolls, etc. deathriskrankings.com gives me about a .03% chance of death in the next three months. ThatĘs negligible for purposes of this investment, but nevertheless kind of unsettling. Apparently I am most at risk of death by accident (IĘll try to be careful) and suicide (I promise not to).
b) Boredom
I think IĘm at low risk of burning out. IĘm just coming off a short break (I gave up EVE for lent). I keep coming back because I like trading ū I enjoy this side of the game and would like to do more of it.
c) Fraud
i) Awaiting audit.
ii) Collateral: I donĘt intend to offer collateral, though IĘm open to discussion on this point. I donĘt have vast mineral stockpiles, or blueprints IĘm not intending to use. I wouldnĘt want to use my slow selling inventory as collateral since part of the point of the bond is to acquire more inventory. I suppose I could hand over my RvB fleet, but I donĘt think a 2% collateral consisting of a grab bag of frigates is of any use to anyone. IĘd appreciate your comments on whether a zero collateral loan would be acceptable, or on how I can improve my prospectus on this point.
d) Explosions
My trade alt will not fly cargo AFK, wonĘt fly untanked ships, and wonĘt be carrying vast sums of ISK in a T1 freighter. Your money will be in highsec. For those reasons, I take the risk of loss while hauling to be low.
e) Incompetence
I'm scaling up and trying new things, and you should take the possibility that I might make unwise investment decisions into account in your assessment of risk. Any worry there should be mitigated by the fact that I have my old region trading business to fall back on; even if I somehow earned no profit at all from the loaned money, my old region trading business can cover the interest payments. Besides which, IĘve got the cash to cover losses out of my own pocket. I wouldnĘt be issuing bonds if I thought this kind of worst case scenario was at all likely.
f) Illiquidity
I doubt you want the bond repaid with a freighter full of Phased Monopropellant I Hydrazine Boosters, so measures need to be taken to ensure I have the cash in hand at the three month mark. After two months I intend to start keeping my profits in short term investments. If it seems necessary at that time IĘll make plans to sell off blueprints and/or liquidate inventory, though if all goes as planned I should be repaying the loan from my profits.
5) Edit History
IĘd appreciate comment on my plans. If I need to change my proposal, I will make note of changes here.
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Felix Jugo
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Posted - 2010.05.03 21:48:00 -
[4]
Reserved
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Dethmourne Silvermane
Gallente
10-55D
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Posted - 2010.05.03 23:11:00 -
[5]
Reserving 1 bond pending audit, assuming generally respectable auditor.
You may want to contact SetrakDark or one of the other members of the MD Audit Fund to see if your bond qualifies for a free audit.
Regarding high-sec mining:
 Originally by: AmarrettoDiAmarr
3-4 million ISK/hr is perhaps .15 0r .20 US$/hr; not quite prison wages and you are around less honest people.
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Ghoest
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Posted - 2010.05.03 23:12:00 -
[6]
Do you have "margin trading" at 3 or 4?
If you do you ought to be able to work yourself up to a couple of Bill fairly fast if you are as competent as you suppose.
Wherever you went - Here you are.
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SetrakDark
DarkCorp Holdings
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Posted - 2010.05.03 23:53:00 -
[7]
Originally by: Dethmourne Silvermane
You may want to contact SetrakDark or one of the other members of the MD Audit Fund to see if your bond qualifies for a free audit.
Yes, check out what we do. You definitely qualify for a potential contribution to your audit costs, but the size and final confirmation depends on a BoD vote. The first step is to let us know if you're interested or not. Any questions or communication can be made in this thread, our thread or directly to a director ingame.
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Harvest Vector
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Posted - 2010.05.04 00:40:00 -
[8]
Reserving 10 Bonds pending audit
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Syds Sinclair
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Posted - 2010.05.04 01:21:00 -
[9]
..Reserving 0 bonds because the interest rate is far less then what you could make producing selected T1 modules in a month. With no risk.
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Taram Caldar
Royal Black Watch Highlanders
Warped Aggression
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Posted - 2010.05.04 01:33:00 -
[10]
Originally by: Syds Sinclair
..Reserving 0 bonds because the interest rate is far less then what you could make producing selected T1 modules in a month. With no risk.
Just because he can make more than 10% doesn't mean he's under any obligation to give you more than 10% per month interest on the bond. For the size of the bond measured against his current NAV it's a fair rate.
Market Alerts Mailing List |
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RaWBLooD
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Posted - 2010.05.04 01:52:00 -
[11]
Originally by: Syds Sinclair
..Reserving 0 bonds because the interest rate is far less then what you could make producing selected T1 modules in a month. With no risk.
Thanks for your input, there are people offering public bonds for 4% and less, the new guy does not have to offer more than 10 to get investment.
miners-you can: switch, rob, wardec, nerf, scam them, buy below market, pirate them on their way to sell. mining < trading, ratting, manufacturing from market bought minerals,they still wont go away |
Syds Sinclair
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Posted - 2010.05.04 02:34:00 -
[12]
..Thanks for the input. Now I know that even tho he might make more then 10% a month, he doesn't have to offer more then 10% a month. And also, that some people have bond offerings for 4% a month. Thanks for informing me, I had no idea.
I guess the OP decided to sweeten the pot even more in addition to him being a no name. By offering 0 collateral, he frees up more of his own isk to trade with. And doesn't have to bother share holders with holding onto expensive securities. This all sounds like a sound investment.
Sending isk nao!!
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RaWBLooD
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Posted - 2010.05.04 02:55:00 -
[13]
Originally by: Syds Sinclair
..Thanks for the input. Now I know that even tho he might make more then 10% a month, he doesn't have to offer more then 10% a month. And also, that some people have bond offerings for 4% a month. Thanks for informing me, I had no idea.
I guess the OP decided to sweeten the pot even more in addition to him being a no name. By offering 0 collateral, he frees up more of his own isk to trade with. And doesn't have to bother share holders with holding onto expensive securities. This all sounds like a sound investment.
Sending isk nao!!
Oh so instead of pointing out the flaw of collateral and reputation you decided to talk about an interest rate that is more than twice that of many investments in this forum? If we could all write between the lines as much as you did in that first post...
miners-you can: switch, rob, wardec, nerf, scam them, buy below market, pirate them on their way to sell. mining < trading, ratting, manufacturing from market bought minerals,they still wont go away |
Syds Sinclair
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Posted - 2010.05.04 03:17:00 -
[14]
..I'll admit that the reasons for my avoidance wasn't clear in my first post. But I thought that in this day and age of no named no collateral bond offerings, you could be as vague as you wanted for putting their offering down.
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Felix Jugo
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Posted - 2010.05.04 05:33:00 -
[15]
Originally by: SetrakDark
Originally by: Dethmourne Silvermane
You may want to contact SetrakDark or one of the other members of the MD Audit Fund to see if your bond qualifies for a free audit.
Yes, check out what we do. You definitely qualify for a potential contribution to your audit costs, but the size and final confirmation depends on a BoD vote. The first step is to let us know if you're interested or not. Any questions or communication can be made in this thread, our thread or directly to a director ingame.
I would be interested. I'll formally apply for an audit at your official thread. Thanks.
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Rienholt
Venant Inc.
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Posted - 2010.05.04 06:03:00 -
[16]
I am interested in at least one pending the audit.
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Felix Jugo
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Posted - 2010.05.04 07:13:00 -
[17]
Originally by: Ghoest
Do you have "margin trading" at 3 or 4?
Four. I've found it to be pretty much a necessity in region trading. It's nice to have lots of buy orders in place with very little cash tied up in escrow.
Originally by: Taram Caldar
While I don't plan to invest (As posted in other threads I have other expenses atm) I am curious about how many alts you use in your trade endeavors.
At present I'm planning to use two on this project. Having said that, three months is a long time, and I could see myself training up industrial skills on my third to get more production lines running.
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Innowyn
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Posted - 2010.05.04 07:37:00 -
[18]
I would be interested in 2 bonds, pending an audit.
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Annowyn
Knighthood of the Merciful Crown
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Posted - 2010.05.04 07:43:00 -
[19]
Innowyn is me. Silly new forum character selection.
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spectre257
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Posted - 2010.05.05 16:56:00 -
[20]
Looks interesting put me down for 3 bonds pending audit
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gromm stargazer
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Posted - 2010.05.05 17:45:00 -
[21]
looks like 3 left, Reserving 3 bonds pending audit (more if available).
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Lord Arbalest
Northstar Cabal
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Posted - 2010.05.06 00:38:00 -
[22]
I have agreed to carry out an audit on the OP.
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Felix Jugo
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Posted - 2010.06.18 17:09:00 -
[23]
Unfortunately Lord Arbalest was not able to complete my audit. We completed a three hour interview, and I imagine he had spent quite a bit of time looking me over. Unfortunately he was forced to delay completion of the audit for personal reasons. Weeks passed. He then informed me that he was under such stress that he would be unable to complete the audit. This was frustrating for me, obviously, but it was entirely understandable. He was thoroughly professional throughout, and refunded his fee.
I contacted Varo Jan to take over the audit but by that point the patch was looming. Both Varo Jan and I decided that our time would better be spent getting ready for the patch than putting me through the interview process a second time. By mutual agreement we decided to delay the audit until after we'd had the chance to exploit patch-related opportunities. That takes us to the present date.
As I look at my finances now I find that I just don't need the funds as much as I did two months ago. I've been reinvesting my profits, and can now take advantage of the opportunities that were out of my reach at the time I tried to issue the bond. Could I profit from an extra 2B of trading money? Likely, but at this point I might as well let my business grow at a natural rate.
For that reason, I've decided to withdraw the bond issue.
I'd like to thank Lord Arbalest for all the time he put in. If I were to seek funds from the MD community in future he would be the first person I would contact to do the audit. I'd also like to thank Varo Jan, SetrakDark and Vaerah Vahrokha for their advice. Apologies to those who reserved bonds pending audit.
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