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Dark Shikari
Caldari
Imperium Technologies
Firmus Ixion
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Posted - 2006.08.27 14:28:00 -
[1]
Edited by: Dark Shikari on 27/08/2006 14:29:23
Many people, I suspect, will attempt to run all sorts of IPO scams after the EIB in every way imaginable. Some might be SVE-like scams, some might be more interesting and dramatic. But every one will involve you all losing your money  .
There is a simple solution. I have thought about this "rule" in the past, but never really been harsh enough to implement it. Now, I would think, is the best time to implement it, at least temporarily.
Unless you have a very good reason to trust an IPO, don't invest in it.
This means, by default, if you're going by this rule and you see an IPO, you will start assuming you will not invest in it, and will only invest if you can come up with a very good reason why you should (and why the IPO owner is trustworthy).
If you can't come up with any good argument, regardless of how good the IPO looks, and regardless of any protections against scams, don't invest.
The recent capital ship IPOs make me highly suspicious. While obviously I have a reason to trust Templi Cube, the others make me even more suspicious. It is clear that they have chosen a business that requires a lot of capital investment (no matter what: no way around it, so nobody can chastise them for having too large an IPO). It is also clear that they have chosen a business that is already overpopular and doesn't make great profit: I would think that if they had that much money around, they would want to do something more profitable. You know... like scamming it all.
This is not declaring them or any other IPO a scam: I want to avoid talking about specific IPOs here. Its just that with the number of scam IPOs I expect over the next few months, I would think that some extreme caution would be in order.
--[23] Member--
 Originally by: DB Preacher
The only time BoB's backs are to the wall is when Backdoor Bandit is in local.
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Celedris
Tharsis Security
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Posted - 2006.08.27 15:10:00 -
[2]
Common sense really.
...a CEO of one of the recent capital ship IPOs copied Time Cube's announcement almost verbatim, asking for billions using two alts that have less than two weeks of forum history each
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Meena Vifargent
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Posted - 2006.08.27 15:24:00 -
[3]
First rule is to never invest more than you can afford.
There is many small IPO, i invest in a lot of them with alts, but never more than i can do in a single farming session (50-200M).
Now people idiot enough to invest all their money in a "hey, you'll gain 4 times the invest in 2 days !" IPO desserves to loose their isk (not money, for me isk isn't money).
And you'r right on one point : in all the recent capital ship IPO, only one or two doesn't looks like easy scam money.
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Jenny Spitfire
Caldari
LoneStar Industries
Veritas Immortalis
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Posted - 2006.08.27 15:26:00 -
[4]
Ask me for opinion and I will tell you scam or not for a fee.
---------
In the blindness, a streak fiery thread violently cuts the horizon. Bleeding golden mists, engulfing the blindness from within. Burning the darkness. The touch of dawn. |
Skarii TuThess
CompleXion Industries
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Posted - 2006.08.27 20:03:00 -
[5]
The other important point to consider is not just whether the IPO is a scam, but whether you believe that the people undertaking the venture can actually make it succeed. If you investigate whether you think the person in question has the experience, knowledge, ability and infrastructure to make a venture work then this base knowledge should open up a lot of avenues that will highlight whether the IPO is a scam or not.
If someone had asked me if I thought EIB was a scam before it was revelaed that it was then I would honestly have said that I did not know, but I would give it the benefit of the doubt. After EMFI Manager revealed that a director alt could have stolen all of the assets, if you asked me would I invest, then I would have said no, because i did not think that the security of the corporation was up to scratch.
Even if the former were true (ie it had not been a scam) you would still have to make sure you protect yourself from the second.
As Dark Shikarii said, make sure you trust the IPO (or at least strongly believe the risk is lower than the reward).
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Dark Shikari
Caldari
Imperium Technologies
Firmus Ixion
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Posted - 2006.08.27 21:10:00 -
[6]
Originally by: Skarii TuThess
As Dark Shikarii said, make sure you trust the IPO (or at least strongly believe the risk is lower than the reward).
This is very big.
The vast majority of IPOs do not make enough ISK to be worth investing in, even the ones that people invest it.
Marginis, at current prices, is around 1.5% return. Totally useless, by most standards.
On the other hand... people do invest to speculate. They hope the share price will rise drastically after the IPO, and that they can resell.
That's why people have been drawn towards possible scam IPOs: they look good, and they think they can easily make an automatic riskless profit.
--[23] Member--
Originally by: DB Preacher
The only time BoB's backs are to the wall is when Backdoor Bandit is in local.
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robacz
Gallente
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Posted - 2006.08.27 21:29:00 -
[7]
Heh no offense DS, but I am not sure if you are right person to give any advices regarding IPO scams. 
___________
Buying/Selling: Implants, Cargo Expanders and more |
Heikki
Gallente
Wreckless Abandon
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Posted - 2006.08.28 07:52:00 -
[8]
Originally by: Meena Vifargent
First rule is to never invest more than you can afford.
No no no, thats only the second rule after DS's first one. The attitude of "Ok, I toss mere 100M on this IPO since I don't care" merely encourages the scammers, instead of giving you any steady profits.
Thought it might work for lotteries..
-Lasse
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Shenala Grenutra
principle of motion
R i s e
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Posted - 2006.08.29 11:31:00 -
[9]
CCP, make a system with sa***aurds to prevent this kind of trash, S'il vous plaet?! Let's not let this turn in to the Escrow market with 10% of them being scams. Well, maybe not 10, but a couple %
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JP Moregain
Gallente
Moregain Guaranty Trust
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Posted - 2006.08.29 20:21:00 -
[10]
Edited by: JP Moregain on 29/08/2006 20:23:20
Originally by: Jenny Spitfire
Ask me for opinion and I will tell you scam or not for a fee.
And ask me for an opinion of Jenny's opinions business and I will tell you if that is a scam or not (for a fee of course...)
-JP
P.S. Sorry, I have a wierd sense of humor...
"In JP We Trust, All Others Require Collateral..." |
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