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EMFI Auditor
Minmatar
Sebiestor tribe
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Posted - 2006.09.10 18:17:00 -
[1]
Corp and Equity Structure
PCT has sold approximately 25% of the corp shares to the public raising approximately 6bn. The 75% shares that remain in corp are covered by the initial corp injection of 16bn+. Staff is paid 200m/week (approximately 870m/month) 75% of the dividends paid are fed back to corp. Total corp value is approximately 30b now translating in a base-value of a little over 1.2mil/share. When the corp would ôliquidateö 25% of the value of the corp would go to the shareholders and 75% will remain in the corp and be property of the CEO.
Operational Analysis
I have determined that Proton is actually conducting business in the areas of T2 Component Building and Tech2 Modules/Ships trading. His profits seem healthy enough to cover dividends and have corporate growth at the same time. Note though that while 4bil profits seem to be paid out, the actual liability of the corp is only 1.87b (870mln Salary and 1bn public pay) One could say that instead of making 16% profits after salary PCT is really making 4% profit after salary and corp growth. Since the inception of PCT the corp value has increased with about 20-30%.
Scam Risk Assessment
The biggest 2 risks for scams in the case of an operation like PCT is ôDelayed Ponziö basically:
Paying out uber dividends
Making the Share price rice
Selling the remaining 75% shares for 300%+ of the IPO price
running of with everything after all shares are gone.
The 2 things that have to be checked in that case are 1) are all corporate shares still in possession of the corp and 2) Does the corp make profit to cover the dividend rates.
In the case of PCT since it is only paying out to 25% of the shares it is quite easy to maintain 16% profitability (since it requires 4% profit after salaries and corp growth) and the activities that are audited can certainly make that besides a healthy corp growth.
I can vouch that up to the moment of the audit Proton hasn't been scamming. And if he would decide to take all and Run tomorrow he would score about 7.5bn.
It is unlikely Proton will ever run with that 7.5bn but one must note that a good scammer will sell the 18.5k shares first before he runs of. At the moment of the audit all shares were accounted for. And I would like to congratulate Proton on a succesful and profitable corp.
Profit and Share price Assessment
Proton has estimated to (at least) continue this operation for another 12months. And he has estimated the Share value to be around 2mn isk / share and @16% dividends that means that in the next 12months the effective value will be (12x160k + 2m) 3.92m / share. Any isk you pay below 3.92m will be your profit in 12months time.
Example: If I buy the share for 3m today, and sell it back to Proton in 12months time... I will receive 2M + 1.92M and I will have made 920k in 12months on a 3m investment (about 3%).
My recommended buy-price for this share is between 1.5 and 2.5m depending on your optimism and trust.
Recommendations for Due Diligence
Even though the maximum take for Proton is only 7.5b now.. he has full possession of the 75% shares which he could sell of for about 30-40bn and scam after that. As long as those 75% shares are in his possession he has a full green light from EMFi on his operation. I would recommend an auditor with view access to those shares.. or a regular checkup with an auditor to prove they are still there. To ensure full compliance in the future.
I also would like to see a published exit strategy, what happens if Proton gets hit by a bus stuck under a bridge?
At this moment Proton is compliant and not a scam. But I can't of course guarantee this for the future.
Final Verdict: Compliant
Strong Buy @ 1.5m
Buy @ 2.5m
Hold @ 3m
Sell @ 4m
Strong Sell @ 5m+
Disclaimer: Compliancy today doesn't guarantee compliancy in the future. Everything reported in this audit is 100% based on checked and proven facts.
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"The only thing I am gonna argue with alts is wether I should argue with alts."
-- Naphtalia 2006 |
Treelox
Amarr
Storm Industries
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Posted - 2006.09.10 18:22:00 -
[2]
Edited by: Treelox on 10/09/2006 18:22:53
thank you emfi and proton, for getting together and doing this. Its nice to see progress towards accountability and fiscal prudence, especially after the last few weeks of scamtastic corp thefts, from ipo's we have witnessed.
Just currious EMFI, how long did it take you to get this done? and were you able to get access to everything in a quick and efficent manner?
p.s. still waitng on delivery of my fanboi pin :-P
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My sig seemed to disapper, let me try again... |
Hexxx
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Posted - 2006.09.10 19:05:00 -
[3]
Congratulations go to Proton and his profitable (and as importantly, legitimate) business. I applaud his efforts and encourage him to not let his detractors get under his skin.
Congratulations go to EMFi for a successful audit. Your report (in my opinion) is accurate and helpful. Your analysis of the share price with accompanying buy and sell recommendations was paticularly noteworthy.
I'll end this note of kudos with one last thing: I encourage other companies and businesses to also have EMFi (or another auditor) conduct an audit on your operations as well. This is a critical time for a market rocked by scams and scandal. Successful audits like these strenghten investor confidence in the market and set an example for future business plans.
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Treelox
Amarr
Storm Industries
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Posted - 2006.09.10 19:26:00 -
[4]
 Originally by: Hexxx
Successful audits like these strenghten investor confidence in the market and set an example for future business plans.
and best of all have the potential to increase my divies 
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My sig seemed to disapper, let me try again... |
Dark Shikari
Caldari
Imperium Technologies
Firmus Ixion
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Posted - 2006.09.10 20:30:00 -
[5]
<3 EMFI
Damn good job.
--[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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Proton Power
Power Corrupts Trading Inc
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Posted - 2006.09.10 22:24:00 -
[6]
Few things.
1. EMFI suggested to me that I should allow somone I trust and the community trusts into my corp. I will not do this. If you feel I wont do this because I am scamming then so be it, but its so that you and I dont get scammed.
2. TBH I have no exit plan as of yet. I have a basic exit plan long as I am still playing eve, but if I was hit by a bus or some other unforseen event everyone would be out and I appologize.
3. Well then how do we know you wont just disapear one day? EMFI and a few others know who my other main characters are. If you see them log on then you know I was a scam, and my main pvp'er will never be called a scam artist long as I am playing eve, so it wouldnt happen. Those that know my main no the reasons I say this.
4. At anytime, anyone can request I show EMFI my shares to prove I have not sold them. I will not pay for this though, so you will need to pay for it. I think between this report and my actions, speaks for themselfs.
5. Even if I sold my shares at 2mil each today. I wouldnt walk away with much as you think if this was just a scam from start. Why? Well I have paid out close to 100% of the inital shares. So to break even I would have to sell 7000 shares at 2mil each, and then the other 11,000 shares would give me what, a few billion isk. I make that in a month.
6. The percentage thing is a little confusing on my shares, but I base it on what you get per share at 1mil isk each. So when i say 16% I mean you get 160k per share you own which = 16% to you. That dosnt really show my corp gain since as I think even EMFI now realises, I have assets is so many differant areas that it would be almost impossible to even come within 500mil isk of what my corp is actually worth. How do you price t1 researched bpos, how do you set a price on items i bought cheap but have sell orders up for higher prices. I technially have not sold them at that price and may have to lower them to sell, then again, I may be able to raise the price. My minerals and reactions change prices hourly. If you dont belive me look at market ;).
Over all Thank You EMFI for the fair and honest report.
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Keep the Game Rolling. |
Treelox
Amarr
Storm Industries
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Posted - 2006.09.10 22:29:00 -
[7]
Originally by: Proton Power
.
1. EMFI suggested to me that I should allow somone I trust and the community trusts into my corp. I will not do this. If you feel I wont do this because I am scamming then so be it, but its so that you and I dont get scammed.
You could set them up, just to see the wallet i believe, and not actually have any real funds access.
Just saying that, of course it is your decision to run the corp how you see fit.
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My sig seemed to disapper, let me try again... |
EMFI Auditor
Minmatar
Sebiestor tribe
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Posted - 2006.09.10 22:35:00 -
[8]
Originally by: Treelox
Just saying that, of course it is your decision to run the corp how you see fit.
Proton has a good point...
1) person gets alt in corp
2) person xfers 5% of shares to that alt (or a bit more)
3) person runs for CEO while Proton is away on a biztrip
4) person gets lucky and has CEO.
Alts are a risk.
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"The only thing I am gonna argue with alts is wether I should argue with alts."
-- Naphtalia 2006 |
EMFI Auditor
Minmatar
Sebiestor tribe
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Posted - 2006.09.10 22:53:00 -
[9]
Originally by: Proton Power
4. At anytime, anyone can request I show EMFI my shares to prove I have not sold them. I will not pay for this though, so you will need to pay for it. I think between this report and my actions, speaks for themselfs.
My rate is 100m/hour but this should only take 10-15mins, will do this for 10m a time.
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"The only thing I am gonna argue with alts is wether I should argue with alts."
-- Naphtalia 2006 |
Dr Scope
XCC RnD Divison
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Posted - 2006.09.10 23:21:00 -
[10]
Proton Power has been supplying my corporation with components for a very long time. He is a very trustworthy individual and works hard for his isk.
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Proton Power
Power Corrupts Trading Inc
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Posted - 2006.09.11 02:18:00 -
[11]
Edited by: Proton Power on 11/09/2006 02:20:38
Originally by: Treelox
Edited by: Treelox on 10/09/2006 18:22:53
thank you emfi and proton, for getting together and doing this. Its nice to see progress towards accountability and fiscal prudence, especially after the last few weeks of scamtastic corp thefts, from ipo's we have witnessed.
Just currious EMFI, how long did it take you to get this done? and were you able to get access to everything in a quick and efficent manner?
p.s. still waitng on delivery of my fanboi pin :-P
Basicly most of it was done the same day EMFI convo'd me. The only thing I wouldnt allow is an alt inside of my corp. Instead I sent screen shots within 5 seconds when asked of corp wallet, and to show i still have the 18k shares.
Edit - Sorry, i wouldnt send my shares over to verify i still had them. No offense. I dont trust anyone with my corp.
EMFI then requested I email some screenshots of some of my assets. This did take about 36-48hours though. When I was originally convo'd I was traveling in empire space in a freighter, getting ready to do a freighter run to 0.0. Soon as I was able to get back to my home system the screen shots where sent.
Over all I would say 48hrs and EMFI had all info requested.
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Keep the Game Rolling. |
Nathan Grey
Gallente
Aurora Empire
Fuzzy Nut Attack Squirrels
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Posted - 2006.09.13 05:42:00 -
[12]
Although I don't have quite the name that DrScope does, I've worked with Proton Power in the past, and he scanned as a cool guy. As an initial investor, I think that PP's done a good job of honoring his original operating proceedures. I would likely buy more shares if they became available.
I think the only exit strategy that involves getting run over by a bus is to pay your hospital bills and to worry about Eve later. An extreme case of real life taking precedence over fantasy.
I recognize everyone's paranoia in light of the Eve Bank scam, but my thought there is "Welcome to Eve". Don't put something into play that you aren't willing to lose, whether it's a ship or an investment.
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Industrialist. I build it. You buy it. You break it and buy another one.
Market domination through ingue ferrogue.
(I did this and could have stopped it.) |
Proton Power
Amarr
Power Corrupts Trading Inc
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Posted - 2006.10.18 15:25:00 -
[13]
Just want to bump this, I dont think some people realized I already had an audit due to some comments recently.
Thanks.
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Keep the Game Rolling. |
Shin Ra
BURN EDEN
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Posted - 2006.10.18 15:51:00 -
[14]
I have actually read the audit report. But as you well know, all its prooves is that up until the point of the audit you were running a legit business.
As was pointed out, you could be doing a "delayed ponzi" scheme. Since you pay out great dividends your share price is highly likely to rise. You also made a post a while ago saying not to buy/sell PCT shares for more than 2 mil IIRC. Again, something which on the surface makes you look innocent, but did you take it any further or mention it again since? NO. If you were going to sell all your shares, it would be quite easy to do given that no audit has occured within the last month and 1 month seems like more than enough time to sell all your shares.
There are so many possibilities for scams from PCT. You could operate a normal business for a long time, actually making money to cover dividend costs, then when the shares are worth 10 mil sell all you have and make a lot of isk. You could use your "reputation" to start other businesses.
Please note I am not calling you a scammer. I am merely pointing out that this audit does not mean you aren't a scammer, as you imply it does. You could well be a legit and great businessman, if so the kudos to you. But don't for a second twist things like this into proof of legitimacy. This is but one factor that investors should consider when looking at PCT.
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Proton Power
Amarr
Power Corrupts Trading Inc
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Posted - 2006.10.18 16:12:00 -
[15]
TBH at this point dosnt matter if people think I am a scam or not. I have already sold all my shares 
But anyone can pay the EMFI auditor at any point and time, and I will show once again I have all the shares from the corp still.
And I have pointed out along with EMFI that it is possible I do just as you said, but if you look at most IPO's, they could do the same as well.
Also, I have had the people that I do my work with post and say I am doing work and I do what I say I am doing. Does this mean I cant scam later on, Heck No. But it means as of today I am still building PCT and have not scammed it as of yet.
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Keep the Game Rolling. |
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