Nummb
Ministry of War
   |
Posted - 2008.03.23 21:17:00 -
[1]
I have found myself pondering some of these questions with my own IPO launch of Starlight Horizons Corporation (STR-H). Right now I am almost at the end of my fourth month of operations and have mixed feelings about where I stand. I just finished an online accounting class and I have been doing research on real corporations for personal investments and feel that there is quite a bit that I can improve on with the reporting of my IPO.
That brings me to an interesting issue, we continue to call these business plans and corps IPO even though IPO means:
 Quote:
Initial public offering (IPO), also referred to simply as a "public offering," is the first sale of stock by a private company to the public. IPOs are often issued by smaller, younger companies seeking capital to expand, but can also be done by large privately-owned companies looking to become publicly traded.
In an IPO, the issuer may obtain the assistance of an underwriting firm, which helps it determine what type of security to issue (common or preferred), best offering price and time to bring it to market.
IPOs can be a risky investment. For the individual investor, it is tough to predict what the stock will do on its initial day of trading and in the near future since there is often little historical data with which to analyze the company. Also, most IPOs are of companies going through a transitory growth period, and they are therefore subject to additional uncertainty regarding their future value.
STR-H is pass the IPO stage. I have done the initial offering, received public funding and have operationalized my business plan. It is not really accurate to continue calling it an IPO. Now, with the semantics out of the way I look back at my reporting for the last few months. I will do a much better job come time for the April dividends to give shareholders a better picture on how the business is progressing. I still want to list STR-H on the exchanges and I plan to increase the value of the corporation each month. I also think that more effort should be put forth to communicate with shareholders.
So far I have paid out more than the 7% I offered in my IPO launch, but what if I have a bad month? If I explain to the shareholders that I had some bad picks, I was away for a week and the price of an item I was holding as inventory dropped by 3 mil p/u etc... can I pay a lower dividend and make up the difference the next month? Is it ok to pay 9% one month and only 3% the next? What if I tell everyone that I will be going on vacation for two weeks and to not expect much does it really matter as right now there is no mechanism for people to get anything from a CEO who either doesn't log on or doesn't care.
I have several hundred million tied up in shares of FIN/FIN-U/DATAC/FPRB/Tinydot/AMESH to name a few that will have an impact on my personal wallet but not STR-H as that business has separate accounting. I hope we can improve the market, maybe come up with a better term than IPO's and hopefully continue to make money. That is the goal after all.
Originally by: Ambrose Bierce
Cogito cogito ergo cogito sum (I think that I think, therefore I think that I am.)
|