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Damien Jax
Industrial Research College Ltd
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Posted - 2009.01.12 19:28:00 -
[1]
Edited by: Damien Jax on 12/01/2009 19:27:59
Reserve 300mil worth |
Damien Jax
Industrial Research College Ltd
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Posted - 2009.01.13 03:22:00 -
[2]
 Originally by: Brock Nelson
Maybe but then it'll be a bond, not IPO would it?
Bond = percentage of profit goes to shareholders
IPO = 100% of profit goes to shareholders
Not necessarily. Bonds are a fixed return which can be a percentage of the profits or can even be paid when there's losses (as the payment is always due).
His method is how most IPO's would function anyway. Low dividend return up front so that profits can be reinvested into the corporation in expectation of higher future dividends (as is the case). So, he's reinvesting money and giving us 4% in expectation that we'll get 10% later on.
Take for example an investment of 1billion for 6 months. 3 months at 4% and 3 months at 10%. What's your internal rate of return and NPV? Well using excel, you get a return of about 6.19% and an NPV (assuming a 5% required return) of $9,582,136.58. Of course, the longer you hold it, the better NPV you get in the long run.
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Damien Jax
Industrial Research College Ltd
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Posted - 2009.01.13 13:32:00 -
[3]
While I'm a little hesitant as to the size of this offering, I like the fact that 80% of it is locked down. Without that, I would have never read past the first 2 posts.
I still think this is in the form of a true IPO in that dividends can fluctuate. I do see Atima's contention that he needs the isk now to buy the BPO's and that production will take a while to begin. I'm all for keeping isk in the corp to keep working capital high. I'm investing with the intention to hold it for at least 6 months, if not longer. As Atima said, there is no end-date and even if he burnt out, this could turn into another case of AATP where someone else steps in to take over.
I don't mind risking a loss of 20% of my investment, it's way better than 100% as has been the case in some recent IPO's. |
Damien Jax
Industrial Research College Ltd
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Posted - 2009.01.14 13:50:00 -
[4]
I'll send isk as soon as the vote is confirmed.
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Damien Jax
Industrial Research College Ltd
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Posted - 2009.01.16 13:39:00 -
[5]
I was waiting for the vote to actually succeed, but I suppose I'll go ahead and send the iskies. |
Damien Jax
Industrial Research College Ltd
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Posted - 2009.01.17 02:56:00 -
[6]
Isk sent |
Damien Jax
Industrial Research College Ltd
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Posted - 2009.02.28 04:36:00 -
[7]
Selling 30 shares, 10.5mil each.
I'm needing to raise cash, I'm not selling because of anything negative with the IPO. Message me in game.
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Damien Jax
Industrial Research College Ltd
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Posted - 2009.02.28 17:29:00 -
[8]
Waiting on Togen and Roarke to get back to me Atima, if they fall through I'll contact you.
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