Market Discussions

Note: Project had to be shut down. See: https://forums.eveonline.com/default.aspx?g=posts&m=2106737#post2106737

---

Greetings MD Community

welcome to the DENIN Public Booth. No, this thread is not (yet) about an IPO nor am I asking for any kind of money. The purpose is purely on giving some information about our corporation to the public. I will talk about my intentions for this in a personal note within this topic - having that said, the intent is also to find possible business partners and providing additional (background) info should we ever decide to go through an IPO. Thanks for your attention and have a good read.

---

Deninard Industries [DENIN]

.1 Deninard Industries - The Business Idea

Deninard Industries is a yound start-up enterprise, dedicated to the production of top-tier ships, modules and commodities. The idea is to establish a business that is able to provide several trade hubs of New Eden with ships and equipment to take root in EVE's economy. And we will do so in a professional manner.

The key aspects of the DENIN philosophy are:
* We see our corporation as a professional service and we act like that. This incorporates a mature behaviour by our members, but also influences the way we do business: in an honest, authentic and trustworthy way.
* Everyone shall profit from the firm's success. We are probably asking a bit more from our members in terms of contribution - but we also provide more. The major aspect here is a monthly payment of dividends according to the corporation's overall profit. This can be understood as a provision-based salary for each member. A report will be sent to each member and shareholder once in a month, at the first weekend after the 15th of each month.
* Establish a network of corporations contributing to each other's success as business partners.

.2 Business Units

.a DENIN Industry
Our primary business unit is the industrial division. The focus is on production and, as a requirement, mining operations. Currently, we are able to produce Harbringer and Prophecy ship hulls and we are looking to expand our production portfolio to higher tier items as well and to obtain several BPOs to use them for research and copying.

Furthermore, we are planning to establish a network of PI production sites. The goal is to have PI producers working together to produce more higher-tier commodities and to sell them on the market together.

.b DENIN Finance
This is a secondary business unit supporting our primary division by working with the capital provided by DENIN Industry. Activities in DENIN Finance are creating an additional interest of the money that was obtained by selling our products. Financial operations include station trading (short-term), market investments (mid-term) and meta-game investments (long-term). In fact, DENIN Finance was the origin of Deninard Industries and was just recently replaced by the industrial branch as the primary business unit.

.c DENIN Services
As a professional business partner, we are also looking to get into the consultation business in EVE. This will become more important and profitable once we have achieved our initial goals and have established ourselves. The strategy is to provide certain services (e.g. Orca Support, Investment strategies) to other corporations or alliances and not only to ourselves. For that matter, DENIN Services will operate as a seperate business unit and will connect to both DENIN Industry and DENIN Finance when necessary.

.3 DENIN Operations
Our operations currently include:
* Mining Operations - Corp: Joint mining operations in order to stockpile minerals necessary for corp production. Ore belong to the corp. Members will profit from this in the long run, too.
* Mining Operations - Individual: Joint mining operations with Orca support. Each participant may keep his ore for himself.
* Mission Running: We also run missions together to provide some ISK input in our wallets and to enjoy the result of doing our work and business.

Soon, our operations portfolio will be extended by:
* Lowsec Mining Operations: Move to lowsec systems to get more valuable ore. We will start this by using T1 barges and other "expendable" ships to keep losses at a minimum. And there will be losses. We will benefit from these losses however by obtaining valuable experiences in these situations.
* Wormhole Exploration: Either mining operations in Wormholes or bounty hunting.

.4 Facts and Charts
Last estimation of the corporation's value was performed on August 15th. The value was determined to be 2.7 Billion ISK with a corresponding share value of 2.7 Million ISK. Please note that at that time, DENIN was a one-man enterprise and focused on the newly started trading business only.
The next determination of the firm's value will be performed shortly, in fact tomorrow, Sept 15th. A significant increase is expected.

We currently have about 15 people in our corp, totalling a number of 22 characters.
Board of Directors: Vadane Deninard, Kaylesta

Shareholders:
Vadane Deninard - 879 shares
Kaylesta - 100 shares
*private invstor* - 21 shares

---

If you have any further questions, dont hesitate to ask and feel free to message me in-game. As I said above, we are always welcoming business relationships to other corporations for either joint operations or deals (regarding ship production, trading etc.). Our public channel is

DENIN Public

Very bests,

VD

Are you accepting applications to join your corp for characters, or are you strictly looking for business partners in corps? I am potentially interested in both.

Of course we are always interested in new people willing to join our corporation - especially experienced players. So in case you, JonathanGalt, or someone else is interested in joining up, we should proceed with a private convo in-game or via eve mail.

Regarding our goals, I decided to just copy the following passage from our internal strategy white paper:


This should provide a rough sketch of our future plans. Note that this milestone structure is mostly about the activities within our industrial unit. At this, we are currently negotiating a possible deal that will help us to obtain a set of valuable BPOs. The first task will be to do R&D with these BPOs and proceed with production later on.

"low-sec mining" :3

(nice document, you will realize the error of your ways soon enough )

You literally look like a shady person

Greetings to all,

I would like to quickly share last months report about our activities:

---

Wallets
Master 187.0 M
Trading (A) 420.0 M
Trading (B) 128.9 M
R&D 1.0 M
Exploration 1.0 M
Industry 387.1 M

Market/Finance
Escrow 740.0 M
Sell Orders 322.0 M
Investments 750.0 M

Assets - A
Modules 46.0 M
Ressources 22.3 M
Weapons 28.2 M
Ships 914.0 M
Long-term investments 199.0 M

Assets - B
Modules 29.0 M
Unprocessed Ore 126.8 M
Ships 336.0 M
Minerals 593.0 M

Total corp value: 5.2313 Billion

Salary
.1 Payed by dividends to all members
3% of corp value: 156.9 M

Remaining capital: 5.0744 Billion

.2 Fixed salaries
None

Dividends to Shareholders
3% of remining capital: 152.2 M

---

Besides, there are some other news to announce:

* Last months industrial throughput did not live up to my expectations. This is due to the fact that a) our in-house mining ops are not sufficiant to fuel our production at a scale we'd like it to, and b) that me and the COO did not have the time to look deeply look into production opportunities that provide an adequate profit, even when minerals are obtained on the market. So now we have established a Sales Team that is taking care of identifying manufacturing schemes and managing buy/sell orders regarding our industrial in- and output.

* We have started to build a good relationship to our investors and the people we invest in ourselves. Investments will be used to obtain BPOs for researching (as outlined above). At this, our investors have sponsored an audit to be performed by VV.

* Since we have quite a number of newer players, we are now running an Advanced Training Program for skill book funding. As a minor note, almost all of our "younger" members are now able to fly barges - which is certainly quite a boost for our own mining ops.

Very bests,

VD

You are right, thanks - it looks silly.

What we did last month, was to build ships that would sell for a price slightly higher than the raw mineral price and at this, we used the minerals obtained through corp mining ops. I always try to keep opportunity costs in mind and I was quite unhappy with our scheme. When manufactured goods cannot be sold for a significant profit when compared to raw mineral prices, why even bother with production.

Thats why we are working on our schemes and are about to fix this.

Please note that we did not produce for a loss (selling goods lower than the raw price of our mined minerals). We also did not, however, have a production scheme that would make it profitable for us to actually buy minerals on the market and use that for production.

Thanks again for the remark, Vera.

Very bests,

VD

I have been contacted by some potential Investors and asked an audit for a possible IPO by Vadane.

This has been refreshing, finally an investment where it's Investors who act like in RL and don't place the audit "burden" on the Investee shoulders!

I am still at the (API part) beginning of the research, so far he looks like he can do what he says. The operation is small though, it'd be mostly a "startup" more than a many digits, blasoned IPO.

A full audit about Vadane Deninard's corporation and characters has been published on the Public Records Archive (P.A.R.)

A MD forum compliant version will be posted later today.

Markets performance analysis

Due to the changes in the EvE® API, none of the analysis softwares used in the past seem to work any longer. In order to improve this audit's presentation, the Auditor ported and bug fixed one of them to the new standard. Thus EvE Income Analyzer Crucible Edition has born.


Statistics

Vadane Deninard has traded 44 different groups of items in the period covered by the EvE API (from July 27, 2012).

His turnover has been of 9.03B.
His average profit has been of 33.51% per trade.
His top 5 most profitable items had a profit from 114% up to 1157%.
No item in the top 20 earned less than 1.67% profit.


Wallet transactions

The following sheets show some of the top and last transaction amounts, including the totals. As mentioned above the items have been grouped so each of the rows is a category of items. The item names have been hidden for privacy

Top transactions.

Bottom compounded transactions and totals.


Best selling items

This graph shows which items were the best selling for the full API covered period. The item names have been blanked for privacy.


Trading efficiency

This graph shows how much margin the Investee made by selling his stock. The “Efficiency” column shows the margin. In example, 1.58 means a 158% margin was achieved. The item names have been blanked for privacy.

The best item sales netted 1282% profit (fees not included, 1157% if included).
The average sales netted a 33.51% profit.


Selling speed

This graph shows how quickly the stock moved. The item names have been blanked for privacy.


Items and markets

This graph shows which markets had the highest turnover for which item. The item names have been blanked for privacy.


Time distribution

This graph shows the time distribution (per hour and per day) of the sales.


Positives

Vadane Deninard has the character skills and the assets to confirm his claims.
Vadane Deninard discussed about some possible actions to take in case of wardec.
Vadane Deninard accepted an audit and replied to questions.
Vadane Deninard announced he’d eventually make his alts assets available for Investors reimbursement in case of issues with the business he proposes.


Negatives

No exit strategy has been discussed.
Little posting history makes it hard to understand the personality of Vadane Deninard.
The “public booth” thread could be seen as a quite well presented attempt to “rep grind”.
Vadane Deninard is a relatively new player some of his statements (low sec mining…) show that. Some Investors might be less comfortable investing in someone who could make mistakes.


Conclusions

Due to the risks bound with the trading profession, and due to the considerations listed in the “negatives” section, the Auditor classifies this investment as very high risk.

Please notice how “very high risk” does not mean “unsafe”. It’s two different concepts. Talking about high risk of bad performance, risk of real life complications etc. is one thing, the ever present chance of scam is another. The latter cannot be prevented by an audit, which only acts as first line deterrent.

The Investee seems competent (skills wise and player wise) enough to deliver on his statements and has past positive records. His business is in a growth phase, his API records show he may operated as he stated.

Basically, the Investee looks like having the ability to successfully honor an IPO. Notice how an audit may only evaluate the ability or potential of an Investee to succesfully honor a bond / IPO.
The Auditor suggests perspective Investors NOT to invest their full capital on this venture but to offer what they could eventually afford to lose.


Disclaimers

Due to stringent EvE API limitations, although the information provided to you on this document is obtained or compiled from sources believed to be reliable, Vahrokh Consulting cannot and does not guarantee the accuracy, validity, timeliness, or completeness of any information or data made available to you for any particular purpose.
This Auditor is actively and passionately against any breach of privacy, in particular regarding in game mail API access. Therefore no information will ever be gathered and no audit will ever be released that will contain any element found by eavesdropping someone else's private communications.
Neither the information nor any opinion contained in this document constitutes a solicitation or offer by Vahrokh Consulting or its affiliates to buy or sell any securities, assets or services.