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[Discuss] The possibility of an IPO

Author
Saveritrader
Sav Trading
#1 - 2013-02-04 11:22:25 UTC  |  Edited by: Saveritrader
Hello there, MD Lurkers.

Some of you might've seen the bond I am currently running, which is running as intended making the profits it should make. However, having run this bond for two weeks now and running the numbers, I have also began making spreadsheets for production. According to these spreadsheets, after a ton of research, I should be able to make a good sum of extra profits running these near jita at a 23.5/7 rate.

To set this up, I would need to set up an IPO to raise the capital required for these activities. Where I am at right now is one bond running smoothly and as intended, with still enough free time to freighter stuff around and meanwhile running reactions on a seperate character. These activities are all things that are slowly bringing me to the point where I am involved in most of the secondary activities of production, except for the production part myself.

Now, I would like to ask the opinion of the public on the IPO as I am contemplating it. Please note, this is not the actual setting up of the IPO, but more served as a basis on which I will decide wether or not this is a good idea.

[The IPO]

Shares: 25.000 (5.000 Shares will go to me as a management fee, 20.000 will go public.)
Share Value: 850K / Share
Total Public IPO Value: 17B

- Monthly -
Dividend: 20% of profit
Capital Increments: 80% of profit

After the first month I will allow the buyback of shares, which will allow people to pull out their money if they ever need it for other purposes. As I will throw back 80% of the profits into the corporation, share value will increase accordingly.

- Intentions -
I intend to purchase 5b worth of researched BPO's, and build modules and ships that have shown great promise in my trading. I will have to purchase a moon near jita, costing another 300-600m. Also, I'll need to buy a POS, which is another 1.3b ISK including fuel. The remainder will go into minerals for the production itself, enough to build several modules for several weeks.

According to my spreadsheets, the profits will range anywhere from 6b to 14b per month, depending on the ferociousness of the market. Either way, there will be some items that are jumping up and down which will need some more precision on when to sell, giving more profit, and some items that will make a more steady profit as they are settled around a profitable price.

Because I always have one character in jita on which I control all my trading, I will easily be able to sell at sale price, instead of having to sell to buy orders, which means I will always get the maximum value for the items. As well as I will be buying minerals according to buy prices, lowering the initial cost of minerals all together.


I would love to hear comments on what I am planning, as I do want to make it work for all parties involved!
SellOrder Forum
Center for Advanced Studies
Gallente Federation
#2 - 2013-02-04 12:22:00 UTC  |  Edited by: SellOrder Forum
Saveritrader wrote:
!



Why share all your profits with investors?

Use you profits to fund private operations, resulting in 100% profit for you. You can then avoid all the SCAM claims.

If you can make billions why would you need/want to give them away?
Saveritrader
Sav Trading
#3 - 2013-02-04 12:25:28 UTC
SellOrder Forum wrote:
Saveritrader wrote:
!



Why share all your profits with investors?

Use you profits from to fund private operations, resulting in 100% profit for yu. You can then avoid all the SCAM claims.

If you can make billions why would you need/want to give them away?



My intentions with this are to use the accumulated wealth of multiple seperate people to make myself a little bit of money, while making it worthwhile for others to give me the capital required. It allows me to make much more money for myself than I would when I would do this all with my own capital.

The capital I have myself is tied up in other activities, such as WH Gas reactions and trading. That's why I want to look at the option of setting up an IPO.
Razor Rocker
Super Mother Fan Club
#4 - 2013-02-04 14:55:21 UTC
Well I'll more than likely invest in this endeavor. I've been content with the way you've ran your last bond, and I can see you being successful in this as well.

Although, I may be starting my own as I've been toying with the idea of going back into manufacturing. Keep me posted if you do decide to start this IPO.

Cheers,

-Razor
SellOrder Forum
Center for Advanced Studies
Gallente Federation
#5 - 2013-02-04 15:37:37 UTC
Saveritrader wrote:



My intentions with this are to use the accumulated wealth of multiple seperate people to make myself a little bit of money, while making it worthwhile for others to give me the capital required. It allows me to make much more money for myself than I would when I would do this all with my own capital.

The capital I have myself is tied up in other activities, such as WH Gas reactions and trading. That's why I want to look at the option of setting up an IPO.


Fair enough, but 20bil is pocket change for anyone like yourself who knows a thing or 2 about the markets, seems an awful lot of work for the pay off. each to their own of course, good luck with your endeavour.
Alex Grison
Grison Universal
#6 - 2013-02-04 19:39:37 UTC  |  Edited by: Alex Grison
Unless you are planning to fully collateralize the IPO value. This is for all intents and purposes a scam.

Quote:
But what about the legitimate bond I ran? Doesn't that show an established and legitimate buisness??


No. For all anyone here knows your plan is to build trust with a bond, and then move into an IPO where you will bag the money.

Unless every single share is fully collateralize. Your credibility, legitimacy, value and trust is at 0

These are my comments :D

yes

Claire Coffee
Coffee Inc
#7 - 2013-02-04 23:51:59 UTC  |  Edited by: Claire Coffee
I've been having an intense communication with Sav about this venture.
I have also recommended to put VV to work with this stuff, hehe :D

As I personally think it's a great idea. Just for the sake of fun. Share aspect in EVE is very badly executed, but it's still there and it's up to us if we actually want to make it work even with the bumps and risks it may present.

I would definitely expect a scam from a person who doesn't know what he's doing, e.g. contract scammers that "borrowed" the idea from someone else and spamming Jita to death only cause they don't know what to do with their initial 5mill isks.

Now in Sav's case, he actually knows what he's doing and he probably could have gotten away with his current assets / profits and made it on his own. While this would net him a slightly better income this would remove the social aspect of being part of something. (e.g. VV running charity is something that deserves attention, does it make VV any money? no. Reputation? double-yes.)

I'm yet to see an unhappy person from those who are participating in Sav's bond.
And mostly, people forget that the game is not about having the most money there is, but to have a decent community around you and to have respect for achievements you make. In this case, the successful running of this venture would bring Sav and people building this small community that may grow to a large production / marketing block enough of fame and fortune.

EVE is advertised as a "make friends, conquer the sandbox" while in reality it's about being paranoid. Now I'm not into mental conditions, so it's in our hands to make it other way around.
Possibly it's a bit naive, but that's the game I wanna play and not the game "make another billion and hide it away to flush on plex later on".

My two cents. And I'm fully supporting this idea and mindset of bringing a new level of intelligent game into EVE.
- and don't invest something you can't afford to lose. :-)

[b]DRINK COFFEE Do stupid things Faster with More Energy[/b]

Candy Oshea
Techfree Investment Group
#8 - 2013-02-05 00:42:47 UTC
Exactly how much experience in Production do you have?

An IPO from someone who has been doing it for years, through different patches & changes etc. is perfectly plausable.

iCandy  - I have accidently swallowed some Scrabble tiles, my next shit could spell disaster!

Saveritrader
Sav Trading
#9 - 2013-02-05 01:20:43 UTC
Alex Grison wrote:
Unless you are planning to fully collateralize the IPO value. This is for all intents and purposes a scam.

Quote:
But what about the legitimate bond I ran? Doesn't that show an established and legitimate buisness??


No. For all anyone here knows your plan is to build trust with a bond, and then move into an IPO where you will bag the money.

Unless every single share is fully collateralize. Your credibility, legitimacy, value and trust is at 0

These are my comments :D


I do understand where you come from, but I can't provide the collateral many people here want to see. I do provide a good return on their money, and I hope to gain their trust by being as transparent as can be. I know that EVE is a game where trust is hard to earn, yet I do believe that by being fair by giving a high return and transparency in the operations it is possible to achieve certain goals.


Candy Oshea wrote:
Exactly how much experience in Production do you have?

An IPO from someone who has been doing it for years, through different patches & changes etc. is perfectly plausable.


I have experience through the years, though I have been hopping on and off for months on end due to school or work. However, my current schedule allows for longer periods of time in which I can play. Through the years I have been in production and wormhole activities, and I have a certain love for spreadsheets which is... beyond words.

I believe that combining my knowledge of the market with these experiences will make this IPO work.
Vaerah Vahrokha
Vahrokh Consulting
#10 - 2013-02-05 01:39:17 UTC
I have been contacted by Savtrader for an audit. He's been quite detailed in what he wants to do, but I had to decline (Iike I am doing with everyone else) due to me preparing for moving home overseas. I suggested to start an IPO discussion to see if it can be ironed out without excessive arguments. I may eventually (if asked) do a quick check just to see if he got the characters manufacturing skills and the BPOs but that's all I can do before wrapping up my netbook (which is the thingie where my auditing programs are located).
Candy Oshea
Techfree Investment Group
#11 - 2013-02-05 01:49:52 UTC
Saveritrader wrote:

I have experience through the years, though I have been hopping on and off for months on end due to school or work. However, my current schedule allows for longer periods of time in which I can play. Through the years I have been in production and wormhole activities, and I have a certain love for spreadsheets which is... beyond words.

I believe that combining my knowledge of the market with these experiences will make this IPO work.


An Existing production operation would already have, POS, multiple profitable BPO's etc.... Your OP says you need to buy it all with IPO ISK..................So, sorry if i do-not believe you & what you say about your experience. Its one thing making ammo in a station, its quite another running a pos and having to pay interest.

IMO production IPO's must be secured by a 3rd party. And it can be done very easily with minimal risk to the investors. But since you need to actually buy the BPO's essentially leveraging nothing of your own, afraid ppl will think the "worst".

Post an Eveboard link of the character you plan to build with, if you could. one of "saveritrader" or w/e character you are using for your current bond. may help to show, that at the very least you are skilled correctly to make the job & then sell it.

thanks.

iCandy  - I have accidently swallowed some Scrabble tiles, my next shit could spell disaster!

Candy Oshea
Techfree Investment Group
#12 - 2013-02-05 01:50:52 UTC
Vaerah Vahrokha wrote:
I have been contacted by Savtrader for an audit. He's been quite detailed in what he wants to do, but I had to decline (Iike I am doing with everyone else) due to me preparing for moving home overseas. I suggested to start an IPO discussion to see if it can be ironed out without excessive arguments. I may eventually (if asked) do a quick check just to see if he got the characters manufacturing skills and the BPOs but that's all I can do before wrapping up my netbook (which is the thingie where my auditing programs are located).


in his OP, he is using the IPO isk to actually buy the BPOs........

iCandy  - I have accidently swallowed some Scrabble tiles, my next shit could spell disaster!

Syds Sinclair
University of Caille
Gallente Federation
#13 - 2013-02-05 02:52:15 UTC
Claire Coffee wrote:
I love Saveritrader! He's awesome! His bond is super sweet! There's nothing wrong with trying to build a reputation on MD! How else can you actually get funding for a large IPO? And besides, capitalism isn't about making money, it's abou COMMUNITY and FEELINGS and EMOTIONS!



..Wow Claire, I never figured you for a shill. This brings back memories. Claire is SencneS, that's for sure. I can't figure out if Saveitrader is Ray McCormack or Amarr Citizen 155 yet. Guess only time will tell!

Razor Rocker
Super Mother Fan Club
#14 - 2013-02-05 03:17:18 UTC
Candy Oshea wrote:
Saveritrader wrote:

I have experience through the years, though I have been hopping on and off for months on end due to school or work. However, my current schedule allows for longer periods of time in which I can play. Through the years I have been in production and wormhole activities, and I have a certain love for spreadsheets which is... beyond words.

I believe that combining my knowledge of the market with these experiences will make this IPO work.


An Existing production operation would already have, POS, multiple profitable BPO's etc.... Your OP says you need to buy it all with IPO ISK..................So, sorry if i do-not believe you & what you say about your experience. Its one thing making ammo in a station, its quite another running a pos and having to pay interest.


You make it sound like running a profitable manufacturing op is difficult. With a spreadsheet, a basic working knowledge of the game mechanics, and the tens of tools available within the community, it is rather straight forward.

However, that being said, it is a shame that he doesn't already have the BPOs in stock. Perhaps there is a way to provide a bit more security to this IPO. For instance, I know in the past that 3rd parties have offered to lock down BPOs. Perhaps if the 3rd party was given the ISK, had an alt in the CEO seat, bought the BPOs via contract and locked them down. Would this alleviate some fears of the prospective investor? The BPOs wouldn't cover the cost of the entire IPO, but it is at least something.
Candy Oshea
Techfree Investment Group
#15 - 2013-02-05 03:45:04 UTC
Razor Rocker wrote:
You make it sound like running a profitable manufacturing op is difficult. With a spreadsheet, a basic working knowledge of the game mechanics, and the tens of tools available within the community, it is rather straight forward.


Well, that's kinda the point, if it is so easy, Wheres the existing Pos, BPO's and slot/isk/hour calculations? no-where in the OP he mentions how many slots, and a minimum isk/per slot he is going to go for. Does his calc's include fuel costs for e.g. (Admittedly the calc for fuel cost became alot easier when fuel blocks came about.)

The buzzword "spreadsheet" has been mentioned alot, as well, why bother with a spreadsheet with all those Tools available? ANY production type worth his salt knows the programmes and uses them. Althouigh a spreadsheet does the job, someone "in the know" would be aware of them at the least.

I'd much rather say these things here than spoil his actual IPO, call me negative or w/e. if its not me, it'll be several others.

Its a bit like me going out and buying a new Drag Race car, all it does is go in a straight line right?

iCandy  - I have accidently swallowed some Scrabble tiles, my next shit could spell disaster!

Syds Sinclair
University of Caille
Gallente Federation
#16 - 2013-02-05 03:59:32 UTC
..Don't most production bonds/IPOs have a secure third party lock down the BPOs in the manufacturing corp and allow the investee to produce from them?

Saveritrader, would you be willing to go forward with this IPO utilizing this traditional fashion? Why/why not?

Candy Oshea
Techfree Investment Group
#17 - 2013-02-05 04:10:07 UTC  |  Edited by: Candy Oshea
Syds Sinclair wrote:
..Don't most production bonds/IPOs have a secure third party lock down the BPOs in the manufacturing corp and allow the investee to produce from them?

Saveritrader, would you be willing to go forward with this IPO utilizing this traditional fashion? Why/why not?



Razer Rocker:

That model works, if the Host intends to leverage existing assets.

Owned BPO's locked down, and leveraged/borrowed (with an MD loan/bond/ipo) against them, for the minerals/parts to build,

In the event of a scam, only the leveraged minerals are at risk, the players investing, if scam happens can re-coup something from the 3rd party sale of the BPO assets.

Thats a model, i would invest in. (in the hope for cheap, investor discounts Oops)

EDIT: in the case of the savertrader, locking the BPO's would only re-coup 20-30% of the IPO, using the terms listed in the OP.

iCandy  - I have accidently swallowed some Scrabble tiles, my next shit could spell disaster!

Syds Sinclair
University of Caille
Gallente Federation
#18 - 2013-02-05 06:20:07 UTC  |  Edited by: Syds Sinclair
..Thanks Candy.

So Saveritrader, how do you like that idea? Instead of leveraging your profitable name garnered from the apparent success from your first bond, why not *gasp* start a bit smaller and procure the BPOs with own funds?

I'll do you a favor and lay the ground work for your IPO:

Allocate 5b of your own isk for this venture.
Purchase BPOs.
Take 1-2b and set up a POS.
Run your production lines profitably for at least two months.
Then come to MD and ask for funds, for a SECURED bond.

Saveritrader, are you willing to handle this venture via this method? Why/why not?

Something has gotten me thinking "ruh roh Rhaggy."

I want and looked over Saveritrader's thread where he successfully raised enough funds for his bond. https://forums.eveonline.com/default.aspx?g=posts&t=195432&find=unread

It looks like Claire was the first to bite, on the condition that Sav supplied his API. He said he did, Claire liked it, and promptly invested 2b.

shar'ra matcevsovski then asked for the API also, which Sav said he provided.

shar'ra matcevsovski did not post in the thread again.

At this point many other posters posted that they have sent Sav isk, but none asked for APIaccess. Assumably because of Claire's positive returns and her overall happiness with how the bond was going. I would say that because of this, and Clair's amount of fame as a regular MD poster, gave other MD lurkers confidence in the bond.

And now rabbit hole

On 2013.2.2 at 16:01 I sent Sav a mail via evegate stating my interest in investing 1b, on the condition that I receive access to the APIs.

On 2013.2.3 at 00:14 Sav informed me that he did not "have room for it right now" but he had plans for expanding in the upcoming week.

Sav accepted what looks like another 1b via his bond thread on 2013.2.2 at 13:15. He did state to Erialor, who sent 500m, that his portion of the invested isk would run for an additional week.

On 2013.2.4 at 01:03 poster Kazuma Gaterau posted that he had sent Sav 100m. At the time of this writing Sav hasn't confirmed or denied that 100m investment.

Summery:
Itlooks like Claire is the only "investor" to have been granted access to the API.
My request for API with intentions to invest was denied.
On the same day that my money was turned down, Sav gladly accepted isk from posters who did not request API.
Claire Coffee, the only poster who appears to have the API, which I'm assuming is just a ruse, is Sav's #1 cheerleader in this thread.

I will not be investing with Saveritrader.

All of this post is pure speculation. If I am wrong, I apologie to Sav and to Claire. At any rate, this wild paranoia exercises my ability to keep my isk in my wallet.
Tom Hagen
Twilight Empire
#19 - 2013-02-05 07:32:22 UTC  |  Edited by: Tom Hagen
Syds Sinclair wrote:
Stuff


I liked your post, not necessarily because it is true. But because it shows what in Eve is a healthy dose of paranoia Big smile

@Saveritrader
I see a new business opportunity here for you, make Candy pay you for not smearing her reputation in MD P

Edit after correction from the post below:
Sorry Candy P
I will put reading comprehension into my skill queue asap!
Ofc it was Claire, but Candy is always on my mind...
Syds Sinclair
University of Caille
Gallente Federation
#20 - 2013-02-05 07:39:31 UTC
Tom Hagen wrote:
Syds Sinclair wrote:
Stuff


I liked your post, not necessarily because it is true. But because it shows what in Eve is a healthy dose of paranoia Big smile

@Saveritrader
I see a new business opportunity here for you, make Candy pay you for not smearing her reputation in MD P


..Keen eye Hagen! I would have thought Clarie (not Candy) would have charged more of a primum the 17b/2. Her rep, with the right proposal, could have netted her much more then 8.5b.
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