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An IPO Idea -- Need Advice And Suggestions

Author
Ariana DeSoto
High-Tech Duct Tape
#1 - 2011-09-19 19:52:31 UTC
Here I go throwing myself to the wolves. Big smile

During my EVE career I've purchased Minmatar BPOs and in about a week my Nag
BPO will finish researching. That means that I am ready to start a Minnie BPC business
and make my next BPO purchase (a Hel).

Because of BPO copy times and prices I'm going to use round numbers and
average times.

Copying the more popular BPOs (BC, BS, Dread, Carrier, Freighter) I can make
around 450 million a month or 5.4 billion a year.

Not taking using a POS into the equation I can copy a Hel BPO in around 3 months,
making an additional 800 million a year. So now we are at around 6.2 billion a year.

Now, if I had the ISK for a Hel BPO I wouldn't be typing this so here is my plan.

I can buy a researched Hel BPO for around 17.5 billion ISK so let's make that the amount
of the IPO.

17.5 billion divided by 1000 shares (the amount a corp starts with see I wanted to keep this easy) =
17,500,000 price per share. I was thinking of doing a 50/50 split between paying divs and putting the
other half into a fund to do buybacks.

Ok, here's the numbers:

6.2 billion a year profit.
3.1 billion a year to pay divs.
3.1 billion a year to do buybacks.

On average that will be around 258 million a month in divs or
258,000 a month per share.

I would use one of the characters on this account to setup a holding company to issue
shares and divs. The other character would create an unknown research corp and copy
the BPOs.

One final note, any ISK that I make from current investments, running missions, mining, etc. would
be put into the buyback fund.

That's it. Hit me with your best shot. Big smile

I don't always play EvE, but when I do, I prefer it to be a masochistic sandbox hell. Stay wardecked my friends.

BornToDieAnotherDay
Tarazed Technology
#2 - 2011-09-19 21:20:09 UTC
Have you heard of Titans4U?

Google it and have a read.
Florestan Bronstein
Ministry of War
Amarr Empire
#3 - 2011-09-19 21:53:49 UTC  |  Edited by: Florestan Bronstein
Ariana DeSoto wrote:
That's it. Hit me with your best shot. Big smile

buying a Hel BPO for copying seems to be an extremely bad investment, you try to cover that up by promising to pay way more in dividends than that BPO earns you and still fall short of being able to offer a reasonable rate of return.

Your plan seems to be driven purely by sentimental motives rather than business sense - you intend to buy a BPO for the least used/useful supercarrier just before a major nerf to supercarriers is expected (if you really want a Hel BPO just for the heck of it wait until shortly before/just after the nerf to see if you can get one cheap from 2nd hand) and expect to earn 4.6% per year on that investment.

If you offer to have the Hel BPO locked down by a 3rd party you might get the loan at interest rates in the 1.5 - 3%/month range (if you are unlucky 3-5%/month) but tbh I doubt you would do yourself a favor in buying this BPO on credit.
Ariana DeSoto
High-Tech Duct Tape
#4 - 2011-09-19 22:02:04 UTC
Thanks FB. You are right about the sentimental part. I want Minmatar BPOs just for the fact
that I like the characters.

Me and Lord Wickham have had a really good chat on this and I see the ugliness of this venture.
It would take way too long to payoff so that would turn away people also.

Thanks again for the comment.

I don't always play EvE, but when I do, I prefer it to be a masochistic sandbox hell. Stay wardecked my friends.

Angsty Teenager
Broski North
#5 - 2011-09-20 02:17:45 UTC
ITT: Somebody who plans their life so well that they know they will be playing eve consistently for the next 3-4 years.

Just go join WN or NC. or some other trash 0.0 alliance and steal their titan BPO's you scrub.