Integrated Freight Corp (fka IFCR)

[eddy2]

It's a trading strategy that is used from time to time. The trick is to be the highest bidder and use a trading platform that is cheap.

So you set up two trading accounts and quit simply make your trade between the two accounts. If some one comes in higher then your high bid in your other account let it go.


Look one can take numbers and twist them into anything you want others to believe. It's much easier to trade companies that have current financials then historic ones like what we have here. So it's a tougher trade and riskier but the up side is huge but also your costs are higher per traded dollar.

So where did the money go. Well it went to support the capital cost of borrowing.

Let me give you an example. We don't have to look to far but right in our back yards at current realistate prices.

When I look at realistate I look at it as a business and how much I'm going to inject above the revenue (rental income) to keep it afloat based on the terms a bank will give you.

If you take you capital cost on the property regardless if you have the cash or not over a term a bank is willing to give you plus all other associated cost and subtract it from the rent one can assume he will get regardless if your renting or not and you will be surprised that in most North American markets the rent will not support your costs.

Now there is the argument that the term of the loan is also the including the principal payment that you will have returned to you on the sale of the proberty.

That's all fine and dandy but if that proberty is not going up in value you are not paying your self for your capital. If the rental market, leasing call it what you like along with the appreciated value of the property should be paying you a return.

Now you can write down depreciation as long as revenue exceeds costs. In other words you can obtain a tax saving. What you must do is take the 25% tax saving in the dollar amount and apply it too your depreciated capital total.

This is very complex but simply put if new equity money is feeding capital cost and not the principal of the loan while your collateral is being eroded sooner then later the lenders are going to say enough is enough and call in there loan or will want to restructure them. Because the equity holder owns the collateral and because the principal of the loan is now greater then the supporting collateral the bank has all the rights to call in the loan or the company will have to find a private investor to put up additional collateral. Now that private investor can sell the collateral that exceeds the debt for any price he likes. Remember this that if that private investor does that all sales and administration costs will be passed onto that private investor " this is a receivable to the company as well a liability cause the company must get more then what the asset value of the collateral is so as the private investor can pay his cost of disposing or selling of the collateral exceeding the principal owed.