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Dear Laxmi,
Thanks a lot for all this detailed information. The gist for me as an investor is that profitability should be very good. Margins are expected to be so good that they would be good evgren if margins were significantly narrowed. A crucial point is that with good profitability growth should be very fast since much of the profits will be reinvested in rice. It is also very nice to see that two of the verticals advance the progress of each other. My bottom line is as it were: I AM VERY IMPRESSED.
RD One question I forgot to ask: When is the first purchase of rice in india expected to happen?
shotsky In fact I experienced something similar a few months after SPZI returned from the dead. I owned 47 million shares bought by a broker in a European country. The broker used a US broker that demanded that the shares I sold were sold at the market price. I sold roughly 10 million shares on several days.
shotsky I don't think it has to be that way - that the pps goes down because shares are sold at market. I never do that. I always have a limit. If the bids are big enough for me to be able to sell the shares I want to sell they are sold at the bid. In such situations it is not unusual that the highest bid is lowered afterwards if the bid is for for instance 50,000 shares and I sell 50,000 shares. If I impatient because I want to sell shares in company A to be able to buy shares in company be I may enter a bid that is a bid lower than the existing best bid. Then I may sell some shares at different prices.
Dear Laxmi,
Excellent news! I hope you will have a nice and productive trip to my part of the world - Europe.
dranes Not true! You see what you prefer to see.
RD I see better than before the calculation of 10 dollars now for the RISO tokens. It may be some sort of compromise between potential and various kinds of things that may go wrong. I think it will be a lot easier to see what is realistic to expect at the end of this year based on experience than to calculate before the real business is in progress with all its aspects.
Mr Smith I prefer to use these boards to help me in finding companies that have a very attractive risk/reward ratio. I accept high risk if the potential reward makes it an attractive investment alternative. I also realize that I may have made poor investments. Therefore it is desirable to get positive and negative inputs continuously. It is always possible to sell shares if one concludes that it is the right thing to do that. Currrently I own 9 million shares in this company and I hope this is a good investment but I am not convinced that this is the case. I also see some red flags.
RD Here you assume that all the profits are reinvested and that the growth rate is several hundred percent. But I agree that a p/e ratio of 20 is too low in this type of situation even if the growth only lasts for 3 years. I have no idea what is a fair p/e ratio here. I assume it can fairly easily be calculated.
Very wise words Mr Smith. I totally agree with you. Being here is being in two echo chambers at the same time. Very few engage in an honest exchange of different points of view.
RD I thought that the 10,000 tons was the target for the year be it 2024 or the first calendar year. If the price at which the rice is sold is 40% higher than the price at which it is bought there will be some big "gross profit" to cover expenses and to be shared by the owners of the two series of tokens. Of course my numbers will be way off it the first cycle means about 10 times as high volume as my numbers are based on. If we assume a 10 million dollars investment which is sold for 14 million dollars, there might be a profit for our series of tokens of let's say 1.5 million dollars from the first cycle. Let's assume that profits for the whole year will be 15 times this number or about 22 million dollars for the whole year. Assuming a p/e ratio of 20 because a quite high growth rate is anticipated that would mean a total value of the tokens of 440 million dollars or somewhat more than 4 dollars per token. I now better understand your and Laxmi's optimism. The potential is clearly high but very often things don't work out as well as projected.
RD When it comes to margins I wonder if you forget that there are two series of tokens according to a previous post. Our tokens will have revenues from running the business + one third of the profits after the owners of the other series of tokens have had 8% percent annual interest + two-thirds of the profits. Our share of the profits cannot possibly be anywhere near a 40% margin in relation to the gross margin fetched by the sale of rice?
RD Thanks for very interesting information! I don't know if your numbers are based on a full calendar year or 2024. My calculation was based on the former assumption and implied 1000 tons times 12 which is 12,000 tons. When profits are reinvested growth should be very fast and value per token more than a dollar after the first calendar year.
RD I got the impression some months ago that a relatively flat sum of money will be remitted to the owners of our tokens and the remainder reinvested. If that were to be the case the growth rate would be fairly modest initially but gradually increase as the remittances would represent a decreasing part of the profits. In your case with 1000 tons of rice initially and based on prices I have seen in shops I guess the rice might have a value of about 3 million dollars or perhaps a bit less initially. If we assume that the profit rate had been independent of volume and we assume a profit margin of 10% here too, profits would have been 300,000 dollars for the first cycle. If we assume that no profits had been reinvested but remitted to the holders of the tokens and we also assume 12 cycles accumulated profits would have been 3.6 million dollars. If we again assume conservative p/e ratio of 10 and 100 million tokens the value of each token would be 36 cents. In this case 12 times 300,000 dollars would have been remitted to shareholders and remittances and the value of all the tokens at the end of the year would have been 72 cents per year. In my view these are encouraging numbers. They suggest very good value for the holders of the tokens even if no profits had been reinvested and therefore no growth.
RD I sometimes mix up dollars and Norwegian crowns when I do my calculations in my head. 480 million dollars would be the right number. It also struck me that 12 cycles was more realistic in this case. 10% profit margin was an attempt to be conservative on my part. What surprised me that you assumed that there will be no growth. I assumed that the other series of tokens would not distribute all the profits and that part of it would be retained and would result in the purchases of rice gradually increasing. That woud result in a gradual increase in the distribution to the owners of the other series of tokens too.
RD I have tried to do some calculations of the value of our RISO tokens based on some very uncertain factors. Let's assume 24 purchases of rice in India in the course of a year and a profit margin of 10%. That would result in profits of 24 million dollars in profits if each purchase was rice for 10 million dollars. Let's assume a p/e ratio of 20 and 100 million tokens outstanding. That would mean a market cap of 4.8 billion dollars or a value of each token of 48 cents as far as I can see.
money-maker I am not familiar with the requirements to do a ticker change and a realistic time line.
RD What you write here is that there are two different kinds of RISO tokens and that the ones we get are different from the ones that will trade externally. Actually, this is very interesting in some ways. I suspect that the volume of trading will be a good deal lower than for the other kinds of tokens. The prices are likely to be quite different too even if the price of our tokens will indicrectly depend on how well the business is going which will again decide the price of the other tokens.
For us I assume the management fee is important when it comes to the profits. Moreover, we will be entitled to one third of the gain above 8% if I have not misunderstood. From the revenues the expenses will have to be detracted. Of course we could also buy the other series of the RISO tokens if we want to. Since you write that these tokens will be backed by 10 LB of Basmati rice per token, I assume that they are not trading so far. If my memory does not fail me Basmati rice is a good deal more expensive than some other types of rice.
Regarding the value of our RISO tokens I get the impression from your post that there will be about 70 million tokens. I have had the impression that there will be 100 million. This is quite significant when it comes to the value of our tokens.
RD This makes sense but I think even so Ihave to pay a wealth tax on the others equal to what I paid for the tokens to be issued a later year.
RD Thanks a lot for clearing up things! What is most important for me is this: "
RISO are the security tokens now reflecting ownership of the vertical company. Same function as ordinary shares." I thought this was one possibility. But I also thought it might refer to something like PADDY with the difference that the 10 LB of rice served the same type of function as a certain area of rice paddy.
You mention that the rice is purchased in India. Where is it expected to be sold? Is the business concept that it is purchased at a significant lower price in India than what it fetches in other countries, and that a profit is thereby generated? If that is the case I find it hard to understand why this is possible.
Moreover, I don't undserstand at all is how it is possible to decide the value of the RISO tokens if they are not freely traded and the trading has a certain minimum volume, so that the price the tokens are traded at is not arbitrary or flutcutates a lot because the volume of trading is very low.
Big RDC I am less optimistic about LNG than I used to be. I explained reasons not so many days ago. My impression is that Europe will have little need for the LNG in the future. The use of gas is gradually reduced in coming years and Norway and Algeria will provide what is needed is what I have read in my Norwegian newspaper.
money-maker I hope they are working on it.
RD I appreciate your discussing this in a non-committal way. The deadline for my return to tax authorities is the end of April. To me it makes sense to use what I paid for the tokens is the natural valuation of the verticals at the end of last year - at least for the vertical shares that had not been issued at the turn of the year. As for the three that had been issued before the turn of the year it may be more complicated. If each of Rice,Gold and Wood Carts had had real assets injected into them before the turn of the year it would seem natural that the value at least reflected those assets. If the tokens had been freely traded with some volume I get the impression that the value for wealth taxation in Norway would be the value the myCow tokens were traded at, or the implied price for those tokens based on the price the rice, gold and Wood Carts tokens were trading at.
RD You may have misunderstood my question or I may have misunderstood the information about the rice tokens. I have had that the rice tokens themselves and not the myCow takens that we were to receive have started trading. <in other words, one vertical has a certain number of rice tokens that I thought have been trading for some time. I now have a feeling that I have misunderstood and that the numbers refer to myCow tokens that relate to rice and that the number 84 refers to the number of people that have received digital wallets including some rice tokens - whether that is myCow tokens related to rice or the tokens that that those who trade the rice will receive. This may be very unclear because of the complications because there are two kinds of tokens related to for instance rice - the myCow tokens related to the ownership of one of the verticals and the tokens related to the rice itself.
money-maker
Has management done what is required to achieve a ticker change? If that is not the case there is no point waiting for a ticker change. Does anybody KNOW that what is required has been done?
RD I notice that the amount of the transfers varies a lot. I forget what for instance 1,000 means in terms of money. I suppose you have an idea.
jdc I agree.
Xman "Revenues and Net Income expected within the next 3 weeks from our chicken paw contracts! 2/22/24" I think this is a very tall order. I will be very surprised if it happens. One thing is that net income normally refers to something different from what is possible when it comes to certain contracts. It normally refers to the bottom line for the company within a year or a quarter. Thus it is problematic to use net income and revenues referring to revenues from certain contracts. It gives me the impression that this statement has been worded by an amateur when it comes to financials.
RD Thanks a lot for the update! I agree it does not matter if there is a small delay beyond March 19 in the payment of the dividend. The good funding forwards should make things easier for management.
RD "Also, more importantly, the transfers of money that we have been waiting for so long, should happen tomorrow before noon India time." This was March 4. Today is March 7. Has the transfer happened? If it has not what are the expectations now?
SPZI up 10% today. I wonder why? Just because there are fewer sellers today?
Poseidon Is this new news or old news?
jdc I am very pleased to see this news. It addresses a number of things I wondered about. It would have been counterproductive to publish this if it had been false because good things are expected to happen quite soon.
Mr Smith I see eye to eye with you. The stock market clearly does not trust the information we have received. I think one reason is that the information we have received leaves important questions unanswered.
RD Thanks again! For me it does not matter to get access to my wallet and I assume I will not need my private key for å long time. What matters to me that it is possible to add tokens to my private wallet. I am positively surprised that I both retain my stake in IREEM and also a stake in Cow Capital. (By the way I just checked my tax information in Ameritrade and I see that I last year sold shares worth about $ 251,000 and had a total gain of some 2,000 dollars which is less than one percent. My gains were from BDCO and my losses mostly from Tingo Inc)
RD Yes I have paid for all the 9 verticals. I was not entitled to all the verticals I have paid for (some 7,500 dollars) if it had been fewer than 9 verticals. I paid for the exact maximum number I was entitled to. As I stated before I first paid 7,000 dollars for verticals assuming that I was entitled to more but that was the sum of money I was prepared to risk at that stage. Later it turned out that I was just entitled to a few more. The numnber was calculated by Laxmi and I paid a bit less than 500 dollars I think.
RD Thanks a lot for clearing things up! The way I understand it I own 100,000 shares in CCAC, which If I have not misunderstood at some stage will be listed on a major stock exchange. What I am unsure about is what it means that MyCow is the brand name of all the vertical companies. Does it mean that they will be named MyCow and then the type of activity they involve, which currently is 9 different names? I assume that I have no stake in IREEM any longer since it has a different role now?
It is a relief that you state that I altesdy have a wallet. I have been under the misconception that I have to return some information related to the Credentials not to lose the wallet that would potentially be mine. This has caused a lot of worry because it is my duty to do my best to take care of the altruistic institution that will inherit my net worth when I die. That institution works in Nigeria providing information to women there to help them do family planning by providing knowledge about various ways of avoiding having unwanted children (Family Empowerment Media). Radio is used for this purpose.
RD He referred to myCow. I Don't know what that is. It has been known for years now that IREEM would become Cow Capital and that these are companies with shares.
When it comes to IREEM, I will quote a docoment that I have signed and that has been signed by a member of the family of Laxmi: "IREEM LLC
Memership Subscription Packet
"Offering Price Per Membership Interest Unit (Unit"):
$ 90.00 per Membership Unit of IREEM LLC (the "Company" or "Issuer" or "Sponsor") that exchanges in value for 600 Sponsor Equity Shares of Cow Capital Acquisition Corporation CCAC (in brackets) at US $ 0.15 per Sponsor Share per each Membership Unit in IREEM LLC"
When rereading what you wrote I think you are mixing up Cow Capital and the verticals. The reason is that you seem to assume that I paid twice as much for the tokens as I did. It is true that I paid $ 0.01 per security token. I paid a total of about $ 7,500 for those tokens. I first paid $ 7.000 and then about $ 500 more after Laxmi calculated that was the maximum I was entitled to.
I don't understand the implications of the email including the Credentials etc that I have been unable to open. I have had the impression that as long as it is not opened I don't really own the almost 750,000 tokens that I have paid for and that my purchase will be cancelled and the $ 7,500 dollars returned to me in April. Is that not correct? Even if I lose a potential value of millions of dollars if I lose 750,000 tokens I have the impression that ITUP and possibly Cow Capital will have stakes in the tokens and that I indirectly will have a stake in the tokens that way. I still do not know if I am entitled to the first remittance of about 20,000 dollars based on my tokens as the status is right now.
jdc "and we haven't even heard much about LNG yet although JP3E has a two pronged approach with Europe/Middle East". Did you read my post about LNG and Europe? I live in the European country that supplies Germany with a large part of its consumption of gas. The weather in a large part of Europe this winter has been very mild and the tanks that store gas are full, which is unusual at the beginning of March. Moreover, Algeria provides a lot of gas to Europe. Thus the situation now is very different from what it was a couple of years ago. For some time Germany has prepared to receive LNG from the USA and other countries. I have read that now there does not seem to be a market for that gas. The gas from Norway and Algeria is expected to suffice the way the situation evolves. The current situation is reflected in the fact that the price of gas is now only about 10% of its highest price during the last couple of years. Thus LNG from the USA will not be competitive with the price charged by Norway and Algeria as far as I can see. It is a quite expensive process to convert gas to LNG, transport it both within the USA and across it the Atlantic and then convert it to gas again in Germany. There may be a good reason why there has been no news about LNG.
Shaun I don't understand what you refer to regarding your digital wallet on myCow. IREEM/Cow Capital is a company that has shares and not tokens. I paid 15,000 dollars for 100,000 shares.