It costs money. It takes time. If you try to do an IPO, your odds ofcompleting it are about even. If you do the average IPO on the OTCBB, yourmillion dollar costs will exceed the money you can raise. If you go publicyou have to battle market manipulations. You must avoid the VultureCapitalists that will destroy you. Public company survival risks can begreater than for a private company. If your company is a stock scam, yourun the risk of facing criminal charges. The downside to being a publiccompany appears to argue against taking the public path.
There are three primary reasons that require you to take yourcompany public:1. Without liquidity, investors won't risk their money on your company. Ifthey can't sell stock, they won't invest in your company. The ONLY way tooffer investors the ability to sell your stock is to take your companypublic.2. Stock is money. You can use your strong share price to acquirecash-producing assets for your company. This means you can grow a hundredmillion dollar company in less than five years rather than more than twentyyears.3. When you sell, you'll get twenty times more money for your public company than you would for your private company. Public companies sell at Market Capitalization. This is share price times issued shares. Private companies sell for between 80% and 150% of their pretax profit. Crunch the numbers and you will ALWAYS get a bigger "Golden Parachute" owning a public company.
You can solve the serious problems created by taking the public company path.1. You can cut your costs of going public by 75% to 90% by doing a spinoff,rather than an IPO.2. You can keep your stock away from the Depository Trust Company. Without "Street Stock," it's nearly impossible for anyone to manipulate your share price against the best interests of your shareholders. There are a score oftactics that you can use to stop stock manipulation.3. You can stop the Vulture Capitalists by requiring them to pay for thestock they take. You should ensure that their payment is a multi-dollarshare price and never pennies. You can force them to sell their stockoutside the United States.4. Your insiders can avoid being caught in a stock scam by not sellingtheir insider shares. You should Pool & Vault all the insider shares untilyou can sell your company at Market Capitalization. Your insiders will getthe highest price for their stock. Your Investor Relations costs will belower during the public life of your company.
Are you serious about making your company a success? You must offer aproduct or service to the World. You must build your assets over a hundredmillion dollars. You must go public! You don't have a choice.
Five Myths About Inflation
A classic definition of inflation is any increase in the money supply. Understanding inflation is vital to anyone seeking investment profits or attempting to build a successful company. As with most basic issues of the global economy, inflation is surrounded by myths and misinformation.
Recession Planning
The clouds of a 2006 Recession are starting to form on America's horizon.Politicians know that Recessions or Depressions are bad for their reelectionchanges. Bad economic times tend to create unemployment among the nice folksholding office at the time of economic stress. You can expect the Governmentto do everything possible to delay a Recession until after the November 2006election. However, the American economy is currently caught in an upwardmoving inflation and a Recession would still the fires of a runawaycurrency. The Real Estate Bubble may be about to burst. And, America'sfinancial institutions appear to be in increasing trouble over failedderivative bets.
African Aid
Africa, like everywhere else in the world, has its fair share of honest, intelligent; hardworking people who want to see their families have a better standard of living. Unfortunately, most of these people are living below the poverty line. The reasons that Africa, with all of its natural resources, is an economic basket case are complex. They start with the 16th Century Africans' failure to adopt an effective immigration policy. The result was the European immigrants divided up the continent without regard to historic tribal boundaries. The modern result has been tribal wars waged with modern weapons from the Sudan to Rwanda.
