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Forum Help Making money in a turbulent economy (Little Upsilon)

Making money in a turbulent economy (Little Upsilon)

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Maxwell 'Danger' Powers (Little Upsilon)

All worlds
19 Mar 2009 16:35Link
Hi,

I noticed something recently and wondered if this could be exploited on a larger scale to make money. Or whether this sort of thing goes on all the time anyway.

Here is the thing I noticed:
I recently IPOed a state company, a cable TV services company. About a year (and after offering 15% of shares) later, cable TV had a supply spike and profits tumbled. Share price shortly tumbled to ~10% of what it once was. I then repurchased all the shares and turned the company back to a state one. By my calculations, I sold shares at ~$10-20 and bought them back for ~$3 each. This means I made a tidy profit, no?

So, what is to stop my doing the same thing with all my companies. The vast majority of share buys are by country investment funds which act practically blindly.

Is there something I am missing? Any information about the details of expenses during share buys/sales is greatly appriciated.

PS I believ
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Zdeněk Pavlovský (Fearless Blue)

All worlds
19 Mar 2009 17:21Link
to put it bluntly

the time and energy required to execute the (trans)actions for creating such "profit", here it's important to note that nothing "real" is created in fact, does not validate it.

for example:

corp has value 1T SC$ ~ 2.25 GC ~ 0.225 USD

to make 1 USD one would have to IPO almost 5 corps like that, sell down to almost 0%, then when prices would be near 0 buy back again, or build another 5 corps like that, IPO, sell down, etc etc.

how long would it take to make 1 USD?

including keeping track of all data, including clicks needed, included calculating how much is 10% and how much is 15%?

i dunno, but my guess would be around 1 real hour.

perhaps someone used to first person shooters and blitz chess with some sort of excel script could do it faster. that is possible.

perhaps if those billions around the world who live on 2 USD per day wo
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Maxwell 'Danger' Powers (Little Upsilon)

All worlds
19 Mar 2009 17:25Link
for clarification, I dont actually want to make real money, all references to money were meant to be to SC$.

Thanks for the comment.