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Forum Help Why don't investment funds buy shares?

Why don't investment funds buy shares?

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Dominik

All worlds
31 Jan 2016 15:44Link
Hi everyone,

I am trying to IPO a corporation with a market value of more than 500B and with a P/E ratio of 23.4. The first 15% of the shares is offered for sale, but after several months nothing is sold and the corporation automatically becomes a state-owned corporation again. I tried to IPO this specific corporation several times, even with offering the shares below market value, but none of the investment funds was willing to buy the shares. And this while there was high demand for corporations with a much higher P/E ratio.

Are there any factors that I am overlooking?

Thanks in advance!


Dominik
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Aries

All worlds
31 Jan 2016 16:36Link
It isn't possible to locate information you are overlooking since you didn't provide the name and location of the corporation. Without that, we are limited to the information you posted, which you are correct in saying does not offer an answer to your question.
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Dominik

All worlds
31 Jan 2016 16:54Link
Country: Republic of Selene
Planet: Kebir Blue
Corporation: Phalodian MS SA
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Aries

All worlds
31 Jan 2016 22:08Link
I believe you are falling victim to competition. I know other players in the process of selling shares on your world. Reviewing your country, you have taxes and profit sharing at 12%. To ensure shares sell, most players selling shares will temporarily drop these values to zero. In doing so, their shares will sell before yours.

Also, the supply quality of that corp is low, with an average that would appear below 200. This is causing a lower quality product to be produced which affects sales. Consider raising this average closer to 210.

For some numbers, I will compare a similar corp that I happen to plan to IPO soon, on the same world and produces the same product.

My corporation:

Kebir Blue
Camp Kilo
Santa Emillia Military Service

Market Value 503,921.52M SC$
Products Sold 3,476.40M SC$
Profit Last Month 947.59M SC$
Net Profit Last Month 947.59M SC$
P/E Ratio 21.3
Salaries P
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Dominik

All worlds
31 Jan 2016 22:21Link
Thanks for the answer, this clarifies a lot! :-)

How does it come that last week I had no problem selling all the shares of corporations with a P/E ratio of over 30? Could it be the quality of the products?
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Aries

All worlds
01 Feb 2016 02:46Link
Remember what I started with. You are dealing with competition. The presence of competing share offers can vary.
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Dominik

All worlds
01 Feb 2016 19:15Link
Thanks Aries :-)