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New Company IPO -- Andrew Carnegie Company (ACC)


Andrew Carnegie
RJ: Andrew Carnegie
CO: Andrew Carnegie

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Started on 09/16/2013 with NW of $1 million, as of 10/07/2013, NW now over $230 Million.

Company will focus on apparel products & R&D. Currently using fruit sales to fund expansions and R&D.

Selling 40% of company in IPO. Great opportunity! Ticker symbol: ACC.
Norbert Lehmann
RJ: bert
CO: Bert

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hhmm you own 100% of that stock .. are you going to free up some or issue more?
Andrew Carnegie
RJ: Andrew Carnegie
CO: Andrew Carnegie

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Good question, Norbert. I thought the only way to issue stock from a new company was to sell some percentage (up to 49%) of my 100% holdings. I didn't see any other options when I used the IPO screen. I am reserving up to 9% of my 100% shares, which if I've read past posts on stock posts correctly, will earn me the cash directly, rather than the company.

Then, I'll use that cash to start a second company, the way (I thought) other players did.

If I don't know how to use the IPO screen correctly, I'm certainly open to helpful instructions on how to use it. Thanks for the post.
Henry King
RJ: Business Tycoon
CO: BusinessTycoon

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The IPO issues new stock in the company, and the cash from those new stocks goes to the company, not to the player who was the former owner of 100% of the shares (or at least the largest shareholder, if it is a second listing of additional stock sales as second IPO).

If you want to get cash from your shares, the stock has to be sold AFTER the IPO to another player. One way to do that is to do a minimum IPO for only 5% of the company, and then offer to sell more of the shares at the same price (or at a higher price) to the company that bought shares from the IPO, or maybe to any other players who might want the shares. If you are selling shares that you own to another player, that gives you cash, but selling shares via the IPO gives the company cash for the newly issued stock, not you.
Norbert Lehmann
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looks like someone else beat me to it .. ;)
Andrew Carnegie
RJ: Andrew Carnegie
CO: Andrew Carnegie

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Yeah, I see that. Thanks to both of you for explaining how the IPO button works. I did a 10:1 stock split, so once my company's NW exceeds $1 billion, I'll be able to offer !% shares at a time (up to 9%) from my personal stock holdings. I hope I'll raise lots of personal cash, and see the company stock price rise.

Again, thanks.
Andrew Carnegie
RJ: Andrew Carnegie
CO: Andrew Carnegie

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I've thought about what I wrote earlier. Now I'm not so sure I agree the stock price should necessarily be near 100% + or - or a company's Net Worth. Just as in real world stocks, investors are betting management of a company will intelligently reinvest company cash flow to grow company revenues and thus company profits.

I see ACC's P/E is just about 1.5. In the real world, considering how fast the company has grown (from $1 million Net Worth on 09/16 to $550 million plus 10/11), I believe the P/E should at least be 5x.


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