Day 8 - A Piece of Bread

It's Day 8 and we invested.

The below information is subject to misinterpretation and misrepresentation. Please note that LinkyW is invested in the company written about in this article, certain bias may apply.

SM Aktiebolagett Bröd

SM Aktiebolagett Bröd is a Swedish stock company run by SMTaishan, with full operations focused on wheat and food production. SMTaishan agreed to an interview.

About SMTaishan

"Hello. I'm a player enjoying the economy side of this game. I helped set up a system in Eclesiar Sweden which allows companies and players to compete on the market based on supply and demand. One of my goals are to manage a few stock companies which are meant to provide good jobs and cheaper supplies for everyone. Stock companies are a great way for people to pool together money to afford higher quality companies early on, and share the profits."

-SMTaishan

Creating the Holding

"Creating a holding company from scratch without any investors is tricky when there is nothing of value in the company. I wanted to create a public holding company with many shareholders so I tried to convince investors that this holding company is a good idea. Part of that is not having a too big inital part of the shares. A dozen people accepted an early bird deal where I would sell them 4 shares for 1 gold each, with their commitment to participate in buying the 300 new issued shares for 2 gold each."

-SMTaishan

The earlybird offer allowed SMTaishan to recover his initial investment of 50g to create the holding. He then spent 20g to issue an additional 300 shares for the company. Since the creation and earlybird offer in the holding, SMTaishan has bought an additional 30 shares for 2g/each at market price. This is a good sign, showing that he is ready to pay the same amount as other investors for stakes in the company. As a result, SMTaishan now has 80 shares that average out to 1g/share and 20% of the company.

For transparency LinkyW acquired 4 shares at 1g/share and 9 shares at 2g/share averaging ~1.69g/share. LinkyW has plans to acquire more shares for 2g/share and hold long term for dividends.

Plans

"For SM Aktiebolagett Bröd the goal is to have one Q5 grain company, one Q4 food company, one Q3 food company and option to get a Q2 food company too if prices are high. Then the profits from these will all be returned to owners in the form of dividends."

-SMTaishan

The Holding Will Stay at 400 Shares and Not Expand

The holding company was designed to get enough gold to cover inital expenses during the first issued shares. It will not be expanded further because of the game mechanic limiting NPC generation to 2 per entity. So if we want more NPC's then we have to create another holding company.

-SMTaishan

Dividends

"I would guess it will take at least a week or two before the first dividend"

-SMTaishan

Concluding The Interview

"I would like to add I think the Swedish model we have built with our competitive market and high minimum wage works well. So if anyone out there is looking for a high paying job, Sweden might be the place for you! Perhaps you might even find a job in SM Aktiebolagett Bröd!"

-SMTaishan

Author Words

SMTaishan has a great reputation on handling finances. He is fully transparent in his practice and is ready to invest his own capital to lead by example. With 600g worth of assets when all shares are sold, the company will have an asset ratio of 1.5g/share in comparison to the 2g/share investment. This is reasonable for a startup. The company has strong ties to Sweden as well as the CEO. Investing in the company can be assumed to directly or indirectly benefit Sweden in their finances and war efforts. SM Aktiebolagett Bröd will not be expanding business beyond initial plans and is expected to have linear profits once production is fully developed, resulting in stable dividends but stagnant growth. With a trustworthy and capable CEO, the company is very likely to achieve what it is aiming for; a stable stream of dividends. Do not expect signifact increase in company and share value however. SMTaishan seems to have goals of creating more holdings in the future, focusing on other forms of production. This first holding, will be a display of competence for potential future investors. Buy if interested in stable dividends. Do not expect company expansion.

EDIT:

All shares for 2g have been sold. The higher priced shares are being sold by investors. 4g/share in contrast to the rough 600g of assets in the company is at a high premium. Before knowing the expected dividends/share; Invest With Caution.

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