Stock Is Money

Written by William Cate


Continued from page 1

Inrepparttar same way, foreign investors want to buy stock in American companies. It'srepparttar 112477 reason that it's easier to list an American OTCBB company in Europe than a domestic company. It's easier to attract investors to an American stock than to a domestic stock. The ethical issue isrepparttar 112478 same forrepparttar 112479 U. S. Government andrepparttar 112480 public company. Should foreign small capital investors haverepparttar 112481 right to redeem their American shares? I believerepparttar 112482 answer should be yes. My viewpoint isn't shared by over 80% ofrepparttar 112483 OTCBB companies.

Stock is money. At some point, shareholders must convert their shares to dollars. If you wisely investedrepparttar 112484 shareholders' moneyrepparttar 112485 balance sheet worth of your company will be greater. If you maintain a sound IR program, your share price will be stronger. If you seek to sell your company to an industry giant, in a friendly acquisition at market capitalization, your shareholders will gainrepparttar 112486 greatest benefit from their investment. You will make more money.

Your approach is simple. Investors buy your stock today and fund your company, intorepparttar 112487 future. In time, your shareholders sell their stock in your company and convert their profits into dollars. If you implement this policy, you'll avoid problems with regulators. Your company will prosper. You'll grow rich.

To contactrepparttar 112488 author: Visitrepparttar 112489 Beowulf Investments website: [http://home.earthlink.net/~beowulfinvestments/] Or, visitrepparttar 112490 Global Village Investment Club Website: [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]

He has been the Managing Director of Beowulf Investments [http://home.earthlink.net/~beowulfinvestments/] since 1981 and is the Executive Director of the Global Village Investment Club [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]


Is Dot Com Dead?

Written by William Cate


Continued from page 1

Large businesses onrepparttar Net are designed to be unprofitable. Ifrepparttar 112476 principals in a startup Net business must earn US$100,000 to US$400,000 a year, that money must come from investors. Everyone fromrepparttar 112477 CEO torepparttar 112478 janitor must have large blocs of stock in a Net company. When that company goes public,repparttar 112479 employee stock usually destroysrepparttar 112480 share price. Who takesrepparttar 112481 loss? Investors.

The investors expect a greater fool to absorbrepparttar 112482 insider selling and takerepparttar 112483 share price higher. In a few instances this happens. In most cases,repparttar 112484 IPO buyers have proven to berepparttar 112485 greater fool. The mistake has been repeated so often that many investors are wary of Dot Com stocks.

The problem isn'trepparttar 112486 glut of Dot Com IPOs enteringrepparttar 112487 Market. Dot Com has become terminal because of permanent non-profitability and insider selling. The evolution ofrepparttar 112488 Net won't rescue these failing Dot Com companies.

Few Dot Com technology companies can keep onrepparttar 112489 forefront of technology for very long. They will have a brief period of excellent revenues and then they will fade. Dot Com distributors, particularly niche distributors, can survive and prosper. The secret is to make more money than you spend.

Here are my five rules for making more money than you spend with a Dot Com Distribution Company. 1. Keep your overhead down. This means modest salaries. It means few perks. The company must have a strong controller. 2. If you must give away blocs of stock, require that they be pooled and vaulted along with your insider stock. 3. Incorporate in a tax haven. Operate from a country that doesn't tax foreign-source income. If you are a Canadian citizen, you operate tax free. If you are an American and keep your salary below US$70,000, you operate tax free. 4. Contract reliable overnight shipping services inrepparttar 112490 States, Canada and Western Europe. Keep regional inventories adequate to meet expected demand. 5. Target your buyers onrepparttar 112491 Net. Inrepparttar 112492 San Francisco Bay Area, I assume allrepparttar 112493 Dot Com companies advertising onrepparttar 112494 radio are doing it to create demand for their IPOs. It can't be to sell their product.

I think Dot Com IPOs are dying. Dot Com technology companies will find it harder to attract IPO investors. Well-run Dot Com distribution companies will survive and prosper. However, Net investment interest is going into a period of major decline. The Lemmings are looking for a new cliff.

To contactrepparttar 112495 author: Visitrepparttar 112496 Beowulf Investments website: [http://home.earthlink.net/~beowulfinvestments/] Or, visitrepparttar 112497 Global Village Investment Club Website: [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]



He has been the Managing Director of Beowulf Investments [http://home.earthlink.net/~beowulfinvestments/] since 1981 and is the Executive Director of the Global Village Investment Club [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]


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