Fake profits strategy
Posted: Wed Oct 11, 2017 6:28 pm
Could be wrong but I haven't seen this done by anyone else. This is a really fun way to scam investors into thinking you're company is profitable.
This works best with the infinite loan technique (from my previous post), but isn't necessary.
Basically, you set up a subsidiary and sell any product to their warehouses at the maximum price the game will allow. For example, I like to produce natural resources and sell it to my subsidiary's warehouse at 10x the cost and clear the inventories once it is full.
If optimally done, you should easily make a profit (ROE) of 100% or above, and over 1000% with leverage (infinite loan strategy). Your company will appear to be massively profitable but your subsidiary will quickly burn through cash (which you will need to frequently inject capital).
Once everything is set up, do an IPO. Issue the minimum of shares and immediately buy all of it back, since your P/E will be ridiculously low (should be <1). Wait until it reaches 10, then issue as many share to the public as possible. I've managed to have a market cap over a billion within the first year, starting with $15 million. My net worth was around $600 million.
This works best with the infinite loan technique (from my previous post), but isn't necessary.
Basically, you set up a subsidiary and sell any product to their warehouses at the maximum price the game will allow. For example, I like to produce natural resources and sell it to my subsidiary's warehouse at 10x the cost and clear the inventories once it is full.
If optimally done, you should easily make a profit (ROE) of 100% or above, and over 1000% with leverage (infinite loan strategy). Your company will appear to be massively profitable but your subsidiary will quickly burn through cash (which you will need to frequently inject capital).
Once everything is set up, do an IPO. Issue the minimum of shares and immediately buy all of it back, since your P/E will be ridiculously low (should be <1). Wait until it reaches 10, then issue as many share to the public as possible. I've managed to have a market cap over a billion within the first year, starting with $15 million. My net worth was around $600 million.
