Profits, Explained, aka 550% annualized return
Submitted by:
Redux Technologies - RDX (Trade)
Date: August 11, 2008
I posted profits from December 1, 2007 to July 1, 2007 separately from the profits from July 1 to August 1, so that investors know BOTH what my company has been doing in the time the WSE has been under construction, and what it's doing right now.
As of August 1st, we've reopened the Scripting Services division of our company and are once again providing custom scripting. Since Aug 1, scripting has brought in an estimated W$140,000 ($15,000 a day roughly. Humiliating. Gimmie a break, scripting business has been closed to the public for over a year). The profit from this is being used to help offset some of the slowdown in land growth that's happened over the summer, and is not intended for long term.
As for land-growth, we've been aggressively re-investing our profits into expansion for the last year. My goal for every month is to buy more land than I did the month before. So far so good.
Based on the numbers, we appear to have grown roughly by 550% over the last 12 months time, with a time investment of less than 2-3 hours a week. Our only limiting factor is cash.
This is a rough breakdown of monthly income/expenses for the month of July 08 (our most recent month of business), to give a snapshot of what we're up to at the moment:
---EXPENSES---
Tier Paid to Linden Labs: W$2,677,125
Land Purchased from LL: W$481,250
Misc Land Expenses (moves/renames/transfers): W$123,750
TOTAL LAND EXPENSES: W$3,295,875
(USD equivalency: ~$11,985)
---INCOME---
Tier Collected: W$3,100,000
Land Sales Income: W$366,000
Misc Land Income (charges for moves/renames/transfers): W$123,750
TOTAL LAND INCOME: W$3,603,500
(USD equivalency: ~$13,103)
---PROFIT~!---
Land Gains: 7 voids (value: W$481,250)
Cash Gains: W$307,625
Total monthly profitability: W$788,875
Discussion (rant, etc)
What I'm reflecting here is nearly a million lindens of profit returned on what is entirely a passive investment. Maintaining the land business results in less than 2-3 hours of work a week, and most of it is between me & my bank, and isn't increasing as the number of sims increases. It doesn't take any longer to sell 1 million L$ than it did to sell 100,000 L$
To put it bluntly, we have 5.5 times as much land as we did this time last year. What this means is that the profit from the land sector of our business has increased by 550% in 1 years time. Furthermore, even if we increase our business demands ten-fold, the land business would still be little more than a part-time job for me that's bringing in W$7 million of PROFIT per month. I don't need employees, I'm working directly with other land barons & investors who don't WANT me to be involved micro-managing the sims.
I have no immediate plans for a dividend, and here's why: If I had been putting all the profit from the land business into dividends, right now we would still have 4 sims, which would still be contributing, at best, W$100,000 to the monthly dividend. W$100,000 a month for 12 months is W$1.2 million paid in dividends over the year. Pretty good for what was originally a W$4 million IPO, by pretty much any standards.
If I decide to do no expansion at all this month, the monthly profit from the land sector alone would be W$550,000. If I continue to not expand, I can continue to pay $550,000 a month indefinitely. Six months from now, these dividends could potentially add up to W$3.3 million, which is almost a 100% return on the original IPO, and I could continue paying out $550,000 a month forever.
What I'm doing is intelligently re-investing the companies money with what has thus far shown itself to be a roughly 550% annualized return. If I can duplicate this for one more year, then this time next year RDX will be sitting on 200 sims & be pulling a monthly profit of 3 million.
I've heard some fussing about not paying dividends over the last year. I can't begin to tell you how many times I've gotten an IM that's sounded something like "Y R U NOT DIVIDEND? XYZ corp is paying 3 dividends a day, and selling even MORE shares in a secondary offer so he can deposit it in his magical bank that pays 2% daily interest compounded every eleven seconds, so he can pay an even BIGGER dividend next month! I'm investing all my money in HIS company!!!11one". If this is your investment strategy, please don't buy RDX or IM me, I'm running a company, and I'm getting really tired of explaining the difference between a company and a Ponzi Scheme to people who can barely manage to type out a coherent sentence.
Where is that CEO now? Where is his company? How much did you make off of THAT investment, hmm? If you look under your portfolio, you'll see it come up as "WTF", and right now it's worth W$0.03 per share. -97% annual return on your investment. "Oops", huh? In the meantime, I've managed 550% annual expansion by reinvesting my profits and not paying dividends.
RDX owns 45 sims. They're in SL, you can go look at them. They're full of people. Something like that can't be faked, or exaggerated, or come out of a magical slot-machine bank. It has a tangible value, and can be resold if necessary. We were one of the first listed on the WSE, and we're still here, and still expanding.
It's well known that's 90% of new businesses fail. RDX has succeeded, and the newly opened WSE has yet to reflect this in the share price of RDX. Need I say more?
29 full sims.
13 void sims.
0 vacancies.
Redux Dengaku
Redux Tech CEO
As of August 1st, we've reopened the Scripting Services division of our company and are once again providing custom scripting. Since Aug 1, scripting has brought in an estimated W$140,000 ($15,000 a day roughly. Humiliating. Gimmie a break, scripting business has been closed to the public for over a year). The profit from this is being used to help offset some of the slowdown in land growth that's happened over the summer, and is not intended for long term.
As for land-growth, we've been aggressively re-investing our profits into expansion for the last year. My goal for every month is to buy more land than I did the month before. So far so good.
Based on the numbers, we appear to have grown roughly by 550% over the last 12 months time, with a time investment of less than 2-3 hours a week. Our only limiting factor is cash.
This is a rough breakdown of monthly income/expenses for the month of July 08 (our most recent month of business), to give a snapshot of what we're up to at the moment:
---EXPENSES---
Tier Paid to Linden Labs: W$2,677,125
Land Purchased from LL: W$481,250
Misc Land Expenses (moves/renames/transfers): W$123,750
TOTAL LAND EXPENSES: W$3,295,875
(USD equivalency: ~$11,985)
---INCOME---
Tier Collected: W$3,100,000
Land Sales Income: W$366,000
Misc Land Income (charges for moves/renames/transfers): W$123,750
TOTAL LAND INCOME: W$3,603,500
(USD equivalency: ~$13,103)
---PROFIT~!---
Land Gains: 7 voids (value: W$481,250)
Cash Gains: W$307,625
Total monthly profitability: W$788,875
Discussion (rant, etc)
What I'm reflecting here is nearly a million lindens of profit returned on what is entirely a passive investment. Maintaining the land business results in less than 2-3 hours of work a week, and most of it is between me & my bank, and isn't increasing as the number of sims increases. It doesn't take any longer to sell 1 million L$ than it did to sell 100,000 L$
To put it bluntly, we have 5.5 times as much land as we did this time last year. What this means is that the profit from the land sector of our business has increased by 550% in 1 years time. Furthermore, even if we increase our business demands ten-fold, the land business would still be little more than a part-time job for me that's bringing in W$7 million of PROFIT per month. I don't need employees, I'm working directly with other land barons & investors who don't WANT me to be involved micro-managing the sims.
I have no immediate plans for a dividend, and here's why: If I had been putting all the profit from the land business into dividends, right now we would still have 4 sims, which would still be contributing, at best, W$100,000 to the monthly dividend. W$100,000 a month for 12 months is W$1.2 million paid in dividends over the year. Pretty good for what was originally a W$4 million IPO, by pretty much any standards.
If I decide to do no expansion at all this month, the monthly profit from the land sector alone would be W$550,000. If I continue to not expand, I can continue to pay $550,000 a month indefinitely. Six months from now, these dividends could potentially add up to W$3.3 million, which is almost a 100% return on the original IPO, and I could continue paying out $550,000 a month forever.
What I'm doing is intelligently re-investing the companies money with what has thus far shown itself to be a roughly 550% annualized return. If I can duplicate this for one more year, then this time next year RDX will be sitting on 200 sims & be pulling a monthly profit of 3 million.
I've heard some fussing about not paying dividends over the last year. I can't begin to tell you how many times I've gotten an IM that's sounded something like "Y R U NOT DIVIDEND? XYZ corp is paying 3 dividends a day, and selling even MORE shares in a secondary offer so he can deposit it in his magical bank that pays 2% daily interest compounded every eleven seconds, so he can pay an even BIGGER dividend next month! I'm investing all my money in HIS company!!!11one". If this is your investment strategy, please don't buy RDX or IM me, I'm running a company, and I'm getting really tired of explaining the difference between a company and a Ponzi Scheme to people who can barely manage to type out a coherent sentence.
Where is that CEO now? Where is his company? How much did you make off of THAT investment, hmm? If you look under your portfolio, you'll see it come up as "WTF", and right now it's worth W$0.03 per share. -97% annual return on your investment. "Oops", huh? In the meantime, I've managed 550% annual expansion by reinvesting my profits and not paying dividends.
RDX owns 45 sims. They're in SL, you can go look at them. They're full of people. Something like that can't be faked, or exaggerated, or come out of a magical slot-machine bank. It has a tangible value, and can be resold if necessary. We were one of the first listed on the WSE, and we're still here, and still expanding.
It's well known that's 90% of new businesses fail. RDX has succeeded, and the newly opened WSE has yet to reflect this in the share price of RDX. Need I say more?
29 full sims.
13 void sims.
0 vacancies.
Redux Dengaku
Redux Tech CEO