[iwantitiwinit]

Originally Posted by Tyruscobb

For me, the downside risks and unknown outweigh the potential upside. My first concern is the offering price. $2.5M? I wonder how the company determined this is the card’s current value? I suspect this is a nice premium. If so, investors are already starting off underwater from true market value.

Next, who determines the card’s value when the lockout period expires and going forward? How often is it reassessed? How is it determined? How is it communicated? Without this information, I don’t understand how any liquidity occurs.

Finally, who determines when it’s time to actually auction the card? What factors and objective criteria does the company use? What if during a market down period, the company’s owner needs to raise cash to cover other investments, pay down debt, wants to invest funds in a higher returning venture, needs to pay alimony in a divorce, etc. If he wants to sell, due to his personal needs, and the market is down, everyone is automatically going to take a bath.

However, I suspect the company is playing with house money. It is retaining 60% ownership. I bet the 40% covers the card’s purchase and the administration fees, giving the house a free roll.

Like Buffet says, never invest in something you do not understand and know all the details. I’ll risk my hard-earned money in the stock market, not wildcatting.

Hmm isn't it surprising that 40pct of 2.5 million is 1 million. What a coincidence.