Post
Topic
Board Securities
Re: S.DICE - Want a piece of SatoshiDICE? IPO this week before new site launch!
by
Factory
on 20/08/2012, 15:58:21 UTC
Here is the problem:
  • S.DICE is pricing themselves like a "real-world" IPO, and being potentially optimistic about their growth potential
  • Bitcoin investors expect 1-7%/week return and don't care about the underlying business.

Well there is middle ground.  Our company (Tangible Cryptography) recently funded notes (debt not equity offering) at 29.6% APR and had more capital offered than we were willing to take on.  While 29.6% APR puts us solidly in junk bond status it is a little more realistic than 3400% "investments".  Since that offering we have seen multiple lenders contact us for expansion of our capital so there are investors with more realistic (albeit still high risk high reward) views.

I am glad to see another "real" company get financing using Bitcoin.  That being said I think I will pass on the IPO.  Generally equity carries more risk than debt.  At P/E of 10 the company is priced like a low risk growth stock, yet equity "owners" have no control or no legal protection.  At a P/E of 20 or 25 it would be a more attractive offering.



In major markets I think a low risk growth stock with a P/E of 10 is what most would consider a 'bargain.'

Also, I think you mean a P/E of 3-7 would be more attractive, not 20/25.