Quote from: cedus on August 20, 2012, 10:27:41 PM

Quote from: evoorhees on August 20, 2012, 02:59:44 PM

Quote from: Chaang Noi (Goat) ช้างน้อย on August 20, 2012, 02:41:19 PM

Do not get my wrong, I hope you guys sell out, it would be nice to know people are willing to wait 15 years to break even. I just sadly do not think that is realistic right now. We will see.

Wait 15 years to break even... what are you talking about?

If SatoshiDICE didn't grow at all (which it will) and you were never able to sell the share (which you can), then it would take about 10 years to break even.

Maybe he talks about actual profits (65 BTC daily), not some mysterious "expected" profits/earnings (4,798.63 BTC x 0.019). You know, E in that P/E ratio is called Earnings, not rEvenue (for a reason). You're happily calling your revenue as your ("expected") profits/earnings. Profits/earnings is normally something you get after deducting expenses which, btw., include advertising costs which "will be increased to between $500-$1,000 per month" (from "$100-$300 range") therefore weakening your E and making P/E ratio even higher.

So people, please stop using P/E 10 when speaking about this IPO, since the correct P/E ratio is 15 (345,000 / 65 x 365).

Quote from: evoorhees on August 20, 2012, 02:59:44 PM

Since the site will grow, and since you can sell your share whenever, the equation changes substantially. A conservative estimate with a doubling of site revenue within 2-3 years means you'd have made 100% within 1-2 years because the stock price would double to maintain the same 10x p/e valuation. The attractiveness of such an investment to professional investors should be apparent.

No, it doesn't mean that. Again, you're speaking about revenues and totally forgetting (rising) expenses. Secondly, P/E ratio can and most likely will change over time, reflecting eg. changes in business environment and profitability of your venture or simply due to changes in stock/market price. P/E isn't some static figure you can shove down your "professional investors'" throats and make them follow it blindly, but a dynamic ratio which measures a variety of factors reflected either in stock/market price or earnings of your venture. Inability to both understand this business dynamic/logic behind P/E ratio and distinguish revenue from profits/earnings is alone sufficient reason for me not invest in this venture.

Cedus, you're confusing yourself.

See figures here: https://docs.google.com/spreadsheet/ccc?key=0Aiec3-Eo_yO5dG5SQklHZG4wRm1GMW9DRWpMMW5UQkE#gid=0

Avg. daily revenues: 4,798.63
House edge: 0.019
Avg. profit per day: 91.17 btc (this is profit, not revenue)

Projected profit per year: 33,278 (again, this is profit, not revenue, and assumes ZERO growth)

IPO will raise capital at roughly 10x P/E ratio based on that above figure.