Quote from: k on January 27, 2013, 09:46:33 AM

Quote from: sunnankar on January 27, 2013, 02:17:12 AM

So, after dividend this should leave approximately 45k of retained earnings making it an extremely safe investment all things considered.

I've seen you talk about these retained earnings before. Is there something in the prospectus about this? My understanding is that the profits are shared out amount the 100 million shares. So 10% goes to owners of the shares on MPEX and the other 90% goes to the other shareholder(s) (Erik or whoever), so those Bitcoins are not owned by SatoshiDice so shouldn't be used in making a valuation of the shares.

Well, I suppose it is implied from past behavior (Oct 2012) based on terms 2.2(f-h) of IPO Agreement #3. It also makes sense based on the business model. Based on blockchain analysis, it looks like the other 90% investors take at most dividends equal to the 10% publicly listed. After all, SD's bankroll is one of its competitive advantages so it makes sense to get a large bankroll.

A little more clarity from the issuer on this issue of retained earnings would probably be good but I completely understand an unwillingness to do so as any representation could implicitly limit future behavior. But then the 10% shareholders are freeriding? off the 90% shareholder(s) retained earnings.

Really, the financial statements just need to be cleaned up a little bit. The Google Doc is pretty amateur (typical of startup Bitcoinland). And with an $12.5m market capitalisation it might justify the expense. As a shareholder I would not be opposed to a $100-200/month fee for a CPA to create a nice and pretty Google Doc (plus, three years of professionally prepared financial statements might be helpful when it comes time to sell it). Plus, it would free up the time of whoever is currently creating the Google Doc.