Post
Topic
Board Securities
Re: [LABCOIN] IPO [BTCT.CO] - Details/FAQ and Discussion (ASIC dev/sales/mining)
by
testtesttest1234
on 02/09/2013, 17:37:10 UTC
If we assume that 1% of the network means a share value of 0.004 obviously this will remain if Labcoin maintains this hashrate. When Labcoin starts hashing they will have 3 options all dependent on how much of the profits are re-invested.

1) Put breakeven amounts back into create more chips and developing more advanced chips. This will keep Labcoin at 1%

2) Do the same but put too little money into the company, and Labcoin will start to lose that 1%

3) Put more money into the shares to gain more network control as the years go by.

I think 3 is the best option, because it will mean greater value for the shares down the road and can excuse a high share price now (above 0.004)

However many people really think that with a constant 1% of the network maintained by 25% of profits reinvested the shares can maintain a value of 0.01

I disagree with this and think its rather short sighted. The most important point to determining the value of the shares is to correctly determine their future value.

I would like Labcoin to perhaps consider a increased re-investment at the expense of dividend payouts. (perhaps a 60/40 ratio, with 60 dividend and 40 for reinvestment)

I see this as the correct course of action for a sustainable company to hedge against network difficulty going up too fast.

Any thoughts on this?