| Tom Willard | Monday, November 22, 2010 - 02:47 pm 
Corporations in Simcountry keep growing in size at a low pace. Up to 10% of the corporations increase in size by less than 5% each week (or two weeks).
In the process, these corporations become more profitable. Other corporations may also increase their turnover but the number of workers remains unchanged and the increase in turnover translates into more profitability.
The market value of corporations increased significantly in the same period and together with the appreciation of the value of game money, we think that corporate value of corporations, in terms of gold coins has doubled in the past several months.
We expect this process to continue for some time but most of it is behind us.
At the same time, the number of HLW is decreased across all corporations and mainly the number of HLW needed when the corporation is upgraded.
We have seen that the changing mix of workers and professionals in corporations during upgrades is confusing for many players and will reduce the numbers. Shortages in HLWs are much smaller now and will disappear.
We have looked at what needs to be done after such corporate upgrade rounds and the “damage” is limited. In countries we control, we are closing one corporation from time to time and the balance remains largely undisturbed. Sometimes, two or three conversions of professionals into workers are needed to help solve the problem.
We think that a smaller number of corporations with a higher value per corporation and more profit will make it easier to manage the economy.
The market value of private corporations is in general much higher than the market value of state corporations. State corporations have higher fixed costs. Private corporations on the other hand, contribute part of their turnover to the country where they reside and are very attractive to these countries. The best performing president have very large numbers of private and public corporations.
The increase in profitability of corporations, including private corporations has worked through in Enterprises and many of them are now much more profitable than before.
Public corporations have the best chance to develop a very high market value and as we have seen recently, their values are also increasing. |
| Crafty | Monday, November 22, 2010 - 03:09 pm
Tom, one thing that has been bothering me...
What is the tangible advantage to any player of having high market value corporations? There is no trading of 1T+ SC$ corps (except maybe the occasional new player hostile bid done in error), and the shares of public corps seem to be sold mainly between Enterprises and Countries of the same player, so no overall gain to the account
I fail to see the reason for the satisfaction expressed by W3C in achieving these high corp values, increased profitability certainly, but value is virtually meaningless.
Please do point out something I may have missed.
Crafy |
| Tom Willard | Monday, November 22, 2010 - 05:11 pm
We intend to make it easier to sell corporations as virtual assets.
this could be inside and outside the game.
If the information on the corporation will include exact numbers on profit in the past weeks and months, in cash and percentages, it will become clearer what you can earn if you own the corporation.
we believe that it will create active trading in corporations. You invest in a high value corporation and it produces a profit which can be much higher than interest you can get for your money.
Same in fact for share packages that could in time become tradable in the same way.
A country with many highly valueable corporations that produce stable profits, will have a higher value. |
| Psycho_Honey | Monday, November 22, 2010 - 05:27 pm
The added Value adds to the assets the country has, raising the nominal value. I like the corps over 1T because if a player does hostile bid my corp he/she will pay a maximum penalty. If you trade shares are traded between a players ceo and country, there really isn't any downside to that either. |
| The Silverhilltrader (Kebir Blue) | Monday, November 22, 2010 - 05:51 pm
Sounds Good. Thanks for the info Tom. |
| Kitsune (Fearless Blue) | Tuesday, November 23, 2010 - 01:24 am
high market value of corporations will definitely keep people from hostile bidding
it will also keep people from consensual bidding
the days of buying state corporations are probably gone now, why pay trillions for a corporation when you can make your own for like 80B? |
| Joe Green (White Giant) | Tuesday, November 23, 2010 - 06:55 am
I don't know where all this is going but I gotta say I like looking at this number in one of my CEO's
Total Market Value of all Corporations 1,040,975.09B SC$
Profits are up considerably too ... I like the changes. |
