IPO less then 30 P/E (Fearless Blue)

Ok, so, in the game news, the P/E is supposed to be less then 40, why are my corps that are worth more then 500B and have a P/E of 36 not IPO able? Says it needs to be less then 30 now...

I know. Just suck it up and do the best you can. It's gonna suck for a while.

I don't see how IPO's should be so hard. This almost rules out anything but the dozen best corp types from IPO's, unless the formula is changed...but I mean, it's simply price/earnings, how can that change fundamentally?

If you see anything in agriculture or food go public, you should sent a congratulatory note to the owner. Perhaps they should get an award for such a feat.

I think the requirement is now < 30. When even well established FMU corps cannot IPO, then that seems a little to restrictive, I agree.
But I am a little tired of public companiies anyway. They keep making more shares until they are finally so out of wack with earnings that the c3's all sell at the same time and you have 4 or 5 billion shares running around looking for a sucker to buy them. I think it would be nice if the owner of the corp could decide if more shares should be made, And the shares should be allowed to go up to $500 before more are creaated automatically. After all, most IPO's start around 10000 to 15000.

Public companies don't really 'create' new shares. Occasionally they perform a 'share split' which does change the number of shares available but doesn't affect the ownership. No money changes hands.

It looks like new shares have been issued, but it's more like you are now able to sell fractions of shares, e.g., you own 10 shares in a corp representing 10% ownership (so there are 100 shares overall). Each share you sell represents a 1% stake in the company so you won't be able to sell 0.5% (half a share). A share split is executed. You now own 20 shares (out of 200) still representing 10% but now you could sell one new share (half an old share) representing a 0.5% stake.

In the Real World, Stock Splits are thought to increase liquidity (ease of buying/selling) with a possible uplift to the share price. I'm not sure how the game handles this as fundamentally nothing has changed with the corp - the corp won't be any more profitable or productive after a split.

However, you can manually create shares (in a public corporation, click on 'perform a public offering'). This is a way of injecting cash into a struggling corporation or, if you want to increase your %-ownership and no-one is selling shares, you can dilute their ownership by issuing shares above market price and buying them up with your Enterprise.

A corporation can also withdraw (repurchase) shares if it has lots of cash to spare (that's the corp, not the enterprise or majority shareholder). In this case, essentially the corp buys the shares and then 'destroys' them by not offering them up for sale. The %-ownership of all other share holders with increase slightly as a result.

This subject was discussed elsewhere in the forum just yesterday.

The PE level is being computed differently now and the values are dropping.

just check your corporations and you will see that PE is dropping even if the profit per month is unchanged.

this will continue for some time.

The issue here is that a PE ratio of 30 is quite bad. in the real market, big corporations are doing better and in Simcountry they should be doing much better.

In fact, they do but the PE ratio was computed for a game year which is 3 days.

This is why we are transforming it, gradually and reducing the required PE level at IPO.

I expect PE ratios to pall by at least 50% in the coming weeks and even much more in the coming months.

We will probably end with a required PE level under 10 and many corporations will have it.

Our policy, for a long time now, is to have as many public corporations as possible.
this is why both private and public corporations are much more profitable than state corporations and this trend will continue.

so hold you breath. PE levels are falling and shortly, many more of your corporations will be able to perform an IPO.

"Our policy, for a long time now, is to have as many public corporations as possible. this is why both private and public corporations are much more profitable than state corporations and this trend will continue."

So, the only purpose of them is a way to get more than 12 from your own CEO? They perform worse, they're susceptible to attack, they can be destroyed in rebellions....

Should there be some benefit to state corps? Is there one that I don't know about?

Yes, there is a little. It's called being communist I like owning most state controlled corps. If I ever run low on supplies or something like that, I can full contract to myself. Especially in the case of strategic weapons, like strat bombers, nukes, etc.

<!-Quote-!>Quote:

Our policy, for a long time now, is to have as many public corporations as possible.
this is why both private and public corporations are much more profitable than state corporations and this trend will continue.<!-/Quote-!>

If you really want to act like Margaret Thatcher Tom, why don't you privatise Health, Education and Transport too?