News (Little Upsilon)

<!-Quote-!>Quote:

Taking a corporation public by performing an IPO is now easier to understand and conditions are shown on all the corporation pages.

Instead of having three conditions of which two must be fulfilled there are now only two conditions and both must be fulfilled.

To take any corporation public, the corporation must fulfill the following two conditions:
1. The market value of the corporation must be larger than 600 Billions.
2. The Price/Earning Ratio (PE ratio) of the corporation must be <40.<!-/Quote-!>

Really? What is the purpose of this?

stupidity

It says value must be greater than 500 b for me, but it has dropped the p/e down to <30. Talk about incentive not to build anything but a couple corp types. <40 was hard enough for us players that don't like CEO's.

The assets restriction wasn't even a real condition at all, you could just raise the cash level...this is BS.

Neither of those two conditions are hard to achieve.

In real life you only float a successful (on paper) company. You cant float a high P/E company because no one will want the shares lol.

1) This isn't real life
2) 500b value with a P/E less than 30 is hard to achieve.

This is a simulation of real life.
No it is not hard, be patient.

It has been done to slow-up players from having more than 12 corps in their own countries owned by their own Enterprises. IPOing has historically been a relatively easy way around this restriction, requiring only the learning of a skillset which, once mastered, was achievable a few RL days after first building the corp. Now it will take weeks / months.

The GMs saw it as an abuse of the system. It's not impossible, but it will take a lot longer to get a state corp to the point where it can be IPOd over to an enterprise.

SimCountry has always been a long-term game which required patience. This is just another manifestation of that principle.

Hugs and respect

Jo

Jo,

How do you know this is why they did it?

A better setup would be 400b and 40 p/e ratio imho. I agree that a p/e ratio higher than 50 is too high.

Danny, I don't know that this is why they did it, I'm just putting two and two together. I do know that, for a very long time, the GMs have seen using the IPO feature to change a state corp to a private enterprise corp, and get around the limit, as an abuse of the system that they were not able to stop, and I can tell that this will considerably slow it up.

Possibly that was not their primary reason for doing it, but I can't think of another reason why they might have implemented it. As you say, it makes too many other things very difficult.

If anyone can see another way in which this change 'improves' the game, please do share with the rest of us (no pun intended )

Hugs and respect

Jo

Well I can achieve it with the corps I typically build, it's just a waste of time and (sc) money for me.

BTW things don't take that long if you know what you are doing. I'm in the top 150 after hardly two weeks of playing, without multiplaying at all.

And if this game were anything like real life, defense companies would be worth building...

Well, the way I see it, if you have the will, and can wait out to the ipo times and spend time to do the ipo's in the alloted 20-30 minute time period, then, there is NO abuse. It is work, it takes time and timming to do, and its no secret. If you are willing to spend that kind of time and effort, then you well deserve it. Its been this way ever since I started more then 2 years ago and NO ONE has complained about it. SO WHY THE HELL CHANGE IT !!! IPO'ing has been apart of this game, the setup was fine. Wait till a profitable corp matured, IPO it. Sure helps out your country, especialy the new guys once they learn how to do it. So, explain how this new change is benifical? Who does this benifit? why is this simpler? If anyone has noticed.. P/E's have been bouncing all over the place since this new update accured, mostly going up. Most of my P/E's in my older corps have sky rocketed, corps I havent needed to touch and havent touched. They where IPO able according to the new rules, below 40, now there 60. Gusse there is one good point, I do have alot of corps in my countries that are my own CEO, im talking hundreds. Good luck new guys, you'll need it. Sorry, thought they where making changes to make it easier for yas. Gusse not

I agree with Homerdome. The old IPO rules weren't that complicated, and they got rid of one of the easier requirements. No point to this change other than to make things harder it seems. IPOing without interference of investment funds can be hard to time... I know I've had to wait a while missing the few chances there are. I guess they dont like the idea of massing corporations of a single CEO in one country. Though its one of the easier ways of build of ceo corps in tax havens. Hard to find 125 low tax countries to build in...

If I could just suggest that a state economy can be made just as profitable as a CEO dependent one...

I have no objection in principle to the change in IPO conditions, nor do I mind the extra challenge in getting my corps into a state fit to IPO them.

What would considerably ease my irritation, would be an indication on the list of corporations of which corps are IPOable as it would significantly reduce click-fatigue.

I know it has been raised as an issue before, but the combination of Market Value and Corp Assets meant you could work out which ones were IPOable by boosting the assets of corps with a sufficiently high Market Value. Now that this is no longer possible, I find myself making far too many mouse clicks to locate suitable corps.

Worth creating a public vote about this again?

PE ratios are falling in all corporations.
the reason is that we are in the process of recomputing the PE ratio and as a result, it is going down.

At the same time, corporate values have increased tremendously in the past months.

this means that shortly, nearly every corporation would be able to go public.

This is why we are regularly updating both required market values and the PE ratio that is needed for an IPO.

We have no reason to prevent great corporations from performing an IPO and we have no reason to allow every corporation that might bankrupt in a week or two, perform an IPO.

The changes will make sure that PE levels get to normal values (they went up to 100 - 500) which is unrealistic.
and it will make sure that only great corporations can perform an IPO.

we also intend to publish market values when public corporations are removed from the market or close and pay out to the shareholder.

Thanks Tom for explaining that, looking forward to being able to IPO again.

Jo Sallkilld is a W3C shill. This knowledge is lost from time to time. But it is true.

Awwww hymy . You promised, for the sake of our secret love child, that you'd never tell!

How am I going to pay for hymy junior's sim education now, without all those extra GCs I earn from the GMs?

Talking about Jo, I have something to add.

maybe we should start giving you these gold coins.

as far as I can remember, you are one of the players who have most influence on the game.
the reason is that you have the arguments and you bring them up in a civilized way. (probably a no-no word on an internet forum).

your comments are taken seriously and we have, many times, made some changes as a result.
so maybe, people should start trying to convince you instead of trying to convince me.

Thanks for your continuing constructive criticism.

we will keep reading everything.

Hey, Jo... can you ask Tom to do something about the shortage of trains?

Mr. Snuggles,
Come to LU and snatch some, we've been green line for a while! How you get them to WG is on you!

Jo (or anyone),
When I was here in '08 I had no trouble understanding IPOs.
I have an HP corp with market value of a bit over a trillion. Can't IPO it because it's share price is 12,512. That puts the P/E somewhere in the 40s or 50s (jeesh, I looked before I came on here and forgot already! Old age.).

What I'd like to know is what I need to do to get the share price down to a reasonable level so that I'm within the new range. I didn't realize there was anything the player could do to influence the share price (well, except for being a really crappy manager and running it into the ground!).

This is not directly related, but my CEO has an air transport corp in a country where the President is an asshat. It's one of his slave countries, the tax is 75% and the welfare about 40. First I tried to move it, but it was too young. When it became eligible, I tried to move it to my country, it said I needed an airport. After looking around I found an eligible country, tried to move it again, and was told I couldn't because the a-hat Pres. needed it for HIS airport!
I tried contacting him with no response.

My question is, do I need to just watch this decent corp wither away (I'm really close to having to take loans to keep it floating) or is there some way to get it out of the hell-state it's in?

Thanks.

If the guy is being an asshat, either jack up salaries that he can't compete, or just close it down.

Air transport companies are just special because of that, since they require airports, and not production plants.

They're supposed to be rejiggering the formulas that do the calculations to make this easier. You could always "sabotage" the corporation temporarily to lower the value, then unsabotage it to get the p/e and IPO it.

75% taxes may have a new use.

Rep, the only thing you can do with that air transport corp is shut it down. Why CEOs can't build them. You can't move 'em.

Thanks gentlemen.
Can't remember if air transport corps were here in '08 or not.

Guess that's why the full red on the air trans! It looks like shut down time.

I could work around the tax. Don't like it, but I could work around it. And if the guy was going to work on the welfare I could tough it out. If I could get even a bil a month I'd be happy. But at 93% production with a fully upgraded corp (plus 350 salary to keep my workers) it just ain't worth it.

Thing is I looked at his 19 country empire, and except his main they're all the same. 75% and crap welfare. Oh well, quit my bitching and get on with it.

Might be time to look into a Fed.