Who wants to be a Billionaire ?? 235 Opportunities! PDF Print E-mail
Written by Prof. Paul Douglas Katchings   
Monday, 15 June 2009

Who wants to be a Billionaire – 235 Opportunities!


This article and the two below say more than I could ever attempt to say in demonstrating the death of venture capital, credit, debt, interest replace by equity in causing a selected few to become billionaires. Actually more than a selected few!

The Sarbanes Oxley Act is a Paper Tiger
The Sarbanes Oxley Act creates new types of customer-owners!

You know there is something that came as a surprise to me about ten years ago during the DOT.COM era and before we had 3.6 billion cell phone users and I am sure that it will come to a surprise to you as well as you read this.

The formula for creating multiple values for public corporations of x=(a*b/y)/c where;

x) is stock price,
a) is revenue,
b) is earnings as a percentage of revenue

Y) is shares outstanding, and
c) is an acceptable rate of return

Works just like the energy formula for nuclear reactors effectively killing venture capital, credit, debt, interest, and unemployment by the control of just one variable in this formula.

Yes, a new type of corporation works just like a nuclear reactor for creating sustained value. This formula for public corporations when the a) variable in the above formula is a constant it can be used in creating multiple values in novel ways to solve the globes economic inconsistencies and create 235 Bill Gate's simpler, cheaper, and faster with 235 multibillion models ready to go!

Who wants to be a Billionaire – 235 Opportunities!

It dawn on me over the past ten years that if I made a) revenue a predictable constant in this value creating formula with 14 million preassembled customer–owners of a new public company I could create 11, 20, 40, and even 235 times more value 364 times per year for these 14 million permanent customers which is the optimized number for this new corporate model.

This revelation led me to look at countries to see if others saw this secret.

For the last year I have been completing research on the relationship between a countries population, their GDP, and the value of their stock exchanges. Basically what I found is that the GDP of countries with stock markets is never suppose to be MORE than the value of their stock exchanges.

This observation is what actually surprises me because there is no published data on this comparison. Since capital means to capitalize and the primary way for capitalizing is to bring value from the future for present use where the public corporation is the vehicle.

By definition the public corporation is the essence of capitalism. Any country with a stock market is practicing capitalism to the degree of the number of their publicly traded companies. The total capitalizations of these public corporations are supposed to exceeds countries with stock markets GDP.

The research is absolutely astonishing in that only 23 of the 200 countries studied stock markets exceed their GDP where countries that you will find surprising such as Germany, France, Italy, and Spain GDP exceed their stock markets value. (as of June 20, 2009 France changed positions to +)

Revealing why Switzerland, Hong, Kong and Singapore produces exceptional value for its citizens, what is obvious now is with 3.6 billion cell phones the 14 million to 3.6 billion permanent customers can be anywhere to close this value gap for two reasons.

When 14 million customer-owners owned 69% of 364 new corporations immediately after they purchased a product or service for any price then the 69% or 3 shares each can be given free to these 14 million (see 31 – 69 rule) because the formula x=(a*b)/c always creates more output value than the $1 input when the revenue is predictable which is now the case for a new corporate model of permanent customer-owners in an Initial Public Offering or IPO.

For example if a new public corporation is selling a $1 product to 14 million permanent and predictable customers then the revenue for this new corporation is $14 million times (for example earnings of 63%) divided by say 61 million shares for earnings per share of $.1445. If for sake of argument the rate of return is 3% then $.1445 divided by .03 produces a stock price of $4.82.

Since the 14 million permanent customers has 3 shares each at $4.82 then this is clearly $14.46 or 14.46 times the $1? Meaning a new business model assembly of 14 million permanent customers-owners once, and then sell 364, one per day predictable products and service because the stock value is always more than the purchase prices.

Now suppose the 364 products and services had an average price of $33 per day and the earning is 40% and the rate of return is 2% then the average stock price for 364 new corporations is  $151.47 or $454.41 times 364 for $165,405.24 for 14 million customer-owners in what is call Product Equity Value©.

Subtracting $33 times 364 from $165,405.24 leaves a net Product Equity Value© of $153,393.24 which is more than the annual earnings for most from a job.

What about the annual revenue?

The power of this model gets even better for cars, housing, computers etc.

Computer inc does not sell 14 million computers annually. The globe can contain 235 of these 14 million-customer models using Product Equity Value© called b2bvp's where b2bvp.com is on line now assembling customer-owners for a one time $30 registration fee.

As far fetched as this may seem Computer inc with a quality product and Brand could sell 3.29 billion computers with Product Equity Value©. However, it is not likely that Computer inc could produce 3.29 billion quality computers in 10 or even 20 years.

But a b2bvp could buy 14 million computers from Computer inc at $880 and then sell these to their 14 million customer-owners of a new corporation using Product Equity Value© at $1,100, which is a 20% earnings when incorporated from a location that does not tax corporations where the rate of return is 2%?

This being the case, then the stock price of this new b2bvp-computer company is $2,524 on 61 million shares outstanding with an immediately Product Equity Value© value of $7,572 or 6.88 times the $1,100 purchase price for 14 million customer-owners.

With Product Equity Value© and the b2bvp.com vehicle venture capital, credit, debt, interest, and unemployment is dead replace by equity.

Who wants to be a Billionaire – 235 Opportunities!

You could own a b2bvp if you have about 1,000 active contacts for the conversion cost of the model to fit your geographical location and language. One word of caution, do not attempt this conversion on your own because you will waste money when 235 of these specially formatted models will start faster than you can learn this model.

Why would a copycat attempt this when the model is basically free?


Paul Katchings
Business Engineer
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Last Updated ( Sunday, 22 August 2010 )
 
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