Casino Investment Banking

Banks Reopen Global Casino. Investment banks are making serious money again, thanks to government aid. Ironically, they are benefiting from the crisis they helped to create. only this time, it's the taxpayers who are shouldering the risks.

submitted by synthpop to reddit.com [link] [comments]

Who will make the case for a British casino bank? Amid global political turmoil, Britain needs an investment banking heavyweight, and Barclays is our only candidate

submitted by BritRedditor1 to ukpolitics [link] [comments]

Banks Are Gambling With Your Money| banks make far more money playing casino with the Wall Street and the wealthy than they do investing in Main Street.

Banks Are Gambling With Your Money| banks make far more money playing casino with the Wall Street and the wealthy than they do investing in Main Street. submitted by IrrationalTsunami to SandersForPresident [link] [comments]

Why investing in the bank of a centralized cryptocurrency casino is a bad idea

Why investing in the bank of a centralized cryptocurrency casino is a bad idea submitted by diegobenti to CryptoCurrency [link] [comments]

My 2021 Portfolio

Albeit a week late, I want to share my 2021 portfolio for documentation purposes and for whoever is interested. I aimed to balance risk in this portfolio with some growth names and legacy plays. Down to brass tacks, I am putting my money in the highest quality companies (in my view) across a diverse set of industries I find attractive. Some of these names are overvalued in the short term. However, I have realized I am not in the business of beating Wall Street’s pricing, but would rather hold high-quality companies that I believe will grow faster that the market in the long term. In other words, I am totally fine paying a short-term premium for growth and quality. Below is a summary of the portfolio and big picture reasoning behind each investment. I'm definitely open to any feedback.
Company Ticker Entry Price Exposure
ARK Genomic Revolution ETF ARKG $93.26 6.60%
CrowdStrike CRWD $211.82 11.78%
Disney DIS $181.18 10.53%
Enphase Energy ENPH $175.47 7.98%
Evolution Gaming Group EVVTY $101.02 12.77%
Facebook FB $273.16 11.05%
Redfin RDFN $68.63 10.41%
Teladoc TDOC $199.96 9.60%
Sea Ltd SE $199.05 14.09%
Waste Connections WCN $102.57 5.19%
ARK Genomic Revolution ETF (BATS: ARKG) - Invests in companies advancing genomics. The companies held in ARKG may develop, produce or enable: CRISPR, Targeted Therapeutics, Bioinformatics, Molecular Diagnostics, Stem Cells, Agricultural Biology.
CrowdStrike (NASDAQ: CRWD) - Cybersecurity technology company that provides endpoint security, threat intelligence, and cyber attack response services.
Disney (NYSE: DIS) - Worldwide entertainment company that you all are probably familiar with.
Enphase Energy (NASDAQ: ENPH) - Designs and manufactures software-driven home energy solutions that span solar generation, home energy storage and web-based monitoring and control.
Evolution Gaming Group (OTC: EVVTY) - Swedish company that develops, produces, markets and licenses integrated B2B live casino solutions for gaming operators.
Facebook (NASDAQ: FB) - Enables people to connect through devices. It’s products include Facebook, Instagram, Messenger, WhatsApp and Oculus.
Redfin Corporation (NASDAQ: RDFN) - Provides residential real estate brokerage services.
Teladoc Health (NYSE: TDOC) - Provides virtual healthcare services on a B2B basis to its clients and provides services to consumers directly and through channel partners.
Sea Ltd (NYSE: SE) - Digital entertainment, electronic commerce, and digital financial services. The Company operates three business segments: Garena, Shopee, and SeaMonkey. The Company’s digital entertainment business, Garena, is a global game developer and publisher with a presence in Southeast Asia, Taiwan, and Latin America. Garena provides access to mobile and personal computer online games. Shopee provides users with a shopping environment that is supported by integrated payment, logistics, fulfillment, and other value-added services. SeaMonkey business is a digital financial services provider. SeaMonkey offers e-wallet services, payment processing, credit related digital financial offerings, and other financial products.
Waste Connections Inc. (NYSE: WCN) - Waste services company that provides non-hazardous waste collection, transfer, disposal and recycling services.

P.S. I have two other accounts - one with about 40 growth stocks and another with about 10 big names / ETFs. However, this portfolio has the largest allocation for 2021. My first time trying a more concentrated approach.
submitted by bull_doze to investing [link] [comments]

If Goldman Sachs CEO Lloyd Blankfein were the boss of a Las Vegas casino instead of a New York investment bank, his firm’s front-running and derivative trading against customers would have been a class B felony.

submitted by watchman to Economics [link] [comments]

If WSB is a casino, you should probably build a strategy. Here is my perspective.

TL;DR it takes too much work and mental stress to become consistently profitable. Get a day job.
Below are some of the guidelines I make for my own personal investments and I am sharing my investing perspective so it may help others improve their trading views through the perspective of an idiot.
What I think every investor should know/learn about:
•It usually takes years before traders become profitable, but it can be a great source of income if you can game the market.
•It is important to remember that there is always a winner and a loser in a trade. The banks are usually the winners.
•When you go to the casino always find a way to bet on the casino winning.
•Only sell puts when they are covered and you intend to buy stocks from it to use as a potential swing trade or long hold. You don’t want to get caught trying to work the verticals after hours.
•Indicators are great outliers for trading, but should really only be used as a basis to judge your trades at the end of the day. you want to avoid getting VWAP, MACD and IC fucked because when you’re trading at the bottom of the channels sometimes it just keeps going...
•Sitting back and going cash heavy is never a bad move. Sure you miss out on some opportunities but you certainly don’t want to feel the bite of overbuying during an institutional sell off.
•Consolidation can take weeks before it rockets or blows up. Place consolidation calls 1 month out and swings 2 weeks out. Theta usually burns during the last week more than any other time, so doing 2 week trades is usually best unless you expect the market to turn the next day(don’t buy calls for next Friday exp if tomorrow is the only up day you expect) because other people are probably thinking the same thing and selling their options at the same time as you.
•Generally speaking, most people lose money by buying a call or put and holding it until expiration. If you’re lucky enough to ride a daily wave or gap consider selling out or pulling profits to gamble with house money. How many degenerates have been up 100+ only to be down 90% the next day?
•Know the rules(really though, read the rules on exercising options as they vary from platform to platform).
•make your own guidelines, and look for keys or tell tale signs of a head fake.
•If you’re new to trading stocks you should probably stick to trading stocks until you learn what a bid/ask spread is, learn how markets move, and learn how all the small things can make industries move on a macro level.
•Learn how to time the market and compare charts for consistent moves made during specific time periods. Break it down per 1,5,15,30,60 minute charts and daily charts mon-Friday for years. Try to find tendencies and consistencies in charts and graphs. If you think you can read charts and patterns choose a random day of that stock that you have not studied and day trade it using Webull on normal time playback(not on fast forward so you suffer the misery of watching it move slowly for minutes on end only to miss the timing of the jump or bottom).
•There is nothing wrong with holding onto cash and just watching/studying the markets. Look for how different things like hurricanes, war, tsunamis, inflation, deflation, bond yields and exchange rates effect the market in the mean time as that is what has been driving this market on a macro level.
•my personal holdings strategy is 80% cash, 10% stock, 9% options and 1% leverage. It can change to 90% cash and 10% options with a 5-5 or 8-2 split when I am not holding onto stock and run bearish. I do not want a normal market as that would kill my strategy(a market that lacks volatility).
•If leverage is too expensive to buy on your positions, find a stock that has been outperforming based on that sector and short it(assuming you’re call heavy). They usually have the lowest IV but the largest amount of movement. Puts on triple leveraged is also a pretty decent money mAker when looking for leverage(costs more but has a tendency of having larger payout percentages).
•Learn about psychological manipulation and the way institutional investors move the bid/ask spread to create artificial support and resistance lines before canceling their buy/sell orders and letting the stock run. Sometimes they will kill the price after a few minutes just to create a different bid/ask spread with backup orders(my theory is that this is what creates VWAP and MACD flops on a macro level).
•create your own rules that will help you refine your investments. Having too many rules doesn’t limit your trades, rather it increases your ability to invest by increasing success and through this creating confidence required to make the right trade.
•Look at daily bond yields and volumes of bonds bought/sold and at what prices.
•Watch currency exchanges as currency rates will clearly make a difference in profits that rely on imports/exports(almost every company).
•When trading wedges, sell out when one set of options covers the cost of the entire wedge(calls and puts) +10%, and hold the other side until the stock goes the other way. I view it as buying the consolidation, profiting off of movement, and banking off of a head fake.
•sell options within the first 15-30 minutes of market open if the stock spiked to take advantage of volatility.
•buy options around 2-3et as that will usually be the cheapest time , but the last half hour can also be a great time depending on which part of charts you like to work.
•Close options as a day trade if I profit 100% or more in a day.
Personal rules:
80% cash, 10% stock, 10% options with 90% cash-10% options if I am bearish.
Don’t overpay for an option just because you think you can scalp a quick 50%. It’s not worth getting macd or vwap fucked.
If you have to pay more than the price of 1 stock for a weekly option that is 50 cents or .2% otm it is not worth buying in my opinion(don’t hold options for more than 1-3 days at the most because you don’t want to ride the waves if you know a down day is coming).
Be happy with 5-10% returns. Sure some people might be making more, but you just need to hit the right rotation to outperform them.
Do your research. Don’t jump on hype/meme stock.
Inverse Cramer except when he is giving advice to service members.
Always buy leverage because breaking even on bad days is worth sacrificing 10-30% worth of gains to make sure you break even if the market turns.
Know the who(who is the ceo and what have they done), the what(what does the company sell and who are they marketed towards), when(when do you plan on buying and selling), where(where are they based out of), why(why do you think this company will outperform the other companies in the same sector), and how(how did you hear about the stock? Sources matter as they will give you an idea of how accurate they have been in the past).
Buy on bad news and sell on good news. Most of the time billionaires already got the news and sold out by the time you hear about it and panic(causing more panic and a great buying opportunity).
Edit: food for thought: ever wanted to exercise an option afterhours and sell it in early premarket 4:30 et to buy and dump the position? How are you going to exercise those options without cash to exercise them?
submitted by TreeHugChamp to wallstreetbets [link] [comments]

Robinhood can be a gambling platform, but it's not and removing it or regulating it will exacerbate the divide between the wealthy and the rest of the U.S.

Hi everyone,
Lately I've been reading and watching on the news about Robinhood and I just wanted to give my two cents as somebody who actually researches Gambling disorder in the United States. My goal in this post is to hopefully encourage people on WSB to become politically active in preventing the regulations or removal of certain aspects that Robinhood allows on its investing platform. First, let me define some terms from the Gambling disorder field:
In this post I will address a few arguments at Robinhood. The first is regarding the "gambling" nature of investment that Robinhood purportedly encourages. The second is that the average investor needs to be "protected" because they lack the information and knowledge to participate on the app.
When I first downloaded Robinhood, I was skeptical at first and proceeded to uninstall and reinstall it multiple times before I deposited $350 to invest in stock. The app provided me a "scratch-off" with my first deposit that rewarded me with my first stock (some medical company). That was the only time that event occurred. If we look at my prior definition of gambling, technically that is not a form of gambling. I placed nothing of value on this random outcome. If the actual act of investing in stock is gambling this leads to an interesting analogy regarding trading platforms, not just Robinhood.
Stocks are the game (roulette, blackjack, craps), Robinhood and trading platforms are the dealers (giving information on the rules of the game and how much it costs to place a bet), and the liberal market is the casino.
In this analogy everybody is in the Casino, and if you don't play the game you stand to lose regardless as your money loses value to inflation. Even worse, if the casino folds the people that didn't cash out or were fully invested in the casino never collapsing (The Great Depression, the recession of 2008 the coronavirus recession) can stand to lose everything even if they didn't participate (regular person that was laid off) or were placing safe bets (ETF's Blue chip stocks etc).
The Massachusetts Secretary of the Commonwealth, William Galvin, is addressing the wrong issue by suing Robinhood. What should be addressed is the reasons that people even participate in Robinhood or in any trading platform. The average individual doesn't understand the market and the United States does not address this ignorance by providing information on how to properly invest for retirement or provide a welfare structure that protects against poverty as individuals become unable to participate fully in the economy due to injury, developmental disability, age, discrimination or lack of access to the "free" market. To claim that people on Robinhood "gamble" for excitement or risk is reductive. People invest their money on Robinhood for the potential accumulate life changing "tendies" that will protect them from the eventuality that they will be unable to participate in the economy and the government will not insulate them from the fiscal impact an individual will (not if) have to deal with in regards rising medical cost for their healthcare and any other services they would require in order to lead a normal life. If William Galvin is actually concerned about the "gamefying" of investment, he should focus on regulating Wall Street and the Banking sector, because last time I checked investors on Robinhood invest with their own money, not the money of other people.
The argument that the average investor isn't informed also leads to more issues that I guarantee the government doesn't want to address or even ask because it would require an expansion of the welfare state and higher taxes on companies and individuals. If the average American is too dumb to invest using Robinhood that what is the solution? The U.S. government has always fought any sort of government guaranteed income or services to insulate an individual against against insolvency from the free market as can be seen by the desire to privatize almost all forms of government programs such as Social Security, Medicare, Food Stamps and Medicaid. This has already occurred with certain programs at the federal level such as HUD which doesn't do anything to help people get affordable housing and the drastic reduction in funding for colleges and universities especially after boomers were done getting their degrees for essentially free.
So lets examine what the average person has to understand in the American economy,
So the average American is suppose to navigate all of the aforementioned areas with little to no government assistance. But Robinhood should be regulated, makes sense. Let's not even talk about that most Americans read at about an 8th grade level and have a tough time understanding that a quarter pounder is less than a one third hamburger...
"Why the third pound hamburger failed: One of the most vivid arithmetic failings displayed by Americans occurred in the early 1980s, when the A&W restaurant chain released a new hamburger to rival the McDonald’s Quarter Pounder. With a third-pound of beef, the A&W burger had more meat than the Quarter Pounder; in taste tests, customers preferred A&W’s burger. And it was less expensive. A lavish A&W television and radio marketing campaign cited these benefits. Yet instead of leaping at the great value, customers snubbed it. Only when the company held customer focus groups did it become clear why. The Third Pounder presented the American public with a test in fractions. And we failed. Misunderstanding the value of one-third, customers believed they were being overcharged. Why, they asked the researchers, should they pay the same amount for a third of a pound of meat as they did for a quarter-pound of meat at McDonald’s. The “4” in “¼,” larger than the “3” in “⅓,” led them astray. --Elizabeth Green, NYT Magazine, on losing money by overestimating the American Public Intelligence."
The REAL QUESTION is what responsibility does the government have to insulate the average American from an economy that by its very nature is predatory, especially when the argument set forth by William Galvinson is that the public doesn't understand how to invest on Robinhood. Especially since the government has told the public from day one to take care of themselves as they get older through investing instead of expecting the government to provide assistance. By removing or regulating Robinhood, the fungibility of the average American's dollar will drop in value because they are prevented from another avenue of wealth accumulation, which research shows (at least for those in poverty) they turn to gambling as a means of wealth accumulation because even though the return on a gamble is less it is technically even since their dollar is also worth less.
I think I may have gone on a rant, sorry.
TL; DR,
Please buy me some tendies William Galvin, because I like to be wined and dined before I GET FUCKED!
Robinhood isn't gambling. Robinhood just provides a service to investing on Wall Street, the actual gambling is our devotion to supply side economics which is the original, STONKS ONLY GO UP 🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀
Also, if we are going to start regulating Robinhood because of the actions of a minority (WSB) then we should start regulating other industries that are WAY more predatory and impact a larger amount of the U.S. such as, payday loans, guns, pharma industry, surprise medical bills from emergency rooms, childcare, prison industry, bail industry etc. I bet you the cost to the U.S. economy from those industries is way more than anything Robinhood has done.
Positions: SAVE at 18.45 67 shares; and TQQQ 5 shares at 174.71
submitted by TankMainOW77 to wallstreetbets [link] [comments]

Only 23 years old, taking the world by storm, Vitalik Buterin Co-founder of Ethereum which implements smart contacts will be very useful and may soon see adoption by banks, casinos, hedge funds etc. Ethereum is absolutely a very good investment for the portfolio.

Only 23 years old, taking the world by storm, Vitalik Buterin Co-founder of Ethereum which implements smart contacts will be very useful and may soon see adoption by banks, casinos, hedge funds etc. Ethereum is absolutely a very good investment for the portfolio. submitted by LetgoCrypto to u/LetgoCrypto [link] [comments]

An Island Nation with Bitcoin as the currency

Hello all,
I am here with my plan for my subreddit Reddit Nation
If you are interested in joining a (hopefully) newly formed island nation then this is the place to be.
I have prepared a plan that explains how we will go about doing such a task. More detailed elaborations for each component of the plan will be given at request.
Obviously the first question is where we would have our island. I have identified places of interest. One place of interest is the Nation of Belize. Belize is a small nation with a low GDP of 2 Billion and they are selling off most of their island. Islands with 50-100 acres can be acquired for around 500,000; give or take 50,000. From the people (Government Officials) I have contacted, they are perfectly okay with this plan.
Now here is a 5 step proposal of how this will come to fruition (I will expand on how we will finance this)
  1. Acquire the island
  2. Set up the initial infrastructure
    1. Form of Government that I propose is a constitutional monarchy
      1. Country will be run as a democracy (two chamber form of parliament)
      2. Noble titles such as Duke, Earl, Count, Lord, Baron etc will be sold off to help initially finance the island.
    2. Establishment of the Government Building
      1. For now this is where the government will convene until more infrastructure is added and the island is improved.
      2. People will be made citizens at this location
    3. Establishment of Civil Services
      1. Waste collection, Police, Social Services
    4. Establishment of a Port
      1. This will allow supplies to enter the island.
      2. This will allow for the island to participate with the rest of the world economically(I will expand on this later).
      3. The port will function as the entrance point and exit until the runway can be constructed.
    5. Establishment of Resident Housing
      1. This temporary housing will be until the island can be developed and more permanent buildings can be put up.
      2. Resident Housing and the Government building will be set up near the port until island development is completed
    6. Set up a massive solar powered crypto mining operation to help finance further development of the island
      1. A partnership with big mining companies can be brokered to have this set up
  3. Make the Island a desirable location
    1. Set up the island as a luxury city
      1. Free housing for citizens
      2. Free healthcare for citizens
      3. Free schooling and university for citizens
    2. Build resorts and legalize gambling on the island
      1. The revenue generated from such activities will help finance further development of the island
      2. With the revenue generated from this, the island will be able to provide for the residents a luxury city
      3. The gambling industry investments will help to finance the island as well
    3. Make the island a banking haven
      1. Set up a bank on the island
      2. No KYC laws will be enforced on the island
      3. This will attract forgien investment into the island
    4. Allow cryptocurrency companies to conduct business without oversight and for miners to set up large scale operations using solar powered energy
    5. No income tax,sales tax, capital gains tax or corporate on the island
      1. Commercial businesses such as casinos, resorts, and banks will just pay slightly inflated property taxes
      2. This will help attract a lot more forgien investment as well
      3. Will attract companies to set up offices here and thus bring jobs to the island.
  4. Expand on the island infrastructure
    1. Build an airport. The islands have enough space to accommodate runways for planes even up to jumbo jets
    2. Build more free luxury housing for residents
    3. Establish schools and universities
    4. Establish libraries
    5. Establish Museums
    6. Establish a healthcare system
  5. Enjoy the luxury haven of an Island that we have built
Now for the question of how much this island will cost and how we will get the funding
According to my calculations (you can look at them below) it will cost us $2,600,000
Now in regards to how we will raise that sum
If you have made it this far, please join the subreddit for this plan
More information to come soon, thank you.
submitted by OGKebabEater to Bitcoin [link] [comments]

A Reminder For Everyone

Trading/investing is not a get rich quick scheme. Buying on solely what you hear without doing any research into sales, future growth, PE ratio, etc is bound to get you losses. You won't have gains every day. If you fold at the drop of a hat, then the stock market isn't for you. There will be bad days, but it's up to you as an investor to understand that timing the market is dang near impossible. You need to start thinking long-term if you haven't been doing so already. If you're expecting +50% gains, you're lost dude.
This isn't wallstreetbets so stop saying "yolo" and throwing all your money into companies that you're only buying because other people are talking about it. After all, "most news is noise; not news." Remember why you're here. Throwing your money into meme stocks is a good way to end up broke. Don't forget that we're still in the midst of a pandemic in a country whose people turned mask-wearing into a political issue. The possibility that we undergo another lockdown isn't outlandish.
Do research. Read, for crying out loud. Look at earnings reports. Take everything you hear with a grain of salt. Slow and steady money is much better than losses, so act like it. I'm honestly disappointed in how some of you guys have been acting. It's those kinds of people that keep working 24/7 and hoarding everything in their bank accounts while their money loses value due to inflation. Be responsible. This is the stock market; not a casino
Edit: you guys are free to do whatever you want with your money. I’m simply advising caution. If you want to dump your life savings into something in the midst of a pandemic where 1 in 10 people is hungry/food-insecure, then go for it dude. I won’t be hunting you down. It just gets irritating seeing people buy at all-time highs and acting all surprised Pikachu when they get burned. I’m not exactly innocent. I bought ACB and SNDL a little before and after November 9th, but I got lucky and sold for a profit before things went downhill. Others weren’t so lucky. Just have some common sense before you do things. Going all in and coming out with a nice profit makes people think that they’re God all of a sudden, and it’s sad seeing reality hit them like a bus
submitted by lethargic_apathy to stocks [link] [comments]

The Bollywood film ‘Dhoom’ (2004), misinterpreted as an action thriller, is in fact a rigorous allegorical analysis of economic policies, particularly in the Indian context in the early ‘00s.

Spoilers ahead.
Connoisseurs of film are undoubtedly well-aware of La Nouvelle Vague, aka, the ‘New Wave’—an experimental movement in filmmaking with its origins in the French cinema of the 1950s, with an emphasis on exploration of personal themes such as existentialism, iconoclasm and absurdism. Although the ‘New Wave’ is considered to have met its chronological end in the late 1960s, to be followed by successive movements like ‘New Hollywood’, ‘Cinema Novo’ and ‘Dogme 95’, the influence of la nouvelle vague continues to be keenly felt in the artistic masterpieces of Bollywood production house YRF. Under the skillful hand of renowned auteur Aditya Chopra, the studio has produced a lineup of commercially successful arthouse flicks that continue the French filmmaking renaissance of the ‘50s, successfully infusing avant-garde storytelling techniques with high production values and modern Indian themes. Nowhere is this revolutionary vision more evident than in films like DDLJ (a masterpiece in abstract, absurdist storytelling), Mohabbatein (a sensitive examination of the taboo topic of attitudes towards adolescent self-gratification), Kal Ho Naa Ho (an ambitious adaptation of historian David McCullough’s book 1776), Jab Tak Hai Jaan (a religio-philosophical drama that engages in debate upon the tenets of Christianity, Shaivism, and the cultural taboo of Kala Pani) and, of course, the Dhoom franchise.
As YRF’s most popular franchise, the Dhoom series has, with each installment, made great independent strides in cinematic theory and practice. Although—as read above—YRF films explore a wide, varying range of topics as a whole, the Dhoom franchise focuses exclusively on the examination and discussion of economic and socio-economic matters of policy and practice in the Indian context. Over the course of 3 films, the discourse acquires a rich depth, with the analysis of issues including the economic costs and benefits of national highway construction, the clash between entrepreneurial aspirations and the security of bureaucratic employment, the 2008 economic recession in the BRICS context, and the causes and consequences of non-performing bank loans and a profiling of defaulters of on said loans. Indeed, a first course on Indian economics at any prestigious institution may well be framed around careful viewing and discussion of the Dhoom films. In the careful hands of Aditya Chopra and Vijay Krishna Acharya (Dhoom 1/2/3, Tashan, Thugs of Hindostan), each Dhoom film achieves a delicate balance between the overt cops-and-robbers heist story and the covert exploration of complex economic schools of thought.
As the 1st film in the franchise, Dhoom (2004) establishes the storytelling framework for the films to come, and by itself explores the challenges and opportunities presented by Indian economic policymaking in the early ‘00s. The film features an all-round star-studded cast, with support from Honorary Roadie & Stardust Awards nominee Esha Deol, Star’s Sabsey Award winner Rimi Sen, and Indian Telly Award nominee Arav Chowdharry. At the film’s helm are Lions Club Award winner John Abraham, Sansui Award winner Abhishek Bachchan, and Emmy nominee Uday Chopra. Series regulars Bachchan and Chopra play Jai and Ali respectively, Jai being a policeman and Ali a small-time mechanic with a penchant for fast bikes and disinterested women. Abraham essays the villainous role of Kabir, part-time restaurant waiter and part-time leader of a gang of biker thieves.
The film begins with a series of daring heists pulled off by Kabir’s gang, relying on their high-speed bikes to orchestrate sudden thefts and promptly escape the scene soon after. Their exploits catch the eye of Jai, a lifetime appointee to the post of Assistant Commissioner of Police. Jai, however, finds himself out of his depth and through a series of accidents, makes the acquaintance of Ali, a mildly-seedy mechanic and bike racer. Initially reluctant to be associated with law enforcement, Ali is eventually induced to join Jai’s cause and attempt to chase down Kabir and his merry band of men. Dhoom is slow and deliberate in its setup, and the film’s early minutes are heavy on subtext and detail, therefore, it is essential to take in the plot in small increments, so as to be thorough with one’s analysis.
In an allegorical sense, Jai, as a police officer, represents bureaucratic authority and the security, comforts and powers of government employment. Abraham’s Kabir, as a thief, is a laissez-faire capitalist, relying on his material advantage in the form of fast bikes and his manpower advantage in the form of skilled bikers to partake in a series of one-sided transactions with economic entities such as banks and government funds. In this sense, the act of robbery in Dhoom is merely a transaction between two private parties wherein one side gains an unfair amount at the other’s expense, absent external interventionism. In addition to being a free-market advocate, Kabir is also an employee at a pizza parlour, which seems to be the film’s attempt at exploring both the growing role of the service economy as a share of India’s Gross Domestic Product (GDP), and the amorphous nature of employment within the modern ‘gig’ economy. Caught between the competing ideas of state-control and free capitalism, Chopra’s Ali is a stand-in for the directionless youth, lured by the safety and dignity of a government job, whilst simultaneously seduced by the potential for greater wealth presented by free-market capitalism. The film’s plot is overt in this depiction, with Ali simultaneously fearful of Jai’s authority, yet desirous of wielding said authority as an employed policeman. Furthermore, in an action sequence set in Mumbai’s Chor Bazaar—a flea market specializing in illegally-hawked goods—Jai and Ali get into a fight with goons in the market, and are forced to make a hasty escape after being outnumbered. Ali bringing Jai to the market illustrates his ties to the informal, underground economy—a large, undocumented component of the Indian economy—and Jai’s subsequent fleeing the scene highlights the failed outcome of government attempts to regulate this grey economy by force and bluster.
Initially at a loss for clues, Jai is eventually able to deduce that Kabir’s bikers arrange their heists in close proximity to highways, providing as the highways do quick getaways after. This is no doubt an allusion to the economic importance of the National Highways Authority of India’s flagship ‘Golden Quadrilateral’ national highway construction project. Kabir, the raw capitalist, is empowered in his capitalistic pursuits by the government’s infrastructure investments, and John Abraham’s moody expression throughout the film is in no small part perhaps due to the discontentment within Kabir’s mind about his enterprise’s dependence on resources provided by the state. Having deduced Kabir’s MO, Jai and Ali attempt to catch him in the act. However, Kabir and his gang appear to have substantially faster bikes than Jai and Ali, which is undoubtedly an allusion to the government’s perceived ineptitude and inability to generally compete with private enterprise. Left chafing and chasing the dust, Jai catches a lucky break when an overconfident Kabir offers him a clue about his upcoming crime, with the catch being that if Jai fails to avert it, he must recuse himself from the case and leave Kabir to his entrepreneurial pursuits. Kabir, the staunch capitalist, is here hinting at the idea of termination clauses in Public-Private Partnerships (PPPs), agreements between enterprises and governments for mutual benefit. Whilst the government naturally retains the right to sever the partnership at any point, Kabir clearly believes that he, as the private party, is also entitled to terminate the contract should the government, aka Jai, default on the agreed-upon terms. Formally known as the ‘Authority Default’ concept, Dhoom represents this idea in the form of a simple, easy to understand challenge between Jai and Kabir.
Even as this layered conflict plays out between Jai and Kabir, Ali is enamoured by the mysterious ‘Dilbara’ (Esha Deol). Little is known about Dilbara, however, like other characters in the film, it may be reasonably assumed than she is also an allegorical depiction of an economic concept. Ali’s infatuation with her suggests that she is perhaps intended to be portrayed as a vague, undefined avenue of aspirational employment. Furthermore, the fact that she (as is later revealed) is in fact a part of Kabir’s gang, yet also harbours feelings for Ali, leads one to conclude that Dilbara represents a form of compromise between dirigisme, aka restrictive state-controlled economy, and laissez-faire anarcho-capitalism. The filmmakers leave the specifics of this compromise vague, however, Dilbara’s skimpy outfits perhaps represent the scantiness of opportunities presented by this nebulous alternative.
Returning to the main plot, Jai, despite being forewarned, fails to foil Kabir’s next robbery, despite being able to take down one of his gang in the process. Left short of a gang member, Kabir attempts to recruit Ali, left sidelined by Jai following their failure to catch Kabir. The jilted Ali readily embraces Kabir’s neoliberal worldview and the duo jet off to Goa, where Kabir has his eyes set on one final score from a casino. Subtextually, the casino and gambling in general represent what is in Kabir’s eyes an essential component of his brand of capitalism—rampant speculation and volatility that may be manipulated to one’s benefit. There may also be an addition reference to British academic Susan Strange’s seminal 1986 work Casino Capitalism, a critique of unregulated banking and financial systems. However, Kabir is more likely than not to be derisive of such thoughts, and therefore, if this reference was intended, it may merely be made to indicate the filmmakers’ complete mastery over both Keynesian and Austrian schools of economic thought.
The importance of dance numbers in YRF films cannot be overstated. Even as Bollywood music gravitates towards being little more than catchy jingles designed to elicit maximum publicity, the music and dance numbers in YRF films complement the plot perfectly, serving to both entertain and narrate. Dhoom is no exception to this tradition of excellence. On the eve of Kabir’s final heist, an inebriated Jai shows up at the casino, claiming to have left police employment and moved on. Kabir, however, is rightly suspicious, given as Jai is still a cop, and is merely attempting to lure Kabir into a false sense of comfort as a prelude to catching him in the act. This Jai accomplishes by putting on a song-and-dance in front of Kabir to convince him of his abandonment of state-sponsored socialism and his embrace of Kabir’s unrestrained capitalism. The song is entitled ‘Salamee’, a clever homophone of ‘salami’, a sausage that consists primary of beef. The consumption of beef was, in a landmark 2005 Supreme Court judgement, forbidden on grounds on anti cow-slaughter laws. Kabir, as an opponent of government intervention, would likely have been opposed to the idea of such a restriction being imposed upon him. Therefore, to show his solidarity to the cause, Jai takes to the stage in front of Kabir and sways to the refrain of “Naye kal ko aao kare, hum karein, karein/Salami, salami, salami/Kar le salami…”.
The subterfuge is apparently successful, and a placated Kabir is lulled into a false sense of security by Jai’s reinforcement of his worldview. However, as mentioned, Jai’s conversion is little more than a ruse, and a hoodwinked Kabir is successfully caught in the act by Jai and Ali, who is revealed to have been Jai’s mole all along. The ever-slippery Kabir, however, weasels his way out of Jai’s clutches, and flees with his loot. Although Dhoom 3 would better address the phenomenon of loan defaulters taking flight from the verge of captivity, Dhoom too takes a cursory look at the occurrence, although Kabir does not quite embody a loan defaulter. He is merely the free-market capitalist, the robber baron caught flouting regulations and fleeing from the consequences of government intervention. A long chase sequence ensues, with Kabir fleeing but ultimately cornered by Jai and Ali at the precipice of a sea-facing cliff. Facing a choice between certain captivity and death, Kabir chooses to fly off the cliff with the last of his loot. In a literal sense, Kabir merely dies by falling off the cliff into the sea. In a figurative sense, faced with the prospect of his enterprise being forced to comply with ungainly regulations, Kabir chooses instead to offshore his business, and make for better waters, thus bringing his character arc to a natural and satisfying conclusion. A frustrated Jai bemoans his end, representing the government’s exasperation at ultimately failing to bring a rogue enterprise to heel. Ali, having seen his capitalistic expectations dive off a cliff with Kabir, chooses in the film’s final shot, to finally pursue the path to safe, steady, state-sponsored employment after all, asking Jai if he finally is a bona-fide police officer, as the film fades to black.
The topical nature of Dhoom is a cause for admiration, even a decade and a half after its release. The film successfully ties together strands of economic and socio-economic thought from its time—the ‘Golden Quadrilateral’ project received a major fillip in the first years of the new millennium, the service sector encountered a boom around the same time, as did the contribution of outsourcing to employment and economic growth. The rise of men like Kabir is perfectly timed in the post-License Raj years, as the country embraced capitalism over state socialism. Yet, the lure of stable, ‘safe’ government employment holds true, and powers men like Jai and seduces men like Ali. Dilbara’s unknown fate at the end of the film—left waiting for Ali by the side of a road—is representative of the uncertain outcomes of economic models with time. On a meta note, the Dhoom franchise’s casting of Abhishek Bachchan and Uday Chopra in every film is a nod to the ‘Mahatma Gandhi National Rural Employment Guarantee Act’ of 2005, a flagship government initiative that guarantees employment for a certain number of days out of the year, in the form of unskilled labour.
In summation, Dhoom rightly deserves its place as a seminal film in the annals of both YRF and Indian cinema. In its own right, it is a bold, experimental film that marries erudition to entertainment. It is also the progenitor of its celebrated franchise, providing the springboard from which future films would explore similar issues in an equally deft and precise fashion. To YRF, the Dhoom franchise, and Indian cinema, the film Dhoom is nothing short of a bottle of nitrous oxide, that when attached to a bike, propels it into the stratosphere.
submitted by throwaway_intuition to india [link] [comments]

NamSys Inc. (TSX.V: CTZ)

Summary of Findings
I am recommending that you take a close look at NamSys Inc. NamSys Inc is a simple predictable free cash flow generative business with a durable competitive advantage and a long runway ahead of it. It has a strong market position in the cash management industry and a growing SaaS business model. As of January 5th, 2020, NamSys Inc, which trades under the ticker symbol “CTZ”, closed at a share price of $0.90 or a market cap of $24.5m. It has about $5.5m in net cash on the balance sheet and the stock currently trades at a 9.3x pre-tax cash flow multiple, which translates to a 10.8% pre-tax free cash flow yield. At this price, I think it is worth a close look.
Business Overview
NamSys Inc is a small company based in Toronto, Ontario that specializes in providing SaaS software solutions to the cash management industry for financial institutions, retailers, casino operators, transit services, and to many different government entities. It sells 4 cloud based software solutions: Smart Safe Monitoring, Cash-In-Transit (CIT) logistics, Currency Controller (cash vault management), and Deposit Tracking (Banking). NamSys’s cloud based solutions are labelled under the brand name, “Cirreon ''.
Cirreon Smart Safe - The Cirreon Smart Safe product segment represents over 70% of NamSys’s total revenues and it has been growing at approximately 20% compounded annually over the past 10 years. The software solution is being sold in 24 countries but most of it is in North America. There are 16,000 NamSys smart safes out of a total of 80,000 smart safes in North America, which translates to 20% market share in the smart safe segment.
Cirreon CIT Logistic Software - The CIT logistic software assists cash-in-transit operators, who are responsible for safely transporting a business’s physical cash to the bank, to manage day-to-day operations. The Cirreon CIT software solution is an app that allows CIT providers to manage their fleet, track pickups and deliveries, strategically map routes, provide GPS navigation services, and also allows the CIT driver to communicate with the other drivers or customers. The CIT logistic software represents 4-5% of total revenues. CIT sales have been growing by 300% over the past two or three years, according to management, so it is a stream of revenue that will grow at huge rates over time. NamSys Inc has a long-term partnership with CIT providers across North America. The biggest CIT customer is Brinks, similar to the smart safe product. Brinks control 25% of the CIT service market in the cash management industry, which obviously exposes NamSys to 1/4 of the total market.
Currency Controller - The Currency Controller is a cash vault system used to process cash, count cash, and fill cash orders. The Currency Controller can be found within ATM and bank machines and assists banks and CIT services with accounting, billing, management and fulfillment that they need to perform for customers. The Currency Controller segment represents about 20-30% of sales and it has grown at 50% compounded over the past 3 years. It is available with a license and a subscription-based pricing model although the subscription model is becoming more popular.
Cirreon Banking - The Cirreon Banking app is a new product segment that has been introduced a few years ago and represents about 8% of total revenues. The Cirreon Banking app helps customers create and track deposits, place change orders, and request support, all from the customer’s phone. The Cirreon Banking app is sold as a subscription just like the rest of the Cirreon software solutions.
Durable Competitive Advantage
High Switching Costs - Once a retailer is hooked up onto the Cirreon platform, the idea of switching to another software platform is very unlikely and rather costly. Since Cirreon holds all of the retailer’s financial data related to invoices, cash inflows and outflows, and other important information, transferring this data on to a whole different platform will not only take up a lot of time and money, but sometimes might not be technologically possible. The Cirreon platform uses Java based programming, which makes it almost impossible to transfer data. In addition the learning curve for business owners and retailers when joining a new platform is very steep, which makes it uneconomical for NamSys customers to switch and spend hours, if not days, getting used to a whole new set up. The high switching cost nature of the software solution is evident with the high customer retention rates of the Cirreon platform, which management has reported to be very high. In the CIT logistics segment, NamSys provides navigation services and GPS software which interacts with the Cirreon platform to help retailers track where their cash is heading while also allowing CIT providers to communicate with local financial institutions. NamSys also has the benefit of high switching costs because CIT providers almost always stick with their logistic software providers and rarely switch. This is mainly because NamSys’s logistic software is already embedded in the CIT network system and the cost of reprogramming all the computers inside the CIT trucks and stopping business is so high, that it remains uneconomical for a NamSys customer in the CIT logistics space to switch over to another software provider.
Product Differentiation - Cirreon integrates many different parts of the cash management cycle onto one platform. There are very few services like this in the cash management industry that offer an all-in-one, easy to use service. In fact, the closest product offering could be from Safeology, which is a new tech startup, prominent in Europe. However, even Safeology fails to offer the quantity and quality of services NamSys provides to customers, as they do not have an established smart safe software service or an online banking app. In the most recent annual shareholder meeting, management has asserted their ability to increase prices to improve profitability. However, from a strategic perspective, they prefer to continue to add value to customers by keeping prices stable and remaining much more competitive in the marketplace. If you can add enormous value by providing a better quality service at great prices, then it is almost inevitable that the business will succeed over the long term. Holding this philosophy over the past 5 years contributed to the stellar growth in the business and I expect this to continue.
Brinks Long Term Partnership - NamSys and Brinks have strong business relationships with each other that should last over the long term. They both have a 3 year contract with an option to renew the contract at the end of each term. Since NamSys has already penetrated Brink’s ecosystem, it is expected that their customer relationship continues over the long term. With Brinks focusing on the hardware side and NamSys providing the software, both Brinks and NamSys have worked together to launch extremely successful cash management products and have been rapidly expanding to over 24 countries. NamSys is able to piggyback on Brink’s acquisition driven approach for expansion and its 23% share of the global cash management market, which provides countless opportunities for NamSys to grow and gain more market share in the software industry. For example when Brinks acquired Dunbar or G4S (both are cash management companies), they converted Dunbar and G4S’s old cash management software and integrated NamSys’s software in all the smart safes, CIT logistic networks, and currency controllers. As a result, NamSys inherits a strong market position and bigger network when Brinks acquires its competitors. Most of NamSys’s competitors lack valuable customer relationships with big players like Brinks and it is part of the reason why NamSys has been able to keep high returns on invested capital and operating margins for a decade.
Revenue Breakdown and Capital Efficiency
The SaaS revenue stream consists of hosted service fees and technical/maintenance support. It is clear that from 2015 to 2019, the recurring revenue stream has grown to 83% of total sales revenue. The licenses segment as a % of revenue has been decreasing as it represents an old fashioned method of selling software (customer provides a payment at the time the software is provided). This is more or less caused by customers abandoning licenses and getting onto the SaaS platform, which is a much cheaper option. The professional services segments represent the small customized projects NamSys does for specific customers but we will exclude this out of our analysis as it is negligible and very volatile.
The business requires very little incremental capital to maintain and grow its line of business. ROIC has gone from 135.6% in 2015 to 463.8% in 2019, which illustrates the capital light nature of NamSys’s business. With very little tangible capital employed, NamSys was able to grow revenues at a 20% CAGR over the past five years and increase cash flow generation significantly.
Revenue growth exceeded 20% in 4 out of the 5 past years, besides 2018. Revenue growth in 2018 fell down to 12% primarily due to NamSys’s decision to fully convert its currency controller segment, which makes up about 20% of revenues, into a SaaS model. Before, customers had to pay a big upfront cash payment (software licenses), but this all changed during 2018 when customers had to pay a fraction of the big upfront cash payment, due to the shift in payment terms. Thus, the lack of revenue growth in 2018 can be seen as an anomaly. Furthermore, gross margins have averaged about 71% over the past five years, declining 2-4% in 2018 and 2019 due to an increase in staffing costs. Operating and EBITDA margins are very healthy, averaging about 43% over the past 5 years, which illustrates stellar operating performance. FCF margin has averaged about 38% over the past 5 years, moving up and down due to aberrations in changes of working capital. Finally, the company has averaged about 29% FCF growth over the past 5 years, however the volatility in the changes in working capital create stark differences in the yearly figures. Moreover, based on analyzing NamSys’s historical growth and margins, one can conclude that NamSys is a predictable business that will grow over the long term.
Opportunities to Grow
The smart safe software revenue segment, which consists of 60% of total revenues, has grown at 28%+ per year over the past 5 years. With Brink’s, a $3B private security and protection company, being the largest customer, NamSys can piggyback on Brink’s international growth plans. NamSys has a strong customer relationship with Brink’s, as Brink’s builds the hardware for the smart safe and NamSys installs its proprietary software into the smart safe. At the moment, over 16,000 smart safes with NamSys software are being used in North America. However, in places like South America, the smart safe market is growing at 100% per year while in places like the Middle East or Africa, there is no smart safe market. NamSys has significant international opportunities to grow and expand its software service, which should be a prime driver of growth moving forward. If you do the math, Brinks projects that there will be 1.2 million potential new locations for smart safes to be installed worldwide. If the partnership between Brinks and NamSys gets hold of 10% to 20% of this market, this could mean about 60,000 to 120,000 smart safes installed within the next decade. Right now, NamSys Inc has around 16,000 to 18,000 smart safes installed. Over the next decade, I conservatively project that NamSys Inc can 3x to 7x their sales today, as long as they keep good customer relationships with Brink’s. Obviously, this is not accounting for the fact that Brink's is gaining a ton of market share through acquiring a lot of its competitors, which should yield more market share for NamSys in the software development space.
In addition, NamSys is currently experiencing huge tailwinds in their CIT logistics and currency controller software lines of business as well. I think there is a great runway with Next Gen ATM and the whole trend behind CIT companies acquiring ATM networks. With Next Gen ATM, NamSys can be positioned to sell not only their CIT logistics application but also their cash vault (currency controller) product as well. Furthermore, NamSys is also participating in a pilot project with the US Federal Reserve, with testing new software products and solving issues relating to the transportation of cash. The revenues from this pilot project should materialize within the next 3-4 years, as it is a long term project.
Management
The CEO of NamSys Inc is Barry Sparks, who has been the CEO for over 15 years. Mr. Sparks is the President of Torvan Capital and owns 40% of NamSys common stock through this investment vehicle. The President and COO Jason Siemens has been with the company for about 23 years and owns about 0.8% of the common stock. Mr. Siemens is a very competent manager, who thoroughly understands the cash management business. Through analyzing all the past earnings transcripts and shareholder meetings, it is evident that Mr. Siemens has a clear strategy on building NamSys’s moat and growing the business. One of the best and worst capital allocation decisions management has ever made was entering the hardware market (a lower ROIC business) in 2006 and leaving it in 2011, which led to NamSys’s stellar financial performance from 2012 and onwards. In addition, there has been no shareholder dilution (through stock based compensation) over the past 10 years, which is beneficial for long term shareholders of this business. Along with the Board and Mr. Sparks and Mr. Siemens, I think NamSys is a well managed and shareholder friendly business and I do not foresee any managerial issues arising from the individuals who run this company.
COVID-19 Impact
NamSys Inc has not really been negatively impacted by COVID-19 when compared to most other companies. A lot of their customers are grocery chains and gas stations that were running even when most businesses were closed. Revenues for Q2 2020, period ending April 30th, increased by 14.5% when compared to Q2 2019. Revenue for the first six months of fiscal 2020 increased by 19.2% when compared to revenue in the same period in fiscal 2019. NamSys generated a significant amount of free cash flow and the cash balance grew to $5.5m, up from $4.3m from Q1 2020. COVID-19 had an immaterial impact on NamSys Inc from a financial standpoint, which further emphasizes the durable business model of NamSys Inc, which can grow even during a pandemic and recession. So, while most businesses are struggling amid today’s unstable business environment, NamSys is growing its market share and throwing off more cash.
Valuation
I think NamSys’s intrinsic value will grow and compound over time, given its sticky business model and long growth runway. Please see for the supporting financial model of the base case valuation. For the base case valuation, I think a reasonable case would be projecting out a revenue CAGR growth of 13.7% over the next 5 years until 2024 (compared to 24.6% between 2015 and 2019). Given the company has a history of growing revenues at 20%+ CAGR over the past five years and the future growth potential in its smart safe and Cirreon banking application segment, I expect operating margins and its cost structure to remain stable over time. Keeping the 15x FCF multiple constant, the value of the business will grow to about $2.00+ per share by 2024, which represents an IRR of 23% per year. I think this is a compelling investment opportunity with significant upside. First DD, so thanks for reading :)
I have 2,500 shares at 0.88
submitted by 00nizarsoccer to pennystocks [link] [comments]

The Goldman Casino: Do investment banks do anything that helps America anymore?

submitted by NotPhil to Economics [link] [comments]

The Hound of Hounslow (How an Autist Broke the Market)

On May 6, 2010, Jim Cramer’s brain broke. “That is not a real price,” he yelled to his monitor. “OK? That is not a real price.” Proctor & Gamble had just fallen 25% in a manner of minutes, then 29%, then 31%. Cramer had never seen such a shiny knife, such a beautiful buy, and he searched frantically for the right camera to beg his followers to add PG to their portfolio.
There weren’t enough buttons on Cramer’s soundboard to fully capture how he felt about the quickest drop in Dow Jones history. In what would later be dubbed “The Crash of 2:45” or simply “The Flash Crash,” over a trillion dollars was wiped from the stock market in a manner of 15 minutes. The odd thing was, despite dropping more than 9% at one point, the market would rapidly recover a bit after 3 PM and would close only 3% lower for the day.
In the ensuing days and weeks, journalists and financial commentators and United States Congressmen would try and determine where this volatility had come from. Something weird had just happened.
#
In the investigations that followed, regulators would consider a couple of theories. Was this a “fat-finger trade” where a trader inadvertently placed a large sell order, triggering a domino effect of sorts where algos would in turn sell? Was this a well-coordinated cyberattack, aimed to cripple American institutions? Was it simply a dip exacerbated by high-frequency traders? Had Janet Yellen forgotten to change the printer toner?
Nobody knew. But five months after the flash crash, the SEC and the Commodity Futures Trading Commission (CFTC) released a joint report that on May 6, 2010 the market was “so fragmented and fragile that a single large trade could send stocks into a sudden spiral.” They stated that a group called Waddell & Reed Financial Inc. had inadvertently played a role in the crash by initiating a sale of 75,000 E-Mini S&P contracts ($4.1 billion total) as a hedge to an existing position. This, the report said, coupled with the high-frequency traders trying to sell the long futures contracts they had just picked up from Waddell & Reed, led to a game of “hot potato” where the contracts were resold to other HFTs.
The report though was leaving out a crucial player.
#
In 2005, Navinder Sarao was living the dream. At 27 years old, he still lived with his parents in Hounslow, a working-class suburb outside of London, demanding tendies to be delivered to his bedroom by his sweet emigrant mother. To the people who knew him, Navinder, or Nav, was known to be quick-witted and quick to anger. He was dominant at Halo and FIFA, and he had a proclivity to focus on one task for hours and hours on end until he mastered it. He was almost obsessive in his interests.
Despite still living with his parents, young Nav had aspirations. In 2006, he responded to an ad in the Evening Standard that read, “Wanted: futures traders. Must work well under pressure.” That’s it. That was the ad. And Nav, with no experience and a honey mustard-stained tie, went to the FutexLive headquarters—a drab office situated above a supermarket 45 minutes outside London—and successfully hid his Asperger’s and got the job. He was now a professional trader.
Nav picked things up quickly. Realizing that he was surrounded by day-trading retards, he moved his desk to the corner of the shabby trading floor and bought a pair of noise-canceling headphones. He’d found success trading E-mini S&P Futures, which is the primary futures trading vehicle for the S&P 500. And with his noise-canceling headphones, Nav would follow the orders that would enter and leave the markets. His coworkers would marvel at the autist in the corner and the returns he was regularly pulling in.
Then 2008 happened. By the time the financial crisis was in full swing, Nav was almost thirty and had decided to leave Futex. He had accumulated $2 million from his trades the last couple of years, and he figured the most prudent move as a budding millionaire was to set up his command center in his bedroom. He still lived with his parents.
#
Nav realized something early on in the mortgage crisis that not everyone else did. He realized that governments would be forced to step in and save these retarded institutions, and he knew the banks wouldn’t be allowed to fall. And he bet $2 million—his whole net worth at the time—that he would be right. He made this bet on a Friday, and the following Monday, George Bush announced the TARP plan.
Prices proceeded to recover 19% over the next couple of weeks, and Nav rode the wave and turned his $2 million into $15 million. Did he rest on his laurels? Fuck no, this kid’s retarded! Nav didn’t want a wife and a home with a couple of kids running around. He wanted GLORY.
#
Around 2010, the markets were seeing an influx in high-frequency trading, and Nav took personal insult to these robots. People were getting scalped by these algos, and those scalps belonged to Nav. Those profits were rightfully his.
In order to beat the robots, Nav decided to build his own robot. And unsurprisingly, fueled by Code Red and autism, Nav’s algo worked magnificently. Pretty soon, he was regularly pulling in half a million a day. All the while living in a cramped bedroom of his parents’ home that cost $300,000.
#
May 6, 2010, started out as a regular day for Nav. The markets were sliding a bit, and Jim Cramer was flailing about his studio as though he were fighting a cloud of bats, but this was roughly on par for the time. Nav’s algo was pumping E-mini sell orders into the market—$200 million worth of orders to be exact—which ultimately resulted in a loss of liquidity (don’t ask me how this worked, I’m still confused why my PLTR 12/11 40C aren’t printing). At around 1:40 EST, or 6:40 in Hounslow, his mother called from the bottom of the steps to inform Nav that din-din was ready and would he please come down.
So Nav logged off.
And exactly one minute after that, the market began to fall at a rate that had never seen before. Nav had no idea though; he was in an argument with his father about why he needed to chew with his mouth open in order to let the scalding tendy fumes out. A trillion dollars had been wiped from American markets, and the instigator of it all was too retarded to know what he’d done.
The tendies were good though.
#
The trillion-dollar loss turned out to be not that big of a deal. The DOW snapped back from the 9% freefall like a rubber band, like any stock that Andrew Left has deemed to be a casino. But the NYSE and NASDAQ officials proceeded to meet over the next couple of months to try and determine what caused the nosedive and rapid recovery. In the reports that they would write, regulators made no reference to manipulation and no reference to Nav. In fact, he wasn’t even aware there was an investigation going on. He wasn’t aware he did anything wrong.
But regulators eventually began to notice that Nav was canceling a lot of orders. The CFTC sent him an email and asked if he could explain what he’d been up to. What was the reason for his canceling an obscene number of orders? That’s what big banks did. And that’d usually be fine and all, but Nav was a singular trader and that made it suspicious.
Nav wrote back to the CFTC explaining in careful terms that he had nothing to apologize for and that the CFTC could kiss his ass. He actually sent that. He told the CFTC to kiss his ass. Which, in hindsight, might’ve been a bad idea but the regulators were still too stupid and boomery to charge him with anything at the time. Nav would’ve gotten away with it too if it weren’t for a blabbermouth desk trader in Chicago who months later reported a different block of Nav’s trades to the CFTC, rekindling the case against Nav.
The investigation and case were dragged out over months and years, and I know 99% of you were too impatient to get this far, so I’ll give the cliff notes for the rest. Basically, Nav would eventually be charged with “spoofing,” which is the purchase of a large block of orders with the intent to cancel them. Spoofing artificially drives prices higher or lower. So the FBI and other concerned parties showed up on the doorstep of Nav’s Hounslow townhome in 2015, and he was extradited to the U.S. The judge learned he was worth $50 million, so he set bail to $7.5 million. Curiously enough though, Nav couldn’t access the $50 million or pay bail, and it was later determined that he’d somehow lost the fortune, seemingly to various shady investment advisors who promised to keep his money safe. (I personally like to think he’s stashed his earnings into a Caribbean account and that he’ll return to his private island once things blow over)
Over the next couple of months, Nav worked with investigators and taught them how market abuse happens. He was diagnosed with Asperger’s by a prison doctor, and the judge, sensing the moral dilemma of incarcerating an autist, and sensing Nav had received punishment enough from being scammed out of his $50 million, recommended a year of house arrest.
So Nav is currently serving his year of house arrest in the same bedroom where he amassed $50 million. But now he’s penniless at 41.
TLDR: Some autist beats the system, but the casino is angry and creates new rules to retroactively punish him for his winnings.
submitted by tugjobterry to wallstreetbets [link] [comments]

An Island Nation with Legalized Drugs

Hello all,
I am here with my plan for my subreddit Reddit Nation
If you are interested in joining a (hopefully) newly formed island nation then this is the place to be.
I have prepared a plan that explains how we will go about doing such a task. More detailed elaborations for each component of the plan will be given at request.
Obviously the first question is where we would have our island. I have identified places of interest. One place of interest is the Nation of Belize. Belize is a small nation with a low GDP of 2 Billion and they are selling off most of their island. Islands with 50-100 acres can be acquired for around 500,000; give or take 50,000. From the people (Government Officials) I have contacted, they are perfectly okay with this plan.
Now here is a 5 step proposal of how this will come to fruition (I will expand on how we will finance this)
  1. Acquire the island
  2. Set up the initial infrastructure
    1. Form of Government that I propose is a constitutional monarchy
      1. Country will be run as a democracy (two chamber form of parliament)
      2. Noble titles such as Duke, Earl, Count, Lord, Baron etc will be sold off to help initially finance the island.
    2. Establishment of the Government Building
      1. For now this is where the government will convene until more infrastructure is added and the island is improved.
      2. People will be made citizens at this location
    3. Establishment of Civil Services
      1. Waste collection, Police, Social Services
    4. Establishment of a Port
      1. This will allow supplies to enter the island.
      2. This will allow for the island to participate with the rest of the world economically(I will expand on this later).
      3. The port will function as the entrance point and exit until the runway can be constructed.
    5. Establishment of Resident Housing
      1. This temporary housing will be until the island can be developed and more permanent buildings can be put up.
      2. Resident Housing and the Government building will be set up near the port until island development is completed
    6. Set up a massive solar powered crypto mining operation to help finance further development of the island
      1. A partnership with big mining companies can be brokered to have this set up
  3. Make the Island a desirable location
    1. Set up the island as a luxury city
      1. Free housing for citizens
      2. Free healthcare for citizens
      3. Free schooling and university for citizens
    2. Build resorts and legalize gambling on the island
      1. The revenue generated from such activities will help finance further development of the island
      2. With the revenue generated from this, the island will be able to provide for the residents a luxury city
      3. The gambling industry investments will help to finance the island as well
    3. Make the island a banking haven
      1. Set up a bank on the island
      2. No KYC laws will be enforced on the island
      3. This will attract forgien investment into the island
    4. Allow cryptocurrency companies to conduct business without oversight and for miners to set up large scale operations using solar powered energy
    5. No income tax,sales tax, capital gains tax or corporate on the island
      1. Commercial businesses such as casinos, resorts, and banks will just pay slightly inflated property taxes
      2. This will help attract a lot more forgien investment as well
      3. Will attract companies to set up offices here and thus bring jobs to the island.
  4. Expand on the island infrastructure
    1. Build an airport. The islands have enough space to accommodate runways for planes even up to jumbo jets
    2. Build more free luxury housing for residents
    3. Establish schools and universities
    4. Establish libraries
    5. Establish Museums
    6. Establish a healthcare system
  5. Enjoy the luxury haven of an Island that we have built
Now for the question of how much this island will cost and how we will get the funding
According to my calculations (you can look at them below) it will cost us $2,600,000
Now in regards to how we will raise that sum
If you have made it this far, please join the subreddit for this plan
More information to come soon, thank you.
submitted by OGKebabEater to lean [link] [comments]

Private game- getting cash in account

Since Corona took a bunch of the positives away from casinos I started playing private games. The games are crazy and the show no sign of slowing down. (UK based)
I now have a ‘problem’ that I don’t know what to do with all the cash. Since starting the private games I’m up the same I’ve won over the last two years. I’m not saying I won’t have losing months but I do believe if the games stay this good my winrate could continue, looking at the amounts players are willing to lose.
In the immediate term this is not an issue, I have enough casino winnings over the last couple of years that would legitimise the majority of my current winnings. However, if my fortunate circumstance continues I am concerned that the bank will ask for more detail than me just saying ‘I won it at poker’. I don’t want to be in a position where they ask for evidence of the exact games I won it in as I wouldn’t be able to give that. At the same time I imagine they would assume it’s either come from illegal sources or a source that should be taxed if I repeatedly turn up with a lot of cash.
My initial thoughts is to give cash to friends and get transferred. Although I don’t know if this is more dodgey and in reality even if I got 5+ friends happy to help I don’t think I would be able to clear all the money.
It is my believe that private games that are raked are illegal to run, but not to play in. Is this true?? If this is the case, I’m not involved in anything else illegal so i would have no issue with them investigating me. Other regs don’t think it’s an issue but I don’t see how it can not be. Do I just deposit lump sums and hope for the best? I won’t even mind paying tax to get it all into my account so I can invest it but aware I’m not suppose to get taxed.
Anyone who’s experience the same issues please let me know your thoughts.
submitted by boldyloxx1 to poker [link] [comments]

An Island Nation with Legalized Drugs

Hello all,
I am here with my plan for my subreddit Reddit Nation
If you are interested in joining a (hopefully) newly formed island nation then this is the place to be.
I have prepared a plan that explains how we will go about doing such a task. More detailed elaborations for each component of the plan will be given at request.
Obviously the first question is where we would have our island. I have identified places of interest. One place of interest is the Nation of Belize. Belize is a small nation with a low GDP of 2 Billion and they are selling off most of their island. Islands with 50-100 acres can be acquired for around 500,000; give or take 50,000. From the people (Government Officials) I have contacted, they are perfectly okay with this plan.
Now here is a 5 step proposal of how this will come to fruition (I will expand on how we will finance this)
  1. Acquire the island
  2. Set up the initial infrastructure
    1. Form of Government that I propose is a constitutional monarchy
      1. Country will be run as a democracy (two chamber form of parliament)
      2. Noble titles such as Duke, Earl, Count, Lord, Baron etc will be sold off to help initially finance the island.
    2. Establishment of the Government Building
      1. For now this is where the government will convene until more infrastructure is added and the island is improved.
      2. People will be made citizens at this location
    3. Establishment of Civil Services
      1. Waste collection, Police, Social Services
    4. Establishment of a Port
      1. This will allow supplies to enter the island.
      2. This will allow for the island to participate with the rest of the world economically(I will expand on this later).
      3. The port will function as the entrance point and exit until the runway can be constructed.
    5. Establishment of Resident Housing
      1. This temporary housing will be until the island can be developed and more permanent buildings can be put up.
      2. Resident Housing and the Government building will be set up near the port until island development is completed
    6. Set up a massive solar powered crypto mining operation to help finance further development of the island
      1. A partnership with big mining companies can be brokered to have this set up
  3. Make the Island a desirable location
    1. Set up the island as a luxury city
      1. Free housing for citizens
      2. Free healthcare for citizens
      3. Free schooling and university for citizens
    2. Build resorts and legalize gambling on the island
      1. The revenue generated from such activities will help finance further development of the island
      2. With the revenue generated from this, the island will be able to provide for the residents a luxury city
      3. The gambling industry investments will help to finance the island as well
    3. Make the island a banking haven
      1. Set up a bank on the island
      2. No KYC laws will be enforced on the island
      3. This will attract forgien investment into the island
    4. Allow cryptocurrency companies to conduct business without oversight and for miners to set up large scale operations using solar powered energy
    5. No income tax,sales tax, capital gains tax or corporate on the island
      1. Commercial businesses such as casinos, resorts, and banks will just pay slightly inflated property taxes
      2. This will help attract a lot more forgien investment as well
      3. Will attract companies to set up offices here and thus bring jobs to the island.
  4. Expand on the island infrastructure
    1. Build an airport. The islands have enough space to accommodate runways for planes even up to jumbo jets
    2. Build more free luxury housing for residents
    3. Establish schools and universities
    4. Establish libraries
    5. Establish Museums
    6. Establish a healthcare system
  5. Enjoy the luxury haven of an Island that we have built
Now for the question of how much this island will cost and how we will get the funding
According to my calculations (you can look at them below) it will cost us $2,600,000
Now in regards to how we will raise that sum
If you have made it this far, please join the subreddit for this plan
More information to come soon, thank you.
submitted by OGKebabEater to 5MeODMT [link] [comments]

Positivity for newbies without a lot of $ to invest

Hey! I'm pretty new to this, but if you are too and you're anything like me, you've probably seen a lot of people talking about how they've bought 300 shares of this, dropped $2k on that, have six figures in ETFs, etc. I've even seen a couple comments scoffing at people who only have a couple hundred to invest. I dunno about you, but it can get frustrating and disheartening. So I just wanted to take a minute and say: you're doing great just by getting started!
It really doesn't matter how much money you have. Sure, the more you can invest, the more you can (potentially) gain, but any profit is profit. If you want to get into trading like a lot of people do here, it's perfectly okay to start with $100, buy a share or two in something that seems reliable yet cheap, make like $5, sell it, rinse and repeat. You can work your way up to doubling or tripling your initial investment by just buying a good stock on a red day, waiting a few days, and selling when it's in the green by a few dollars. It's not as glamorous or fast as people talking about their $10k gains in a day but it is profit, it can be faster than long-term investing when you're just getting started, and it does allow you more money to play with without having to put in more of your own.
And if you want to start investing long-term, any amount is a great amount. $100 in a savings account might make 0.20% APY, like what my bank offers. $100 in ETFs could get you ~10% annual returns. $10 in a year doesn't sound like much, but it's a massive improvement over 20¢. (And you'll almost definitely put aside more than $100 year to year anyway, but you get the point.)
All in all, any profit is profit, the best amount to trade with is anything you can afford to lose, the best time to start long-term investing is always immediately, and it's perfectly fine if all you're making is a few dollars trading or investing. The important part is that you're getting started, so don't get discouraged! Best of luck to all of us =)
p.s. Also, IMO, short-term trading is okay! As long as you know the risks (yes, even of meme stocks) you can treat this as a game or a casino or whatever you want. Like someone else here said, this is /stocks, not /investing. At the end of the day it's your money, and sometimes stupid-seeming risks will make way more profit overnight than safe long-term investments will in years, and sometimes you'll lose your life's savings in a day and wish you'd just gone the investing route with $VOO or something. Do whatever you're comfortable with, don't listen to anyone scoffing about what investing has become. (Although, I guess, take what I've said with a grain of salt too! I am probably just as new as you ;b Feel free to correct me on anything as well!)
submitted by sanguineicarus to stocks [link] [comments]

The Rothschilds - A Rational Overview

No discussion of Upper Class Billionaires would be complete without the Rothschilds.
A family dynasty synonymous with wealth.
But what is the true extent of this wealth?
Just how powerful is this relatively secretive family?
With various theories circulating on the Internet, can we reach a rational consensus?
Part 1/6 - The Architect?
Mayer Amschel is often cited as the founder of the Rothschild banking dynasty.
In 1770, he married Guttle Schnapper. This boosted Mayer's wealth, as he received a generous dowry of 2,400 gulden from her father (who worked as a court agent).
Mayer wouldn't forget this and, in his will, outlined strict, controversial provisions regarding Rothschild marriages.
Mayer was concerned that the family's fortune would be diluted as it grew through marriages. As such, his will "barred female descendants from any direct inheritance" and, in effect, provided incentives for intermarriages. Four of his granddaughters married grandsons (first cousins), while one married her uncle.
Now, is this really a tale of Started from the Bottom?
Or, much like Drake, is there a rich Uncle involved?
To answer that, we need to ask: who came before Mayer Amschel?
Well, his father, Amschel Moses had a business in goods-trading and currency exchange.
He was a personal supplier of collectable coins to the Prince of Hesse.
We'll come back to that shortly...
We know little about Mayer Amschel's grandparents and more remote ancestors.
The family did previously use the name "Bauer" - in fact the name Rothschild didn't really stick until Mayer Amschel's generation came along.
Benjamin Franklin once observed that in life only death and taxes are inevitable; they are also virtually the only things about which records survive for the earliest Rothschilds.
The most we can say about the early Rothschilds is that they were relatively successful small businessmen dealing in, among other things, cloth.
Five years before his death in 1585, Isak zum roten Schild had a taxable income of 2,700 gulden.
A century later his great-grandson Kalman, a moneychanger who also dealt in wool and silk, had a taxable income more than twice as large.
It seems that his son (Mayer Amschel's grandfather Moses) successfully developed his father's business, continuing the process of steady social ascent by marrying, successively, the daughters of a tax collector and of a doctor.
With the help of relatives, Mayer Amschel secured an apprenticeship under Jacob Wolf Oppenheimer, at the banking firm of Simon Wolf Oppenheimer in Hanover, in 1757, where he acquired useful knowledge in foreign trade and currency exchange, before returning to his brothers' business in Frankfurt in 1763.
He became a dealer in rare coins and, just as his father had done previously, won the patronage of the Prince of Hesse.
His coin business grew to include a number of princely patrons, and then expanded through the provision of financial services to the Prince of Hesse.
In 1769, Mayer Amschel gained the title of "Court Agent", managing the finances of the immensely wealthy Prince of Hesse who in 1785 became William IX, Landgrave of Hesse-Kassel, and inherited one of the largest fortunes in Europe at the time.

Part 2/6 - The Five Arrows
The Rothschild coat-of-arms includes a fist clutching five arrows, a reference to Mayer's five sons.
At the turn of the nineteenth century, Mayer sent his sons to establish banks in Frankfurt, Naples, Vienna, France, and London.
The release of the "Five Arrows" symbolises strength through unity, and marks the beginning of the Rothschild's global banking dynasty.

Part 3/6 - Nathan Mayer
Napoleon was on the march through Europe, and William gave his fortune to Mayer Amschel to protect it from being seized by Napoleon.
Mayer was able to hide the money by sending it to his son Nathan in London.
The London Rothschild office had to spend it somewhere, and loaned it to the British Crown, in order to finance the British armies fighting Napoleon in Spain and Portugal in the Peninsular War.
These savvy investments of William's money paid off handsomely, netting sufficient interest that their own wealth eventually exceeded that of their original nest-egg client (the nest-egg client who had inherited the largest fortune in Europe remember).
This marked the birth of the Rothschild banking dynasty.
Historian Niall Ferguson outlines the sheer scale of the Rothschild family's operations:
"For most of the nineteenth century, N M Rothschild was part of the biggest bank in the world which dominated the international bond market. For a contemporary equivalent, one has to imagine a merger between Merrill Lynch, Morgan Stanley, J P Morgan and probably Goldman Sachs too — as well, perhaps, as the International Monetary Fund, given the nineteen-century Rothschild's role in stabilizing the finances of numerous governments."
Nathan pioneered the ingenious strategy of lending to governments during wartime.
This tactic, used when Nathan funded Wellington's army in 1814, is the primary cause of the explosion in the family's wealth during what proved to be 150 years of nearly chronic warfare.
Of course, the Rothschilds played no role in instigating said conflicts...
Continual war in Europe created excellent opportunities to profit from smuggling scarce consumer goods past military blockades. Since the Rothschilds often financed both sides in a conflict and were known to have great political influence, the mere sight of the red shield on a leather pouch, a carriage, or a ship's flag was sufficient to insure that the messenger or his cargo could pass through check points in either direction. This immunity allowed them to deal in a thriving black market for cotton goods, yarn, tobacco, coffee, sugar, and indigo; and they moved freely through the borders of Germany, Scandinavia, Holland, Spain, England, and France.
This government protection was one of those indirect benefits that generated commercial profits - of course they were also getting interest on the underlying government loans.
Even the friendliest of biographers admit that, for more than two centuries, the House of Rothschild profited handsomely from wars and economic collapses, the very occasions on which others sustained the greatest losses.

Part 4/6 - Nat
The Rothschilds tend to keep tend to keep out of the limelight.
One of the family’s grande dames said you should only appear in the newspapers on three occasions: hatch (aka birth), match (aka marriage) and dispatch (aka death).
Therefore, this makes the odd flamboyant Rothschild stand out even more.
One that springs to mind is Nat Rothschild (Jacob Rothschild's son) and ex Bullingdon Club member who in 2016 married former Page 3 model Loretta Basey.
According to Forbes, Nat's net worth was $1 billion in 2012, but he lost his official billionaire status the next year.
However, according to an article in the Observer in 2000, Nat's actual inheritance is hidden in a series of trusts in Switzerland and rumoured to be worth £40BN (i.e. $60 billion.)

Part 5/6 - Ghislaine Maxwell?
Alan Dershoiwtz, who once defended Jeffrey Epstein in court, writes:
"My wife and I were introduced to Ghislaine Maxwell by Sir Evelyn and Lady Lynne de Rothschild..."
Evelyn de Rothschild and his wife Lynn were introduced by none other than Henry Kissinger at the 1998 Bilderberg Group conference in Scotland. They married two years later, and were invited to spend their honeymoon at the White House by the Clintons.
I have an idea!
Let's type Rothschild into the WikiLeaks Hilary Clinton Email Archive.
Nice. 69 results. Let's check out the intercourse between Hilary and Lynn.
How about this one - Info For You on the 25th of September 2010?
In that email chain, we have the following message from Hilary to Lynne.
"Lynn,
I was trying to reach you to tell you and Teddy that I asked Tony Blair to go to Israel as part of our full court press on keeping the Middle East negotiations going. He told me that he had a commitment in Aspen with you two and the conference, but after we talked, he decided to go and asked me to tell you. He is very sorry, obviously, but I'm grateful that he accepted my request. I hope you all understand and give him a raincheck...Let me know what penance I owe you. And please explain to Teddy. As ever, H"

Part 6/6 - True Extent
We come to the kicker: what is true extent of the Rothschild's wealth?
Of course, it is impossible to pin down an exact number because of the level of diversification of their wealth and the secrecy with which the offshore infrastructure operates.
After all, we know what happens to those that try to expose this shady world.
Worryingly, Panama is only one of more than 90 financial secrecy jurisdictions around the world today, compared with just a dozen or so in the early 1970s.
Together, as of 2015, they hold at least $24 trillion to $36 trillion in anonymous private financial wealth, most of which belong to the top 0.1 percent of the planet’s wealthiest.
Of course, none of this offshore wealth belongs to the Rothschilds...
In 2003, the Sunday Times identified Jacob Rothschild as the secret holder of the large stake in Yukos that was previously controlled by Mikhail Khodorkovsky, the oil company's chairman.
The size of this stake? £8 billion.
In 2003, the pound dollar exchange rate was 1.63 - therefore the dollar value of the stake was around $13 billion.
In 2017, Jacob's net worth was pegged at under one billion dollars.
No comment...
According to the Forbes List, the richest individual Rothschild is Benjamin de Rothschild, from the French branch of the family, with a net worth of $1.5BN.
This is despite the fact that Benjamin presides over the Edmond de Rothschild Group, which manages over $175 billion in assets. In August 2019, de Rothschild's family bought out the group's public shareholders.
But yes, of course Benjamin, supposedly the richest Rothschild, is worth 2/3 of Donald Trump.
Speaking of Donald Trump...
Trump at one time owned a quarter of Atlantic City’s casino market.
However, Trump was heavily in debt, and he started missing bond payments on his — and Atlantic City’s — largest casino, the Taj Mahal, in 1990.
Wilbur Ross, then an investment banker working for...you guessed it, Rothschild Inc., helped bondholders negotiate with Trump, whose finances were unraveling. The final deal reduced Trump’s ownership stake in the Taj but left him in charge, and bondholders were unhappy when Ross presented the plan.
“Why did we make a deal with him?” one bondholder asked.
Ross insisted that Trump was worth saving.
“The Trump name is still very much an asset,” he said.
In 2017, Ross became Secretary of Commerce.
Remember folks: Presidents are selected... not elected.
https://www.youtube.com/watch?v=3wbIGFgxJd0
submitted by financeoptimum to conspiracy [link] [comments]

Too Much Inequality is Bad for U.S.: At the apex of wealth (top .01%) are fortunes built in Banking, Investing & Finance – the Rigged Casinos that have extracted and destroyed our collective wealth, only to be bailed out by the society at-large. They speculate on business activity - not create it.

submitted by gliese581b to politics [link] [comments]

$BFT (FoleyTrasimene II), SPAC to become Paysafe

I think that this one has been under-reported somewhat but since I work in the online gaming industry, it showed up on my radar.
This SPAC has reached a deal to bring back Paysafe to the market, at a valuation of 9 billions.
What is Paysafe?
Paysafe Group has been consolidating the market for e-wallets and alternative payment methods for years and went back into private hands 3 years ago.
They regroup all the main e-wallets used for online gambling and Forex: Skrill and Neteller and also prepaid cards (to be bought in 7/11 and the like) under the Paysafe brand.
Why e-wallets matter in the online gambling market?
E-wallets and prepaid cards represent about 25% of the volume of payments in online gambling in UK, Europe, Canada and Skrill/NetellePaysafe are by far the biggest names in this field.
https://www.fisglobal.com/-/media/fisglobal/WorldPay/Docs/Miscellaneous/Gaming%20Payments%20Report%202019
Neteller and Moneybookers (as Skrill was known then) were dominating the US alternative payment methods gambling market in the US before they got pushed out in 2007. They still have high name recognition amongst the gambling crowd and web searches in the US for these brands remain high, even if they can’t process much transactions there for gambling since many states don’t have online gambling legislations yet, or very limiting ones.
E-Wallets are often the preferred payment method for gamblers since it allows to move money from one operator site to the other quickly and cheaply. They can also use it as a bankroll segregated from their main bank account/CC and on top of that, Paysafe offers loyalty benefits to users based on their transaction volumes. As such, their user retention is very good.
The prepaid card business is also a major factor for this stock attractiveness. Prepaid cards to be bought in gas stations or the like are often preferred by gamblers who want to strictly control their gambling or those who don’t have access to a CC (maybe because they gambled too much) or those that prefer cash transactions out of privacy concerns…
Why not invest in the gambling operators instead?
Operators such as Draftkings or legacy casino groups are going to make money but the regulatory environment is harsh and gambling taxes are crazy in some states and might keep going higher.
Moreover, the regulations being so fragmented, many smaller operators push in certain states and not others and the competitive environment is broad. Remember that gambling is a fungible good. There is no difference in the casino games that the operators can offer (same game studios, same rules) and aside from bonuses and the margins on sports bets, the only differentiation is in branding, which is a thin moat on a product that often leaves the users disgruntled (losers).
Payments on the other hand are not taxed for their relationship to gambling and there are far fewer players.
How does Paysafe make money?
The margins on their products are pretty high and Paysafe charges both sides of the transaction in the case of the e-wallets and the merchant side in the case of the prepaid cards.
For the use of Skrill and Neteller wallets, Paysafe charges on average 4.5% on the merchant side for deposits and a whooping 9.9% on deposits with prepaid cards… Larger merchants certainly can negotiate these rates down but this is still a healthy fee, much higher than credit card processors.
In markets where Paysafe has established domination they charge a small deposit fee to the user and a withdrawal fee.
For now, they charge no fees to the US users in a bid to grow market share surely but that will probably end some day.
Growth opportunity:
For now, the US online gambling market is still very limited. Most states have not legalized, the majority of those who have legalized only did so for sports betting and then a handful have legalized online casino gaming (where the real money is made). The opening up of the market is bound to grow as states need money and more of the world moves online.
https://www.playusa.com/us/
It is estimated that the online gaming market could reach 25 billions a year in the US in a few years time and 150 billions worldwide.
https://www.gminsights.com/industry-analysis/online-gambling-market#:~:text=The%20North%20America%20online%20gambling,CAGR%20during%20the%20forecast%20period.
https://www.grandviewresearch.com/press-release/global-online-gambling-market
These revenues do not equal to deposited amounts, they equal net deposits (deposits minus withdrawals). The hold % of online casinos can be anywhere between 50% and 80% depending on how degenerate the market is in a given country but we can conservatively assume 60%.
This means that deposits volume in the US alone would reach about 40 billions, Europe about 50 Billions and worldwide 250 billions.
That should give Paysafe around 8-10 billions in transaction volume per year in the US alone , another 10-12 billions in Europe and conservatively, another 20 billions worldwide.
Valuation estimates:
Rough estimates are therefore revenues of about 1.5 billions per year for Paysafe group in a few years for gambling alone.
Paysafe claims 1.5 billions in revenues total projected for 2021, with only a third from gambling.
Even assuming no growth from the other verticals, this means that the total revenues of Paysafe should grow by 66% with gambling alone in the next 5 years or so.
Pysafe is investing a lot into expansion in other areas than gambling, notably video-gaming and remittance so assuming they don’t fuck it up completely, we are likely to see a 3 billions dollar in revenues in the next 5 years.
Using Paypal’s marketcap vs revenues, that would mean 50 billions in marketcap for Paysafe… Of course, Paypal is ingrained deeply in the whole of ecommerce and Paysafe is more specialized in gambling which might be shakier and herefore command a lower valuation.
The deal details are not fully known but it looks like a current valuation of 9 billions for Paysafe Group upon listing.
Based on my estimates, the marketcap could reach 50 billions in a few years time, one US market for gambling fully opens.
$BFT is trading at a 25% premium right now, therefore the estimate is 4x on investment over a few years.
Obviously you retards are not the most patient bunch but I believe the stock will jump when it morphs and so keep an eye out for the options.
submitted by According-Town-5373 to wallstreetbets [link] [comments]

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TOP 5: WALL STREET MOVIES - YouTube

Banks are a riddle wrapped up in an enigma. We all kind of know that they do stuff with money we don’t understand, while the last crisis left a feeling of de... WHY SHOULD I HIRE YOU is often the last question you will be asked in an interview. Prepare for it. This is your chance to restate the skills you possess tha... Enjoy the videos and music you love, upload original content, and share it all with friends, family, and the world on YouTube. From Season 5 Episode 9 of SuitsSong: Cold BloodArtist: Dave not DaveCopyright Disclaimer Under Section 107 of the Copyright Act 1976, allowance is made for ... Compliance training is not only crucial to your company, but having great compliance training is what will ensure that your employees are going to act accord... We have picked the top 5 best Wall Street movies that you have to watch. Doesn't matter of you are a movie buff and your profession is all about Investment B... Warren Buffett is the godfather of modern-day investing. For nearly 50 years, Buffett has run Berkshire Hathaway, which owns over 60 companies, like Geico an... A day in the life working in Tokyo Japan as a Pachinko Casino Worker. This is what a typical day working in Japan is like if you work in the Casino Enterta... Now that so many brokerages have $0, which one is the best and which should you use?⇢ Start Investing with M1 Finance: https://m1finance.8bxp97.net/BaLzy⇢ Ge... Buying and selling stocks or bonds used to happen on the phone, in person, or in the packed trading pits in Chicago, New York and London. Prestigious investm...

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