Thursday, 18 June 2020

In such a cunning way, they made 900 tons of metal instead of 100 theoretically possible

From the series of publications 
"So they create a fairy tales for the investor"

"They draw up the necessary documents
and begin to search for the simpleton..."


 How to create a fairy tale for an investor? 
 Imagine a company that has created an industry portfolio of mineral assets.

They have shares in four plants. In accordance with the number of shares (% stake), they receive 25 tons of metal from each plant. Total is 100 tons of metal:
Plant 1:  They have a 100 % stake in the first plant. They  get  25 tons of metal from first plant.
Plant 2: They have a 20 % stake in the second plant. They get 25 tons of metal from the second plant.
Plant 3: They have a 10 % stake in the third  plant. They get 25 tons of metal from the third  plant.
Plant 4: They have a 5 % stake in the fourth plant. They get 25 tons of metal from the fourth plant.

They "forget" about other shareholders. They remove the word "20 %, 10 %, 5 % STAKE" from their reports and report:
"The company has a industry portfolio of mineral assets and has produced 900 tons of metal."


 In such a cunning way, they made 900 tons of metal instead of 100 theoretically possible.
Do you think that there are 900 tons of metal?
No! They have only 100 tons of metal.
800 tons of metal is fiction. This is fairy tale for the investor!
P.S. Based on real events.
 
 Ph.D. Natalia Petrovskaya
 

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