F4DPhan Posted May 1, 2007 Share Posted May 1, 2007 Fellow Modelers, WIth the recent announcement by Chris at Cobra Company of suspension of operations due to a poor financial situation, I got to thinking about how to help him now and in the future, as well as a general thoughts about supporting cottage industry/small model companies and their long-term survival..... I'd like to start the discussion/debate on thoughts on 'investing' in these small companies. That is, we as individual modelers, buy 'shares' offered by the companies, so that they get an operating budget to get them through hard times, use for development of new products, equipment, etc (hey, just like the REAL world!).... That way, they always have some money in the bank, even when sales are slow..... ....in exchange, we, the individual investors get.....well, unlike the 'real' world, dividends is not quite the term, but maybe something like 10-15% off purchases or something (I'll let the discussion drive this goal....) Anyway, just a thought from someone who is NOT an economics major, but just a humble modeler that would like to see small companies prosper and remain in business. Cheers, Mike PS I posted a similar topic on Heli-Kit news to try to get a good discussion.... Quote Link to post Share on other sites
David Walker Posted May 2, 2007 Share Posted May 2, 2007 Interesting idea. Have you passed this on to Cobra Company as well? Quote Link to post Share on other sites
Maveryck Posted May 2, 2007 Share Posted May 2, 2007 (edited) Investing is such companies or "penny" stocks could potentially help a small organization remain financially solvent, as well as provide needed income to expand current operations. However, investments like this can be a somewhat volatile. Granted, we're not trading shares of common stock on the NASDQ, AMEX or NYSE, but one should question the financial stability of any company that he wishes to invest by asking questions such as: Is the company operating with a negative cash flow? If so, why? How does the balance sheet look? Assets vs liabilities? Is the company carrying any debt (ie loans, past due invoices)? How long has the company been in business? Though no dividends would be paid out in cash, what would be the return for say a $50, $100 or $500 "investment"? Maveryck Edited May 2, 2007 by Maveryck Quote Link to post Share on other sites
doctorpepper Posted May 2, 2007 Share Posted May 2, 2007 think i would rather buy some sort of "membership" card that entitled the buyer to say, 20% off for every purchase. then he'd have some raw cash, and sort of a way to ensure lifelong buying? drPepper Quote Link to post Share on other sites
Maveryck Posted May 3, 2007 Share Posted May 3, 2007 (edited) think i would rather buy some sort of "membership" card that entitled the buyer to say, 20% off for every purchase. then he'd have some raw cash, and sort of a way to ensure lifelong buying?drPepper A "membership" card is not a bad idea. Something similar to Costco or Sam's Club, those with the card get the discount, those that don't pay the regular price. Maybe get 20% off, and free shipping with orders over $50. Maveryck Edited May 3, 2007 by Maveryck Quote Link to post Share on other sites
David Walker Posted May 3, 2007 Share Posted May 3, 2007 That is a good idea. I'd definitely support something like that. Quote Link to post Share on other sites
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