Darkstone Code
Chapter 139 - 0138 The Understanding Lynch and His Capital

Chapter 139: 0138 The Understanding Lynch and His Capital

Ultimately, Neo used his eloquence and his plans to persuade the board members, which is also related to the current real situation in Ristone.

These people wouldn’t blindly trust someone who has deceived them more than once. They would surely verify the truth of Neo’s claims through their own means before making a decision.

But generally, there won’t be much change, because this time Neo did not lie.

However, these matters are still too distant for ordinary people. An enterprise that forms an economic mainstay seeking to leave a region, even if it has reached some agreements with the local governing authorities, is not something easily achievable.

Merely relocating the workers and employees who cannot move with Ristone to other states will take a long time.

The next day, which was Saturday, sparked by the fermentation of Friday night’s gathering, people started focusing on some aspects of Lynch’s second-hand goods auction.

At this auction, there appeared some individuals who seemed out of place compared to others.

They wore expensive formal suits, maintaining their neat appearance even in the scorching heat; although they kept wiping their sweat, they did not make anyone feel they were inappropriate.

These people watched Lynch’s auction throughout and even actively participated; in fact, they were all potential partners of Lynch.

How to expand a business has always been something merchants tirelessly pursue.

Everyone might have differing conclusions; some believe in focusing on craftsmanship, while others value integrity as fundamental. But the real key to rapidly expanding a business lies in the operation and means of capital.

Perhaps the presence of these respectable individuals today stimulated some people’s impulse to spend. By the time the auction ended at seven in the evening, the total transaction amount was slightly higher than last week by twenty thousand dollars, a trend of increase that should not have occurred, bringing positive effects to the auction.

As soon as the auction ended, several merchants approached Lynch to discuss matters related to collaboration.

Capitalism has never been kind, merciful, or compassionate.

In the ocean of capitalism, pillage is the root of everything.

According to Federation and financial laws, when a company’s valuation exceeds ten million, it must accept investors’ investments. Their version sounds better than the facts; a company with assets exceeding ten million requires multiple shareholders and a board consisting of more than ten people, intended to prevent financial crime.

In other words, if Lynch’s Interstellar Trade Company’s valuation exceeds ten million, he cannot refuse others’ investments, or the company may face an investigation.

As for how much others invest or what shares they receive, he can negotiate but cannot refuse.

When a company’s valuation exceeds one hundred million, it must go public. Only after being listed for a period can it delist.

The official rationale is that the growth of enterprises needs to contribute to society and also be subject to supervision, which is intended to prevent financial crime.

But actually, these laws are designed to facilitate capital’s plundering of other capital; the capital market is always a profound dark ocean, where everyone is both predator and prey, a survival game.

Unlimited appreciation and unlimited depreciation are common phenomena here. How to become an appreciator and always stay in the position of predator is what every merchant and every merchant able to be called capitalist pursues.

Compared to other entrepreneurs who fear investors, Lynch was much more generous. He even invited these people to a hotel and rented a business suite with a conference room.

Sitting in the room, feeling the cool breeze of the central air conditioning slowly blowing, these gentlemen who had been cramped in the sports hall for several hours finally breathed a sigh of relief.

After a brief rest, someone broke into a smile, asking Lynch for his views on investment.

Actually, at yesterday’s gathering, these people basically had exchanged opinions with Lynch. Today they were merely doing field investigations. If cooperation was possible, they would proceed; otherwise, if there was profit, they would consider competing against Lynch.

On the surface, they wouldn’t do that, but covertly, they would register a company to conduct business identical to Lynch’s. Even when they belong to the same camp, there is absolutely no leniency when it’s time to compete.

"I don’t reject investments. In my view, earning money alone is not as good as earning it together..." Perhaps this statement had a unique allure, quickly stirring up the atmosphere in the room by Lynch.

He presented some data to illustrate this is a very profitable project, "So far, the single-event profit can be guaranteed to be around fifteen percent of the total transaction amount, deducting some other costs and necessary expenses, the net profit fluctuates around eight percent..."

"If seats related to cooperation are sold, there will be an additional stable income, two thousand dollars weekly in Sabin City..."

To be honest, this is already an incredibly attractive number. A net profit around eight percent, even some large group companies dare not assure they can be so profitable.

Moreover, maintaining such a strong profit momentum under the current economic situation aroused immediate interest among the merchants in front of Lynch.

They may not truly value the business; they focus on the political value behind the auction and its capability to provide reliable, stable cash flow when the economy is sluggish, which is exactly what they need most.

Lynch continued promoting these aspects, using a slightly excited tone, a hint of diligence, and somewhat like a pilgrimage, saying, "Since the third-phase auction, the transaction amounts haven’t shown a noticeable decline. Today’s transaction amount even saw a slight increase, signaling to us its potential isn’t yet exhausted."

"I am actively preparing to extend the auction across the entire state, and in this regard have already received the mayor’s and governor’s approval. Next, a unified pricing, service, and quality second-hand goods transaction auction will appear in all fourteen cities statewide."

"Moreover, I will reveal a new small project here; I will establish a second-hand goods trading hub, where weekly auctions will gradually reduce low-priced items while increasing high-priced goods, separating bottom-tier and high-end items, thereby enhancing the customer experience with a sense of ceremony..."

"According to my current estimates, if auctions unfold smoothly in each city, the monthly net profit should exceed one million!"

The merchants in the room looked at each other; they hadn’t expected such inconspicuous second-hand goods transaction auctions to have such astonishing profits.

Even the profits they had estimated far exceeded the uncertain "above a million" Lynch presented; he has more profit space, especially those seats.

They learned that each seat can bring Lynch a five-dollar income, and the reason why those salespersons willingly join this apparent game of a minority’s carnival is because Lynch guarantees that the monthly income of the top three salespersons will exceed ten thousand dollars.

In other words, sales personnel want to earn more, their enemy is their colleague, and colleagues are their own greed.

If one arranges for someone to participate in the auction, bidding at crucial moments, with seats and auction involvement hypothetically costing nine thousand five hundred dollars, claiming third place, then by month’s end, an additional five hundred dollar reward can be obtained.

Thus, there’s no need to worry about these seats not being sold. Rather than calling these individuals Lynch’s partners, they might be better described as a group of gamblers, with Lynch merely offering them a novel gambling method.

Profits above a million monthly are already sufficient for these individuals to engage, caring little about outsiders’ opinions. Besides, behind this business lies much additional value.

For instance, accepting the addition of some product advertisements on auction flyers, promoting products through lottery means at auction sites, and offering experience vouchers or movie tickets...

These are all ways to profit; as long as there are people, and as long as these people have consumption capacity, capitalists have ways to treat them like cattle for slaughter, which is the original concept of "traffic."

Someone posed a very central question, "Mr. Lynch, how much do you think your Interstellar Trade Company is worth? How much do we need to pay to gain shares in your company?"

Lynch nodded slightly, "According to current mainstream methods in the financial market, estimating a company’s short-term value at three to five times annual profits is a very reasonable approach..." The others nodded, indeed, the related calculation methods in Bail Federal are this way.

"Based on my personal estimate, perhaps not entirely accurate, beginning from the second half of the year, the monthly net profit of Interstellar Trade should be about one hundred twenty thousand; the annual net profit calculated to be around one million four hundred thousand."

"We take the median, evaluating at four times annual profit, I think the market value of Interstellar Trade should be over fifty million..."

When Lynch said this, the people across the table suddenly realized something was off; today’s income for Lynch might only be around six thousand, yet he boldly estimated his company’s market value at fifty million.

Something’s not right, if they invest, merely one percent of equity would cost them fifty thousand Federation Sol, this... feels somewhat wrong.

Silence prevailed in the room for a moment, Lynch did not take the initiative to speak, merely looked at them with the gaze towards gold bars, it’s all money!

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