November 1626 - Day 33

Now Martti can hardly contain himself: previously he had mentioned that the B-22 share conversion would be almost guaranteed free money, if 10 mil starting capital could be acquired. While in the process of building the balance, Martti sees that the rules change, and instead of 50*SCI minimum to get your skin in the game, only 4*SCI is needed for the minimum conversion, and 40*SCI yields the same that 50*SCI used to!! Even the Bank joins in with batch-processed mortgages costing about 1.5% APR.

The meat had flown off the shelves so the balance was positive again. It is time to make a thorough business calculation about the B-22, the "ticket to riches middle class":

The price per new share (1:4 of old share) is 3.5 mil at highest bid. SCI costs 0.22 mil at lowest ask. The new SCI->S-B22 conversion table shows that it is a wash to convert 4 shares, so Martti aims to be able to convert 3 shares (24*SCI for 5.3 mil), and sell them for 10.5 mil. The profit, 5.2 mil per year is simply mind-boggling considering what the humble beginnings were.

If the shares could be sold at ask (5 mil) and SCI bought at bid (0.2 mil), 6 shares could be converted instead of 3, for 84*SCI (16.8 mil) and the shares sold at 30 mil, for the profit of 13.2 mil. If the conversion continues for a few more years, Martti can possibly crank up enough profits that allow 16.8 mil working capital (instead of the 5.3, which is obtainable now).

The map of the area is also very beautiful. What is interesting in the development is that the project started in 1617: 9 years ago! It is 529/1000 completed now, so this would take additional 8 years (shortened to 5-6 years with the more affordable conversion and higher share price allowing more conversion to happen). But in addition, some of the land, 4/9 of it, will be quarried, taking 10-15 years planned! 1/9 will be retained for likely quarrying after the 4/9 have finished quarrying. Only 4/9 is available for building once the scientific project is ready, about 15 years from when it started!

The conversion of S-B22 shares to lots in the area, also allows business opportunities. At present, more than 50 characters have shares, and the lots are priced in shares. The largest holder takes one lot first, costing up to his # of shares, then the second largest, etc. It is likely that many of the small ones try to gain only one lot, as big and nice as possible (many are also variable size so that you can finish the shares easily). But if not all shares were used, the second round means that the then largest holder takes one of the remaining lots, etc., until almost all the lots are taken (there are some extras).

For people with modest means, the comparison between the profitability of large and small lots is academic (large lots cost 100s of millions), but Martti is somewhat on the opinion that the 15x15 m corner lots eg. the ones in 23-S lining the "piazza", offer incredible value. If it must be ready for building now, instead of in 7-10 years after the quarry has finished (not actually the case with Martti who has a house and not anyway much money), then the place to be is to the east of the King's Esplanade near the Barbican, which was just rezoned to have a lane behind the parade street buildings, with 150 sqm lots both sides of the lane, good for both stone and wood construction, up to 150 sqm floor area with e=1. With land, it often makes sense to buy the best, which in this project is reserved for larger buildings though.

In Martti's case, if ever anything is converted to a lot, it would probably be listed for sale right away. Here a warning is in order though: some lots in 1-E and 1-NE have been on the market for up to 100 years, so do not ever buy land expecting to make a quick buck, for it may happen, but it is up to the buyer and not up to you.

Funny thing in the markets is that some NPC's had finished all the mead that was listed at really high prices, and meanwhile beer is available cheaply! The situation reminds some cities where water with taste added is more expensive than beer and certainly less healthy as well...

Also, when trying to sell/list all the possessions to raise working capital for the B-23 operation, Martti was lamenting the need to take a 10% hit vs. the CKG value, when selling the CT1600C freebie gold coin. Now the CKG ETF comes to rescue, with more explanation in the next piece!