Relative Performance
Stock Betting

Because:

 We have not yet reached an agreement with the right organization to manage and market the virtual investor capability. The organization we seek could be a securities or commodity futures brokerage firm, an investment information providing platform, or a company engaged in gaming, such as sports betting.

Whichever organization we affiliate with will have its own digital services, with which our Relative Performance Stock Betting (RPSB) brokerage service will have to link to or morph into.

The organization will have to be able to offer managed client accounts, receive and pay money and communicate with clients for the purpose of negotiating terms of a transaction.

The organization will never itself be a bettor, its role being to arrange for the necessary counterparty to the bet which the initiating client requires. The bets will be which of two stocks, or stock market indices, will do better, and perhaps by a minimum percentage, in an agreed period. The periods currently suggested are 30, 90, or 180 days. The standard betting unit we are suggesting is $200.

Therefore, bets could be the percentage change in price of Apple shares versus Amazon shares, in their primary markets. It is possible that it could be necessary to attract a counterparty that the bet would have to be 150% of the Apple price change versus that of only 100% of that of Amazon. The organization, being paid a fee of 10% of the winner’s winnings, will search for and arrange the transaction.

We have developed a proprietary statistical service for investors which will attract vast numbers of investors, some of which will be possible bettors seeking high returns, making the task of finding counterparties that much easier for the organization.

There will be many natural bettors in the firms and individual advisors recommending the purchase of securities, as they would have to believe that the stock being pitched will outperform the SP500 index by X% in agreed periods, as otherwise the recommendation would be without attraction. It is also predictable that those having information believed to be favorable to specific companies would be prepared to bet on the superior performance of their chosen stock over many high-profile stocks or stock market indices.

It is noted that at no time is the organization or any of the clients being served by arranging for bets buying or selling any securities. They are simply betting on the relative price performance of the stocks or stock market indices.

In RPSB the loser of the bet suffers a 100% loss of the amount bet, regardless of the period of the bet. As all transactions are cash based and no leverage is involved, the loser is not able to lose more than the amount bet. The winner receives the amount bet by the loser, less the fee of 10% paid to the organization for arranging the transaction. In every transaction there is a single winner and a single loser, regardless of the period of the bet.

Yes, it will be a great business for the organization and the returns to the winners will result in extraordinarily high Internal Rates of Returns, all depending on the periods of the bets.

We are here and the organization we seek is out there. It’s all just a matter of time before it happens.

 

Arthur Lipper, Chairman                          arthurlipper@gail.com
British Far East Holdings Ltd.                 858 793 7100 Pacific