There are some highly intelligent and experienced advisors who believe that many companies fudge their reported per share earnings, in addition to bribing and otherwise using corrupt practices in achieving their objectives.

Were this nightmare of corruption to be realistic and ever present the task of investing becomes that much more difficult than in the case where all people are honest, all data correct and all procedures fair and efficient.

Investors facing such possibilities should seek the most direct means of employing funds which require the least possible company management manipulation. Company gross revenues are reflected in bank deposits, and if the company adheres to the practice of always depositing immediately all revenues on receipt to accounts in investor approved banks the accuracy of reported revenues should be verifiable.

Therefore, the most direct means of investor participation in the company’s performance would be a revenue royalty entitling the investor to a percentage of revenues. The payment to the investor to be by either the company or the bank on the company’s instruction.

We have developed a series of approaches, some of which are patented, which protect the investor and result in a fair and reasonable deal for the capital raising, royalty issuing company. Royalties are both non-equity dilutive and tax deductible to the company.

Those interested in learning more about royalties are invited to contact me.

 

Arthur Lipper, Chairman                 arthurlipper@gmail.com
British Far East Holdings. Ltd.