R P S B
Relative Performance
Stock Betting
Relative Performance Stock Betting (RPSB) is a club member’s legal and simple ability to use information and judgement in betting which of 2 stocks or stock market indices will do better over a given period.
The firm offering a brokerage service of arranging for another club member willing to take a position opposite to that of the initiating club member, charges a brokerage fee of a percent of the winner’s winnings. There may also be a benefit of the broker receiving interest on the money in the club member’s account. Of course, the broker will be able to offer club members with other unrelated brokerage services.
The RPSB program currently proposed a standard betting unit of $200 and betting periods of 30, 90 and 180 days. The broker will either be able to find a bettor willing to accept the terms offered by the initiating bettor or one who seeks to negotiate terms.
The club members will be offered the use of Perspective, a statistical service which allows a graphic comparison of the historical relationship of the Earnings Per Share (EPS), Price/Earnings Ratio (P/E) and price of the 2 stocks or stock market indices being proposed in the bet. Sophisticated investors learning of the availability of the Perspective service may be attracted to become club members simply to access the Perspective service.
Club members winning $200 bets, netting $180 per betting unit, in less than a year will experience an excellent competitive return, for being correct as to which of the 2 stocks did better in the betting period. The club members on the losing side will only suffer a loss of the amount bet, as the terms of the service are only cash, with no leveraging offered.
It is noted that in the RPSB process there are no securities transactions involved and those club members betting have no rights or obligations associated with stock ownership.
We have secured the domain DoBetter.club, which are not yet operational.
I welcome questions regarding the profit-making potential of RSBB and believe that an exciting, fun and potentially profitable experience await club members and the brokerage firm offering this service.
Arthur Lipper, Chairman arthurlipper@gmial.com
British Far East Holdings Ltd.
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