As publicly traded companies report their quarterly revenues, it should be possible for those wishing to bet on which of two companies will have better revenues in an agreed period, if a counterparty is available.

Therefore, there is an opportunity for a broker to arrange for counterparties and assist in the negotiation of terms of the wager. The broker could be an association in which the bettors were affiliated, such as being members of a club. The broker could charge a fee for the service provided, with either or both bettors paying the fee. In the proposed DoBetter.club, the policy is that only the winner of the bet pays a fee.

It would also be possible to bet on the change in corporate revenues on a revenue per share basis, if the bettors so wished, although this is not being suggested.

Of course, the terms of the bets will take into consideration the relative size of the companies whose revenues are being compared, recognizing that larger percentage changes are more likely in smaller companies. Therefore, the bets are likely to be in ratios, rather than absolutes. Also, the betting periods are likely to be longer than for bets regarding stock price changes.

There is a possibility that the operator of a DoBetter.club would be interested in including Relative Revenue Change in their offering of wagering services.

 

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