All the Eggs + The Wrong Basket

Raymond Lin · 8 Nov 2014 at 15:43

Strife212 said:
Why the **** would you put your life savings on shares in a single random company?

People want to get rich, fast and easy.

Bear · 8 Nov 2014 at 15:49

Haircut said:
It's not investing in shares that has screwed these people over - it's investing all their money in a single company.

Exactly, you have to have a diverse portfolio to spread the risk.

montymint · 10 Nov 2014 at 08:34

Stories like this remind me exactly why I don't trade stock. I don't have the spare equity to make these kind of risks. Even if they are spread

Diddums · 10 Nov 2014 at 08:40

might as well add this one to the list...

Cryogenic said:
Hi guys,

It seems to me that oil is at a low but the price will go up in future as it is a resource that becomes scarce as time goes on. I work on a lowish wage and rarely have money spend on a new things etc. My only bonus is that my house is cash thanks to my late gramps so rather than dream that the lottery will be my saviour. I wish to remortgage my house, I am able to do this to the tune of 40k, I would like to make 500k no matter how long it takes (Don't even know if this is possible) - my question to the pros is how do you buy an oil future and can you provide a worked example of buying oil the commodity with the strongest broker in the uk, and bypassing oil companies and suppliers - just speculating on the oil the barrel rate going up in the next few years

OhEsEcks · 10 Nov 2014 at 08:43

Strife212 said:
Why the **** would you put your life savings on shares in a single random company?

Being linked with an Apple contract, I imagine people thought they were onto easy money because Apple.

Cosimo · 10 Nov 2014 at 08:48

What do you expect if you gamble on one. Spread the investments and only gamble on a few.

Tefal · 10 Nov 2014 at 08:55

CREATIVE!11 said:
you don't see them shoving broccoli in your face telling you how eating it will give you mental clarity and a well functioning body.....

yes you do the health food and diet industry is worth billions.

thats why a lot of the "healthy" supplements are just ********.

Tefal · 10 Nov 2014 at 09:02

chriust how bad were the managers of this company

http://www.forbes.com/sites/chuckjo...-did-not-want-its-gtat-contracts-made-public/

At the outset of negotiations, Apple had offered GTAT what would have been the company’s largest sale ever: an order for 2,600 sapphire growing furnaces.
In that scenario, GTAT would operate the furnaces on Apple’s behalf, but Apple would own the furnaces.

After months of extensive negotiations over price and related terms, Apple offered a transaction with a different structure: Apple would no longer buy furnaces from GTAT; instead, GTAT would borrow money from Apple to purchase furnace components and assemble furnaces that would be used to grow sapphire for Apple.

Under the new structure, Apple would act as a lender and would have no obligation to purchase any sapphire furnaces, nor did it have any obligation to purchase any sapphire material produced by GTAT.

At the same time, GTAT would be precluded from doing business with any other manufacturer in or supplier to the consumer electronics market.

If Apple decided not to purchase sapphire material, GTAT would still be required to repay the full amount of the prepayments in cash. If that eventuality transpired and GTAT did not have the cash needed to repay the loan, Apple could foreclose on the 2,036 furnaces and related equipment. These obligations were secured through a structure that Apple intended to be “bankruptcy remote” and would shield Apple from risk.

If GTAT discloses any aspect of the agreements with Apple, it is liable for breach of confidentiality to Apple for $50 million per occurrence as liquidated damages; Apple is not liable for any liquidated damages if it violates confidentiality.

Apple, however, has the right, without compensating GTAT, to cancel a purchase order in whole or in part at any time and reschedule a delivery date at any time.

GTAT is prohibited from modifying any equipment, specifications, manufacturing process or materials without Apple’s prior consent. Apple can modify any of these

I think slaves got better contract terms than that.

GTAT must accept and fulfill any purchase order placed by Apple on the date selected by Apple. If there is any delay, GTAT must either use expedited shipping (at its own cost) or purchase substitute goods (at its own cost).

If GTAT’s delivery is late, GTAT must pay $320,000 per boule of sapphire (and $77 per millimeter of sapphire material) as liquidated damages to Apple. To put this figure in perspective, a boule has a cost of less than $20,000.

seriously what the hell?

V-Spec · 10 Nov 2014 at 09:27

I thought I had a bad night last night when I crashed my spaceship into an asteroid in elite dangerous and lost 16 platinum and 20 palladium, I feel better now...

randomshenans · 10 Nov 2014 at 09:29

Good time to buy GTAT then. Ha

Black Dynamite · 10 Nov 2014 at 09:35

Looks very shady to me, the details in Tefal's post are shocking, how could any company accept those terms ...

Wouldn't surprise me if Apple were giving a huge cut to the Senior Managers in exchange for the "poor deal" being approved.

Terminal_Boy · 10 Nov 2014 at 09:36

OhEsEcks said:
Being linked with an Apple contract, I imagine people thought they were onto easy money because Apple.

Apple shares are a good long term investment. Suppliers come and go and as such, will always be a short term gamble.

Never invest a penny in stocks that you can't afford to lose.

CREATIVE!11 · 10 Nov 2014 at 10:19

Tefal said:
yes you do the health food and diet industry is worth billions.

thats why a lot of the "healthy" supplements are just ********.

I don't know about you but not sure last time I saw an advert telling me to go eat broccoli.

If you do see anything "health" related it's supplements or workout devices, again baiting you into ********.

pepsilol · 10 Nov 2014 at 10:25

Best terms I have ever read in my life in that contract, lmao.

FortuitousFluke · 10 Nov 2014 at 10:35

pepsilol said:
Best terms I have ever read in my life in that contract, lmao.

It almost reads like an internet scam. Just goes to show the kind of leverage a company like Apple can bring to bear against comparitively small suppliers.

pepsilol · 10 Nov 2014 at 10:38

I think there is more to it, something along the lines of using Apple to boost share price, a bit of market manipulation, sell all shares and then declare bankruptcy.

I think the company was shagged before Apple got involved.

The Geezer · 10 Nov 2014 at 10:39

Now you can see why Apple are the richest company in the world, with contracts like that they will never make a loss as they have offset the risk to anyone who wants to be associated with the Apple brand.

Comment on the OP's post, stocks and shares are never a sure thing if it was then there is every chance you'll be pulled for Insider Trading

Devrij · 10 Nov 2014 at 10:46

One thing I learned trading BTC: There is no such thing as getting rich quick. If you have heard of an opportunity, you are too late for it. It's all about small pieces of the pie adding up. 5% here and there. And for the love of god set stop losses if you are afraid of losing everything. Have targets and stick to them.

Diddums · 10 Nov 2014 at 10:50

Devrij said:
One thing I learned trading BTC: There is no such thing as getting rich quick. If you have heard of an opportunity, you are too late for it. It's all about small pieces of the pie adding up. 5% here and there. And for the love of god set stop losses if you are afraid of losing everything. Have targets and stick to them.

Listen to this man. I had the same fortune of learning a fair amount relatively cheap thanks to cryptocurrencies.

Now if only Blackcoin would take off

Bloomfield · 10 Nov 2014 at 11:04

I thought I recognised the name GTAT, a Twitch streamer, Reckful, lost $123k on this company I think as well, he didn't even seem bothered about it :eek:

.

https://twitter.com/ByronBernstein/status/519191707997724672

All the Eggs + The Wrong Basket

Pet Northerner