Who is an owner? What's your story?

[Storm Cadet]

Originally Posted by Sightseek

At the end of the year, what would you estimate it cost you for WPTB?

I'm not sure...they are very expensive right now. When I joined them, they would look for 2 yo's in the 50-75 G range and mark them up to 100G. Now they purchase horses for say $100-300 grand and sells shares based on a value of $300-500G. On top of that they started charging monthly management fees for each horse. I left them in 2004. They started this upgraded business profile that same year.

One easy way of finding out the purchase price is to look online at the OBS/Keeneland/SAR sales sites. They list the purchase price (MOST of the times it's accurate...but they play games there too!). Then see what WPTB is selling the shares for!

They have to charge such high markups and fees because of national TV advertising TVG, and other additional national sales staff and PR people, web page management etc. But I always find them to be great guys, honest and very caring to their owner/investors.

[phystech]

Originally Posted by Storm Cadet

They have to charge such high markups and fees because of national TV advertising TVG, and other additional national sales staff and PR people, web page management etc. But I always find them to be great guys, honest and very caring to their owner/investors.

I wonder how they get around SEC regulations regarding their offerings?

Given they aren't just marketing something to a few of their closest friends, in essence, they are offering an investment to the whole world via the web, print and TV. SEC regs have to come into play there somewhere.

I thought about going global a few years ago and actually printed up about 10,000 fliers which I distributed at Pimlico on Black Eyed Susan Day and Preakness Day. Other than the fact that out of those 10,000 distributed, I got three emails and 5 hits on a web page I had set up, I backed off because my fears were raised about SEC intervention once I found out that the first partnership I was in had been investigated and fined by the AZ SEC.

Given that so many of the partnerships out there charge a management fee, I guess I was a real idiot - I never charged my partners a dime in management fees. I bought my shares in each horse just like everyone else did and made my money off my share of ownership, just like the rest did. We all made the same or lost the same, based on percentage of ownership.

[ELA]

Originally Posted by phystech

I wonder how they get around SEC regulations regarding their offerings?

Given they aren't just marketing something to a few of their closest friends, in essence, they are offering an investment to the whole world via the web, print and TV. SEC regs have to come into play there somewhere.

I thought about going global a few years ago and actually printed up about 10,000 fliers which I distributed at Pimlico on Black Eyed Susan Day and Preakness Day. Other than the fact that out of those 10,000 distributed, I got three emails and 5 hits on a web page I had set up, I backed off because my fears were raised about SEC intervention once I found out that the first partnership I was in had been investigated and fined by the AZ SEC.

Given that so many of the partnerships out there charge a management fee, I guess I was a real idiot - I never charged my partners a dime in management fees. I bought my shares in each horse just like everyone else did and made my money off my share of ownership, just like the rest did. We all made the same or lost the same, based on percentage of ownership.

Great question -- and, I had often wondered about the "securities" aspect of this. Being in the financial services industry, I am more than well aware of the NASD, SEC, securites, etc. element that this entire environment seems to either encroach or come very close to.

One person told me that technically they aren't "soliciting" and that's how they avoid registering, falling under securites guidelines, etc. I am not sure if that's true or if that's the case here. However, often there is disclaimer language that the advertisement, commercial, etc. is not a solicitation. Again, I don't know if that avoids any securites regulation or guidelines.

Another partnership company CEO told me that he cannot solicit people and that people must put something in writing saying they are requesting information and are interested, etc. That was quite some time ago so I don't know if that standard still exists.

Usually, when it comes to securities offerings and registrations, there are several benchmarks that must be met -- or avoided if you look at this from the opposite perspective, LOL.

Eric

[philcski]

Actually most of them put the standard securities disclaimer language ("this is not an offer to sell securities, past performance does not indicate future success, financial instruments run the risk of significant loss", etc.) into their advertisements and offerings.

[Swap Fliparoo]

Originally Posted by Storm Cadet

They have to charge such high markups and fees because of national TV advertising TVG, and other additional national sales staff and PR people, web page management etc. But I always find them to be great guys, honest and very caring to their owner/investors.

I know a guy who sells shares for West Point, he said he's never selling to the husband, but to the wife. The guy walks in already knowing what he wants to buy... the only one you have to sway is the woman behind the dollars!