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Everyone is a winner!.  Tells risks as well as potential for making money.  Gives background history.  Tells about main decision-makers and their vision.

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Presentation on theme: "Everyone is a winner!.  Tells risks as well as potential for making money.  Gives background history.  Tells about main decision-makers and their vision."— Presentation transcript:

1 Everyone is a winner!

2  Tells risks as well as potential for making money.  Gives background history.  Tells about main decision-makers and their vision for the future.  Suppose to tell the truth and accurate accounting of their financial situation including debt and cash on hand.

3  A strong conservative lending institution that has been in existence since 1790.  Nearly half of all New Yorkers have their money in its vaults and the loaning practices of its officers have made default risks almost down to nothing.  CEO of the bank is respectable Mr. David Ashcraft who has earned the reputation that anything even resembling corruption is unacceptable.  The conservative nature of the bank nearly assures a small but countable profits.

4  The K&P Railroad has been around since 1843 carrying passengers and freight. The CEO, Alfred Baldwin is trying to get the Federal government to release control of the railroads back to the companies. The Federal Gov’t seized control in 1917 to help control war traffic. Government control has meant little profit for the railroads but much rail building has opened the country up for more passenger and freight service.

5  Risks for Railroads include disasters that could destroy the rails, competition with other transportation systems, labor strikes that already in 1890 cost the company lots of business, and economic downturns that mean less travel and freight to haul.  The upside is that the government control should end soon and new lines built by the government seems to indicate a potential huge profit could be made.

6  Mack Sennett started this silent film studio in 1912 and has signed on many rising stars to include: Mabel Normand, Charlie Chaplin, Gloria Swanson, Bing Crosby, and W. C. Fields. His films have set the standard for comedies and in 1918 he has released 112 films and his “ Keystone Cops” have become the surprise hit of the movie world. He is currently paying his stars more than any other studio including his arch rival Hal Roach.

7 The Keystone Cops with their trademark English-style helmets.

8  Prospects for profits seem very good. Past success and loyal fans of Sennett’s actors indicate that people want to see more of their films.  Risks: People can be very hard to predict and you are only as good as your last film.

9  The first Krogers opened as a family grocery store in 1883 but by 1902 had incorporated and started to expand its store with the philosophy that a bigger store will serve its customers better. Born in the mid-west, the Kroger family began opening stores in the bigger cities and later even in small towns. Much opposition to the stores has materialized as small stores are often driven into bankruptcy when Krogers moved in. But customers have been steadily switching to Krogers for their prices and greater selection.

10  Groceries are always in demand even when other items are being cut back in economic downturns. People always need to eat.  Risks include competition, farms interests since most items sold are brought from farms, and the company has needed to borrow large sums of money to expand.  Potential profits are moderate.

11  Harry Sinclair owns Mammoth Oil. He is quickly becoming one of the richest men in America if not the world. Some believe he is already the first Billionaire. Sinclair opened Mammoth oil to explore for oil resources. Early reports on his drilling in California and Wyoming seem to indicate he has found oil, but the details are being kept secret.

12  Backed by the Sinclair fortune money seems to be no concern and investors expect moderate risk, but looking for oil always have its risk and whether you find the oil or not and can you safely remove it from the ground dictates if you will ever receive a profit. Harry Sinclair

13  In 1917, Jonathon Dixon Maxwell borrowed money and built what was then the largest automobile factory in the world in New Castle, Indiana. He later expanded in another huge factory in Detroit, Michigan. His cars were designed to be a much better car than the Ford, a bigger engine and more comfort. Also a larger price tag.

14  Sales have been disappointing. His last year’s production still has nearly half the cars unsold. Banks have been concerned that Maxwell may not be able to pay back its loans.  Ford Motors have shown that cars can be profitable but is Maxwell’s “Luxury Cars” able to compete in the marketplace.

15  Electricity is important in every major city by 1919 but Midland Utilities is trying to bring the light bulb to the rest of the families in the midwest that live outside the urban power grid. Midland has made a sizeable profit from providing electricity to several major cities but has needed to borrow heavily to purchase the lines and equipment to reach every house and farm.  Initial costs of power plants and lines are enormous but after they are installed the cost of electricity is minimal and profitable.  The owner is Samuel Insul and he in visions that all Americans need electric power and there is a responsibility for utility companies to provide it. But before anyone can invest to build this infrastructure there should be a guarantee of a return (profit).

16  When Marconi successfully demonstrated his wireless telegraph communications would never be the same. Yet this invention seemed to be more important to communication than entertainment. WWI brought the importance of radio for military use to a priority and the US Government prohibited civilian use of the radio and the US Navy quietly bought every radio asset of American Marconi and all other radio companies. When Congress found out about the Government monopoly they forced the Navy to sell the companies back to their original owners except Marconi (they did not want foreign ownership of such a vital communication tool). Marconi was forced to sell his shares to General Electric who in turn set up the Radio Corporation of America or RCA. Their goal was to find a market for their wireless telegraph in the entertainment world.

17  Risks are pretty great, the radio is important but how do you make it appeal to a mass audience. The costs are large and no one can hear your broadcast if they don’t have a receiver and those are expensive. There is also competing technologies as longwave technology is competing against shortwave technology. Will people listen to a “box” for any length of time? How do you make a profit from radio unless you can provide something they can’t get anywhere else?


19  This device is now in virtually every home or at least everyone has access to one nearby. And the invention of Bell (arguably by Bell) has been enhanced by many other inventions so that people on the West Coast can talk nearly instantly to people on the East Coast (you can almost understand what they are saying). But the true potential of this device is not being reached according to owners of Tel-tone and plans to expand the service to other countries and to make it better have not been very successful. Will other technologies make this obsolete and too expensive? The money already being made makes the risk not as high but just how much more money can be made, early investors are all very rich but has this investment already been “played out”?

20  You have $1000 to invest.  Each stock certificate is 10 shares of stock  The price for the first year of trading is $10 per share so each certificate is $100 (you can buy only 10 certificates the first year)  The market will close and the results of the next year will be announced. Decide if you like your stocks or do you want to sell your shares back to the brokers and buy others.  The winner has the most money at the end of the game.

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