Quarterly Earnings Report

Noir Trending, New York. October 26th 1988

In a spacious meeting room, Daniel sat at the head of the long table, surrounded by all the shareholders of Noir Trending. Among them were four new investors who had decided to invest in the company over the past six months.

Currently, the distribution of shares in Noir Trending was as follows: Daniel held a 50% stake, while Oliver owned 27% through a combination of Star Horizon and Blue Star Interactive. David and Donna each held approximately 12% through Blue Star Interactive, and the remaining 11% was split among the four new shareholders.

Daniel had invested a total of $8 million in both Star Horizon and Blue Star Interactive: $2.7 million in Star Horizon through a cash-plus-stock deal, and $5.3 million in Blue Star Interactive using a similar arrangement. The gaming industry was experiencing a resurgence following the video game crash of 1983, largely due to the entry of companies like Nintendo and, more recently, Sega into the market. This resurgence explained Daniel's larger investment in Blue Star Interactive compared to Star Horizon.

As the minutes passed, everyone took their seats, totaling 15 individuals in the meeting room, including the four new investors with whom Daniel had previously worked during his business travels to the States.

At 12:00 PM, everyone was settled in their seats, and the meeting was about to begin. "Alright, I'd like to start by thanking everyone for taking the time to attend this quarterly report meeting," Daniel said, looking around the room at all the attendees.

"As you know, our quarterly report is a crucial part of our business strategy. It provides us with a comprehensive overview of our performance over the past three months. Today, we'll discuss key financial metrics, including revenue growth, profit margins, and our overall financial health. We'll also review our progress on strategic initiatives, such as product development and market expansion.

"This quarter has been particularly significant for us, as we've seen positive trends in several areas, thanks to our recent investments and the resurgence of the gaming industry." Daniel glanced at towards Alex and his two associates as he came to this point.

He continued. " I'll walk you through our sales figures, highlighting which products have performed well and identifying any challenges we've encountered.

"We'll also take a look at our forecasts for the upcoming quarter and discuss any adjustments we may need to make to our strategy moving forward. I encourage everyone to ask questions and share insights as we go through the report—your perspectives are invaluable as we navigate this exciting period for Noir Trending."

With that, Daniel prepared to dive into the details of the report, eager to engage everyone in a productive discussion.

Thanks to Alex's subtle guidance Noir Trending short listed ten companies which where:

Digital Equipment Corporation (DEC):DEC was experiencing declining sales as personal computers became more popular, struggling to adapt to the new market dynamics.

Bally Manufacturing: While known for its gaming equipment, the company was facing increased competition and market saturation.

Kmart: Kmart was beginning to lose market share to Walmart and Target, indicating potential future struggles.

Panasonic (Matsushita Electric):

Facing stiff competition and market pressure, especially in consumer electronics, leading to declining stock performance.

Trans World Airlines (TWA): TWA was struggling financially in a competitive airline market, with rising fuel prices and operational inefficiencies.

American Motors Corporation (AMC): AMC was losing ground in the automotive market, facing stiff competition from larger manufacturers, leading to declining sales.

Stride Rite Corporation: The company faced challenges with changing consumer preferences and competition from larger footwear brands.

Sears, Roebuck and Co: Sears was beginning to see declines in its retail operations and struggling to adapt to changing consumer habits.

Commodore International: Commodore was losing market share in personal computers, indicating potential future issues.

MCI Communications: Facing intense competition from AT&T and other telecom providers, MCI's stock showed vulnerability.

"As you all know, Noir Trending has personally invested $10 million in short-selling several companies over the last six months." Daniel paused for emphasis, allowing the weight of the investment to sink in. "These include Digital Equipment Corporation, Bally Manufacturing, Kmart, Panasonic, Trans World Airlines, American Motors Corporation, Stride Rite Corporation, Sears, Roebuck and Co., Commodore International, and MCI Communications."

"We allocated a total of $10 million to short-sell these companies," Daniel said, looking toward his friend and colleague, Mr. Jared Wilson. "Now, I'd like to invite Jared to provide more details regarding our profit margins this quarter."

Jared stood, his demeanor professional yet approachable. "Thank you, Daniel," he began, adjusting his glasses as he prepared to dive into the details. "As Daniel mentioned, we distributed our $10 million equally across these ten companies, meaning each received an allocation of $1 million. Let's take a closer look at how these investments have performed based on hypothetical stock prices and their declines."

He opened his presentation, projecting a chart onto the screen for everyone to see. "First, let's examine Digital Equipment Corporation. At an initial price of $80, it saw a decline to $40, resulting in a 50% drop. This would yield an estimated profit of $625,000."

Jared moved on to the next company. "Bally Manufacturing presented a more dramatic decline. Initially priced at $25, it dropped to $10, a 60% decrease, yielding an impressive profit of $1.2 million."

He continued through the list, detailing each company's performance with clarity and precision:

- **Kmart**: Initial Price: $30 → Decline to $15 (50% drop) → Estimated Profit: $500,000

- **Panasonic (Matsushita)**: Initial Price: $40 → Decline to $20 (50% drop) → Estimated Profit: $500,000

- **Trans World Airlines (TWA)**: Initial Price: $20 → Decline to $10 (50% drop) → Estimated Profit: $500,000

- **American Motors Corporation (AMC)**: Initial Price: $15 → Decline to $5 (66.67% drop) → Estimated Profit: $1,000,000

- **Stride Rite Corporation**: Initial Price: $22 → Decline to $11 (50% drop) → Estimated Profit: $500,000

- **Sears, Roebuck and Co.**: Initial Price: $55 → Decline to $30 (45% drop) → Estimated Profit: $409,091

- **Commodore International**: Initial Price: $40 → Decline to $15 (62.5% drop) → Estimated Profit: $1,562,500

- **MCI Communications**: Initial Price: $25 → Decline to $12.50 (50% drop) → Estimated Profit: $500,000

When Jared finished presenting the data, he looked around the room, gauging the reactions of the shareholders. "Overall, our total profit from these short positions amounts to a total of $ 8,296,591 US Dollars," he concluded, a note of pride in his voice. "This strategy has allowed us to capitalize on market fluctuations effectively, and I look forward to discussing our next steps."

The room buzzed with murmurs of approval as the shareholders absorbed the information. Daniel nodded appreciatively at Jared's presentation, ready to steer the conversation toward the future.

" Alright, adding this total to last quarter earnings reports which was held 5 months ago. We have made a total of $15,8 million USD dollars in liquid cash. We've also made about 26 million dollars for all of our customers as commission we've taken away 6.5 million dollars. Meaning our total net income from this year's quarter is 22.4 million dollars. " Daniel concluded.

Alex on the other side went through the structural commission practice of Noir Trending.

Typical Commission Structures were as follows:

1. **Flat Rate Commission: Some firms charge a flat percentage on sales or revenue, which can range from 10% to 30% or more, depending on the agreement.

2. **Tiered Commission: This structure may start at a lower percentage for initial revenue levels and increase as sales exceed certain thresholds.

3. **Performance-Based Commission: Commissions may also depend on the achievement of specific targets or performance metrics.

For example a few scenarios for commission rates based on typical industry standards:

1. **Scenario 1: 10% Commission

- **Commission Earned: $26 million × 10% = $2.6 million

2. **Scenario 2: 15% Commission

- **Commission Earned: $26 million × 15% = $3.9 million

3. **Scenario 3: 20% Commission**

- **Commission Earned: $26 million × 20% = $5.2 million

4. **Scenario 4: 25% Commission**

- **Commission Earned: $26 million × 25% = $6.5 million

5. **Scenario 5: 30% Commission

- **Commission Earned: $26 million × 30% = $7.8 million

In Summary of Potential Commissions were:

- **10% Commission: $2.6 million

- **15% Commission: $3.9 million

- **20% Commission: $5.2 million

- **25% Commission: $6.5 million

- **30% Commission: $7.8 million

The actual amount taken away as commission would depend on the specific commission structure negotiated by the training firm. And Noir Trending took away 25% as commissions as a standard.

Florida Tallahassee US

Eric slid into the worn-out desk chair in his room, the anticipation practically buzzing through him. He adjusted the old CRT monitor, dimmed his room lights for the full effect, and booted up Castle Wolfenstein 3D: The Nocturnal Missions. This was the game's expansion pack, and he'd been waiting all week to dive in. The screen flickered as the game loaded, and a pulsing MIDI soundtrack filled the room, adding to the excitement.

" Alright, the journey continues I guess." Eric murmured to himself with the opening cinematics played across his monitor. He was really surprised when he received an email from Blue Star Interactive about an new expansion to the game. And he only needed to pay 20 dollars for it which is a steal in his opinion.

He grinned, fingers hovering over the keyboard as the title screen appeared. There was something almost hypnotic about the bold blue text on the screen and the rugged, intense face of the protagonist, BJ Blazkowicz. Eric had already spent hours on the main game, and he was eager to see what new challenges the developers at Blue Star Interactive had cooked up for him this time.

As the first level loaded, he scanned the familiar stone corridors, his heart already racing. He couldn't help but feel a little on edge. The Nocturnal Missions was rumored to be tougher than the original game, and every dark corner felt like a potential ambush. He took a deep breath, preparing himself for whatever lay ahead.

Eric carefully moved BJ forward, weapon drawn. As he rounded the first corner, he heard the guttural shout of a Nazi guard. Instinct took over, and his fingers danced across the keys as he fired off a shot, dropping the enemy. He grinned, feeling that rush of satisfaction. There was nothing quite like the thrill of a good, clean takedown.

But Nocturnal Missions didn't let up. As he moved deeper into the level, he quickly realized that the enemies here were faster and deadlier, and he had to stay alert. The screen flashed red as he took a hit he didn't see coming, and he cursed under his breath, leaning in closer to the screen. He could practically feel his heart in his chest as his health bar dropped. He scrambled to find a medkit, pushing forward even though every new hallway made him jumpy.

In a dark corner of the room, he spotted a shimmering object—a key. He reached for it, nerves on edge, knowing that collecting it would likely trigger more enemies. Sure enough, as he picked it up, the sound of footsteps echoed through the corridors, getting louder. He didn't even have time to think; he was in survival mode, instincts firing as he sprinted back to the doorway, firing off shots as fast as he could.

Despite the tension, Eric was loving every second of it. He felt like a real action hero, navigating dark hallways, evading enemies, and searching for hidden rooms that might lead to treasures or much-needed ammo. Every time he narrowly escaped a surprise ambush or managed to find a stash of supplies, he felt a rush of triumph. It was like nothing he'd ever experienced in any other game.

Finally, after what felt like hours, he reached the level's exit. He let out a sigh of relief, running a hand through his hair. His eyes were tired, but he couldn't stop now. He was hooked, ready to see what other twists and challenges The Nocturnal Missions had in store.

With a grin, he clicked forward, ready to tackle the next level.

Eric cracked his knuckles and took a deep breath. He'd cleared the first level, and now he was fully engrossed. The second floor loaded, and the tension only grew. The map was more complex, the hallways narrower, and his ammo supply dangerously low. Every step felt like a test of nerves, and Eric had to keep reminding himself to breathe.

On this floor, he noticed that the enemies seemed smarter, almost as if the game knew he was getting better and wanted to keep him on his toes. He heard the familiar bark of a Nazi guard around the next corner. His finger tensed over the trigger key, but before he could react, the guard spotted him and fired, landing a hit. The screen flashed red, and his health bar dropped another notch.

"Come on, come on," he muttered to himself, retreating around a corner. He frantically scanned for a medkit, any relief that would keep him going. It wasn't long before he found one stashed in an alcove beside a pile of crates. With a sigh of relief, he picked it up, his health jumping back up. This small win fueled his determination, and he continued forward with newfound focus.

On the next floor, Eric's heart raced as he opened a door, revealing a room packed with guards. There was no cover in sight. Before they had a chance to react, he made a split-second decision, opening fire and taking down two of them immediately. But the others closed in fast, and he barely had a moment to dodge as bullets whizzed past him. His health was dropping fast, but he managed to take them down one by one, leaving him with just a sliver of health and almost no ammo.

"This is brutal," he muttered, half frustrated and half exhilarated.

Eric scavenged the room, hoping for ammo or a medkit, but found nothing. He had to think strategically now, conserve his resources, and play cautiously. As he explored further, he discovered a hidden passageway behind one of the walls. His heart skipped a beat. Hidden passages often meant goodies—a well-deserved reward for the careful player. Sure enough, the room was stocked with a cache of ammo and a full medkit.

With a grin, Eric stocked up and moved to the next floor. He knew Episode 2 was about to get serious, and sure enough, as the third floor loaded, he was greeted with an eerie silence. The atmosphere was different here—more oppressive, the music more intense. He felt the weight of the game, the sense that he was closing in on something important.

Moving cautiously, he came across a heavily guarded hallway. He knew he'd have to get creative to survive this part. As he leaned around the corner, he saw three guards and one officer stationed at the far end. Rushing in would be suicide. He took a deep breath, waiting for the guards to spread out. When one of them finally turned away, he moved swiftly, taking him out silently. But as soon as he did, the others noticed him, and all hell broke loose.

Eric's fingers flew over the keys as he dodged, firing back, his mind racing as he tried to remember the route he'd taken to get here. He managed to take down two guards, but the officer was relentless, landing a few brutal hits. With his health dangerously low, Eric ducked into a side room and closed the door, heart pounding as he checked his inventory.

There was barely enough ammo left to keep going, but he couldn't give up now. He waited until he could hear the footsteps fade, then cautiously opened the door and sprinted down a side hall, avoiding the main patrols. He knew he was getting close to the boss of this episode, and that thought kept him on edge. He could feel his adrenaline spiking as he approached a large, double-doored room at the end of the hall. His hands were slightly shaky now, the thrill and stress of the game combining into an intense experience he'd never felt before.

Taking a deep breath, he pushed open the doors. The room was massive, with enemies stationed in every corner. It was clear he'd stumbled into a key area, likely holding something vital. With no choice but to fight, he unleashed his remaining rounds, dodging and weaving through gunfire. It was a brutal battle, but after what felt like an eternity, he took out the last guard.

When he finally cleared the room, he found another medkit and a crucial key, one he knew would take him to the boss level on the next floor. Despite his exhaustion, Eric was grinning, his fingers practically buzzing from the adrenaline.

"All right, let's do this," he whispered, moving toward the final challenge of the floor, ready to prove he had what it took to finish the level and face whatever The Nocturnal Missions threw at him next.

New York City, Manhattan

Noir Trending Meeting Room. "Alright, that concludes our report on the current physical and financial state of the company. Now, I'd like to hand over the next point for discussion to my brother, Oliver."

With that, the discussion transitioned smoothly from Noir Trending to Star Horizon. Oliver adjusted his posture and gave Daniel a subtle nod, signaling his readiness to take over.

"Thank you, everyone," Oliver began, his voice steady but infused with a hint of excitement. "I want to take a moment to update you on the current status of Star Horizon."

He glanced at the team, each member's eyes focused on him, eager to hear about their pioneering venture.

"We're processing between 250 and 280 orders a day, which for us is a promising trajectory. Each order averages about $25 for the book, plus a $5 shipping fee, bringing in around $30 per sale. This means we're generating approximately $7,500 to $8,400 in revenue daily."

Oliver took a breath, allowing the significance of their achievement to resonate.

"However, we need to discuss our expenses. Right now, our overhead costs are significant. Between inventory purchases, shipping logistics, and marketing efforts, we're looking at daily expenses that hover around $8,000. This means we're operating at a loss of roughly $600 to $500 month."

He shifted his weight, leaning slightly forward, his passion evident.

"While we're seeing growth, it's vital to acknowledge that we're still in the early stages. Our expenses are high as we invest in building our brand and customer base. But I firmly believe that we're on the brink of something substantial. With the growing awareness and acceptance of online shopping, we expect to reach our peak in the next three to four months."

Oliver's gaze swept across the room, meeting the determined faces of his team.

"To clarify our business model, let me explain what sets us apart. We're creating the first online bookstore, a place where readers can access a vast selection of titles without ever having to leave their homes. Our goal is to make it easy for customers to find both popular books and hidden gems that local bookstores might not carry.

Imagine someone looking for a specific novel or a rare edition—they can browse our website, see reviews, and make informed choices, all with just a few clicks. We want to build a platform that not only offers convenience but also fosters a love for reading by introducing customers to new authors and genres."

Oliver's gaze swept across the room, meeting the determined faces of everyone in the room. Especially at some of the new faces in the room who still didn't seemingly to get their business strategy.

"To clarify our business model, let me explain what sets us apart. We're creating the first online bookstore, a place where readers can access a vast selection of titles without ever having to leave their homes. Our goal is to make it easy for customers to find both popular books and hidden gems that local bookstores might not carry.

Imagine someone looking for a specific novel or a rare edition—they can browse our website, see reviews, and make informed choices, all with just a few clicks. We want to build a platform that not only offers convenience but also fosters a love for reading by introducing customers to new authors and genres."

"This is an extraordinary opportunity for us. As pioneers in this field, we have the chance to establish Star Horizon as the go-to name not just as a online book sales. But a multifaceted enterprise that deals with various goods. THE FIRST ONLINE STORE THAT JUST REQUIRES A CLICK OF A BUTTON."

As he spoke with a confident smile, sensing the energy in the room shift. Especially among the new face in the room, Alex on the side looking at his father confidence as he spoke. A sense of pride and admiration washed over him, especially since this whole thing was his idea.

But, Alex tell that his father has become more and more confident in his idea, for Star Horizon especially at this moment.

Oliver continued, " It's not going to be easy and is most definitely going to take some time but... We are in the cusp of a new era when it comes to the online marketing. And we at Star Horizon are well strummed and ready to steer the wheel. "