Wednesday, 29 February 2012

Independent review of Red Star

The following is an independent review of Red Star activities by JL421 on bitcointalk.org




RSM




Does the company charge a maintenance fee - Yes, the company charges either 1% of profits, or 1 BTC per month, whichever is greater. This also is only payable after the IPO has sold out.

How are Utilities Paid For - Utilities are paid from gross income before dividends.

Dividend Type - Weekly

Dividend History - (ROI Based on 30 Day Trading Price - Without Reinvestment)

No dividends paid yet - Estimated first dividend is 0.0025 BTC Per Share (0.80% ROI) - 

Total Dividends Paid -  N/A
Yearly Performance Estimate - N/A - (41.60% ROI based on earnings estimates)

Conclusion - 

Positive - 

The operator is extremely friendly and helpful.

The operator has made his identity known.

All facets of company operations are public knowledge.


Worrying - 

Owner doesn't fully seem to have operations fully planned out, or changes plans somewhat quickly. NOTE: The major changes in operating plans was the switch from GPU technology to FGPA/ASIC technology as a result of major hardware advancement.

The somewhat high fee will eat into investor profits somewhat significantly until more capacity is brought on board to offset the 1 BTC per month fee.

The operator's estimated first dividend seems to be a bit high by my math. At current difficulty and operator's reported power costs, dividends should be around 0.00193994 BTC Per Share (0.62% ROI), 22.4% lower than estimates.


Extremely Worrying -

Nothing extremely worrying.

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