Who is AMTD Digital?

An unknown Hong Kong corporation joined the global megacaps worth over $500 billion on Tuesday.

The American Depository Share (ADS) with the ticker code HKD gapped at the open, soaring 25% over the previous closing price as trading began, before hitting an intraday high of $2,555.

At its peak, its market cap was almost $450 billion, more than Facebook parent Meta or Alibaba.

Yahoo Finance reported a daily volume of 350,500 shares, the lowest since the ADS began trading and much below the average of 1.2 million.

Despite losing a fifth of its value on Wednesday, it's still worth more than Toyota, Nike, McDonald's, or Walt Disney.

The company sold 16 million shares at $7.80 each in mid-July, giving it a $1 billion market valuation.

Why the boom?

That market cap seems unjustified.

According to SEC reports, its income-generating assets barely topped $400 million in March. Fortune's emails and calls went unanswered.

Website discloses little about company model. Its one-minute business presentation film uses a Star Wars–like design to sell the company as a "one-stop digital solutions platform in Asia"

The SEC prospectus explains.

AMTD Digital sells a "SpiderNet Ecosystems Solutions" kind of club membership that connects enterprises. This is the bulk of its $25 million annual revenue in April 2021.

Pretax profits have been higher than top line over the past three years due to fair value accounting gains on Appier, DayDayCook, WeDoctor, and five Asian fintechs.

AMTD Group, the company's parent, specializes in investment banking, hotel services, luxury education, and media and entertainment. AMTD IDEA, a $14 billion subsidiary, is also traded on the NYSE.

“Significant volatility”

Why AMTD Digital listed in the U.S. is unknown, as it informed investors in its share offering prospectus that could delist under SEC guidelines.

Beijing's red tape prevents the Sarbanes-Oxley Board from inspecting its Chinese auditor.

This frustrates Chinese stock investors. If the U.S. and China can't achieve a deal, 261 Chinese companies worth $1.3 trillion might be delisted.

Calvin Choi left UBS to become AMTD Group's CEO.

His capitalist background and status as a Young Global Leader with the World Economic Forum don't stop him from praising China's Communist party or celebrating the "glory and dream of the Great Rejuvenation of the Chinese nation" a century after its creation.

Despite having an executive vice chairman with a record of battling corruption and ties to Carrie Lam, Beijing's previous proconsul in Hong Kong, Choi is apparently being targeted for a two-year industry ban by the city's securities regulator after an investor accused Choi of malfeasance.

Some CMIG-funded initiatives produced money, but he didn't give us the proceeds, a corporate official told China's Caixin in October 2020. We don't know if he misappropriated or lost some money.

A seismic anomaly

In fundamental analysis, where companies are valued based on future cash flows, AMTD Digital's mind-boggling market cap is a statistical aberration that should occur once every hundred years.

AMTD Digital doesn't know why it's so valuable. In a thank-you letter to new shareholders, it said it was confused by the stock's performance.

Since its IPO, the company has seen significant ADS price volatility and active trading volume, it said Tuesday. "To our knowledge, there have been no important circumstances, events, or other matters since the IPO date."

Permabears awoke after the jump. Jim Chanos asked if "we're all going to ignore the $400 billion meme stock in the room," while Nate Anderson called AMTD Group "sketchy."

It happened the same day SEC Chair Gary Gensler praised the 20th anniversary of the Sarbanes-Oxley Act, aimed to restore trust in America's financial markets after the Enron and WorldCom accounting fraud scandals.

The run-up revived unpleasant memories of Robinhood's decision to limit retail investors' ability to buy GameStop, regarded as a measure to protect hedge funds invested in the meme company.

Why wasn't HKD's buy button removed? Because retail wasn't behind it?" tweeted Gensler on Tuesday. "Real stock fraud. "You're worthless."

Mainstream economics haven't noticed.

What come to mind when I say the word "economics"?

Probably GDP, unemployment, and inflation.

If you've ever watched the news or listened to an economist, they'll use data like these to defend a political goal.

The issue is that these statistics are total bunk.

I'm being provocative, but I mean it:

• The economy is not measured by GDP.

• How many people are unemployed is not counted in the unemployment rate.

• Inflation is not measured by the CPI.

All orthodox economists' major economic statistics are either wrong or falsified.

Government institutions create all these stats. The administration wants to reassure citizens the economy is doing well.

GDP does not reflect economic expansion.

GDP measures a country's economic size and growth. It’s calculated by the BEA, a government agency.

The US has the world's largest (self-reported) GDP, growing 2-3% annually.

If GDP rises, the economy is healthy, say economists.

Why is the GDP flawed?

GDP measures a country's yearly spending.

The government may adjust this to make the economy look good.

GDP = C + G + I + NX

C = Consumer Spending

G = Government Spending

I = Investments (Equipment, inventories, housing, etc.)

NX = Exports minus Imports

GDP is a country's annual spending.

The government can print money to boost GDP. The government has a motive to increase and manage GDP.

Because government expenditure is part of GDP, printing money and spending it on anything will raise GDP.

They've done this. Since 1950, US government spending has grown 8% annually, faster than GDP.

In 2022, government spending accounted for 44% of GDP. It's the highest since WWII. In 1790-1910, it was 3% of GDP.

Who cares?

The economy isn't only spending. Focus on citizens' purchasing power or quality of life.

Since GDP just measures spending, the government can print money to boost GDP.

Even if Americans are poorer than last year, economists can say GDP is up and everything is fine.

How many people are unemployed is not counted in the unemployment rate.

The unemployment rate measures a country's labor market. If unemployment is high, people aren't doing well economically.

The BLS estimates the (self-reported) unemployment rate as 3-4%.

Why is the unemployment rate so high?

The US government surveys 100k persons to measure unemployment. They extrapolate this data for the country.

They come into 3 categories:

• Employed

People with jobs are employed … duh.

• Unemployed

People who are “jobless, looking for a job, and available for work” are unemployed

• Not in the labor force

The “labor force” is the employed + the unemployed.

The unemployment rate is the percentage of unemployed workers.

Problem is unemployed definition. You must actively seek work to be considered unemployed.

You're no longer unemployed if you haven't interviewed in 4 weeks.

This shit makes no goddamn sense.

Why does this matter?

You can't interview if there are no positions available. You're no longer unemployed after 4 weeks.

In 1994, the BLS redefined "unemployed" to exclude discouraged workers.

If you haven't interviewed in 4 weeks, you're no longer counted in the unemployment rate.

If unemployment were measured by total unemployed, it would be 25%.

Because the government wants to keep the unemployment rate low, they modify the definition.

If every US resident was unemployed and had no job interviews, economists would declare 0% unemployment. Excellent!

Inflation is not measured by the CPI.

The BLS measures CPI. This month was the highest since 1981.

CPI measures the cost of a basket of products across time. Food, energy, shelter, and clothes are included.

A 9.1% CPI means the basket of items is 9.1% more expensive.

What is the CPI problem?

Here's a more detailed explanation of CPI's flaws.

In summary, CPI is manipulated to be understated.

Housing costs are understated to manipulate CPI. Housing accounts for 33% of the CPI because it's the biggest expense for most people.

This signifies it's the biggest CPI weight.

Rather than using actual house prices, the Bureau of Labor Statistics essentially makes shit up. You can read more about the process here.

Surprise! It’s bullshit

The BLS stated Shelter's price rose 5.5% this month.

House prices are up 11-21%. (Source 1, Source 2, Source 3)

Rents are up 14-26%. (Source 1, Source 2)

Why is this important?

If CPI included housing prices, it would be 12-15 percent this month, not 9.1 percent.

9% inflation is nuts. Your money's value halves every 7 years at 9% inflation.

Worse is 15% inflation. Your money halves every 4 years at 15% inflation.

If everyone realized they needed to double their wage every 4-5 years to stay wealthy, there would be riots.

Inflation drains our money's value so the government can keep printing it.

The Solution

Most individuals know the existing system doesn't work, but can't explain why.

People work hard yet lag behind. The government lies about the economy's data.

In reality:

• GDP has been down since 2008

• 25% of Americans are unemployed

• Inflation is actually 15%

People might join together to vote out kleptocratic politicians if they knew the reality.

Having reliable economic data is the first step.

People can't understand the situation without sufficient information. Instead of immigrants or billionaires, people would blame liar politicians.

Here’s the vision:

A decentralized, transparent, and global dashboard that tracks economic data like GDP, unemployment, and inflation for every country on Earth.

Government incentives influence economic statistics.

ShadowStats has already started this effort, but the calculations must be transparent, decentralized, and global to be effective.

If interested, email me at trevorstark02@gmail.com.

Here are some links to further your research:

1. MIT Billion Prices Project

2. 1729 Decentralized Inflation Dashboard Project

3. Balaji Srinivasan on “Fiat Information VS. Crypto Information”

Affiliate marketing is a popular online moneymaker. You promote others' products and get commissions. Affiliate marketing requires constant product promotion.

Affiliate marketing can be profitable even without much promotion. Yes, this is Autopilot Money.

How to Pick an Affiliate Program to Generate Income Autonomously

Autopilot moneymaking requires a recurring affiliate marketing program.

Finding the best product and testing it takes a lot of time and effort.

Here are three ways to choose the best service or product to promote:

Find a good attachment-rate product or service.

When choosing a product, ask if you can easily switch to another service. Attachment rate is how much people like a product.

Higher attachment rates mean better Autopilot products.

Consider promoting GetResponse. It's a 33% recurring commission email marketing tool. This means you get 33% of the customer's plan as long as he pays.

GetResponse has a high attachment rate because it's hard to leave and start over with another tool.

2. Pick a good or service with a lot of affiliate assets.

Check if a program has affiliate assets or creatives before joining.

Images and banners to promote the product in your business.

They save time; I look for promotional creatives. Creatives or affiliate assets are website banners or images. This reduces design time.

3. Select a service or item that consumers already adore.

New products are hard to sell. Choosing a trusted company's popular product or service is helpful.

As a beginner, let people buy a product they already love.

Online entrepreneurs and digital marketers love Systeme.io. It offers tools for creating pages, email marketing, funnels, and more. This product guarantees a high ROI.

Make the product known!

Affiliate marketers struggle to get traffic. Using affiliate marketing to make money is easier than you think if you have a solid marketing strategy.

Your plan should include:

1- Publish affiliate-related blog posts and SEO-optimize them

2- Sending new visitors product-related emails

3- Create a product resource page.

4-Review products

5-Make YouTube videos with links in the description.

6- Answering FAQs about your products and services on your blog and Quora.

7- Create an eCourse on how to use this product.

8- Adding Affiliate Banners to Your Website.

With these tips, you can promote your products and make money on autopilot.

Apocodes helps entrepreneurs create SaaS products without writing code. This post introduces micro-SaaS and outlines its basic strategy.

Strategy

Vision and strategy differ when starting a startup.

• The company's long-term future state is outlined in the vision. It establishes the overarching objectives the organization aims to achieve while also justifying its existence. The company's future is outlined in the vision.

• The strategy consists of a collection of short- to mid-term objectives, the accomplishment of which will move the business closer to its vision. The company gets there through its strategy.

The vision should be stable, but the strategy must be adjusted based on customer input, market conditions, or previous experiments.

Begin modestly and aim high.

Be truthful. It's impossible to automate SaaS product creation from scratch. It's like climbing Everest without running a 5K. Physical rules don't prohibit it, but it would be suicide.

Apocodes 5K equivalent? Two options:

• (A) Create a feature that includes every setting option conceivable. then query potential clients “Would you choose us to build your SaaS solution if we offered 99 additional features of the same caliber?” After that, decide which major feature to implement next.

• (B) Build a few straightforward features with just one or two configuration options. Then query potential clients “Will this suffice to make your product?” What's missing if not? Finally, tweak the final result a bit before starting over.

(A) is an all-or-nothing approach. It's like training your left arm to climb Mount Everest. My right foot is next.

(B) is a better method because it's iterative and provides value to customers throughout.

Focus on a small market sector, meet its needs, and expand gradually. Micro-SaaS is Apocode's first market.

What is micro-SaaS.

Micro-SaaS enterprises have these characteristics:

• A limited range: They address a specific problem with a small number of features.

• A small group of one to five individuals.

• Low external funding: The majority of micro-SaaS companies have Total Addressable Markets (TAM) under $100 million. Investors find them unattractive as a result. As a result, the majority of micro-SaaS companies are self-funded or bootstrapped.

• Low competition: Because they solve problems that larger firms would rather not spend time on, micro-SaaS enterprises have little rivalry.

• Low upkeep: Because of their simplicity, they require little care.

• Huge profitability: Because providing more clients incurs such a small incremental cost, high profit margins are possible.

Micro-SaaS enterprises created with no-code are Apocode's ideal first market niche.

We'll create our own micro-SaaS solutions to better understand their needs. Although not required, we believe this will improve community discussions.

The challenge

In 100 days (September 12–December 20, 2022), we plan to build 10 micro-SaaS enterprises using Apocode.

They will be:

• Self-serve: Customers will be able to use the entire product experience without our manual assistance.

• Real: They'll deal with actual issues. They won't be isolated proofs of concept because we'll keep up with them after the challenge.

• Both free and paid options: including a free plan and a free trial period. Although financial success would be a good result, the challenge's stated objective is not financial success.

This will let us design Apocodes features, showcase them, and talk to customers.

(Edit: The first micro-SaaS was launched!)

Follow along

If you want to follow the story of Apocode or our progress in this challenge, you can subscribe here.

If you are interested in using Apocode, sign up here.

If you want to provide feedback, discuss the idea further or get involved, email me at nicolas.tresegnie@gmail.com

Don't promote it.

I rarely read a post on how Rich Dad, Poor Dad motivated someone to grow rich or change their investing/finance attitude. Rich Dad, Poor Dad is a sham, though. This book isn't worth anyone's attention.

Robert Kiyosaki, the author of this garbage, doesn't deserve recognition or attention. This first finance guru wanted to build his own wealth at your expense. These charlatans only care about themselves.

The reason why Rich Dad, Poor Dad is a huge steaming piece of trash

The book's ideas are superficial, apparent, and unsurprising to entrepreneurs and investors. The book's themes may seem profound to first-time readers.

Apparently, starting a business will make you rich.

The book supports founding or buying a business, making it self-sufficient, and being rich through it. Starting a business is time-consuming, tough, and expensive. Entrepreneurship isn't for everyone. Rarely do enterprises succeed.

Robert says we should think like his mentor, a rich parent. Robert never said who or if this guy existed. He was apparently his own father. Robert proposes investing someone else's money in several enterprises and properties. The book proposes investing in:

“have returns of 100 percent to infinity. Investments that for $5,000 are soon turned into $1 million or more.”

In rare cases, a business may provide 200x returns, but 65% of US businesses fail within 10 years. Australia's first-year business failure rate is 60%. A business that lasts 10 years doesn't mean its owner is rich. These statistics only include businesses that survive and pay their owners.

Employees are depressed and broke.

The novel portrays employees as broke and sad. The author degrades workers.

I've owned and worked for a business. I was broke and miserable as a business owner, working 80 hours a week for absolutely little salary. I work 50 hours a week and make over $200,000 a year. My work is hard, intriguing, and I'm surrounded by educated individuals. Self-employed or employee?

Don't listen to a charlatan's tax advice.

From a bad advise perspective, Robert's tax methods were funny. Robert suggests forming a corporation to write off holidays as board meetings or health club costs as business expenses. These actions can land you in serious tax trouble.

Robert dismisses college and traditional schooling. Rich individuals learn by doing or living, while educated people are agitated and destitute, says Robert.

Rich dad says:

“All too often business schools train employees to become sophisticated bean-counters. Heaven forbid a bean counter takes over a business. All they do is look at the numbers, fire people, and kill the business.”

And then says:

“Accounting is possibly the most confusing, boring subject in the world, but if you want to be rich long-term, it could be the most important subject.”

Get rich by avoiding paying your debts to others.

While this book has plenty of bad advice, I'll end with this: Robert advocates paying yourself first. This man's work with Trump isn't surprising.

Rich Dad's book says:

“So you see, after paying myself, the pressure to pay my taxes and the other creditors is so great that it forces me to seek other forms of income. The pressure to pay becomes my motivation. I’ve worked extra jobs, started other companies, traded in the stock market, anything just to make sure those guys don’t start yelling at me […] If I had paid myself last, I would have felt no pressure, but I’d be broke.“

Paying yourself first shouldn't mean ignoring debt, damaging your credit score and reputation, or paying unneeded fees and interest. Good business owners pay employees, creditors, and other costs first. You can pay yourself after everyone else.

If you follow Robert Kiyosaki's financial and business advice, you might as well follow Donald Trump's, the most notoriously ineffective businessman and swindle artist.

This book's popularity is unfortunate. Robert utilized the book's fame to promote paid seminars. At these seminars, he sold more expensive seminars to the gullible. This strategy was utilized by several conmen and Trump University.

It's reasonable that many believed him. It sounded appealing because he was pushing to get rich by thinking like a rich person. Anyway. At a time when most persons addressing wealth development advised early sacrifices (such as eschewing luxury or buying expensive properties), Robert told people to act affluent now and utilize other people's money to construct their fantasy lifestyle. It's exciting and fast.

I often voice my skepticism and scorn for internet gurus now that social media and platforms like Medium make it easier to promote them. Robert Kiyosaki was a guru. Many people still preach his stuff because he was so good at pushing it.