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T’jelle bank is certainly a corporation different from others. They have invented new ways of making money and succeeded in areas where many others failed. However as an investor, there are not only pros. In this issue of GBi Rating we’re making a full Rating of T’jelle Bank.





The company is currently the biggest listed on ERX with a staggering Org. Value of 18 000 Gold and the true value is probably even bigger. Last month, they made a profit of 2 819 G, giving them a return of 6.38% which is actually pretty dull and paying out 500 Gold of dividends leaves 2.8 % for growth.

However, there is a twist to this. A regular company with a few Q5 Companies have a very high probability of making a predictable amount of money. Profitability among companies in the same market is usually very similar because of the inability to differentiate products with other means than price. Obviously, the GM can make a big difference, but it’s unlikely that he will make more than double the amount of money the average company. But, here comes the part that T’jelle does with such grace. They have invented their own market.

The newly launched ERX is a potential money machine. Probably they have made good amount of cash from it already, however the number’s aren’t coming out until the 12’th, so we will have to wait for that. Using today as an example, the total volume is 70 000 and the average share price is 0.05 and with a fee of 1% on every transaction they’ve made around 35G. This figure has probably been ten times as big earlier, since then the activity on ERX have declined a bit. This is not all unexpected, since people bought shares they intend to keep and the inflow of cash has slowed down. We do se a risk of this slowdown being persistence until people are more educated and realise how to invest. The market is a bit too crowded with unserious “0.001G shares“ on the market for it to be really healthy. We do however believe ERX is one of the best things that have happened so far in the economical history of eRepublik, and even at this slow pace it could bring in a few thousands of gold every month.

This kind of out of the box thinking, that creates business where they have no or very little competition can generate good and stable profits is attractive in our eyes. Though as mentioned in the ingress there are a few things to consider as an investor. The dividend at current date is quite low and there is a certain dilemma to it. At current share price of 5.5G (ask price) the dividend is 3.58%, which is as mentioned not only low, but also, lower than what you would get from their savings account. If you choose to use the savings account you receive 4.25% or 5.5% depending of account type. Doing this, you receive 1.9 – 0.65% more and you does not stand the risk of the share price to fall. Obviously you can’t either benefit from a rising share price. But lets say you compare TJB with a random company that pays 15% dividend you have a cushion of 15% fall in share price before you lose money, with TJB it’s only 3.48%.

Obviously, you want something in return if you are to choose an investment with lower dividends. T’jelle do offer some things in return, however it’s up to the investor to decide weather he thinks it’s good enough. The main achievement of TJB is ERX and the fact that they have succeeded with the banking part. This is something many have failed and they seem to be doing well even after the removal of contracts. The last financial statement tells that they had 1000G of new deposits indicating this is true.

The risk of the company is all in all low. The main concerns are Vaults getting banned and customer default. They are claiming to have a fund to pay shareholders of companies going bankrupt on ERX but we do not expect these payouts to be of any major concern. More worrying is the amount of unserious business on ERX, though as mentioned before we thing is a matter of learning before people learn how to avoid the most obviously bad ones.

The financial statement leaves only a few things to ask for. We’d like to know the profitability of the banking part and how big credit defaults is. After talking to them we know there are no possibility to vote at shareholders meeting after buying shares. On the other hand, the financial statement leaves pretty no other things to ask for. It’s definitely on of the better all in all. You can read it HERE.




We have to decided to rate T’jelle bank with an A, thus becoming the first company so far to receive an A-class grade. This is because we consider them a safe investment given their return. However, for the investor prepared to take a higher risk in order to achieve a higher return, one should not be afraid to consider shares rated C and up. Shares rated D should only be bought by the most aggressive investor and E or F ratings are advised to stay clear of.


Long-Term Ratings
T’jelle Bank
Smeeph
Dementu Club
iZarvy


Kind Regards
Yossi Ghinsberg
Chairman
GBi Rating Co., Ltd





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