Just about anything is available to sell in party plan businesses. Candles, Chocolates, wine, jewelry, self-defense weapons, toys and even jeans. Party plan businesses even do well with potentially embarrassing products like lingerie and sex toys.
You'd be hard pressed to get very much information about Gold Party on its Web site. NASDAQ lists a phone number, but the company never returned a phone call. If the company does have a successful offering and raises $80,000, it still ends up with about $50,000 after IPO expenses. Moreover, if you buy the stock, there isn't anywhere to sell it. So it's not something to be flipped like, say, a share of Facebook.
Gold Party sees itself as an extension of companies like Cash4Gold, where people mail in their gold, or pawn shops. However, the company doesn't have own a brick and mortar shop, so it considers itself the better model.
This seems like a candidate for www.kickstarter.com or even one of the new IPO crowdfunding deals for companies under $1million, like on www.CrowdfundingJumpstart.com or www.crowd2ipo.com .
But an IPO on the Nasdaq? This is an offering not to friend.
Written by Debra Borchardt in New York.
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