Blowing It Scenario #51-The Fraud And Failure Of Theranos.

How Is A Company That Has Never Produced a Viable Product, Or Ever Turned a  Profit Worth 9 Billion?

I often wonder how companies are valued at all. It seems this fraud is an often occurrence in the financial markets and with so called unicorns. How can a company go from nothing to billions in valuation. It’s all speculative and with the assistance of media hype you can really add fuel to the fire. Creating a raging dumpster fire. One that will soon flame out with all the investors money. Who like moths to the flame join in when it’s burning brightest.

I wonder can I just tell everyone is worth $40 billion? I Currently own 100% of the shares but would be willing to sell. However that is it’s current valuation. Why, because I say so. Is that how it’s done? Honestly I’m asking because I don’t know. It seems that way to me. Powers that be just roll the dice and bam, snap is a billion dollar company, twitter is a billion dollar company, Theranos, yik yak, jawbone, beepi all valued at hundreds of millions, because someone said so. Many of which have since failed, once the general public wises up to the lies they have been told to believe.

In the instance of Theronos, they not only defrauded their investors, they defrauded their users as well. Which is a much more dangerous prospect. The fact that you are a blood testing company who’s product didn’t even work. Now you have a fraud that not only risks people’s money you risk their health as well. What kind of punishment does one get for such extremes. Not really much of a punishment at all. So the cycle of fraud will continue to live on because their really is zero punishment for it. Heck it often seems like the more you steal, the better off you’ll be. Just a slap on the wrist, and a small fine. I guess the lesson here is, be an embodiment of your word. and make that word honest and forthright, it’s the honorable move. But if you are going to be a fraudulent entity get yourself the highest valuation you possibly can. What’s the worst that can happen? Did I forget to mention is now worth 100 billion dollars?

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