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American Rails» Forums » Strategy

Subject: Dealing with Republic Company - only 2 shares rss

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Joel Gabelman
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Beachwood
Ohio
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This is the 2nd time playing this this month - I played last week and this week, and the same thing happened (same player).

I pick up Republic (Red Company where there are only 2 shares) for ~$24.00.

Note: This is a 4-player game.

Logan then auctions off next round the last share of Red, and takes it for $25.00.

Now, as Logan and I both have other shares, which of us are motivated to develop? Tough call... So I think to myself, is this a good strategy for Logan to immediately buy? I tell him "just because you CAN screw someone, doesn't mean this is always in your best interest...."

So the alternative, assuming all players are experienced/competent (which at this table, not everyone was experienced), maybe everyone passes on the first red, and the first player to auction gets it for the full $40 (or whatever they can get it for to make sure it's capitalized).

What are thoughts around this company???
 
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Beyer
Denmark
Copenhagen
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elmsley4 wrote:
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What are thoughts around this company???

It's volatile. It can give an early victory, it also gives you plenty of headaches.

Do you have a plan with red to begin with or do you just want it because of its small pool of shares?

How early in the IPO did you win it?

Why aren't you stocking up on cash if you intend to pressure prices later? If I get red in the IPO I usually try to sit on as much cash as possible for the first round so no one gets a bargain out of the first round of game auctions.

But that particular approach depends on where everyone else started their railroads.


Or in other words: watch your cash coming out of the IPO, the first round auctions are a complete extension of the IPO and you need to factor in another three potential auctions before you can rely on the first dividends to revert the prices to more fundamental values. Prices are, as opposed to the real stock market, quite depressed coming out of the IPO because of all the inital selling, the level of depression being determined by the distribution of cash. That's why it can be a good idea to buy nothing in the IPO and wait until the first game round to see where all the companies are placed. If the all players don't work together, at least one share will be sold at bargain price to the player who sits on his cash... unless someone picks up the idea and does the same, in which case first round leads to a standard bidding way.


Being sole owner of red is really powerful, but you'll most likely see yourself without much other influence for a long time because your stocks will be few but lucrative. That then means that you can't put a foot on the throttle in the late game if you need to push the timer; you simply don't have the influence to put cubes on the board.


All this babbling really comes down to the reason why I love Amerian Rails; the answer is always: it depends.

Board state, cash at hand, cash flow, influence-through-stocks and development opportunities matter when determining these things.

With more experienced players, I don't think you'll ever get the first red for 24-ish game monies. It sounds like a bargain.
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