The Westland Storage Investment Plan.
WLS offers a single investment plan that is very easy to understand. There is a minimum of investment of only $10 and the maximum is unlimited. The interest that you receive on your investment is 1% per day on weekdays and 0.5% per day on weekends. The term of the investment plan is unlimited. So, again, this is a very simple investment plan. In our review of the program, which we expect to publish in the next day or two, we will take a look at the pros and cons of the plan considering such factors as its profitability compared to similar online programs as well as what we feel are the chances of the program surviving in the long term.
There really isn’t anything that can be added to this. So, let’s take a look at the details of the plan:
Analysis of the Westland Storage Investment Plan.
The WLS investment plan is another example of what we refer to as a “perpetual” investment plan; you continue to earn until the program closes down. This implies that the length of the plan is unknown. So, our normal method of analysis isn’t going to work — unless we assume a life expectancy for the plan. And, that’s what we’ll do here. In fact, we will look at a number of different life expectancy scenarios in an effort to draw some useful conclusions.
However, first, let’s take a look at the interest rate paid by the WLS investment plan. Since the rate is different for weekdays and weekdays, this is an added complication to our analysis. The plan pays 1% on weekdays and 0.5% on weekends. So, the total interest that the plan pays for a week is 6% (1+1+1+1+1+.5+.5). Dividing this by seven days per week, we get an average gross daily interest rate of around 0.86% (6/7). We’ll use this number for the remainder of this analysis.
Next, let’s see how long it will take you to break even with this investment plan. That’s easy to determine. You simply divide 100% by the daily gross interest. Using the 0.86% we just determined, we come up with around 117 days (100/.86). This is quite a long time — close to four months. So, we would definitely classify WLS as a long-term investment program.
But, what about DNI, Daily Net Interest, the term we use to measure both profitability of an investment plan and to assess the overall program’s chances of long term survivability? Here’s where we have to assume a life for the program as DNI depends on BOTH interest rate AND length of the plan.
OK, it takes nearly four months for the program to break even. Let’s assume that this happens (and this is a big assumption as very few HYIPs last four months) and calculate DNI for assumed lifetimes for the program of four, eight, and 12 months. Starting with four months (we’ll call that 120 days), you get a total gross interest of 103.2% (120 x .86). Subtracting 100% from this because it includes your investment, you get a total net interest of 3.2%. Averaging this out over the 120-day assumed length of the investment plan, you get a DNI of 0.027%. Doing the same arithmetic for 240 days and 360 days, you would get the following results for DNI:
120 days. DNI = 0.027%
240 days. DNI = 0.443%
360 days. DNI = 0.582%
720 days. DNI = 0.721%
You can see that, after four months (120 days), your average daily profit is just about zero since you would have only broken even a few days before that. After eight months (240 days), your average daily profit has increased to 0.443%. and after a full year (360 days), your average profit is up to 0.582%, a little more than half of one percent per day. To put some numbers on this, if you invested $100 with WLS, on the average, your investment would have paid you an average profit of around a half dollar per day after you have been with the program for one full year.
In the chart above, I also included the DNI for a life expectancy of two years. This is just for illustration as hardly any HYIP will survive for this long. However, the point is that the DNI has creeped up to around three fourths of one percent. If the program survived for a few more years, the DNI would gradually approach the average daily gross interest of 0.86% that we have been using.
As far as profitability is concerned, WLS is on the low side. It takes you around four months to break even and then almost a year before you have achieved a DNI of a half of one percent. The flip side of the coin is that payment of these low interest rates might be something that WLS can afford to do for a long time. This makes the prospects for long term survivability of the program quite good. In fact, in HYIP Insights #12, we suggested that programs having investment plans such as this, with DNIs equal to less than 1%, might be good candidates for long term survival.
However, there is one wrinkle in this argument because of the fact that this is a perpetual investment plan. This is because there is no relief for the company from interest payments. The typical investment plan lasts for a finite length of time and then the investor must deposit NEW money if he would like to continue to receive earnings. This provides relief for the company from the perpetual payments. It is easy to see that, as the months go by, and the number of investors increases, this burden of an ever increasing number of interest payments could become overpowering. The fact that WLS only pays a low rate of interest counters this effect somewhat.
It is interesting to note that a perpetual investment plan such as this is essentially the same as a conventional bank account. When you make a deposit in the bank, you receive interest on it forever. The difference, of course, is that programs such as WTC pay interest rates that are a LOT higher that a bank does. On the other hand, they are a LOT lower than the typical HYIP. If a program such as WTC comes along that can be shown to be as reliable as a normal bank, it would seem to me to be a very good deal…
In a long-term program such as this, it is important for the investor to take a close look at what the website tells about the company. We refer to this as the company’s “Legend.” Does it seem plausible or is it nonsensical? With a long-term program such as this, we would hope that the company does indeed have a means of generating the revenue required to sustain interest payments for a year or two — maybe even much longer. There is an article about the “HYIP Legend” in HYIP Insights #6.
WTC is a perpetual program that offers modest interest returns compared to most other HYIPs. This gives it a relatively high potential for long term survival. If the company has a solid revenue base, it could be a reliable source of income for the online investor.
I hope that this information is helpful. Good Luck!
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