{"id":3185,"date":"2018-02-03T04:39:29","date_gmt":"2018-02-03T04:39:29","guid":{"rendered":"http:\/\/emilynews.com\/blog\/?p=3185"},"modified":"2018-02-16T07:27:37","modified_gmt":"2018-02-16T07:27:37","slug":"bistinvest-second-review","status":"publish","type":"post","link":"https:\/\/emilynews.com\/blog\/?p=3185","title":{"rendered":"BistInvest – Second Review"},"content":{"rendered":"

This program has STOPPED paying! Do not invest there!<\/strong><\/p>\n

Introduction.<\/strong><\/p>\n

We just received an update from Bist Invest<\/a> describing the new investment plans they have put into effect.\u00a0 Since they are completely different from the investment plans that were in effect when we reviewed the program (and also different from plans that were in effect until this update and that we have NOT reported on), it is probably appropriate for us to do a “Second Review” of the Bist Invest<\/a> investment program — at least the portion of it dealing with the investment plans that are offered.\u00a0 This is what we will do here.<\/p>\n

<\/a><\/p>\n

Bist Invest<\/a> offers a total of nine investment plans.\u00a0 All of them return your principal at the end of the investment term.\u00a0 This simplifies our analysis (and comparison) of the profitability of the different plans because, assuming that the overall program doesn\u2019t close while an investment plan is in progress, all of your earnings are net (or pure) profit.\u00a0 If you convert everything to a daily interest rate, you get what we at EmilyNews<\/em> refer to as Daily Net Interest or DNI and this is what we\u2019ll use in comparing the profitability of the different investment plans<\/p>\n

The nine investment plans are grouped into three groups of three.\u00a0 The first group pays interest on a daily basis (business days only); the second pays it on a weekly basis; and, the third pays it monthly.\u00a0 Furthermore, in each of the groups, the first plan in one month long; the second is two months long; and, the third is three months long.\u00a0 Finally, the investment limits for the three plans of one group are the same as the limits for the three plans in another group.\u00a0 The main thing that changes are the interest rates that are paid in the plans within a group and when you from one group to another.\u00a0 With all this as an introduction, here is the information that the website gives for the three groups of investment plans.<\/p>\n

Group 1.\u00a0\u00a0\u00a0\u00a0 Daily Interest Payment (business days only)<\/p>\n

BIST — 30 days
\n$10 – $1,000
\n1%\/day<\/p>\n

AMEX — 60 days
\n$200 – $20,000
\n1.5%\/day<\/p>\n

NYSE — 90 days
\n$3,000 – $300,000
\n2%\/day<\/p>\n

Group 2.\u00a0\u00a0\u00a0\u00a0 Weekly Interest Payment<\/p>\n

DOW — 4 weeks
\n$10 – $1,000
\n6%\/week<\/p>\n

S & P — 8 weeks
\n$200 – $20,000
\n9%\/week<\/p>\n

NASDAQ — 12 weeks
\n$3,000 – $300,000
\n12%\/week<\/p>\n

Group 3.\u00a0\u00a0\u00a0\u00a0 Monthly Interest Payment<\/p>\n

CHX — 1 month
\n$10 – $1,000
\n28%\/month<\/p>\n

OTCM — 2 months
\n$200 – $20,000
\n42%\/month<\/p>\n

RUSSEL — 3 months
\n$3,000 – $300,000
\n56%\/month<\/p>\n

Analysis of the Investment Plans.<\/strong><\/p>\n

Next, let\u2019s take a look at the profitability of the different investment plans.\u00a0 We do this by determining the DNI for each plan and comparing them.\u00a0 Again, DNI is the effective daily net interest that an investment plan pays you.\u00a0 \u201cEffective\u201d means that it is the AVERAGE daily net interest (profit) that you receive.\u00a0 For example, if you receive $60 profit at the end of each month, this averages out to 2% per day (DNI = 2%) even though you don\u2019t receive anything until the end of each month.\u00a0 Again, as we have said many times, comparing DNIs is a neat way of comparing the profitability of different investment plans.<\/p>\n

Let\u2019s compute the DNI for the first investment plan for each group.\u00a0 For the BIST plan, you earn 1% per day for every business day.\u00a0 Therefore, in one week, you earn a total of 5% profit.\u00a0 Dividing this by seven, the number of CALENDAR days in a week, you get a DNI for this investment plan of 0.71% (5\/7).\u00a0 For the DOW plan, you receive 6% profit per week.\u00a0 Dividing this by 7 calendar days, you get a DNI of 0.87%.\u00a0 Finally, for the CHX plan, you receive 28% profit per month.\u00a0 Taking a month to be 30 days long and dividing 28% by the 30, you get a DNI for this plan of 0.93%.\u00a0 If you do the same arithmetic for all the plans, you get the following values for DNI.<\/p>\n

Group 1.\u00a0\u00a0\u00a0\u00a0 Daily Interest Payment (business days only)<\/p>\n

BIST — 30 days
\nDNI = 0.71%<\/p>\n

AMEX — 60 days
\nDNI = 1.07%<\/p>\n

NYSE — 90 days
\nDNI = 1.43%<\/p>\n

Group 2.\u00a0\u00a0\u00a0\u00a0 Weekly Interest Payment<\/p>\n

DOW — 4 weeks
\nDNI = 0.86%<\/p>\n

S & P — 8 weeks
\nDNI = 1.29%<\/p>\n

NASDAQ — 12 weeks
\nDNI = 1.71%<\/p>\n

Group 3.\u00a0\u00a0\u00a0\u00a0 Monthly Interest Payment<\/p>\n

CHX — 1 month
\nDNI = 0.93%<\/p>\n

OTCM — 2 months
\nDNI = 1.40%<\/p>\n

RUSSEL — 3 months
\nDNI = 1.87%<\/p>\n

So, as expected, we can see that the third plan in each group (that requires the highest minimum investment) provides the highest earnings in the group and, moving between the groups, we see that plans with the longer times between interest payments pay the higher return.<\/p>\n

Well, exactly how much different is the income offered by these three groups of plans.\u00a0 Let\u2019s take a look at the first plan in each group again and compare their earnings for a one-month (four week) period.\u00a0 We already observed that the BIST daily plan pays you 5% per week which would come to 20% per month.\u00a0 The DOW weekly plan pays you 6% per week which would came to 24% per month.\u00a0 And, the CHX plan pays you 28% per month.\u00a0 In tabular form, we have:<\/p>\n

BIST\u00a0\u00a0\u00a0\u00a0 20%\/month<\/p>\n

DOW\u00a0\u00a0\u00a0\u00a0 24%\/month<\/p>\n

CHX\u00a0\u00a0\u00a0\u00a0 28%\/month<\/p>\n

So, at least for the first plan in each of the groups, there is a 4% increase in monthly earnings as you move from the daily to the weekly to the monthly groups.\u00a0 If, for example, you invested $100 in each of these plans, you would receive $20\/month in the BIST, $24\/month in the DOW, and $28\/month in the CHX.\u00a0 The difference is significant.\u00a0 However, whether it is significant enough for you to tie up your investment for the longer time period waiting for payment of earnings is a matter of personal taste.\u00a0 The more adventuresome investor might lean toward the monthly plan to maximize his profit while the more cautious investor might lean toward the daily plan to minimize his risk.\u00a0 This is the way the investment plan groups compare.\u00a0 YOU have to make the decision!<\/p>\n

<\/a><\/p>\n

There is still more to think about.\u00a0 We should also be asking ourselves whether or not the interest rates that Bist Invest<\/a> offers are such that the company will be able to sustain them in the long term.\u00a0 In HYIP Insights #12<\/em><\/a>, we suggested that programs offering investment plans having DNIs that are less than 1% would appear to have a good chance of long-term survivability while programs offering investment plans having DNIs greater that 2% would appear to be at risk of closing early.\u00a0 Programs having investment plans with DNIs between 1% and 2% can go either way depending on a number of factors.\u00a0 And, finally, always remember that these are only suggested guidelines; they are not rules.\u00a0 In the HYIP game anything can happen!\u00a0 But, at least these guidelines give us a reasonable starting point for further discussion.<\/p>\n

Looking at the DNIs offered by the Bist Invest<\/a> investment plans, it almost appears that they were aware of these recommendations!\u00a0 For the shorter term (one month) plan in each of the groups, the DNIs are all below 1% while all of the other plans are between 1% and 2%.\u00a0 None have DNIs above 2%.\u00a0 This is unusual for a program having such a large number of investment plans.\u00a0 Typically, there is at least one plan that offers a return that is a bit on the high side.\u00a0 No such thing with these new Bist Invest investment plans!<\/p>\n

Because of the high minimum investment ($3,000) required for the third investment plan in each of the groups, it can be expected that these plans will not be used to often.\u00a0 The DNIs for the remaining six more popular plans are all below 1.5%.\u00a0 Thus, it would appear that, from the point of view of obligations to pay earnings to investors, Bist Invest should have no problems; Thus, the program has the potential to be a long-term survivor.<\/p>\n

As a note, it appears that the folks at Bist Invest<\/a> who designed these investment plans had a love for order and symmetry in-so-far-as numbers are concerned.\u00a0 This might not influence the longevity of the program.\u00a0 However, it is nice to see.\u00a0 This is evident in many places:<\/p>\n