STOCK MARKET – Boom’s recent bang from the stock market has shocked many in the
world of Neopia. Their loudspeakers had been well known in the world of Hi-Fis
since they opened for business. The company of Boom Boom Boxes has been quite
successful, so what happened that made the company explode?
“Due to a corporate scandal and accounting irregularities, Boom have filed
for bankruptcy.” That’s all the information we got about the bankruptcy. There
seems to be no sign of the president or vice president of Boom. Perhaps they
had fled to avoid questions being thrown at them. To find the answer, I went
over to Northern Stock Analysts and asked for a bit of information.
With pen and paper ready, I stepped into the building.
“Umm…excuse me,” I asked a Zafara at the reception desk.
“I am here to find out why Boom went bankrupt.”
“Well, most of the employees here are experts on this sort of thing. Just wait,
I’ll find someone who’s not busy at the moment.”
“Hello, I’m Kyrii Donkey. I believe you wanted to know about Boom’s recent
“Yes. I’m Sparky, and I’m doing a report for the Neopian Times and I just want
a little bit of information about it,” I replied.
“Well, follow me.” The red Kyrii led me out of the room. I followed him into
a large research room, where dozens of analysts were doing research on the stock
market and economy. He gestured me into his small office.
“Would you like a drink?”
“A Fundus Fruit Tea, thanks!” I sat down, looking around his office. The walls
were covered with charts and stock information. Kyrii returned a short time
later with the tea and a cup of coffee for himself.
“So you would like to know about Boom’s bankruptcy? Why and how it went bankrupt,
“Yes, thanks.” I got my notebook and pencil ready and waited for him to begin.
“Boom’s sudden collapse was a shock to all of us. The founders declared bankruptcy,
closed the company down and disappeared. The only information we got was that
there was a corporate scandal and accounting irregularities. We here at Northern
research wanted answers, so we caught up with a few former employees and senior
staff of Boom.” Kyrii sat back in the chair and sipped his coffee.
He continued: “The former workers weren’t much help – they were as clueless
as us! They told us that they were sacked in large numbers days before Boom
declared bankruptcy. The senior staff gave us a better explanation. But before
I move to that, I’d better tell you about Boom’s past first. When Jason Mynci
founded Boom, he had revolutionised a new market – Hi-fis Their Megablaster
5000 was among the best, if not the best, Hi-Fi there was. They took year 3
by storm and Boom’s profits skyrocketed to about 250 NP a share. After a while,
a few Neopians saw a chance to prosper in the Hi-fi market, and started up a
new Hi-fi company themselves. A bitter rivalry existed between the two companies,
Boom and Jazz. Boom’s products were of course better than Jazz products. They
were very successful and made considerable profits.”
“Hmm…interesting…so this bitter rivalry was the beginning of this corporate
scandal?” I asked, eager to learn more.
“Yes. Boom’s last big boom was 2 years ago. Since that, its shares stayed around
15 NP a share, with two exceptions. One time was soon after the big boom, and
the other, very recently.” He pointed to a graph on the wall.
“And this recent small boom was found out to be a corporate scandal?”
“Exactly. Some investigators went to…well…investigate boom and found out the
truth. They found out that Mr. Mynci and the company vice president John Jubs
had been organising the sabotage of the other company’s Hi-fis The people over
at Jazz noticed decreased business and Boom’s increased business and were suspicious
so they sent those investigators.”
“So the investigators found out and reported this scandal to the authorities.”
“Yep that’s right. So that’s what the corporate scandal part was about. When
this scandal was going on, Mynci and Jubs thought that this would bring them
a large amount of cash quickly, so they sacked a lot of the workers, including
the accountants. It all went out of control and then Boom! Boom boxes were finished
as a company.”
I sat there, quite surprised.
“But why would they sabotage Jazz’s equipment? Boom was more successful than
“We don’t know. We think it’s because the founders became greedy and wanted
even more profit.”
“And no-one knows where Mr. Mynci and Mr. Jubs are?”
“Well, thank you for your time, Mr. Donkey.”
Wow. Some surprising facts there. We all know that greed doesn’t get us anywhere.
Jason Mynci and John Jubs will be caught soon, and will get the punishment they
I was also interested to see the effect Boom’s bankruptcy had on the economy,
and I found someone (“outlaw”) who had made a great guess:
“I got to thinking about BOOM, and wondered, just how much NP did Neopets remove
from the economy by bankrupting it. This is all just a guess, but I was amazed
at the numbers.
BOOM for 2 years has not done too much. That would leave 700 days of stock
buying. Assume, 20% of the time it was unbuyable (below 15), and 10-% of the
time was too expensive (above 25). That would leave about 500 days BOOM was
in a reasonable buying price. I think BOOM would average selling 1 million shares
a day, 50% of that time and 2 million shares the other 50% of the time. That
would make for 750,000,000 shares of BOOM sold over the last 2 years. Let's
assume some always sell for 25 NP profit, which would cause about 150,000,000
million shares of this 750,000,000 million to be sold off. That would leave
600,000,000 million shares of BOOM that were bankrupted. Or 9 billion NP lost
in the bankruptcy (at a price of 15/share).
I don't know how accurate these numbers are, but they might not be too far
I would like to thank ‘outlaw’ for making a brilliant deduction on the economic
effects of Boom’s bankruptcy. I would also like to thank him for allowing me
to put his deduction in this article. Thanks!