A GM or Ford Loyalty Program Related To Stock Options?

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Innovation Fund LLC (http://www.innfund.com) announced today that it has patented a very novel form of a loyalty program that could be of great value to car companies such as General Motors or Ford.

Innovation Fund LLC (http://www.innfund.com) announced today that it has patented a very novel form of a loyalty program that could be of great value to car companies such as General Motors or Ford.

Under the issued patent, a person who was thinking of buying a $50,000 car in six months could buy the rights to buy the stock today at a stamped time and price. If the stock goes up during the six months, the person could cash in the equivalent shares of stock at the higher price and make money. Result: a happy customer. If the price of the stock goes down, the customer could use the full value of the money paid on the date stamped stock value for the purchase of a car. The result: again, a happy customer. Of course, there are some SEC regulations which would be part of an offering and be given away on a CD, and there would have to be a transfer house, but according to Donald Spector, “the system is ‘very doable’.”

It is an interesting position for an automobile manufacturer or any other public company that sells high priced goods or services. If the company does well the customers are extremely happy and make money on the stock. It also creates an additional “lock up” of people buying the stock. If the stock goes down people will start buying more of the cars and the stock will presumably go up.

Economic modeling may prove to be the future of innovation, not only in the design of new cars, but in the marketing as well.

With the two major U.S. car companies fighting heavy competition from overseas, novel marketing ideas are interesting. Also, with low stock prices and market volatility this type of stock purchase makes ordinary people options players.

Foreign car companies can also participate, particularly those that are looking to break into the United States market and may have stock listings that are very volatile. It isn’t often that the average person has a chance to take a risk on options, but with this system, the worst you could do is own the goods that you would need anyway. Spector says this is an interesting approach for Wal-Mart or even Time Warner. People spend thousands of dollars of per year, why not take a chance and hope that the stock of a company they patronize appreciates; if not, they just buy the products or services. There are a lot of great companies whose stocks would do better with valued customers rather than hedge funds as owners. “I think it will be good for the companies, the investors and the country,” says Spector. Spector sees this as a new formula for economic modeling.

Innovation Fund LLC owns proprietary technologies from Computer and Satellite technologies to Consumer products and Entertainment properties. It licenses to or joint ventures with Fortune 500 companies and is a worldwide leader in innovation.

For more information, please contact: Barbara Carver at

516 921-3100

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