March 1, 2008 by Nobody Fugazi
Posted in
The official announcement is posted here by Arbitrage Wise, and says:
We have completed our first round of share buy backs, but will continue to work on accumulating funds to continue further buybacks. Unfortunately, we had decided not to disclose the buyback ahead of time in order to prevent sellers from artificially inflating the value of the SLW shares by parking on the sell to take advantage of the buy back.
We have also unconverted all SLCapex CEO shares back to L$ in order for them to continue business as usual.
While it is unclear exactly how many shares were bought back and it also says that future buybacks will not be announced to avoid traders artificially raising prices (and thus increasing the cost of the buyback), it certainly did occur - lending some credibility to SLCapEx's conversion of JT Financial to SLWallet.
As details come in, I'll either post them here or in a new post.
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Interesting
But does it mean the buy-back was done below 1.03L per share. So the debt was purchased at a discount.
They should have a way to restrict sellers from price inflation above 1.03L. And still announce the buy-back. one can argue that the free market should handle it but this is a case of debt. its best to make it fair and pay-back the right amount.
That possible, but anyone
That possible, but anyone that's read this should now know to put their stock for sale at the 1.03 rate even if that is above market. The next time there is a buyback, they should get that amount.
A nice way to make a huge profit
As long as ppl keep the price down to around .60 they will make millions in profit without paying the full amount. They will never anounce a buy back and they are able to look into the full outstanding Sell orders so they can easely calculated the profit. We only can see the top 10 orders.
So without anouncing the buyback the price will stay low and at the end we will loose. Maybe, just maybe the last few million will be bought at 1.03. but that is still a question to be answerd. by that time the profit will be covering the last buyback's.
True
But prior to the buyback, the price was at around 0.4. Last I checked, it was hovering around 0.6. Trading would affect that, of course, but trading does cost money. That money comes from investors.
Smart people who were formerly in JT Financial will keep their sales at 1.03. People who are impatient will feed the cheaper buyout.
Vote with your feet. Or your Linden dollars.
Second Life Consultant
It does look like fraud if
It does look like fraud if you tell the facts to someone outside sl.
Bank has liquidity issues, they convert their debt to shares. Now they buying back their own debt a discount on their own time. They can clearly see when its the right time to buy-back at the current market price.
Traders will like this because they can make a profit. The depositors are screwed again.
But i always warned people to stay away from sl banks, yet they continued to praise the bank owners even as they keep getting screwed.
Same with the bubble called SL exchanges. SL Stock market is a business mistake for the business owner and the investors. Traders may make small profit.
An entrepreneur that cant find 500$ - 5000$ usd to start their small business is not yet ready for that kind of venture. Also start-ups are so shaky and unpredictable thats why only established businesses go public. When angel investors put money in a start-up, it has to be fairly established, and the founder has to be well invested already in financial capital and human resources. Just because its sl dosen't make it any different. An idea cant be IPO'ed, anyone can have any idea. An idea is not a business, it will take much more than capital to make it a business.
There other things that make sl exchanges a bad idea but long term it will be a learning experience for those involved.
Erm. One second.
I agree that the bank having liquidity issues would seem like fraud from the outside. But a closing of banking with a 2 week period to pay everyone back would be impractical.
I'm of two minds, actually. One part agrees with you completely. The other says, "Well, wait a minute. Why is SLCapEx still here? And why are they buying back stock? Why did they give instructions to people on what to do - set to sale for 1.03?"
As for the rest - thats just another big, big discussion.
Second Life Consultant