May 1st 2008, 15:38 SAS Special Situations
by Wenden Xeno

Special Situations (SAS) April Financials

Highlights:

Assets UP 36.2% from IPO position

Stock Portfolio UP 33% from IPO position

Dividend of 0.04L to be paid for April

0.05L Target monthly dividend set for rest of the year

SAS has had a very good start since its March listing at the Ancapistan Capital exchange. 2 months on- and we have turned the 276,000L$ raised by IPO to a stock portfolio currently worth 368,000L$- a 33% increase. Our total assets (including our data package valued at 10,000L$, a 15,000L$ escrow due in a months time and cash in hand) are now valued at 410,005 L$.

This affluent position is a direct result of our measured investments, with our POS having seen tremendous share price growth (see below) as high as 97% in some cases.

This month I used up the remaining IPO funds, and repositioned some of the POS to arrive at a solid portfolio designed to bring in a healthy mixture of dividend payments and growth income, and resulting in a net profit of 29157L$ allowing a dividend payment of 0.0437L per share to be paid within the next week plus a 7289L$ share buyback, which will help boost our share price.

The main changes to our portfolio since my last report has been the shedding of 5,000 NDX shares and the purchase of 11,515 ISE shares. I started shedding NDX as its direction began to veer from its prospectus, and I tend to leave investments that I don’t understand. Actually, I now know the new direction taken by this stock (Entropia Universe) and believe this makes this now an awesome target, however I did not know this at the time so stand by my decision- never invest in a stock which you don’t understand is always a good rule for investing. ISE had always tempted me but Id stayed away as the 2.50L$ price tag seemed excessive a few months back. Over the last month, however, Cocky Dagger has invested heavily in updating his website and ISE stock market Cap has increased dramatically as a large number of new customers have been drawn to his web site by its new features. On this basis, I began buying up ISE at bid prices- and have already been rewarded by a gain of 19.6% on this investment within just a few weeks in what I view as a growth stock.

We are in a very affluent position, way above our asset baseline (level of short term assets I wish to maintain of 300,000L) and so this means that over the coming months we can profit take 7% of our stocks every month (which have grown in value by 33% in just 2 months), shaving off about 25,000L of our profits every month to return to shareholders via dividends. This cautious profit taking in combination with our dividend receipts of about 8,000L should enable a monthly dividend payment to be returned to SAS shareholders of 0.05L$ per month for the rest of the year, which is now our regular dividend payment target.

Id like to thank those loyal shareholders who have seen the big picture and stuck with SAS through what was earlier in the month a volatile period following the ACE shut down. A little bit of luck and a very large amount of hard work in researching the best investments in second life has put us in this enviable asset rich position and I have great pleasure in rewarding my treasured shareholders with these unexpectedly large dividends, so early on the Special Situations story.


April Financials:

Income 88487
Expendiature 59330
Profit (loss) 29157


75% profit paid out as dividend= 21868
25% profit used for stock buyback= 7289
Dividend to be paid (per share)= 0.0437

Assets 410005
(+/- IPO) 36.2%

Share Price= 1.01
(+/- IPO) 1%

Market Cap 505000




Income-

Dividends 8115

Stock sales 32297
Remaining from IPO sale 47698

Report sales 377

TOTAL 88487

Expendiature-

Stock purchases 54750
texture uploads 270
Rent 1200
Misc 3110

TOTAL 59330




Assets

liquid assets 32777


short term investments 352228

long term investments 15000

data package 10000

TOTAL 410005


Current Portfolio:



Stock @@@ No Shares @@@ Sell or current Price @@@ Sell or current value @@@ Gain/Loss ($L) @@@ Gain/Loss (%)


ACE @@@ 50000 @@@ 1 @@@ 50000 @@@@ 0 @@@ 0.0
JAM @@@100000 @@@ 1.97 @@@ 197000 @@@@ 97000 @@@ 97.0
BDVR @@@12982 @@@ 2.54 @@@ 32974 @@@@ 15838 @@@ 92.4
NDX @@@5000 @@@ 4.99 @@@ 24950 @@@@ 5600 @@@ 28.9
YEP @@@10000 @@@ 1.95 @@@ 19500 @@@@ -400 @@@ -2.0
ISE @@@11515 @@@ 3.79 @@@ 43642 @@@@ 7139.3 @@@ 19.6