Jun 1st 2008, 12:17 SAS Special Situations
by Wenden Xeno

SAS - May Financials

* 0.0541L Dividend paid for the May period
* 0.05L target dividend still holds for the rest of the year
* YEP sale and BDVR Buy worked out very well for investors
* 15,000L escrow aimed at exciting target stock.

May has been an excellent month for SAS shareholders. A 6246L Dividend income and 47711L profit take on ISE (reduced to 10k shares) and JAM (reduced to 93k shares), both at massive share price increases from purchase price at +20% and +170% respectively, have lead to a profit for March of 36,076L allowing for a dividend payment for the March period of 0.0541L per share, which I have just paid.

And with our Assets now worth even more than last month and 56% higher than at IPO, our 0.05L dividend target looks very realistic for the rest of the year- providing that LL don’t ban the exchanges.

With the exception of the purchase of 100,000 JAM for 1L (now worth 2.7L), I rate this months financial maneuverings as our most exciting so far (us fund managers generally have quite boring lives you see- so forgive my excitement!).

Few SL stocks have had the longevity of SLCAPEX listed YEP- its sterling dividend history and trusted management partnership has made this stock a fund managers favorite, offering diversity and reliability to most of the larger portfolios.

In May however this POS went through a bit of a revolution. First its founder Yellow Paperclip jumped ship- leaving Danielz Shackles in charge. Then Danielz announced a change of direction…. into RL ventures for YEP… but that he couldn’t announce what in? I hate not knowing what I am investing in, so sold our entire stake in YEP for about what we paid- and the shareprice has dropped by 10% since.

Pockets bulging- I began researching for a new target, and noticed a downwards pressure in BDVR. Some very large institutionals were selling off BDVR in swathes- and yet CEO Robo Marx had just announced a cracking 0.1L dividend!!!! I managed to negotiate the purchase of 10,000 BDVR from a large institutional investor at the excellent price of 1.43L- giving us 20,000 BDVR at an average buy price of 1.4L. Since then, BDVR is up to a 2.01L sell price, and we have just received a cracking 0.15L dividend for our doubled BDVR holding!

Next month we shall receive our 15,000L escrow from the ACE now that we have been trading for three months. I shall be investing this in an interesting new target stock I have been eyeing up over the last few weeks. Of course, I shall be announcing the identity of this target after I have purchased the shares in a few weeks time.

Oh- I nearly forgot to mention- the SAS share price has increased to about 1.50L a share- that’s 50% up on our IPO offering. I am glad that my shareholders have achieved this- but hold on for the juicy 5% dividends, as the share price should continue to balloon from the effects of our share buyback scheme and as the 0.05L dividend history draws latecomers to this stock. The best performing asset management stock in second life.
Regards,

Wenden Xeno


MONTHY BALANCE SHEET (MAY)


Income 54033
Expendiature 17957
Profit (loss) 36076


75% profit paid out as dividend= 27057
25% profit used for stock buyback= 9019
Dividend to be paid (per share)= 0.0541

Assets 470965
(+/- IPO) 56.5

Share Price= 1.51
(+/- IPO) 51

Market Cap 755000




Income-

Dividends 6246

Stock sales 47711


Report sales 76

TOTAL 54033

Expendiature-

Stock purchases 14300
texture uploads 250
Rent 0
Misc 3407

TOTAL 17957




Assets

liquid assets 41115


short term investments 404850

long term investments 15000

data package 10000

TOTAL 470965


OUR CURRENT SHARE PORTFOLIO (CURRENT TOTAL VALUE = 404450L)
(VALUE AT IPO WAS = 276000L)
(=147% IPO benchmark)

Stock: ACE
No. shares: 50000
Mean Buy price: 1L
Current price: 1L
Value: 50000L
Gain/loss (L$): 0L
Gain/loss (%): 0%

Stock: JAM
No. shares: 93000
Mean Buy price: 1L
Current price: 2.7L
Value: 251100L
Gain/loss (L$): +158100L
Gain/loss (%): +170%

Stock: BDVR
No. shares: 20000
Mean Buy price: 1.4L
Current price: 2.01L
Value: 40200L
Gain/loss (L$): 12200L
Gain/loss (%): +44%

Stock: NDX
No. shares: 5000
Mean Buy price: 3.87L
Current price: 4.99L
Value: 24950L
Gain/loss (L$): 5600L
Gain/loss (%): +29%

Stock: ISE
No. shares: 10000
Mean Buy price: 3.17
Current price: 3.82
Value: 38200L
Gain/loss (L$): +6500L
Gain/loss (%): +21%