Aug 6th 2008, 14:31 SAS Special Situations
by Wenden Xeno

Monthly statement & Financials for July period

SAS Jul financials

* 0.0337L Dividend paid for the July period
* Portfolio value UP 65,914L to 357,658L in Good month for SAS
* Buoyant share portfolio 30% up on IPO benchmark
* Shareholders voted on key SAS policies

I announce a dividend for the July period of 0.0337L which has just been paid out after what has turned out to be a very pleasing month for SAS investors.

Following a challenging June which lead to a reduction in our dividend target and prompted me to turn to my shareholders to vote on several key policy decisions, July has been a good month- Our buoyant portfolio has shown resilience and has surged back up by 65,914L in a single month to a new worth of 357,658L- an increase of 30% on our IPO benchmark of 276000L.

We made 9668L from dividends this month, and some interesting share dealings have repositioned our portfolio for some perceived asset growth to ensure that our upwards trend in net assets continues.

Firstly, I sold off all our NDX. I am an admirer of Travis Ristow and he is historically one of the best fund managers in SL. I originally intended to keep hold of some NDX as I liked the fact that having some cash effectively invested in Entropia Universe through his own trading platform offered protection for a portion of our cash from the ravages of SL. Unfortunately, bearing in mind that I was already disappointed in a lack of dividends, The EU Hanger has still not materialized nor the new trading platform promised for so long.

When I then got wind of a dispute between the NDX staff and potential EU avitars over the purchase of this hangar, in combination with a general lack of information regarding what was really going on, I decided that there were too many uncertainties for my taste, so decided to sell.

I sold for a 33% loss (2.0L) but then my sale inadvertently sparked off a NDX crash on the SLCAPEX as panic selling ensued. I took advantage of this by buying 6,000 more shares for 1.00L and then selling them again at double the price. In short- I sold a load of shares for 2L- then bought for 1.0L- then sold them again at twice the price. I don’t normally take advantage of low volume situations like this, as I don’t have the time to scan all POS for Sale weaknesses like this, but it was a great buzz when it happened by taking opportunity of a chance event and it overcame the initial 33% loss to leverage profits from our original 5000 NDX shares.

As for NDX- I plan to wait for when Travis has his new web site set up when I plan to invest big- however id rather invest after ive seen the goods rather than before I see them.

Over to the ACE, and I wanted to reinvest some of my winnings from the NDX trades- so after a careful appraisal I bought 10,000 ACE for 0.50L and over 20,000 BNT for 0.22L- both up massively (40%o on the 10k and 14%) since then- contributing to a surge in value to our portfolio inflated by a rising ACE (still down 23% including our other 50k ACE shares bought at IPO- but up 40% on last month).

I bought into ACE and BNT as I noticed that selling pressure that had been battering these stocks for months has lifted- and so I detect mid term upside. My only criticism of these stocks is that both have some very large shareholders who could sell off in the long term- so il be keeping an eye out for that, but I am otherwise positive about these stocks.

Finally, Id like to thank my shareholders for voting on 2 key SAS policy changes. SAS shareholders voted to close the ACE HQ to save tier expenses and to keep the share buyback rate set at 25% of monthly profits. Our HQ has been moved to Wickster Worldwide Plaza on the Nolan Sim (at no cost to the SAS balance sheet as I have arranged it through personal business) and the old SAS office is currently being transformed into a SL financial museum.

Whilst we continue to learn from the past (and the death rattle of the WSE) at the ACE SAS shareholders look to a bright future- like they say in the city, our POS are a good spread.

Regards,

Wenden Xeno



MONTHY BALANCE SHEET (JULY)


Income 38422
Expendiature 15937
Profit (loss) 22485


75% profit paid out as dividend= 16864
25% profit used for stock buyback= 5621
Dividend to be paid (per share)= 0.0337

Assets 386236
(+/- IPO) + 28.3%

Share Price= 2.79
(+/- IPO) +79%

Market Cap 1395000




Income-

Dividends 9668

Stock sales 28726
Advertising 0

Report sales 28

TOTAL 38422

Expendiature-

Stock purchases 15687
texture uploads 250
Rent 0


TOTAL 15937




Assets

liquid assets 28578


short term investments 357658



data package 10000

TOTAL 386236


OUR CURRENT SHARE PORTFOLIO
(CURRENT TOTAL VALUE = 357658L)
(VALUE AT IPO WAS = 276000L)
(=130% IPO benchmark)

Stock: ACE
No. shares: 59925
Mean Buy price: 0.92L
Current price: 0.7L
Value: 41948L
Gain/loss (L$): -13184L
Gain/loss (%): -23.9%

Stock: JAM
No. shares: 80000
Mean Buy price: 1L
Current price: 2.6L
Value: 208000L
Gain/loss (L$): +116000L
Gain/loss (%): +126%

Stock: BDVR
No. shares: 20000
Mean Buy price: 1.4L
Current price: 3.4L
Value: 68000L
Gain/loss (L$): 40000L
Gain/loss (%): +143%

Stock: BNT
No. shares: 22038
Mean Buy price: 0.22L
Current price: 0.25L
Value: 5510L
Gain/loss (L$): 661L
Gain/loss (%): +13.6%

Stock: ISE
No. shares: 5000
Mean Buy price: 3.17
Current price: 2.68
Value: 13400L
Gain/loss (L$): -2450L
Gain/loss (%): -15.5%

Stock: JCF
No. shares: 20000
Mean Buy price: 1.00
Current price: 1.04
Value: 20800L
Gain/loss (L$): +800L
Gain/loss (%): +4%