Nov 2nd 2008, 10:44 SAS Special Situations
by Wenden Xeno

SAS October Financials- 300,000L cash injection by secondary Offering Garunteed

SAS Oct financials

* SAS comes unstuck in 200,000L JAM writedown
* SAS Shareholders vote against Dividend for October.
* 300,000L cash injection by major shareholder guaranteed in secondary offering
* New strategy guarantees future dividend payments whilst stock assets rejuvenated

After months of enviable dividends and solid performance, the SAS portfolio has suddenly lost over 200,000L in value following the crash of ISE listed JAM, in which we have a 70,000 share position. The JAM crash is largely due to the new LL open Sim land policy.

In response to this huge blow to the SAS balance sheet, SAS shareholders have voted to not pay a Dividend for the October period, with the 20,000L I had prepared to be used to reinvest as we begin our fight back to where we belong as the best investment POS in Second Life.

Major shareholder Arbi Tomsen has guaranteed a 300,000L cash injection by purchasing 120,000 SAS shares to be issued for a price of 2.5L in a secondary share offer. To allow other shareholders the opportunity to purchase more shares (note- the offer price of 2.5L is significantly above our actual share price) I shall place 150,000 SAS shares with the offer ending on Friday (its main purpose being to facilitate the purchase of 120,000 shares at 2.5L a share by Arbi Tomsen). Because myself and Arbi own 70% of SAS between us, I have decided against holding a token vote on this policy.

The strategy is as follows:

Our 300,000L$ raised will be used for Lindex currency trading, with 100% of profits from this paid out as a guaranteed dividend every month.

Separately, I shall continue to invest to the best of my ability with our current assets of about 130,000L, with the aim of restoring our share portfolio to the pre-IPO level of 276,000L before adding this to our dividend payments.


Regards,

Wenden Xeno



MONTHY BALANCE SHEET (OCTOBER)


Income 37021
Expendiature 23498
Profit (loss) 13523


75% profit paid out as dividend= N/A
25% profit used for stock buyback= N/A
Dividend to be paid (per share)= N/A

Assets 129140
(+/- IPO) -57.1%

Share Price= 2.2
(+/- IPO) +120%

Market Cap 1100000




Income-

Dividends 7432

Stock sales 24937
Advertising 0

Report sales 4652

TOTAL 37021

Expendiature-

Stock purchases 21724
texture uploads 40
Rent 0
Misc 1734


TOTAL 23498




Assets

liquid assets 17040


short term investments 112100




TOTAL 129140


OUR CURRENT SHARE PORTFOLIO
(CURRENT TOTAL VALUE = 129140L)
(VALUE AT IPO WAS = 276000L)
(=46.8% IPO benchmark)

Stock: ACE
No. shares: 20000
Mean Buy price: 0.83L
Current price: 0.55L
Value: 11000L
Gain/loss (L$): -5600L
Gain/loss (%): -33.7%

Stock: JAM
No. shares: 70000
Mean Buy price: 1L
Current price: 0.41L
Value: 28700L
Gain/loss (L$): -63300L
Gain/loss (%): -68.8%

Stock: PFW
No. shares: 20000
Mean Buy price: 0.85L
Current price: 0.6L
Value: 12000L
Gain/loss (L$): -5000L
Gain/loss (%): -29.4%

Stock: BNT
No. shares: 40000
Mean Buy price: 0.23L
Current price: 0.20L
Value: 8000L
Gain/loss (L$): -1200L
Gain/loss (%): -13.0%

Stock: ISE
No. shares: 10000
Mean Buy price: 3.15
Current price: 3.2
Value: 32000L
Gain/loss (L$): +500L
Gain/loss (%): +1.6%

Stock: JCF
No. shares: 20000
Mean Buy price: 1.00
Current price: 1.02
Value: 20400L
Gain/loss (L$): +400L
Gain/loss (%): +2%