EDMO SEC & NGI Start Initial Public Offering Discussions

May 31, 2011

EDMO , SEC & NGI Start Intial Public Offering Discussions

By: Carter Allegrant

The Second Life Capital Exchange announced on May 25th that three new companies were being considered by the board of directors to see whether they would be allowed to issue their initial public offerings to shareholders.  Each of the companies published its prospectus in the exchange forums in order to let traders see what they had to offer and after through analysis I have to say all three have good deal of potential.  The fact that we are getting three new companies all at once also shows the continuing progress made by the investment market and the increased level of confidence in publicly traded companies. Considering that last week EARN’s IPO  raised L$3,750,000 ( 15’000 USD) from investors I believe these three new companies are going public at just the right time with trader’s confidence in an all time high and that if the current trend continues they will sell out their shares pretty fast.

Although this interest in the markets and readiness to invest on part of the traders its good and it shows we are on the right path to building a better trading platform we should all be cautious of keeping the market volume growth sustainable.  Right now Initial Public Offerings are selling very fast, often within a week or two, and that shows that investors are making quick decisions when it comes to trading based on the published prospectus of the company and not necessarily in  solid market  research in-world.

That is why I always urge the readers of this magazine to take the time to make careful investment choices and the all the homework associated with making a big investment. That means spending time in Second Life checking the state of the industry in which you plan to invest, analyzing the competition, comparing earnings, and seeing how much demand there is out there for the specific product or service.  That type of analysis should take at least a week or two to fully come together and be a good way of assessing market trends.

Now some of you may ask what would be the negative impact of  exponential volume growth and all I can say to that is growth has to be controlled to a certain extent in order not to tap out the current amount of traders, if there are more IPOS than new investors the overall demand for shares and the supply of investment funds are bound to decrease  making it harder for new companies to effectively use the market.  This can limited if traders take enough time to research the company of their choice before and investing and also by keeping a limit on the amount of  IPOs that can start all at once. That said lets talk about the three companies coming to a IPO near you soon:

I.  ( CAPEX- SEC) SecondNights.com:  Second Nights is a premier company which provides entertainment options for couples looking to have a good time.  It plans to raise 2’000’000L from shareholders and use them to empower their staff and attract sponsors, which they plan to do by building a larger in-world presence with land in which to showcase their their packages and through special events, banners and advertising partnerships. Now even though I think the use of capital category is pretty ambiguous and not detailed enough one must admit that the project is quite innovative in nature and if it can be carried to fruition the potential profits will not be insubstantial. It is worth noting that many entertainment companies in the past have had problems such as Metaverse Broadcasting Company which didn’t do too well financially but then again they weren’t quite like this one and I think the niche of this company is big enough to be exploited.

II. (CAPEX-NGI) Next Gen Inc: This new company is much more modest asking for only 800’000L of  investors and it focuses in uniting second life avatars creating families. They have a established brand that is currently running to full regions a clear sign that revenue has been stable enough to support a huge tier.  Business plan wise the company seems solid enough and they have clear goals. However I do wish they would have elaborated more on the use of capital which merely says “To continue reinvesting in the business with advertising and to branch out with our Affiliate/Franchise “Next Gen Inc. Too”. Open and operate Mainland High School. We also plan to explore other virtual worlds. ” this category should include a list of how much money is required and for what and not be so broad. My advice is to invest conservatively on this company since it does have potential but also meet with the management team and ask questions about any doubts you may have.

III. (CAPEX-EDMO) Edmose Group :  The Edmose Group plans to raise 1’200’000L in order to expand and enhance its current services which range from machinima to publishing and three dimensional modeling.  The use of capital section although ambiguous does give some estimates as to how much much is going to be spend in each area which is good for letting investors know what they should look into.  I believe the company has good bones and that the chief executive officer is a capable man who already runs a business in-world  and I recommend to everyone buying some shares after doing some research in the company and making sure its right for you. This may not be a right pick if your portfolio is already too tied up in services in which case I would recommend you get shares from content provider company such as GAP or EVO.

With these three companies comes a demand for 4’000’000L from investors which if we had to the demand for EARN we get 7’750’000L or roughly 31’000 USD. Now the question is can the supply of loanable funds from the investors satisfy that huge monthly demand? I certainly hope so but I think if the exchange continues to experience these rate of growth serious expenses need to be made toward increasing the number of users. This should be done by resorting to real life advertisement in international magazines and news publications otherwise we will experience a problem in the long run.

Looking forward to hearing your thoughts,

Carter


Eventful Times For Virtual Markets

May 23, 2011

A good time to fish for opportunities in the virtual markets

Eventful Times for Virtual Markets

By: Carter Allegrant

Before starting to talk about the true topic of this post I would like to take a minute to apologize to all our readers out there for the lack of updated content this past weeks. I am currently working very hard behind-the-scenes to make sure the newspaper can grow and become a premium source for all virtual world users interested in finance and trading as well as education. From the day we started our publication, approximately three months ago, we have received a lot of honest support from the trading community and that is something we are very proud.  That is why for the past few weeks I been working very hard to bring about some surprises to our readers and I can say that everything goes as plan in the upcoming weeks you will see a lot of new content and features.

That said lets get on to the news,

May 16- May 22 :  Capital Stock Exchange News Report

1) One of the biggest news this past week has been the launching of Earn2Life’s initial public offering.  The company which specializes in giving virtual users the opportunity to fill out web surveys for Linden dollars has a long history and seems so far to be a reliable venture with solid reasons for wanting additional capital in order to expand. The IPO which started on Monday, May 16, has up to the moment sold 96% of  all its shares and raised 3,610,273 L$ in just seven days a fact which should give everyone an idea of the amount of money that can be raised in the current market simply by presenting a solid prospectus and communicating with interested investors.  Glaznah Gassner has done a great job so far keeping track of the company forum and responding questions which shows a clear commitment to his venture.

I would recommend all investors  read the prospectus of the company and see if its an investment that might fit their portfolios. There is still 3% unsold and I think the price of 2.50L is reasonable for what the company is bringing to the table.

2) Delicious Demar Enterprises & Virtual Stock Investment Fund are once again in the trading floor after being halted for non-compliance of exchange rules. (http://www.slcapex.com/home/story/system/3071)

This should not come as a big surprise given that the CEO of both companies Ms.Delicious Demar has always demonstrated a professional business attitude and care for the shareholders that have given her their trust. I am really glad she is back and I really look forward to seeing both ventures grow and deliver further dividends to the shareholders.

3) Graves Apothecary after finishing their Initial Public Offering announced that they were working hard on a new line of products and a innovative scripting project. The company also announced it would pay dividends exactly one month after the closing date of their IPO.(http://www.slcapex.com/home/story/GAP/3065)

The CEO Mr.Bobkin Graves is off to a good start and I believe his company has a lot of potential if it can market the new products properly.  My best advice to those who currently have GAP shares is to hold on to them and see how things develop since it would be a shame to sell them now when they have a good chance of going up in value in the near future.

4) Blue Diamond Virtual Reit  Alain Delpiaz announces further travels in the company forum  “And as a heads-up i am letting you all know that i will be traveeling again in june (from the 6th until the 12th in Faroe Islands) and again at the end of july (specific dates still to be determined)” (http://www.slcapex.com/forums/topic/BDVR/3057)

To this we should add the absence Mr.Delpiaz has just come back from which was also mentioned in the forum on May 8th   “I will be on RL vacation from may the 12th until may the 22nd. During this time Kafka Frugel (aka IndiaRaven Hausmann) will be adressing all questions regarding BDVR.” Finally there is also the absence which was announced by Mr.Delpiaz on February 9th ” due to my RL vacation i will be absent from SL from the 23rd of february until the 15th of march.”(http://www.slcapex.com/forums/topic/BDVR/3057)

When I interviewed Mr.Delpiaz a while back I really though he had some good ideas to improve the company and did not altogether abandoned plans for growth like I had thought. However, when we consider all the amount of time he needs to devote to real life commitments the question arises about whether it would be best to pass the leadership to Mr.Frugel in order to allow him to fully take care of  his real life work. I am not saying that Mr. Delpiaz is a bad manager nor that he is abandoning the company but rather saying that if he has a need to travel for the trade with which he earns a living he might need to reassess if he has enough time to commit to two publicly traded ventures.

5) Evo Breeding Company should definitely be considered a success story for the exchange so far when it comes to delivering value to its shareholders. Not only has the stock appreciated by 65% which is outstanding but it also continues to announce the creation of new products with which to enhance its revenue stream.  The latest of which is a very fancy hud-based game which can be described as follows ” CI-Trek is a Space Civilization Game HUD, were you can build your star empire, forme aliances with friends, colonize new planets and fight for the Glory of your Empire.” I haven’t personally tested the product yet but I plan to do so in the near future too see if its as realistic as their line of pets.

EVO is a great opportunity for long term investment and one which I think is lead by a capable team who has so far been honest and straightforward in delivering what they mentioned in their prospectus.

Those are the highlights of this past week, I hope you find them useful to make wise investment decisions and I welcome you to express any views you may have on each item as a comment below. I anwser all comments pretty fast and they help improve the nature of the paper’s content so if you have time please take a minute to drop a note.

Thanks for reading,

Carter Allegrant

Metaverse Business Journal – Editor in Chief


Coporate Responsibility : Restoring Security to Virtual Markets

May 4, 2011

Corporate Responsibility: Restoring Security to Virtual Markets

By: Carter Allegrant

Introduction:

A new world of possibilities has opened for both entrepreneurs and investors with the new resurgence of virtual markets bringing us a window of opportunity to put corporate malpractice, scams and unprofessional attitudes in the past.  However in order to take advantage of this new era of growth and progress all of us who enjoy virtual trading must come together and work to establish the concept of corporate social responsibility also known as corporate conscience.

But before getting into how we may achieve corporate social responsibility it is vital to take a moment to define what it is when used to deal with companies which have an entirely virtual presence. The best definition of corporate conscience is a form of corporate self-regulation that is integrated into a business model to monitor and ensure compliance with exchange regulations, ethical values, and encouraging a positive impact through a venture’s activities with consumers, employees and investors.  A business that actively promotes the well-being of the market and encourages community growth and development its well on its way to becoming socially responsible.

Is corporate social responsibility important?

The importance of CSR is something that has been ignored throughout the history of trading virtual securities in Second Life ( Things such as the failures WSE & ACE along with the banking ban come to mind) and something which could have saved investors and business owners a lot of headaches had it been properly considered. Like it or not everyone who uses a virtual market is part of a greater community and the management teams of publicly listed companies especially have a moral obligation to set an example for the community to follow in order to ensure the well-being of the market and be able to thrive.  The main organizations interested in having a productive environment in which to do business should be the companies listed not only the exchange.

If we are to move away from  previous mistakes and ensure the markets don’t full under once again CEOs need to encouraged into having having a strong CSR and clear corporate policies.  Which can be done in several ways one of which would be to give trading commission deductions to all those companies who take on the role of agents of change in the market and focus on encouraging growth besides generating profits for their shareholders.  However even if such incentives were not offered companies should still enact CSR policies simply because by spending part of their profits and efforts into helping new traders and developing better business practices they will grant the whole investment community more legitimacy and with that there will be a whole new bunch of new investors and customers to boost profits.  Once everyone understands a victory for the community is a victory for their individual company the exchange will see unrivaled growth.

How can Corporate Social Responsibility be Achieved?

There are many ways companies and traders can pool together their individual resources and set them to work to strengthen the market and achieving a level of CSR  that’s never been seen before. Here are a few suggestions:

a. Exchanged Based Incentives:

The management team of a virtual exchange should know better than anyone else that strengthening the community of virtual investors should be a top priority. In order to ensure long term growth funds should be spent to increase the amount of security in the market and improve company regulations which would lead to better business practices.  The exchange may do this by establishing trading incentives for those companies that actively promote and show users the advantages of virtual fund raising and trading.  A whole program could be established to make companies feel proud to be part of a select group committed to helping the investment community growth.

b. United Company Actions:

If all the companies in the exchange got together and pledged 5% of their profits to CSR programs and initiatives the market reality would change creating a much more secure corporate environment which would attract hundreds of new investors. Money from such a union could be used to reward member companies who create corporate succession plans, remain transparent by following exchange regulations, and have published clear corporate policies beyond their prospectus with grants and awards. Which would serve to increase the prestige of each company in the eyes of the public as well as to provide an additional revenue incentive to do the right thing.

Another initiative that could be accomplished by such a union is trader education with the production of seminars, videos, construction of a small trading academy or simply by mentoring programs.  Education is fundamental for a better market and if there is a good investment in it we will reap the rewards in the future. There is many people out there who wish to be CEOs , traders, and stock brokers but lack the knowledge necessary. This could be changed, we could educate potential users in exchange for their future support in paying that help forward after they received it.

Finally a small portion of all the funds could be used to establish a Market Crisis Fund which would be slowly increased to protect shareholders from future company failures.  Not a plain old fund but one where everyone feels their contributions whether its one linden or 5’000 serves a purpose and is managed by a honest organization. This would  be independent of the crisis fund provided by the exchange and serve as an extra layer of security.

c. Traders Iniciative:

Traders and shareholders should also be agents of change and actively promote that companies invest in initiatives like the one above through a shareholder vote.  Everyone must pitch in if we are to see the market double its profits and expand with the pass of the years and it is vital investors feel they have a responsibility towards the investment community.

The chance is now:

Today the time is right to begin seriously considering adding a solid dose of Corporate Social Responsibility to the markets.  The trading of securities is flourishing at this time and its at its best in years so if we all make an effort we can forever abandon the past failures of the virtual exchanges and bring about an environment where everyone can make money and have a great time learning to trade. A community where users are not strangers to one another and everyone cares about lending a helping hand for the good of the whole community.  If you are reading this article you should do your best to help improve the way things are no matter how small a step one by one we can all make a difference.

I look forward to hearing your views,

Carter Allegrant

Metaverse Business Journal- Chief Editor.


Dividend Analysis for the end of March.

May 2, 2011

Dividend Analysis for the end of March.

By: Carter Allegrant

Capital Exchange-  Saturday marked the end of the month of March and the distribution of dividends based on the monthly profits of a few listed companies. As the market continues to be driven forward by investors on this new era of virtual trading all I can say is that the companies seem to be doing an outstanding job with delivering good returns on investment to their shareholder. We should all celebrate that the period of little or no dividends when 2 or 3 out of all listed companies provided investors with a dividend is now over.

Here are a few of the companies that have payed dividends and a brief analysis of each:

Second Ads–  Payed out a dividend of L$119,970.06 or 0.03999 per share. This is a great venture that continues to pay out monthly dividends and has a great leader that cares about future growth. I would not be surprised to see the trend of solid dividends continue and I encourage all traders to try to get some cheap shares through limit orders.

Ford Elman & Co. Payed out a dividend of $10,000.00 or 0.01 per share. Even though the profits are small this is a company with a good history and a solid management team and one that I expect to see move forward in the upcoming months.

VH Employment Agency: Payed out a dividend of L$15,262.00 or 0.030524 per share. This company has withstood many difficulties and gone through a lot of changes and although I think it has a lot of possibilities I think the price of 4L a share is too high for the return on investment. So if you can get shares in the lower range 3.5L-3.8L that would be a better deal.

Redux Technologies: Payed out a dividend of L$72,798.01 or 0.0183458355573 per share. Good solid venture that delivers a decent amount of monthly profits. Buying through limit order is encouraged.

In conclusion, I  am really pleased with the way things are going so far dividend wise and I believe good dividends are a fundamental aspect in order to restore faith on virtual investment. Right now there is plenty of money to be made through day trading as well as a safe long term way to store your lindens while earning a small monthly interest.  I would however advice everyone to really try to get into rapid day trading since that’s were most of the money can be made.

As always I would really like to hear your views on dividends and how they affect your trading strategies or any other comment you believe is relevant to this article.

Thanks,

Carter Allegrant

Metaverse Business Journal – Chief Editor