Your2ndPlace

Last night, Arbitrage Wise spoke of the situation with SLWallet at SLCapEx's new main area in Treasure Cove. The transcript of the meeting, also available here, can be found below.

What it boils down to is this: The resources necessary to purchase the shares have decreased considerably due to a number of reasons which are, at the least, credible for some. The lack of updates centered around some possible business alliances that have been slow to coalesce, such as working with First Meta. The meeting's news from Arbitrage Wise was generally well received, though at least one person represented what may well be the majority of people who got stuck in SLWallet and who simply wanted to get some money back. Of course, the day traders had been decreasing the price to bulk up on shares, with very little in the way of bullish trades.

So what does the future of SLWallet include? Arbitrage Wise mentioned working with eBay sellers, as well as a few other intriguing ideas. He, and SLCapEx as a whole, are pressing forward - and pushing on SLWallet to build it's businesses which at this point have not coalesced.

Here's what it boils down to:

• Second Life business ventures for SLWallet are still in process.
• Buybacks will not be 'substantial' over the next few months, but will not go away. For clarification on this, see Arbitrage Wise's response to my question on that at 19:21 in the transcript. Further explanation continues at 19:23.
• The cutoff price for buybacks is not 1.03. See Silverblade Dagger's question at 19:27 as well as the following response.
• Arbitrage Wise feels that SLMarketLive and Helpture are the two most prominent businesses to get off the ground for SLWallet; see 19:34 in the transcript.
• Other ideas are being tossed around as well - see toward the end of the transcript.

The market for SLWallet hit a low of 0.09 following the news, but there seems to be a rally going on at this point with some bullish investment: the asking price at the time of this writing is 0.39 with a volume of over 667,432. Nobody Note follows.

[19:05] Arbitrage Wise: Let's get this meeting started.
[19:06] Arbitrage Wise: If everyone can hold off their questions, I'll answer them at the end when we have a Q&A.
[19:06] Arbitrage Wise: I'm going to explain things in three different segments:
[19:06] Arbitrage Wise: Share Buybacks, Updates for the last 2 months, and Forward Guidance for the rest of the year.
[19:06] Arbitrage Wise: In regards to share buybacks, things are not going well and according to plans.
[19:07] Arbitrage Wise: We have basically depleted all of our resources, and have little means of generating further revenue to conduct more buybacks at this time.
[19:07] Arbitrage Wise: We are also now entering the slow to dead period for business overall, and non of our SL ventures have are launched yet to generate income.
[19:07] Arbitrage Wise: As our Income Statement and Balance Sheet has shown, we are not sitting on a pile of cash and are refusing to pay back depositors.
[19:08] Arbitrage Wise: All of the funds were used to develop our SL ventures, with non of it going to our RL ventures as some believe.
[19:08] Arbitrage Wise: However, this does not mean that we are making excuses to avoid our obligations - it just means that this process will take a very long time to come through.
[19:08] Arbitrage Wise: Longer than expected.
[19:08] Arbitrage Wise: Once I get to the forward guidance, it will give you a better idea of the timeline that it will take for us to complete the SLW buyout.
[19:09] Arbitrage Wise: But in short, and unfortunately, we won't be able to do any substantial buybacks within the next few months.
[19:09] Arbitrage Wise: That does not mean that we will not continue to do buyback... just not any substantial ones.
[19:09] Arbitrage Wise: In regards to updates for the last few months, or lack therefore, we have a reason for that.
[19:09] Arbitrage Wise: Since our last shareholder's meeting regarding bringing in Chango to finish out our projects, other opportunities and possibilities came up.
[19:10] Arbitrage Wise: We were approached by First Meta 1-2 weeks after the first shareholder's meeting.
[19:10] Arbitrage Wise: They were interested in doing a partnership or joint venture with us, and requested a proposal from us.
[19:10] Arbitrage Wise: We sent them a 2 page Letter of Intent with two possibilities:
[19:10] Arbitrage Wise: 1) That they provide us a loan so that we can buyout SLW in return for a partnership deal or
[19:10] Arbitrage Wise: 2) They take an equity interest with us by buying up some of the SLW public float.
[19:10] Arbitrage Wise: At the same time, they also posted on their website a position for VP of business development, which I expressed interest in.
[19:11] Arbitrage Wise: Had our proposal not come through, at least an employment with them could present the possibility of possibly integrating SLW with First Meta.
[19:11] Arbitrage Wise: Unfortunately, we never got a response from First Meta regarding our proposal.
[19:11] Arbitrage Wise: I was also notified 5 weeks later that FM have decided not to fill the VP position.
[19:12] Arbitrage Wise: Therefore, in all that time, we couldn't move forward in any of our business plans, since we needed to wait for an answer from First Meta
[19:12] Arbitrage Wise: We also did not want to post an update so that we did not mislead our shareholders or give them any false hopes until we were close to a deal.
[19:12] Arbitrage Wise: We have since given up on the ideas, and have decided to move forward on our own.
[19:13] Arbitrage Wise: Thus the reason why there has been a lack of updates in a while.
[19:13] Arbitrage Wise: We were just playing the waiting game... and without any information, we couldn't move forward with much.
[19:13] Arbitrage Wise: This takes us to the forward guidance.
[19:13] Arbitrage Wise: Chango is currently on vacation, and was suppose to be gone until the end of May.
[19:13] Arbitrage Wise: However, he sent us an email yesterday saying he was going to cut his vacation short.
[19:13] Arbitrage Wise: Once he gets back, we are going to try to work out a deal with him to finish out the Ad Network.
[19:14] Arbitrage Wise: Hopefully, we can get that business to go live by mid-June.
[19:14] Arbitrage Wise: That would be SLW's first business, which will generate revenue from both the sales and services that we integrate it with.
[19:14] Arbitrage Wise: I have also negotiated a deal with the WPM coders to finish out the software, and allow us a payment plan for the remaining cost of finishing it.
[19:14] Arbitrage Wise: The coders should complete the softwares within 2-4 weeks, and will allow us until the end of the year to finalize all payments.
[19:15] Arbitrage Wise: This would enable us to start getting a return on the investments we've made
[19:15] Arbitrage Wise: without having to put up more money.
[19:15] Arbitrage Wise: I will also be meeting with a software company this week to negotiate a possible deal for them to help us finish SLMarketLive and Helpture.
[19:15] Arbitrage Wise: I am still confident in those ventures if we can get it going in the right direction.
[19:16] Arbitrage Wise: I have expressed to the company founder that we are not interested in any pay services, but are looking for a company that will be interested in equity for developing the business.
[19:16] Arbitrage Wise: The founder understands that and are open to options and negotiations, which we'll find out more this week.
[19:16] Arbitrage Wise: Unfortunately, since these businesses are new, we cannot forecast with confidence how long it will take these ventures to generate enough income to buy out SLW.
[19:16] Arbitrage Wise: However, we are now looking into creating a RL hedge fund or international company that will allow us to invest client's funds around the JuiceTrading model.
[19:17] Arbitrage Wise: Right now, we have about 100K USD in verbal commitment, and are actively seeking RL investors into our funds.
[19:17] Arbitrage Wise: Rather than paying a fixed interest like we did last year, we will be taking a management fee on the profits generated.
[19:18] Arbitrage Wise: This business alone should generate enough to buy back at least half of SLW.
[19:18] Arbitrage Wise: I'm confident that if we can achieve all of the businesses that we set out, that we would be able to fulfill our SLW obligations within the next calendar year.
[19:18] Arbitrage Wise: I know this is not what most of our original depositors wanted to hear, but unfortunately, that is the inevitable truth.
[19:18] Arbitrage Wise: However, please do not take my statement of one calendar year as a definitive timeline because it can take much longer or much quicker than estimated.
[19:19] Arbitrage Wise: It'll all just depends on how things pan out within the next few months.
[19:19] Arbitrage Wise: And how successful our SL business will be.
[19:19] Arbitrage Wise: With that, I'll open this meeting to all questions.
[19:20] Arbitrage Wise: Or I can further discuss how we plan on building the ventures we have now
[19:20] Nobody Fugazi: Arbitrage - you mentioned 'substantial'. Just for the record, what buyback can you conservatively forecast at this time?
[19:21] Arbitrage Wise: Between now to the end of August, we'd be lucky to obtain 200-300k Lindens for buybacks IF non of our ventures go live
[19:21] Nobody Fugazi: Thanks, Arb.
[19:21] Reina Ferraris: Arbitrage you did not mention how SLCapex, the one thriving business is doing and if you can use any of their proceeds to help with the buyback
[19:22] Arbitrage Wise: If you have a question, can you type ? until I call on you?
[19:22] Arbitrage Wise: that will give me time to answer and read all questions, or comments
[19:22] Reina Ferraris: ?
[19:22] Arbitrage Wise: Yes Lito - then Reina
[19:22] Silverblade Dagger: ?
[19:22] Arbitrage Wise: Then Silver
[19:23] Arbitrage Wise: To add onto what I've stated Nobody.. most of the funds coming in will be from my personal income/revenue that I generate in RL.... since the only business generating an income for us at this time is SLCX
[19:24] Arbitrage Wise: And I am now actively looking for employment to bring in additional money for buybacks
[19:24] Lito Menoptra: I know I am rather dumb on this entire investing situation... ill admit to that... its one of the reasons for my fustration... because I did not desire to get into the "stock market" and id be happy just get my 25k and go... i really have no intention on sticking with SLW after this....
[19:25] Arbitrage Wise: Lito - I understand you feelings, and I know there are many out there that feels the same... but at this point, we're already here...
[19:25] Arbitrage Wise: and we just have to make the best of what resources and opportunities we have
[19:25] Arbitrage Wise: What was your question Reina
[19:25] Edward Pluto: ?
[19:25] Reina Ferraris: Here is my original question Arbitrage you did not mention how SLCapex, the one thriving business is doing and if you can use any of their proceeds to help with the buyback
[19:25] Arbitrage Wise: Then Silver, then Pluto
[19:26] Arbitrage Wise: Reina - if you look on SLW's balance sheet for last month, you'll see that we did buy some shares back, some of the money was from SLCX's dividends
[19:26] Reina Ferraris: great
[19:26] Arbitrage Wise: any shares we buy back with SLCX dividends do not belong to be, but to treasury
[19:26] Arbitrage Wise: Thus the reason it's on SLW's balance sheet... b/c they belong to the shareholders
[19:26] Arbitrage Wise: Silver - your question?
[19:27] Silverblade Dagger: Could you clarify for sake of those who aren't clear and those reading this as a transcript the significance of L$1.03 and the buyback. Apparently, people are STILL confused on that according to the forum. Essentially: Will shares be bought over $L1.03? Will they be bought up to L$1.03 and end at L$1.02999, etc? Also... with there be finger sammiches after the meeting? (Grumble Ling must be hungry.)
[19:27] Arbitrage Wise: Shares will be bought up to AT LEAST $1.03L
[19:27] Zephyre Sheridan: the .03 covers the fee for selling your shares does it not?
[19:28] Arbitrage Wise: that does not mean we won't continue to buy it up further if we have the reserve... but that's further down the line of course
[19:28] Silverblade Dagger: L$1.03 minimum, so how could it be higher?
[19:28] Arbitrage Wise: Because we may want to buy back all of our shares, and naturally, we can't expect everyone to sell them at 1.03 or lower
[19:29] Arbitrage Wise: in the case that we feel we've developed SLW to where it is valued more than 1.03L, then we'll pay more for the shares
[19:29] Edward Pluto: Since it appears that there will be a long period before we see any substancial buybacks...will we be getting dividends on our shares??
[19:29] Nobody Fugazi thinks, "In other words the amateur day traders are screwing the pooch."
[19:29] Lito Menoptra: exactly...
[19:29] Arbitrage Wise: Edward, profits are used to buy back shares, which in turn belongs to you... and if they're destroyed, they increase your holding %
[19:29] Arbitrage Wise: Which is basically the same as dividends
[19:29] Arbitrage Wise: since it still increases the value of yoru holdings
[19:29] Edward Pluto nods
[19:30] Lito Menoptra raises hand again.
[19:30] Arbitrage Wise: Yes Lito?
[19:30] Silverblade Dagger: So to clarify.... L$1.03 is the big number to break even, counting the 2.5% transaction fee. But that is NOT the ceiling for buybacks, it can go higher depending on what is left and etc.
[19:30] Arbitrage Wise: Correct Silver
[19:31] Silverblade Dagger: Thanks..
[19:31] Lito Menoptra: i know a girl whose made 10k playing the "stock market with you" why is it if you dont have the money to pay us back our money we put into this.... how come she's making money and here i am... begging for some of how much i put into this company just go get out...
[19:31] Arbitrage Wise: Because SLCX's assets are separate from SLW.
[19:31] Arbitrage Wise: Thus the reason for the conversion in the first place
[19:31] Nobody Fugazi: ?
[19:32] Arbitrage Wise: Once we did the conversion, all new money deposited into SLCX belongs to the company, not to SLW.
[19:32] Arbitrage Wise: So once the conversion occurred, newly deposited money or any money going into the system is accessible
[19:33] Arbitrage Wise: Yes Nobody?
[19:33] Lito Menoptra: so how long is it gonna take for me to get my lindens back that i put into it?
[19:33] Arbitrage Wise: Lito - That's up to whether you can wait out the storm and let us get our busienss going, or be willing to sell your shares on the market...
[19:34] Nobody Fugazi: The ventures of SLWallet - aside from First Meta - what markets are you looking toward for the advertising as far as advertisers and demographics?
[19:34] Arbitrage Wise: I cannot give you a timeline for when we can fulfill our obligations...
[19:34] Arbitrage Wise: but can only give you a forward guidance as stated earlier
[19:34] Zephyre Sheridan: ok in the defence of JT Financial here..... every time somebody buys cheap shares from the people bailing on SLW, they sell them at a profit... but less then 1.03..... when SLW does a buy back... the majority of the buy back funds are going into these sharks pockets and as long as these players are around..... it is going to take a very long time for the rest of us to see all of our own money back
[19:34] Arbitrage Wise: The 2 primary business that I feel have strong potentials are SLMarketLive and Helpture
[19:35] Arbitrage Wise: Our primary target market and demographic for SLML will most likely be eBay sellers
[19:35] Arbitrage Wise: looking to penetrate a new market
[19:35] Arbitrage Wise: We want to help take their business into virtual world
[19:35] Nobody Fugazi finds that intriguing.
[19:36] Arbitrage Wise: and help the small home-based ebay retailers develop a customer oriented business to conduct live transactions
[19:36] Arbitrage Wise: I think that's where the integration between pure virtual world and RL ecommerce comes together
[19:38] Arbitrage Wise: I DO have a 10+ page proposal that I sent to Zappos.com detailing how to take their business into SL...
[19:38] Arbitrage Wise: If anyone is interested, I can forward them the proposal, to give you an idea of the direction we're taking SLML
[19:38] Silverblade Dagger: I would be interested in seeing that, Arb.
[19:39] Nobody Fugazi: Sure, Arb, I'd take a peek. :-)
[19:39] Kara Ceawlin: I would be too thanks
[19:39] Zephyre Sheridan: 4am and 10 pages? I take your word for it lol
[19:39] Arbitrage Wise: If you are interested, just IM me your email and I'll send it to you.
[19:40] Kara Ceawlin: ?
[19:40] Kara Ceawlin: Have you looked into other growing markets such as Meli that is growing faster than ebay?
[19:41] Arbitrage Wise: I'm actually not aware of what Meli is Kara....
[19:41] Kara Ceawlin: It's the ebay of South America, ebay owns 20%
[19:41] Kara Ceawlin: brazil, argentina etc
[19:41] Kara Ceawlin: recession won't hurt them there
[19:41] Nobody Fugazi: Yeah. You'll need Spanish and Portugese support - which you already have... ;-)
[19:42] Arbitrage Wise: Then I'm sure we'll eventually target them... but we need to first target people we know first
[19:42] Arbitrage Wise: However, I do have experience in the import/export market...
[19:42] Nobody Fugazi: if the people who you know are screwing you up, meet new people. :-D
[19:42] Arbitrage Wise: and that may also present a venture/target market
[19:42] Kara Ceawlin: that's the stock symbol, please check it out, they report tomorrow on the nas
[19:43] Zephyre Sheridan: ?
[19:43] Arbitrage Wise: Yes Zephyre?
[19:44] Zephyre Sheridan: in 2 figures.... how many (for want of a better word) "ventures" are you currently involved in or looking at getting involved in, in total to date?
[19:45] Arbitrage Wise: 4 that we want to go live within the next few months
[19:45] Arbitrage Wise: 4 in SL... 4 in RL
[19:45] Zephyre Sheridan: ok ty
[19:46] Silverblade Dagger: G'night Zeph.
[19:47] Arbitrage Wise: Did anyone else have a question?
[19:47] Zephyre Sheridan: ty
[19:47] Arbitrage Wise: We'll be posting the scripts in the forum Sandy
[19:47] Arbitrage Wise: and will also have another meeting tomorrow
[19:47] Shaggy Yer: ?
[19:47] Arbitrage Wise: Yes Shaggy?
[19:48] Silverblade Dagger: ?
[19:48] Arbitrage Wise: Then Silver....
[19:48] Shaggy Yer: I notice the huge dive that the Google ads were bringing in, do have any idea why that was?
[19:48] Arbitrage Wise: Yes - I was actually talking about that with Silver the other day
[19:48] Arbitrage Wise: When we originally posted, I believe some of our members knew why we wanted to post the numbers...
[19:49] Arbitrage Wise: It is against Google's policy to encourage clicking, thus the reason we have stopped
[19:49] Nobody Fugazi knows Google is big on that policy...
[19:49] Arbitrage Wise: But with less information, I guess less people are aware that visiting ads helps generate revenue
[19:50] Silverblade Dagger: I've been clicking them like mad this past week.
[19:50] Silverblade Dagger: Would it be possible to publish a FAQ for everyone to see and refer to for the most common questions and such so the rumors and misconceptions can be qualmed? Too many people talk out various orifaces, only some from the right ones. hehehe
[19:51] Silverblade Dagger: Oh, I read the pages I click on, I even bookmarked a couple for when I have the RL resources to do anything abou them.
[19:52] Reina Ferraris: I even sign up and get annoying email
[19:52] Reina Ferraris: anything to help the cause
[19:52] Nobody Fugazi: ..... you guys are sick and need help.... :P
[19:52] Reina Ferraris: LOL
[19:52] Arbitrage Wise: If no one has any further questions, I'll end the meeting here, and we can have an informal discussions

Nobody Note

I see promise in some things for SLWallet, but the risk has increased for people interested in short term and long term gains. It boils down to whether or not people find Arbitrage Wise to be trustworthy; personally I do believe that he is doing his best but that is only an opinion. The next few months will demonstrate whether that trust is well placed.

Oddly, with less funds to purchase buybacks the market has allowed SLWallet to do more with the less money it will be working with due to what appears to be a panic. And that, too, bodes well for SLWallet - as does the apparent exit of the day traders who were forcing the price down even after some substantial buybacks. An apparent rally on the stock seems to be keeping some things in equilibrium at this point.

Is it a good buy? No one really knows. But if you're stuck with SLWallet shares, you might want to hold off on the dumping - at least a few people seem to think that there is some value to the shares.

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