August 11, 2007 by Bob Perry
Posted in
Originally, I wondered why anyone would buy a GPB share even for .1L/share. After thinking about my old conversation with Nicholas and how Nicholas has not actually abandoned his account, my faith raised. The fact that Nicholas continues to stay in SL and actually continues to buy more shares of HCL means he isn't going anywhere.
After having a long conversation with Luke, the creator of the WSE, my confidence was very high. Luke informed me that if Ginko was to ever not pay their dividends, their account would be confiscated (if deemed appropriate by WSE heads) and used to cover the Ginko Shares.
Along with that, 4 shareholders of GPB bonds who also run 4 companies on the WSE have promised that they will remove their companies off of the WSE if Luke was ever to side with Ginko. This leads me to believe Luke has the best interests in mind.
I have purchased over 400,000 shares of GPB and expect to buy more. I believe these are a strong buy at below .5L/share.
- Bob Perry's blog
- Add new comment
- 1565 reads
Ginko
Bob,
As someone who was present and also an active participant in the 'interview' that you held with Andre, I'm very surprised to see you posting in your blog how you have now changed your view of this thief. Simply because he chooses to stay in SL does not make his actions any more acceptable. Nor does the 'blessing' of Ginko by Luke and any promise that he has made about 'covering' deposits. What a joke. Get real Bob. You and I have met in SL and we discussed your services. The 'interview' you described was no such interview..you simply inserted your questions into the masses that wanted answers from this 'man'. That night, I can honestly say, that you had no respect for him nor did you view his actions as ethical. I have the full transcript and my memory serves me well. For you to now come on here and post that you think its a safe investment..after buying 400,000 shares makes me question now your motives for such a post to begin with.
I have to say that I am very disappointed the behavior of the vast majority of 'business owners' on all of the exchanges. Bob, your merger with Mystik now casts your company into the elite group of questionable organizations attempting to solicit funds from SL residents. Why you chose to get in bed with an organization with such a track records is beyond me.
First of all, its your
First of all, its your money. And the benefit of encouraging people to throw their money away buying GPB is that people who were 'investo-raped' (had their accounts forcibly converted to GPB, sans permission) or otherwise are risk-averse, can get out using the liquidity you provide.
These are perpetual bonds- there is nothing backing these bonds except your firm belief the GPB will be around over the next 8.333 years to pay quarterly dividends. That said, lets take your points:
"After thinking about my old conversation with Nicholas and how Nicholas has not actually abandoned his account, my faith raised. The fact that Nicholas continues to stay in SL and actually continues to buy more shares of HCL means he isn't going anywhere."
Why would he leave? He earns roughly 1/3 of 3% commissions on every trade of GPB. Buying more HCL means that stake only goes up. (this assumes the profits of HCL go into the dividends linearly- I think this is a good assumption, but suffice the argument to say he makes a profit on every trade).
"Luke informed me that if Ginko was to ever not pay their dividends, their account would be confiscated (if deemed appropriate by WSE heads) and used to cover the Ginko Shares."
This sounds like a margin call. But I am confused: what account backs the GPB? If you mean Nic's own stake in HCL, thats illiquid because of its size: dump that many shares on the market, and the price goes to nothing. Secondly, did you get in writing what he meant by "pay their dividends?" My impression so far is that whenever Mr Ginko has a debt he feels he shouldnt have to pay (ie: Ginko accounts, GCS shares that were raided to pay Ginko accounts) he just issues more GPBs. If he can pay his 'dividends' with GPBs, this is just another fraud- pure and simple. In fact, I would argue that the GCS forced conversion already makes this a fraud- the supply of GPBs went up without any change in the assets backing them- ergo they drop in value. Even if hes going to pay the dividend in cold hard L$, if he can just issue more GPB, what is to stop him from selling new GPB's to raise money to pay the quarterly dividend (ie: what makes this not a Ponzi scheme?). Hes already increased the float of GPB's without splitting their value!
"Along with that, 4 shareholders of GPB bonds who also run 4 companies on the WSE have promised that they will remove their companies off of the WSE if Luke was ever to side with Ginko. This leads me to believe Luke has the best interests in mind."
I agree that vacating WSE would be bad for Luke, but the GPB thing is a huge racket- lots of people forced to convert who have to sell (and incur transaction fees) to get out, and that certainly isnt going to leave given Nic's profit incentive to exclusively list. Moreover, for the reason cited above, if GPB defaults, there is literally nothing WSE can do. WSE would have to fold...
... or mabye just forcibly convert everyone's accounts to Hope Capital Perpetual Bonds!
One of the big reasons
One of the big reasons people buy stock in a this unregulated type of market is based of peoples trust of the company. Nicks You were screwed, Ah Shit happens and it happened to You type comments arn't doing a thing to restore peoples trust in Ginko and in my opinion not doing a thing to help bond price no matter how many assets he has. Maybe this is intentional so that he can buy his way out of the deat. I am glad he is still here and I hope he builds himself back up, and hope if he can build up again, he buys shares again at a close to 1L price so that people who "invested" in his bank don't need to wait 8.3 years to be paid back via dividend.
Nic already stated he is
Nic already stated he is buying shares back up at .10 No way he will buy them at 1L$. He should be selling off his shares in other WSE companies & paying off ginko account holders before he listed GPB's on WSE. All of his assets should have been claimed to lower his debt then get listed on there. isn't right he keeps buying more & more shares on WSE when he CLAIMS he has no L$..... Look at GPB. He list he holds 1L$. Well where did all this money come from that he bought more & more shares into HCB the past 2 days.
ThaBiGGDoGG Richez
CEO SLBC & BDG
As far as I can see Nich
As far as I can see Nich hasn't bought any GPBs, the big buyer is Shaun Altman who has increased his holdings from 1 million before the Ginko depositors 185 million infusion to 7 million now. Nich holds L$579,800 worth of HCB and that doesn't not constitute very much money when the total debt on the bonds is L$196 million at the face value of L$1 per bond.
True he hasn't bought any
True he hasn't bought any yet cause it hasn't hit .10 yet. but maybe he now see's people are gonna gold on to it & maybe he will now start buying them up at .25 before it reaches any higher. He probably has orders in to buy them up when it hits .10. If we don't let it reach that then he wont get what he wanted. Everyone needs to drive this fund up as much as they can so Nic loses out in the long run from his place to move ginko funds over to WSE & expect people to sell out at the low price of .10.
This might not be the best company to buy stock into but buy some low & sell higher & you will make a small profit off it. Maybe Luke has plans to make sure this don't fail. If this fund fails it makes WSE look bad big time for allowing this move of Ginko onto it.
AVIX pushed ginko aside & didn't wait to deal with them, so let how WSE can help this fund out. Right now probably 705 of people on SL think all bank operations are gonna fail on SL since Ginko one of the largest if not largest failed this past week.
ThaBiGGDoGG Richez
CEO SLBC & BDG
I'm sorry, Bob.
the dollar amount of the perpetual bond should not be over the value of the bond unless the coupon, or dividend, of the bond is greater than the bond's face value itself.
In essence - it ain't gonna happen. As far as what Luke said, I hate to be the one to break this to you BUT...
If Ginko does pay dividends, they will be below the face value of the bond
AND
If Ginko ever has it's account confiscated by Luke, it's probably WAY too late to divide assets up. If that were to happen right now, Luke wouldn't be able to do anything for the same reason that Nicholas, hypothetically, could not.
That an avatar is in SL does not necessarily mean that it is the same person.
I wish you luck with your GPB purchasing, but for myself... well, when you get a lemon, you make lemonade. But when someone gives you a polished turd, it's still a turd. Fertilizer.
Nobody...
Ginko's dividends are .03L/share... set at that... if they drop below, their assets may (and most likely would) be taken. At my current research they hold about 15 million L worth of HCL. Ginko also has millions in other stocks on the WSE as well.
My point is... Ginko has over 30 million L worth of other companies stock on the WSE, if the assets were split, that is more then .15L/share. That is me breaking even...in the worst case scenario
I know many people don't "trust" Luke, but I'm not going to even listen to people who say he is really scamming everyone with Nicholas.
Not trying to start an argument Nobody :).... Again, thanks for the blog :)
Well, I disagree.
And no, no argument - it's your money.
What you may want to do is consider that after the dividend is paid out upon foreclosure - that's it. Seriously, that's it. In my eyes, that's a dangerous game.
But as I said before - your money. Nicholas has 3 months. In SL, we all know a lot can happen in 3 months. Mark your calendar and make sure you're in the position you want to be in at that point in time.
/me wanders off to invest in texture uploads.
On the other hand
On the other hand, it still requires trust that Ginko management knows what they are doing. Why would anyone believe that? While the bank was going down, they were investing more money in equities?!?!?! That was about as smart as the Federal Reserve tightening monetary policy in 1929.
I just wish there was a place to short this stuff.
BOB Are You CRAZY!!!!!
BOB you just got GinkoD. Good luyck with that many shares. Someday it might reach its potential to reach 1L$ per share. It will be worth the purchase if it does...
ThaBiGGDoGG Richez