What are Ginko Bonds worth? - 2

Ahh see they are worth ALMOST 10% of their face value thats so much better

Thats not dog, that was MINK , as in the coat he gave that stripper hes "dating"

Justin's question was "is it a time to buy" and not "is it a time to sell".

Depending on whether you're buying or selling you need to look at the bid price (as a seller) or ask price (as a buyer).

At the moment the spread is 27%.

I think the poster was suggesting the Ginko's founder "Can't Understand Normal Thinking".
This is as close as i can get as i dislike swearing, but you should be able to see the Rhyme now.

Angel.

Yes, from Michael Douglas's character in Wall Street. This quote is not meant to be admired and the film continues to show how "greed," was the downfall of "Gordon Gekko."

When I first saw Ginko Bank in SL, it occurred to me the name was similar to Gekko, a freewheeling, financial giant.

Heheh

I must say, your investment house has more credibility than ginko

ROTFL

Isn't that actually about 30%?

How do you figure 10%?

Face value of the Bond is

One L$

Bonds are selling for 10 Linden Cents.

10 Cents is 10% of one dollar.

That's a very psycholoigical assumption, which is probably guessed at by a glance.

Not really -

I know the Face Value of the Bond - given by Ginko to be ONE linden dollar

Somone posted the current selling price as 9.8 Cents.

I do some math and .... 10% of face value.

Since I was responding DIRECTLY to the 9.8 cent comment .. it applies.

Should the selling price RISE then obviously it would become a higher % of face value.

Great. More smoke and mirrors.

Here is a quarter chart,

https://www.wselive.com/research/charts/256?period=quarter

Some of us here clearly see this, so this is just helpful info for others.

Shows GPB started at L$26.

It split along the way. Some have posted a date when it split, but the data shows a slightly different story, so I just say it split. If you held 1 share you now have 26 shares split from the one.

After the split, the Ginko assets were converted. If you held L$100 in the Ginko ATM, your money was converted to 100 shares of GPB.

We see in this message what NP says what the face value is at for the dividends:

/130/51/74385/1.html

That face value is only valid for that dividend equation. It does not reflect worth of the bonds themselves to be only 10%.

For example, the split could be undone; they would go from about 9 linden cents to around 2 linden dollars per share on the market. Someone could then say "they are worth %200 of face value" like someone said "they are worth %10 of face value." Only thing that would change is the number of shares (and amount of dividends paid).

Those %10 or %200 are simply a bogus way to look at it, being psychological. Sure, "%10" looks bad and "%200" looks awesome. On the contrary, you get more back in dividends with it at this ugly "%10" that Colette stated.

LOOK

The face value ONE DOLLAR

They are trading for 10 Cents

10 Cents is 10% of One dollar ...

RIGHT?

Im not talking about anything else, Im talking about the fact they are selling for 10% of the face value.


Any Dividends you may or may not recieve in the future is immaterial when Im just comparing the PRICE of the bond.


Ill admit - They may be worth more than 10 cents to someone. But thats not what they are selling for.

The quarter chart means nothing to the depositors whose assets were forcibly converted. For them, the asking price is 1/10 of the face value and if they sold their bond to anyone for that amount, they would realize a 90% loss.

The quarter chart means more if you held GPB prior to the conversion and split. If you bought a bond for 26L, got 99 more pieces of tp in the split, and then had it lose 2/3 of its value, you would still be concerned, but not like the people who were issued bonds at 1L/bond value and staring at a 90% loss.

It split 1:100, not 1:26.

btw there's still a couple of Ginko ATMs standing around in various sims you may want to go and collect them.

Exactly, the actual worth of the bond and the face value are not proportional in any way. To say they are "worth %10 of face value," as you have, is misleading. That is much different than saying they are selling at 10 cents, which is the face value. Face value is practically synonymous with exchange rate, which is 10 cents.

From what you said, however, it would mean they are only worth 1 cent at the current rate.

You'r right, my bad. I had the L$26 stuck in thought as I typed that and didn't notice I wrote it.

No, they have a 1 Linden Dollar face value. And in the vast majority of cases all Ginko debt was Converted as 1 Linden of Debt for 1 Linden Dollar face value Bond.

SO if you had 1000L in the bank you got 1000 1L Face value bonds

They SELL however for 10 CENTS - 10% of the Face value.

SO If you were to Cash out today you you get 10% of your previous account balance back. Thats all its worth to you.

Its only worth something different if you choose to hold onto them.

The OP asked if its a good time to buy - Well that depends. You sure can clean up on people who lost their shirt, since you can buy their "Assets" for 10 cents on the dollar.

But if the Bonds continue to go down, and Nick doesnt pay the dividend payments - then you would lose money if you bought now.

So its a gamble.

The chart and the split shows that the depositor's share weren't priced at L$0.26 a share while the original bond holders stock value was much higher per share. It shows GPB started at L$26 for that concern.

Geez freaking louise. It was trading at .026 when they got their issue. That was still a 74% loss if they sold the bond then and there. It subsequently fell. If you read the announcements, the split predates the conversion.

That split was just accounting

Originally people could convert their debt $100 Linden face value bonds. But when the forcable account conversion took place they used $1L face value bonds.

The "Split" was just to make it so all the bonds were 1$L bonds.


Any other nonsense about the split is as you put it, "Smoke and mirrors"

That would be awesome, but that didn't happen. If you had 1000L in Ginko deposits, you got 1000 bonds at the face value of L$0.26.

NO .. You got 1000L bonds with a face value of 1$L


They were WORTH if you sold them right then .26 cents each.