The Pontacarrero scheme continues....

2 new posts on the WSE site from Mr Ginko, both with good news and bad news.

First the bad news...

All shareholders in GCS (another of his companies, ginko currency services) are now having their shares converted to bonds.

Shareholders will receive 2 bonds for every share they hold, this is bad for them because their 30 day average price is 1.29L while the 30 day average for the bonds are 0.19L.

1.29/2 = 0.645L
and
0.19*2 = 0.38L

So all shareholders in GCS have been forced to take almost a 50% loss on their equity.

Now for the good news...

WSE management has banned him from buying any bonds for less than $1L so he can not get them on market for the cheap prices available currently.

I think this is a great move on behalf of the WSE, Nicholas however disagrees as it makes it harder for him to get out of the mess he has created.

Sorry for not asking any questions but I felt this is an important update on the SL economy.

WEll although I dont want to see another thread the ability to buy back at a lower value is the first decent thing I have seen happen

This however does not mean he can't create and alt and buy them back at a lower value and continue on his merry way

bottom line when his hands become tied and he can't milk the system he will leave and not before.

For now at least he is admitting it will take many years for him to convert the debt (i'm assuming he paid bonds that equaled what their account balance was)

Oh God, just the Title of this thread is asking for trouble......

Sorry about that...

However as Nicholas continues to claim that ginko never was or will be a ponzi scheme, i will now refer to it as a Portocarrero scheme as he could not possibly claim it is not one of those.

Damm, i just realised i misspelt Portocarrero in the thread title.

The restriction on him personally buying is meaningless.

He will just make an Alt or use a freind and buy what he needs to buy at the lowest price possible.


Its simply a whitewash to get people to think this isnt a scam ploy to allow Nick P to retire his debt for pennies on the dollar.

Then I guess it's OK, as no actual name was used...

Seeing as 62% of GCS shares are owned by a Ginko employee that's not even as bad news as it first sounds.


Absolutely agreed!

SO theres a chance the reason WSE stepped in and stopped Nick from buying for less than 1$ was becuase he had gobbled up 62% of the bonds in this short time?

No Colette, those are shares owned by an employee in GCS.

In fact, there are only 804,219 GCS shares outstanding and of those only 300,000 belong to outside shareholders.

Yeah. It's kinda hard to judge whether anybody wins or loses from this one, given that there's no way of knowing what actual assets were actually associated with GCS before the conversion. Could be dilutive to GPB, or could be a bad deal for GCS shareholders; just no way of really knowing. Based on recent trading value, GCS shares seem to have gotten better treatment than Ginko deposits (a 50% discount, vs... well, pick your number... 75%, say), but I don't think that means anything at all at this point.

pulls out bat
steps to dead horse
beats it
:/

Either the guy is delusional and actually believes that he stands a chance of making this all work out, or he's dragging it out as long as possible before he bails to see if anyone is still dumb enough to open new accounts with Ginko.

It won't be dilutive because adding 1.6 million bonds to the 196 million already issued is less than a drop in the ocean.

Like this?

'zactly!

LOL

Well, the horse is long-in-the-tooth and ailing, but... there are fresh news items about it, and a lot of folks still holding the bag. It's not really the same as the gambling ban, for example, where the last actual news was the Thursday blog posting that clarified the policy--presumably for once and for all.

As much as it would be nice for the Ginko problems to disappear, new questions arise as the situation evolves. I really mean nothing the least bit hostile by this: if the thread isn't of interest, maybe just ignore it? (How can that be said, politely?)

Wow, that was cool.

How did you do it?

So.... you're saying we can expect constant threads about Ginko until people finally get their money back?

The forum supports IMG code. While you can link directly to an image hosted elsewhere, it is not advised. Better to find the image you want to insert, copy it and use a free image hosting service like photobucket. Then use the URL provide to link to the image.

[img ] URL here[ /img]
I've inserted spaces in the tags so that they would show as text....

I was talking about the smiley beating the dead horse not the link itself.

Did Ann create it herself or did she find it from another website?

Um, why are you hitting the horse right there?

the horse has died and been shipped to the alpo factory, and various burger franchises have the wake and move on. there is nothing that can be said that has not been already addressed in the other 99 threads regarding this matter. i too lost money. i moved on. although many will have higher losses than i, i sure they will recover, especially with new residents signing up everyday.

to continue this now is mean spirited, and childish. and i ask for a lock on any further threads regarding it. its dead.

side note to lucrezia: how about adding a notecard to the New Residents Resource Guide regarding SL banking? this way any new residents who cannot access the forums, ca make thier own decisons.

I, erm, 'borrowed' it.



If you're going to attempt to beat a dead horse, you should hit it where it's most tender for maximum impact. Or something like that...

don't you know the definition of 'beating'? LOLOL

I believe that definition would require an additional 'off' added to the mix.

Hrm, I wanted to add the tongue out smiley, but it seemed like a bad idea given the way these posts are going...