Friday, June 27, 2008

Update: Summer is Here! DDE relisting???

Hello world :-)

Well, I know I haven't been blogging very much in the last couple of months, but RL has been occupying far too large a part of my life. I got a new job, and the hours are a little insane - but it's all good.

Of course, as a result, my time in Second Life has been somewhat limited, but the business is set up to run pretty automatically now and only requires ongoing maintenance, so it has not been a big problem. Business has been... not bad. The decrease in occupancy that we saw in May on the sims has improved somewhat, but it still is not back to the levels it was before then. Nevertheless, DDE remains a going concern and profitable, and I am expecting typical dividends for June (0.1L per share). We will have to see the final June numbers before a buyback can be considered. All in all, I am happy with our performance, and I think we will be able to weather the typical summer slowdown with no problems.

Ok. So. I have been asked by a few people in recent weeks whether or not I would ever consider relisting DDE on another SL stock exchange. Things seem to be working well with DDE being run independently, although it is quite a bit of work at month end to get everything figured out and dividends paid. But it is probably not more work that CEO's on the exchanges these days have to put in to post their financials every month.

My answer has always been the same - that I have no intentions of relisting after my experiences on the WSE.

However, I want to be open to your opinions on the subject. I know that for some people, being unable to cash out or to trade shares is annoying. On the other hand, you have a pretty guaranteed return on your investment, and you know the price at which your shares are going to be bought. Were DDE to relist on another exchange, I cannot say what would happen to the share price - it is simply unknown. From my observations, share prices on SL exchanges rarely reflect real assets, or even company performance. It has also been my observation that land companies in particular seem to trade below their net asset value per share.

So, I guess what I am saying is that I am open to talking about it - although it would require some convincing. I would be interested in your opinions about whether or not to relist, and what exchanges you think are worth looking at, and why. Please leave a comment here or contact me inworld - if i don't get a lot of comments, i will simply assume there is not a lot of interest...

And as always, please feel free to contact me inworld with any questions, comments, or concerns. Or just to say hi!


Sunday, June 8, 2008

May Dividend and Buyback Complete

The dividend and buyback transactions for May are complete. In total, I disbursed 563,253L to shareholders (including 443,244L in dividends representing a 0.1L per share dividend payment for the month).

Details can be found on the DDE webpage . Links to all past announcements, transaction details, and other information will be available there. You should already have received your payment inworld.

In the end, i decided to do a limited buyback of 50,000 shares, in addition to the regular dividend payment. A continued thanks to all DDE investors.


Saturday, June 7, 2008

Update on May Dividends

Just wanted to provide a quick update on dividends for May. I should be finalizing the may numbers tomorrow, and posting the dividends at that time. All in all, May was a medium month - I lost a lot of renters, but found some new ones. Occupancy levels are still lower than I am comfortable with, but they seem to reflect the pattern I have heard all over SL in the last six weeks that business all over is slow.

Nevertheless, i will be able to provide a decent dividend (at this point it looks like a 0.1L per share dividend). In order to be able to afford it, i will not be collecting my own salary this month.

At this point I am still deciding whether or not to do any buybacks - I probably have enough personal cash to do some, but I am worried about the tenuous state of the SL economy, and so am thinking about building up a reserve to ensure that tier is covered on all islands for more than a month at all times - so I am probably going to throw my cash into the kitty. In addition, the juicy prices of mainland (for buyers that is) are tempting me more and more to get back into the mainland rental business - since the buy-in cost is so low now and it does provide a cheaper alternative for residents on a strict budget.

Operationally, I still seem to be unable to stop growing! In May, i did purchase a few more Openspace sims, which seem to be doing very well. By the end of June, DDE should have almost 20 Openspace sims and 19 or 20 regular islands. Things are running smoothly, although the continuing database problems in SL have certainly made many of the tenants grumpy.

More soon!