Archive - Oct 28, 2007
SL Risk describes themselves as Second Life’s “First Fully functional Credit Reporting Acency [sic] (Credit Bureau).” They say, “Need to know if an avatar is a good risk for that loan that they applied for? Just grab a complete report from slrisk & you now have a wealth of additional information to base that decision on!”
Unfortunately, Jon was not impressed and listed SL Risk as a strong sell. His target price was L$ .50. SL Risk had traded at L$ .50 as recently as August 30th. It had climbed up to L$ 1.12 on October 9th and traded in the range of L$ .78 to L$ 1.27, closing at L$ .55 after Jon’s report.
On October 26th, SL Risk Investor Whitfield, CEO of SL Risk issued an announcement informing investors of their decision to delist from the World Stock Exchange and list over on the ACE. In the announcement, Investor Whitfield wrote,
At this time when we are posting decent profits and have a viable business model & great response to the credit reporting service - to have a decrease in share price can only attributed to one factor - that is the "Strong Sell Rating" issued by an analyst. Until analysts have some Guidelines set down by the WSE regarding the way analysis is done, I fear that this type of "opinion written as fact" will continue to plague other companies as well.
IntLibber Brautigan, head of ACE wrote in their announcement,
Investor Whitfield, CEO of SL Risk (RIS) has made the decision to relist RIS on ACE. RIS is a profitable company with excellent prospects, whose stock dropped in price only due to an unqualified "analyst" on WSE issuing a strong sell rating on the company without any quantifiable evidence to support such a decision. ACE is bullish on the future of RIS and is very happy to see RIS relist with us.
This move appears, at least initially, to have benefited SL Risk shareholders. SL Risk has been trading in a range of L$ 1.50 to L$ 5.50, well above its range over on the World Stock Exchange.