Hope Capital Report
Submitted by:
World Stock Exchange - WSE (Trade)
Date: October 17, 2007
CHAIRMAN'S LETTER
---------------------------
My fellow Shareholders and WSE Traders,
I joined Second Life in December 2006 and within the first week I was convinced that virtual worlds with endless possibilities such as Second Life will provide an extended platform to the existing website and over time would provide Internet users with a complete Broadband Entertainment experience that included live and On-Demand Audio and Video services along with the huge potential for e-Commerce.
At the heart of most economies is a Stock Exchange and therefore I felt it was the right time to establish a stock market for the Second Life economy.
On the 22 December 2006 Hope Capital Ltd a Second Life based company was nothing more than a vision in a pdf file. Today it operates the first and leading fully operational virtual securities exchange in the world. The World Stock Exchange has experienced exceptional growth over the past 8 months and this growth is expected to continue. The World Stock Exchange is History in the making and has exceeded our expectations.
The WSE has faced will continue to face challenges such as market volatility, high levels of day trading, smear campaigns against Second Life, the WSE, Hope Capital and its management along with false or misleading conduct by a small percentage of companies on the WSE.
The WSE has overcome a number of recent direct challenges that resulted in significant losses. These include development bugs, the loss of approximately L$3m due to theft from a former employee and his accomplices who successfully hacked the system using insider system knowledge just prior to the WSE Security system upgrade that now prevents such actions from occurring, recent policy changes by Linden Lab regarding gambling in Second Life and negative market sentiment regarding virtual banks which combined to create panic and concern which resulted in a significant increase in user withdrawals and the implementation of Risk API, an imposed security feature which at the time resulted in a large number of users being unable to make deposits.
Although the WSE has overcome the above financial challenges well it would not be appropriate or advisable for Hope Capital Ltd to pay a dividend for the quarters ending 6 August 2007 and 6 November 2007 and the bond interest payment for period ending 2nd November 2007. All profits currently being generated by Hope Capital Ltd are being held to offset previous unexpected losses. We expect to be in a position to meet all dividend and bond interest payments in the future as we will see a significant increase in trading volume and profit resulting from the anticipated high growth of WSE entering Mid November 2007 to February 2008.
We have also seen a wave of stock exchange and bank start-ups trying to gain a share of the lucrative market through lots of empty promises that try to create the impression of a safer and more regulated trading environment along with offering unrealistic interest rates or by using questionable tactics to acquire customers.
We express caution to all users before considering to use a start-up exchange or banking service. Such operations are small, extremely risky due to a lack of credibility, brand awareness and experience. We have seen more than enough examples of banks with high interest rates and start up exchanges closing down and suffering extreme losses for customers or going completely bankrupt due to fraud or empty promises.
Although it is good to have competition in all markets especially those that have matured it is important to remember that in a small emerging economy such as Second Life there is limited liquidity and available capital in the market and as a result it is imperative that we have a large strong solid Stock Exchange and Bank backed by real life people who can pool all its vast resources into continued Research & Development, Growth and Marketing rather than many small operations that are likely fraudulent or scams and simply dilute the precious market that remains.
These challenges are expected in a new emerging market and economy that is in many cases emotionally driven, ambitious and apprehensive.
The WSE has constantly made every effort where possible to improve and develop our services while providing information to allow all stakeholders an opportunity to share in the future growth and prosperity of the World Stock Exchange and virtual world economies such as Second Life.
I'm pleased to announce that since March 7th 2007 the World Stock Exchange has achieved over 25,000 user accounts, raised virtual businesses over L$145 million Linden Dollars and total Exchange Turnover has exceeded L$462 million.
The WSE is well established in the virtual world of Second Life and is now poised to reach new heights thanks to the hard work of our development team and the integration of a new fictional currency called the World Internet Currency (WIC) which will provide all Internet users with the opportunity to learn and participate in the new world of virtual securities trading.
WSE 4.0 AND BEYOND
We have almost completed the release of WSE 4.0 which includes:
- Full shareholder voting on company resolutions
- Financial reporting system on monthly or quarterly earnings.
- Automatically generated company data such as Price to Earnings Ratio, Net Tangible Asset and Earnings Per Share with more to come in the future.
- Market Analyst reporting system allowing approved WSE analysts to provide reports on the operational and financial performance of listed companies along with buy and sell recommendations that includes the target price.
- Market Rating system allowing all WSE traders to apply a 1 - 5 star rating on all companies based on their experiences as a shareholder or on their opinions of the companies operational and financial performance.
- IPO Applications List allowing all WSE Traders and Analysts to review and apply a marketing rating to all IPO Applications thereby allowing the WSE to view the markets preferred choices prior to making any approvals.
- Portfolio News section allowing WSE traders to stay informed on any events, outstanding resolutions or news from companies listed in their Watchlist and Portfolio.
- THE KILLER APP OF VIRTUAL FINANCE NOT YET REVEALED BUT COMING SOON....
THE SECRET IS REVEALED!
Yes its true, it has always been part of the WSE's agenda to ensure that all WSE Traders whom we class as stakeholders would be indirectly protected as much as possible from the potential ethics based fraud and misconduct that would come from businesses listing on the WSE during the start-up and development phase which has been almost entirely unregulated environment in order to cultivate and encourage growth.
The Secret is out and the time has now come as we feel there is an improved regulatory environment and sufficient information available to WSE traders in order to help them make informed decisions when trading on the WSE.
World Stock Exchange Traders Fund (WTF) is a specially designed fund that holds shares in Hope Capital Ltd on behalf of all WSE account holders who have lost their virtual shares or bonds in delisted companies up to the 19th October 2007. All WSE account holders are stakeholders in the business.
Management alone did not make the WSE what it is today and it is through the participation of our customers that the WSE has become what it is today and what it will become in the future.
WSE account holders will have all their shares in any company that was delisted due to fraud or bankruptcy converted into shares in the World Stock Exchange Traders Fund (WTF).
The WSE Traders Fund will be allocated shares in Hope Capital Ltd on 23rd October 2007 and will begin actively trading on the WSE on the 24th October 2007.
CURRENT CONVERSIONS INCLUDE:
APT 1 - 3
PNK 1 - 1
IBM 1 - 1
MPR 1 - 1
PCL 1 - 1
PPC 1 - 1
RIN 1 - 1
SEX 1 - 1
TSF 1 - 10
WED 1 - 1
TLS 1 - 1
XAN 1 - 1
XDT 1 - 1
SBJ 1 - 1
TGC 1 - 1
PGI 1 - 3
AMD 1 - 0.5
CIG 1 - 1
We will announce any new conversions to the WTF on the 19th October 2007.
'2004 – '06 were the years of Google, YouTube & MySpace
'2007 – '09 will be the years of IPTV, Wikipedia, FaceBook, Second Life and the World Stock Exchange!
Kind Regards,
LukeConnell Vandeverre,
Chairman & CEO
---------------------------
My fellow Shareholders and WSE Traders,
I joined Second Life in December 2006 and within the first week I was convinced that virtual worlds with endless possibilities such as Second Life will provide an extended platform to the existing website and over time would provide Internet users with a complete Broadband Entertainment experience that included live and On-Demand Audio and Video services along with the huge potential for e-Commerce.
At the heart of most economies is a Stock Exchange and therefore I felt it was the right time to establish a stock market for the Second Life economy.
On the 22 December 2006 Hope Capital Ltd a Second Life based company was nothing more than a vision in a pdf file. Today it operates the first and leading fully operational virtual securities exchange in the world. The World Stock Exchange has experienced exceptional growth over the past 8 months and this growth is expected to continue. The World Stock Exchange is History in the making and has exceeded our expectations.
The WSE has faced will continue to face challenges such as market volatility, high levels of day trading, smear campaigns against Second Life, the WSE, Hope Capital and its management along with false or misleading conduct by a small percentage of companies on the WSE.
The WSE has overcome a number of recent direct challenges that resulted in significant losses. These include development bugs, the loss of approximately L$3m due to theft from a former employee and his accomplices who successfully hacked the system using insider system knowledge just prior to the WSE Security system upgrade that now prevents such actions from occurring, recent policy changes by Linden Lab regarding gambling in Second Life and negative market sentiment regarding virtual banks which combined to create panic and concern which resulted in a significant increase in user withdrawals and the implementation of Risk API, an imposed security feature which at the time resulted in a large number of users being unable to make deposits.
Although the WSE has overcome the above financial challenges well it would not be appropriate or advisable for Hope Capital Ltd to pay a dividend for the quarters ending 6 August 2007 and 6 November 2007 and the bond interest payment for period ending 2nd November 2007. All profits currently being generated by Hope Capital Ltd are being held to offset previous unexpected losses. We expect to be in a position to meet all dividend and bond interest payments in the future as we will see a significant increase in trading volume and profit resulting from the anticipated high growth of WSE entering Mid November 2007 to February 2008.
We have also seen a wave of stock exchange and bank start-ups trying to gain a share of the lucrative market through lots of empty promises that try to create the impression of a safer and more regulated trading environment along with offering unrealistic interest rates or by using questionable tactics to acquire customers.
We express caution to all users before considering to use a start-up exchange or banking service. Such operations are small, extremely risky due to a lack of credibility, brand awareness and experience. We have seen more than enough examples of banks with high interest rates and start up exchanges closing down and suffering extreme losses for customers or going completely bankrupt due to fraud or empty promises.
Although it is good to have competition in all markets especially those that have matured it is important to remember that in a small emerging economy such as Second Life there is limited liquidity and available capital in the market and as a result it is imperative that we have a large strong solid Stock Exchange and Bank backed by real life people who can pool all its vast resources into continued Research & Development, Growth and Marketing rather than many small operations that are likely fraudulent or scams and simply dilute the precious market that remains.
These challenges are expected in a new emerging market and economy that is in many cases emotionally driven, ambitious and apprehensive.
The WSE has constantly made every effort where possible to improve and develop our services while providing information to allow all stakeholders an opportunity to share in the future growth and prosperity of the World Stock Exchange and virtual world economies such as Second Life.
I'm pleased to announce that since March 7th 2007 the World Stock Exchange has achieved over 25,000 user accounts, raised virtual businesses over L$145 million Linden Dollars and total Exchange Turnover has exceeded L$462 million.
The WSE is well established in the virtual world of Second Life and is now poised to reach new heights thanks to the hard work of our development team and the integration of a new fictional currency called the World Internet Currency (WIC) which will provide all Internet users with the opportunity to learn and participate in the new world of virtual securities trading.
WSE 4.0 AND BEYOND
We have almost completed the release of WSE 4.0 which includes:
- Full shareholder voting on company resolutions
- Financial reporting system on monthly or quarterly earnings.
- Automatically generated company data such as Price to Earnings Ratio, Net Tangible Asset and Earnings Per Share with more to come in the future.
- Market Analyst reporting system allowing approved WSE analysts to provide reports on the operational and financial performance of listed companies along with buy and sell recommendations that includes the target price.
- Market Rating system allowing all WSE traders to apply a 1 - 5 star rating on all companies based on their experiences as a shareholder or on their opinions of the companies operational and financial performance.
- IPO Applications List allowing all WSE Traders and Analysts to review and apply a marketing rating to all IPO Applications thereby allowing the WSE to view the markets preferred choices prior to making any approvals.
- Portfolio News section allowing WSE traders to stay informed on any events, outstanding resolutions or news from companies listed in their Watchlist and Portfolio.
- THE KILLER APP OF VIRTUAL FINANCE NOT YET REVEALED BUT COMING SOON....
THE SECRET IS REVEALED!
Yes its true, it has always been part of the WSE's agenda to ensure that all WSE Traders whom we class as stakeholders would be indirectly protected as much as possible from the potential ethics based fraud and misconduct that would come from businesses listing on the WSE during the start-up and development phase which has been almost entirely unregulated environment in order to cultivate and encourage growth.
The Secret is out and the time has now come as we feel there is an improved regulatory environment and sufficient information available to WSE traders in order to help them make informed decisions when trading on the WSE.
World Stock Exchange Traders Fund (WTF) is a specially designed fund that holds shares in Hope Capital Ltd on behalf of all WSE account holders who have lost their virtual shares or bonds in delisted companies up to the 19th October 2007. All WSE account holders are stakeholders in the business.
Management alone did not make the WSE what it is today and it is through the participation of our customers that the WSE has become what it is today and what it will become in the future.
WSE account holders will have all their shares in any company that was delisted due to fraud or bankruptcy converted into shares in the World Stock Exchange Traders Fund (WTF).
The WSE Traders Fund will be allocated shares in Hope Capital Ltd on 23rd October 2007 and will begin actively trading on the WSE on the 24th October 2007.
CURRENT CONVERSIONS INCLUDE:
APT 1 - 3
PNK 1 - 1
IBM 1 - 1
MPR 1 - 1
PCL 1 - 1
PPC 1 - 1
RIN 1 - 1
SEX 1 - 1
TSF 1 - 10
WED 1 - 1
TLS 1 - 1
XAN 1 - 1
XDT 1 - 1
SBJ 1 - 1
TGC 1 - 1
PGI 1 - 3
AMD 1 - 0.5
CIG 1 - 1
We will announce any new conversions to the WTF on the 19th October 2007.
'2004 – '06 were the years of Google, YouTube & MySpace
'2007 – '09 will be the years of IPTV, Wikipedia, FaceBook, Second Life and the World Stock Exchange!
Kind Regards,
LukeConnell Vandeverre,
Chairman & CEO