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Banque
Lonely Pear Inc.
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Posted - 2010.08.29 17:24:00 -
[1]
Edited by: Banque on 29/08/2010 17:35:12 Please feel free to ask all questions as a reply to this topic
Shares will be traded on the Little League Stock Exchange [LLSE] Starting 00.00 on the 1st of September.
There will be no reservations as all rules of the [LLSE] apply.
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Banque
Lonely Pear Inc.
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Posted - 2010.08.29 17:26:00 -
[2]
Lonely Pear Inc.
ò Chapter 1 - Summary of Lonely Pear Inc. ò Chapter 2 - Background on origins/idea/current business ò Chapter 3 - Corporate Governance ò Chapter 4 - The Business Plan ò Chapter 5 - Statement of Assets ò Chapter 6 - Full Disclosure of Risks ò Chapter 7 - Full Disclosure of Main and Alts ò Chapter 8 - Exit Strategy ò Chapter 9 - IPO Phases, Dividends, Market Cap ò Chapter 10 - FAQ
Chapter 1 - Summary of Lonely Pear Inc. For the Investor with growth of wealth and stability in their portfolio on their mind our service provides a diverse managed-risk approach to easy wealth accumulation and investing that provides stable returns in both a dividend payout as well as a increase in share capital because it has a diverse and successful ownership of various emerging and stable corporations taking an active role in many of EveÆs main and niche markets. Unlike other wealth funds that provide you with a low fixed rate of return your return will grow as we grow.
Chapter 2 - Background on origins/idea/current business Eve has provided a fun outlet for me to wile away the many hours of free time I have. No other game allows for such a diverse and active market to participate in. I have enjoyed all forms of industrial activities over my history of playing this game. I have also profited greatly due to my knowledge of RL economics in my trading activities. I believe it is time to try out my RL finance abilities in game. This is where I obtained the concept of a wealth fund. While abundant in RL they are very rare in EVE. Revenue in wealth funds is associated to how much money you have to invest. Profit however is related to how smartly you invest. I will attempt to use my RL skills (See FAQ) and EVE knowledge to combine both these principles to run a successful wealth fund.
Chapter 3 - Corporate Governance Banque is the CEO and Founder of Lonely Pear Inc. He has sole access to the corporationÆs wallet, assets and account. He will also make all business decisions. There is always the ability to option out of your investment if you disagree with the decisions, as all shares will be traded on the LLSE.
Chapter 4 - The Business Plan Lonely Pear Inc. is an investment fund designed for the sole purpose of increasing shareholder wealth while diversifying risk. Our objective is to purchase a ôBasket of Sharesö in many different corporations that are active in different segments of the Eve market this is done in order to reduce risk as much as possible. The majority of the costs of operation are the share and bond purchases themselves as these are the cores of the business. There are other minuscule costs such as cspa charges and corporate office subscriptions however they are small enough to be ignored. Profit margins are variable due to the nature of the business but the general aim is to obtain the most reward for the least risk possible. Due to this methodology we are looking at a return of between 5% and 15% of all invested capital. We will also be providing a third party service due to this there may be cash injections as the trust in this service is gained. All Shares will be kept by the Corporation and will be sold only when capital gains are optimal. In this situation the seed money from the initial investment will be re-invested and profit distributed among the shareholders.
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Banque
Lonely Pear Inc.
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Posted - 2010.08.29 17:28:00 -
[3]
Chapter 5 - Statement of Assets Due to the nature of the business, secrecy and discretion is essential. It is because of this that I will not disclose the names of the shares I hold. As of the moment of writing this there is a ratio of 74.62% Share purchases and 25.38% Bond purchases on a One Billion-ISK Investment. I do plan to reduce the number of equity investments however as a long-term strategy. This will be replaced with liability purchases to keep in line with the more risk-free investment approach.
Chapter 6 - Full Disclosure of Risks Bankruptcy- Should the companies We invest in default on their loans or fail as a business the shares or bonds we own will not retain their value. In order to mitigate this risk I will diversify the selection as much as possible. Susceptibility to a Scam- There is always the chance I will be scammed. In order to reduce this risk on large transactions I will always attempt to use a reputable third party. Sneaky Bus- Should a bus sneak up on me and blind side me your investment will be lost. You will have the satisfaction of knowing I am dead however! The Scam- This could all be a scam to take all your monies. There is nothing I can say to alleviate that risk. Please only invest if you can afford to and believe otherwise.
Chapter 7 - Full Disclosure of Main and Alts
Banque û Founder and CEO (Alt whose sole purpose is this corporation) Silah û Main. He is one and a half years old. Will play no active role in this corporation. Silah provided the initial one billion ISK investment.
Chapter 8 - Exit Strategy Should the Business Fail for whatever reason all Shares will be sold of in auction and Bonds returned without interest for that period (Similar to breaking a RL fixed CD). Once this liquidation is over all funds will be divided among Shareholders.
Chapter 9 - IPO Phases, Dividends, Market Cap
Total Number of Shares 10001+1000 new shares
Shares Allocated for Expansion 1000 new shares
Price Per Share 100,000
Anticipated Market Capitalization 1,100,000,000
Dividend Schedule Monthly (1st of the month or nearest date)
Total Dividend Payment Due to the nature of the business this figure is variable however I am aiming at obtaining between 5%-15% return on total invested funds.
Projected Return per Dividend Payment (%) 25% of profit paid out remainder is re-invested Please be aware that the objective is Capital gains on share value and not dividend payout.
Projected Return per Share see above
IPO offering will consist of one phase
There may be more shares sold in the future depending on future capital needs
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Banque
Lonely Pear Inc.
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Posted - 2010.08.29 17:32:00 -
[4]
Chapter 10 - FAQ
Q: How do I know this isn't a scam? A: As with any investment you do not. Please invest wisely and only what you can afford. If in doubt ask questions. If you are still in doubt walk away.
Q: How do you know you'll be successful? A: It has succeeded thus far. I also have a RL background in this field of work and while everything RL does not translate into EVE directly I can still utilize the majority of my knowledge.
Q: Why are you doing this? A: It is much more fun to play Internet spaceships with other people!
Q: Do you intend to have an audit done at some point? A: Not for this IPO but if greater funds are required later I would be willing to upon request.
Q: What's your background? A: Graduated as a Finance Major from University and have two years experience in a global development firm as an accountant. I am back at school for my MBA so I have plenty more time to play EVE.
Q: Will you ever buy back shares? A: This is a possibility however it will be done on the LLSE.
Q: Will you ever pay over 5%-15% dividends? A: This depends on the situation. Should one of the companies we own shares in liquidate this wealth will be divided.
Q: What if someone War Decs Lonely Pear Inc.? A: There is no reason for me to undock. If I do however all shares and ISK are safe due to the isk and share nature of the business. There is greater risk in being scammed than war-decced.
Q: Can I buy shares directly from you? A: All shares must be traded through the LLSE. It is operated by Cista2. Please review the LLSE stock trading rules before purchasing shares.
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Banque
Lonely Pear Inc.
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Posted - 2010.08.29 17:34:00 -
[5]
Reserved
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Banque
Lonely Pear Inc.
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Posted - 2010.08.29 17:36:00 -
[6]
Reserved
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Cista2
Hydra Investment Fund
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Posted - 2010.08.29 19:02:00 -
[7]
Confirming that LPEAR shares can not be bought and not be reserved yet.
To those of you that are/already have been sending me isk: you should really learn to read. I have other things to deal with, so I am simply going to keep your isk. After the 1st you can try to get it back or get shares.
----------------------- "Signatures" chatroom / Hydra Fund / LLSE Stock Market |
Lucyna
Minmatar Interstellar Killer Bee Enterprises
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Posted - 2010.08.29 19:05:00 -
[8]
Haha epic!
Sorry, Cista2 you are the best :)
You might want to get them their money back sooner than the 1st though, people don't like it when they give someone their money expecting something and then don't get it back too much around these parts... _________ Eve - for when I'm not playing minecraft ;) |
Cista2
Hydra Investment Fund
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Posted - 2010.08.29 19:08:00 -
[9]
Originally by: Lucyna You might want to get them their money back sooner than the 1st though
No, really I think more people should just send me isk. ----------------------- "Signatures" chatroom / Hydra Fund / LLSE Stock Market |
Sampledjoker
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Posted - 2010.08.29 19:09:00 -
[10]
That's shady of you Cista2. |
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Ji Sama
Caldari Tash-Murkon Prime Industries manufacturing disaster
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Posted - 2010.08.29 21:17:00 -
[11]
Originally by: Sampledjoker That's shady of you Cista2.
Indeed it is.
Running ponzies for more than a year now, never been audited to my knowledge! And now sole director of a stock exchange, t2 bpo fund/bank/investment management something and multible bonds. Around what? 40-60B unsecured/uncollateralized/unaudited isk?
Insisting on a business model, that encourages clients that wants to reserve and get shares send their ISK as fast as possible. Now keeping isk that gets send in advance.
Nothing personal here Cista, you know where I stand in regards to your "business" I like your personal style. But business wise, I have serious issues with the way you run things.
Sorry for the rant. I felt it needed to be said, you wont see me say anything negative again, since this can be eve searched anyways, and anyone investing with you, is of course doing this at their own risk. And I feel, I have been giving you a hard time already.
Fly safe and good luck sistar cista/sistar
in before the; you are just jealous argument
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Silver Drag0n
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Posted - 2010.08.30 00:49:00 -
[12]
Originally by: Banque
Total Number of Shares 10001+1000 new shares
Shares Allocated for Expansion 1000 new shares
Price Per Share 100,000
Anticipated Market Capitalization 1,100,000,000
My math says that 1,000 x 100,000 + 10001 x 100,000 = (100,000,000) + (1,000,100,000) = 1,100,100,000 Total Market capitalization.
Originally I thought you were a billion off, then I included the shares you were going to own as CEO. XD
But hey, who cares about a mere 100,000 isk >.>
Looks interesting, we'll see how it plays out.
Though I must say that your statement on returns has me a bit worried.
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Banque
Lonely Pear Inc.
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Posted - 2010.08.30 04:46:00 -
[13]
Thats an important share to be leaving out Thanks for bringing that to my attention! What is worrying you about the returns and which statement exactly?
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Silver Drag0n
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Posted - 2010.08.30 06:06:00 -
[14]
Originally by: Banque Thats an important share to be leaving out Thanks for bringing that to my attention! What is worrying you about the returns and which statement exactly?
Promising percentages can get tricky. Given that you're on the LLSE, it means that this is more than likely a new experience for you (and a lot of those involved). Advice I was given from others already heavily invested in MD: If you can avoid percentages, do so. People like solid numbers, there's no smoke and mirrors behind it.
Difference of statements: 5% of 100k for 100 shares is 500k isk. Now saying that you plan to pay out 25% of profits as dividends, that means that either we as shareholders get less than 500k (possibly), or we get our minimum.
I will admit, growth is a promising aspect, but when percentages are removed, people like it more. It's a lot more comforting to say "I get XXX isk per month" rather than "I hope Banque makes at least YYY,YYY,YYY isk this month..."
But hey, what do I know, I'm just an investor who's too stingy to trade his stocks.
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Banque
Lonely Pear Inc.
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Posted - 2010.08.30 20:22:00 -
[15]
Read the updated info above Silver Drag0n. I hope i have answered your question as much as possible. I unfortunately cannot give you an exact figure due to the age of the company as well as high rate of return. Sometime I will find an amazing offering providing us with a great return and other times I will have to settle for a less than perfect set of rates as any short term return is better than a month of unused investment funds. If you would like me to clarify any further or have any more questions please feel free to ask.
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Silver Drag0n
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Posted - 2010.08.31 05:56:00 -
[16]
Now see, those numbers are beautiful. Nobody has to whip out a calculator or pick up a pencil; the work's done for them if they choose to accept it.
Now another question; let's say that eventually you reach a point where the capital you control is greater than the market capitalization; what would you do then? Would you distribute it as a bonus, or hold on to it in case you need it as a buffer in the future?
Since this seems to be aimed at running indefinitely, I would recommend the latter.
Other than that, looks good. Welcome to MD, enjoy your stay.
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Shinshi Casoyako
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Posted - 2010.08.31 10:07:00 -
[17]
I readed your plans and I came to the conclusion that this is a very bad investment.
Basicly you want investers to invest in your corporation so you can use that money to invest yourself. This means that all the risk lays with your investers and not even a small part with you.
It is these setups that you see alot of people in real life going bankrupt. Cant find the names of the 3 people I recall that gambled billions of other peoples money away.
Basicly this has a high potential risk of becomming a isk blackhole. . Seriously Have I Not Said How I Can Assist Some One You Are Killing Online? |
Banque
Lonely Pear Inc.
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Posted - 2010.08.31 14:46:00 -
[18]
Originally by: Silver Drag0n let's say that eventually you reach a point where the capital you control is greater than the market capitalization; what would you do then?
That is the objective! i would maintain the same pattern of having a Dividend/re-investment policy however the rates may change. The reason for doing this is to increase the Share Price allowing people to capitalize when they choose to by selling their share and not by waiting for me to hand out their rewards.
Originally by: Shinshi Casoyako not even a small part with you.
I have invested a Billion of my own ISK. Also Apple needed start up money for their corporation and they have not cheated anyone. Do you know how much you would have paid for a share then and how much you would pay for one now? Investment is all about Risk vs. Reward if you feel the risk outweighs the reward do not invest.
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Bud Tugly
Empire Arms Dealers
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Posted - 2010.09.01 00:28:00 -
[19]
Originally by: Banque Edited by: Banque on 31/08/2010 03:57:28 Dividend Schedule:
1st of September 2010: 1000 Share Initial Public Offering
Originally by: Banque Starting 00.00 on the 1st of September
Does this mean selling has begun now?
10,000,000 ISK transfered to Cista2 for 100 shares.
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Lecherito
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Posted - 2010.09.01 01:06:00 -
[20]
Originally by: Bud Tugly
Originally by: Banque Edited by: Banque on 31/08/2010 03:57:28 Dividend Schedule:
1st of September 2010: 1000 Share Initial Public Offering
Originally by: Banque Starting 00.00 on the 1st of September
Does this mean selling has begun now?
10,000,000 ISK transfered to Cista2 for 100 shares.
Be from a better country.
-L
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Bud Tugly
Empire Arms Dealers
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Posted - 2010.09.01 01:21:00 -
[21]
Originally by: Lecherito Be from a better country.
-L
Huh?
Considering the OP didn't list a specific time zone, one would come to the conclusion that it is EVE time. 00:00 is 5:00 pm where I am, in California.
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Banque
Lonely Pear Inc.
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Posted - 2010.09.01 02:28:00 -
[22]
Sorry everyone long day of classes was unable to log on. I meant eve time so yes all shares are currently for sale!
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SpartanK34
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Posted - 2010.09.01 03:30:00 -
[23]
10mil sent to Cista2 for 100 shares
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Cista2
Hydra Investment Fund
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Posted - 2010.09.01 06:09:00 -
[24]
Confirming that I am now selling shares for this, 100 shares max per person. No reservations. ----------------------- "Signatures" chatroom / Hydra Fund / LLSE Stock Market |
AtheistOfFail
Caldari
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Posted - 2010.09.01 06:26:00 -
[25]
Originally by: Banque I will always attempt to use a reputable third party.
OMG.
*starts checking his eve-mail*
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Mme Pinkerton
United Engineering Services
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Posted - 2010.09.01 07:26:00 -
[26]
Edited by: Mme Pinkerton on 01/09/2010 07:34:23
Originally by: Banque Profit margins are variable due to the nature of the business but the general aim is to obtain the most reward for the least risk possible.
If you have a degree in finance you should know that this sentence is rubbish on more levels than one.
In a "perfect" financial world this sentence leaves room for an infinite combination of risk/reward pairs (efficient frontier/tangency portfolio) which the fund manager can choose from based on his preferences. As there is no reason he should choose an inefficient portfolio this statement leaves his customers completely in the dark as to what strategy he is going to go for. Anything from zero risk (not really - but infinitesimally small risk is o.k.) to the most extreme risks are within the realm of the possible as long as the expected reward for that level of risk is optimal and not smaller than the optimal reward for a lower level of risk.
You did set yourself an interest-rate corridor between 5% and 15%. This doesn't tell us anything about your strategy either, as 5% is the rate of return on the equivalent of riskless securities in MD and 15% is (more or less) the highest you can go without being allowed to hold negative quantities of the riskless security in order to get additional funding.
But MD is no perfect world.
The range of possible returns on a single (risky) asset is far from being normally distributed, as most risk does not stem from the possible deviations in business profits but from the danger of getting scammed. Returns are distributed highly asymmetrical with a peak at -100% and a more usual distribution around the advertised rate of return. Of course there doesn't exist any form of CDS to protect you. Without having a good estimate at the probability of default you cannot even tell us the expected mean return and with that strange a distribution of returns not only do most of the "simple" formulas for mean-variance analysis not work, the real question is in how far variance is still a sensible way to measure risk when dealing with grossly asymmetric distributions.
As most ventures do an IPO after which only extremely limited trading of shares does take place, your exit strategy "sell when it'S most profitable" won't work well - usually you will only find out about the current market-clearing price of shares when you try to sell them - for the most time there doesn't exist any reliable price.
Now, let's move on to the nice topic of betas... due to the unspecific nature of most business plans ("will use the money to do station trading") you usually have no idea to what degree the performing shares in your portfolio are correlated.
But maybe this doesn't matter as most risk stems from getting scammed and that decision is up to the individual business manager? well, you don't have any way to know if there is the same RL person behind different share offerings which could lead to simultaneous defaults.
No RL theory will tell you anything useful about the risk of getting scammed as every analysis of monetary incentives points towards scamming only dependent on the probability of doing a larger scam later on. And to what degree people value their forum rep is private information you have no access too (those that obviously value their rep and have a solid track record are being treated as riskless anyways).
If you don't have a good estimate on the probability of getting scammed everything that might be left of RL financial theories breaks down and you should only invest in riskless securities. However, if the only viable rule of business is "only invest in riskless assets" there is no need for any sort of fund with all its associated overhead (share values are usually low enough to be within the reach of single investors).
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Mme Pinkerton
United Engineering Services
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Posted - 2010.09.01 07:30:00 -
[27]
Edited by: Mme Pinkerton on 01/09/2010 07:35:19
tl;dr forget everything you might have learned about RL financial markets, the theory doesn't apply here - MD is not the NYSE, investing in MD is like to giving out unsecured loans in the backyards of some 3rd world slum.
Your promises of "a diverse managed-risk approach" don't make sense unless that approach is incredibly naive (just take one of everything; just invest in riskless assets) or you know more about the probability of getting scammed than the rest of us. In which case you shouldn't run an investment fund but an insurance service.
Any attempt at more than trivial risk management in MD is doomed to drown in the prevailing uncertainty.
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Bud Tugly
Empire Arms Dealers
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Posted - 2010.09.01 07:37:00 -
[28]
Edited by: Bud Tugly on 01/09/2010 07:42:59
Originally by: Banque Total Number of Shares 10001+1000 new shares
The corp info shows a total of 1000 shares. On the closed votes, there are 12 votes (all passing) for the creation of a sum of 20,001 shares. For a total of 21,001 potential shares.
Obviously, these votes have not yet been acted upon. Which, by the way you should, because if you gave all 1000 shares to Cista2 to be handed out to share holders, you technically no longer own your corporation. Anyone can run for CEO, thereby dropping your role as CEO in the process.
Seems odd, just sayin'
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Cista2
Hydra Investment Fund
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Posted - 2010.09.01 08:00:00 -
[29]
Originally by: Bud Tugly Obviously, these votes have not yet been acted upon.
Ah! Atm I have 199 shares left. They can be bought by investors, but as a precaution I will keep them in my wallet until Banque has sanctioned that vote today, so he retains majority. ----------------------- "Signatures" chatroom / Hydra Fund / LLSE Stock Market |
Banque
Lonely Pear Inc.
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Posted - 2010.09.01 13:46:00 -
[30]
Quote: but as a precaution I will keep them in my wallet until Banque has sanctioned that vote today, so he retains majority.
I do maintain a majority those votes were there so i could access the unsanctioned actions in the future easily. I was unaware that the option to create the shares would be removed as time passed.
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