During my recent trading in the Second Life Capital Exchange (SLCAP), three stocks have particularly caught my attention, AIG, BNT and DGD. The three stocks are closely tied to trading activity here and each have seen interesting activity.

Over the past couple of days, BNT has seen trading volume 15 to 20 times normal as it continues its downward trend. It closed on July 5th at 1.08, and by September 3rd had hit .25. IntLibber Brautigan is listed as its CEO and Chairman and Nicholas Portocarrero is listed as a Non-Executive Director, as is Maelstrom Baphomet Nicholas was also CEO of the recently collapsed Ginko Financial. IntLibber is listed as owning 84.5% of the stock, with Nicholas owning another 7.7%. Over the past week, 4.7 million shares were traded, with 3.5 million of this taking place in the last two days. Unfortunately, the research pages on SLCapEx do not show individual trades my major holders and the listing of major holders does not appear to have been updated recently. There are currently outstanding orders to sell more than 300,000 shares.

There had been talk on the forums about Nicholas selling off his shares of BNT. If this is what has led to the most recent drop, it would be great to know how many shares he has left. If his shares are being taken up, then we may be approaching a bottom and BNT could be undervalued at this point. There are also reports that IntLibber has been selling some of his stock. Looking at previous reports, he does seem to have sold off around 600,000 shares, perhaps more, but it is hard to tell given the lack of details on the research page. Given uncertainty about his intentions, the stock is likely to remain highly volatile.

There is a lot of chatter about finding the fair price for the stock, and various people have come up with values ranging from .15 to .41 Linden.

DGD is another stock that has taken a long trip downward. On July 4th, DGD was trading at 5.95. It has dropped down to 1.11 on September 2nd. IntLibber had held 8% of DGD but is no longer listed as holding any. Given the lack of details from SLCapEx, I can’t tell exactly when he sold off his shares. Maelstrom Baphomet is listed as the CEO. He currently holds 54.6% of the stock, and his business plan looks particularly good. In his plan, he talks about a full range of investing strategies from flip trading and market making to long term stock and land ownership. DGD appears to be bouncing back from its lows, and is probably a good stock to be accumulating right now.

AIG is a third stock in this constellation. Maelstrom Baphomet also sits on the board of AIG. AIG has been much more stable, trading at .93 on June 24th and trading at .95 on August 10th. Since the tenth, however, it has seen a steep drop off as well, dropping to .35 on September 3rd, also in higher than average volumes. AIG’s asset and fund management may have been hit by the volatility in other SLCapEx stocks, yet their long term prospects also look promising.

In many ways, it appears as if much of the recent stock declines are a result of the collapse of Ginko Financial working its way out in the markets. This should result in decreased volatility moving forward. To the extent that more disclosure becomes available, this should also reduce volatility and lead to increased share prices. All in all, this is probably a good time to start accumulating Second Life stocks of those companies that you feel you can trust the CEO.

Disclaimer sort of stuff. Second Life trading exists in a nebulous area. People talk about it as just a game, yet there is a lot of real money riding on this. Regulators have not yet stepped in, but they may do so before we know it. Personally, I have been day trading all of these stocks, but all on pretty small amounts. So, all of this should be taken as personal opinions about what is going on. Any other opinions are greatly appreciated.