Saturday, June 30, 2007

Bi-monthly report : dividend payment

Summary
=================================================================================
NAV rose over last two months (3May-30Jun) from 0.72 to 1.637.
Net profitability of own capital is 6.38% /month
Dividend is 2% /share/month

Two derivatives have been developed. LFB traded on the WSE board (actual value 9.75) and LWI the first index derivative in SL which runs as IPO at the moment.

We will continue politicy to develop new financial derivatives and put them on the market in order to become one of the leading derivative company in SL.

Furthermore, we will expand our financial services for third parties and intense our activities to bring RL companies into SL.

These measures will positively influence the future profitability of LEM

Results (period May-June)
================================================================================
Income ($L):
------------
Financial products : 668'725
Consulting : 46'000
TOTAL : 714'725

Expenses ($L):
--------------
Financial Products : 414'510
Donation : 23'000
Tier : 10'000
Wages : 12'000

TOTAL : 459'510

net bi-monthly profit ($L) : 255'215

use of profit: 80'000 dividends, 175'215 to go into next reporting)

Asset ($L)
----------
WSE : 4'532'918
AVIX : 831'003
DSE : 60'000
Land : 120'000
Cash : 600'000
Investment : 10'000

Total : 6'153'921

Liabilities ($L)
----------------
Loan : 2'800'000
Dividend : 80'000
Total foreign capital : 2'880'000

Constitutional capital LEM: 2'000'000
Constitutional capital LFB: 1'000'000
Reserves : 98'706
Profit : 175'215
Total own capital : 3'273'921

Total liabilities: 6'153'921

Bi-monthly dividend/share : 0.04 $L /month
NAV 1.637


Notes:
========================================================================
(1) We did quite a bit of trading, in fact rather successfully, also we lost money with AMD and ACT. However, this is not our main objective. Major shares packets we
possess right now are in HCL, AVIX, AIC, THI, MDC to name the five most important.

(2) We are much too way into shares and want to reduce our trading activities. The latter is one of the reasons why we created the derivative LWI which we will also use for our own purposes and which is actually running as IPO on WSE. it will help us with little efforts to manage our portfolio in an efficient way. The strategy behind is challenging and the development so far is not too bad as the calculated index rose more than 7% in the last week. If this tendency would continue we would be more than happy... LWI considers 34 shares from WSE which show a good performance. The index is equally weighted and follows Laspeyres. Free float is considered but only informal as this data is not very transparent in SL, unfortunately. We would like to weight the shares after their market capitalization but this makes little sense without having information about the free float of the shares. The index is managed actively.

(3) We want to expand our services related to derivatives which includes portfolio analysis. We want to become one of the major players in this field within SL. Different products are in evaluation right now. LFB as first derivative within SL is doing well and counts more than 80 shareholders. Unfortunately, the basket itself suffers from slumping share values of HCL, AIC, BNT and RDX. However, a minimum dividend of 2% is still guaranteed and the up coming WIC will hopefully boost the values of the shares again which are listen on WSE. Other products are in development.

(4) Our main objective is still to bring RL companies into SL and support them to setting up. We weren't very active so far as we also have a RL..lol. But still, we plan to increase our activities in this field significantly. We are in contact with different companies.

(5) We reduced our loan activities as we don't consider them as relevant for us. Real estate is also not our main focus also we don't refuse to finance such projects. Our property with 8192 qm on White Mall Island is rather small but fits largely our purposes. Indirectly we are invested in real estate due to positions in our portfolio we hold as ETC, BNT etc. ETC is not only a financial investment but also a contribution to support an environmental initiative we highly appreciate.

(6) It is the first time that we give a donation to LEM foundation. LEM foundation is an IPO which was created by us but which operates independently. The main goal is to support innovative environmental projects within SL. Actually discussions are ongoing with AAC in order to sponsor some of their activities. There are actually 23'000 $L available. Projects can be suggested to Casper Trebuchet.

(7) Outlook
Linden statistics are showing that the economy is growing. Logically this also will have an impact on the stock exchange markets within SL. We expect quite a lot of the WIC if it will be fully available and WSE integrated into it. However, there also threads. If the authorities would start to apply regulations for the Linden economy then this wouldn't be helpful and probably kill the business aspect of LL. But's lets be optimistic. SL is a gameland and cannot replace real economy...

Next report:
===================================================================================
In the future we will report and pay dividends on a monthly basis. The NAV will only be published at the end. We continue to publish daily values for LWI till the title is sold off and weekly for LFB on our blog (http://lemurinvest.blogspot.com)

In case of further questions please IM Casper Trebuchet

Greetz
Casper Trebuchet
Chairman

No comments: