Wednesday, August 1, 2007

LEM - Report and dividend

NAV rose in July from 1.637 to 1.908.
Net profitability of own capital is 9% /month
Dividend is 4% /share/month

LEM also got caught in the latest turbulences caused due technical problems in WSE and the new LL gambling politicy. However, due to diversification of our portfolios we could largely compensate our losses in certain titles.

Our first derivative-LFB- is starting to show a positive trend, mainly driven by RDX. We hope that this tendency will continue. LWI on the other hand is actually in train to be readapted to the latest changes, as companies de-listed from WSE and others want to join or start to fulfill our criteria. The index as a whole stayed stable during the last 10 days and even start to be bullish again. We don’t see any reasons to panic therefore.

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 continue to 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 for August (May-June)
Income ($L):
Financial products : 358’698 (668'725)
Consulting : 10’000 (46'000)
TOTAL : 368’698 (714'725)

Expenses ($L):
Financial Products : 170’000 (414'510)
Donation : 20’000 (23'000)
Tier : 13’000 (10'000)
Wages : 10’000 (12'000)

TOTAL : 213’000 (459'510)

Profit ($L) : 155’698 (255'215)

use of profit: 80'000 dividends, 330’913 go into next reporting, 112’295 go into reserves)

Asset ($L)
WSE : 2’617’427 (4'532'918)
AVIX : 1’361’450 (831'003)
DSE : 56’000 (60'000)
ISE : 17’000 (0)
Land : 120’000 (120'000)
Loan : 2’500’000 (0)
Cash : 700’000 (600'000)
Investment : 14’000 (10'000)

Total : 7’395’882 (6'153'921)

Liabilities ($L)
Loan : 3’500’000 (2'800'000)
Dividend : 80’000 (80'000)
Total foreign capital : 3’580’000 (2'880'000)

Constitutional capital LEM: 2’000’000 (2'000'000)
Constitutional capital LFB: 999'640 (1’000’000)
Constitutional capital LWI: 430’026
Reserves : 211’001(98'706)
Profit(+pre-period) : 330’913 (175'215)
Total own capital : 3’815’882 (3'273'921)

Total liabilities: 7’395’882 (6'153'921)

Monthly dividend/share : 0.04 $L /month (0.02)
NAV 1.908 (1.637)

(1) Again we did a bit of trading. Strongest positions we held in HCL, AVIX, AIC, LNL, THI.
Because of LWI we are obliged to manage a large portfolio, however, our objective is to reduce it as most as possible in order to go for more strategical investments.

(2) Our consultancy income was reduced to due the fact that we had no time left to push our projects. We weren’t in holidays but our customers were..;-). We plan to put more emphasis to this during August.

(3) LFB is still in the minus. However, recent development showed that the downward process is broken and we hope to see the basket becoming bullish in the future. This could be driven by the shares of HCL and AIC which we think are both undervalued.

(4) LWI needs to be rebuild as different companies left WSE and the new LL gambling politicy caused a turmoil. However, gaming will still be a major activity of the avatars in SL and that is why gambling activities will remain in the index. We just reduce the portion of it. The “new” adapted index will be published in a couple of days. I can already say that the index survived the last ten days of turbulence without loosing too much feathers which shows that panicking is a bad strategy. Nobody knows what will happen tomorrow but we don’t neglect the facts and figures. And the economy in SL was growing till now each month with >10%. Does SL has already developed a kind of self dynamic…we will see.

(5) Derivatives: We continue to develop and bring derivatives on the market.

(6) LEM Foundation. Actually the foundation is managing 45’000 $L and there are no concrete projects in sight. LEM Foundation is an independent initiative from LEM in order to support innovative environmental projects within SL. It is paradox but apparently nobody cares about environment and we cannot use our funds. Ideas are welcome…! Our only environmental engagement we do directly over LEM as we held an important stake in ETC. Projects can be suggested to Casper Trebuchet.

(7) Thoughts
Fundamentalist exist everywhere who want to gift us with their “better” world together with SOP’s and regulation. Also creeps who are just interested to steal your money. The strength of SL, however, was that there were virtually no rules or regulations or even taxes. This is exactly the environment which creates innovation. And the avatars thanked in their way as they build up a functioning naturally build up social community with own ethical values.

We don’t need attorney’s or moral apostles but more freedom in SL..

Next report:
Next report will be published on September 2. Updates values for NAV, LFB and LWI are published on our blog (

In case of further questions please IM Casper Trebuchet

Casper Trebuchet

House of derivatives (LFB, LWI)

No comments: