LWI - report

The status of LWI after its two months existence is listed below (18th September 2007):

symbol, spotprice(S), dividends(D), 24 hr average price(Y), branch
==================================================================
RDX, 3.19, 0.038, 2.67, technology
AMS, 0.27, 0, 0.22, technology, gaming
DDE, 3.72, 0.232, 2.79, real estate, design
ETC, 0.92, 0.01, 1.80, real estate, environment
PNK, 0.90, 0.028, 0.80, services, marketing
HCL, 1.84, 0, 0.69, stock exchange
HOT, 2.95, 0.21, 2.90, real estate
KJL, 1.38, 0.045, 1.08, real estate
LEM, 1.6, 0.085, 2.30, investment banking
LGO, 0.81, 0.02, 0.56, technology
LLL, 1.87, 0.141, 1.53, real estate
RIS, 0.95, 0.02, 0.95, services
MDC, 2.38, 0.177, 2.15, investment banking
THI, 1.54, 0.025, 0.60, real estate, technology
TMA, 3.75, 0.053, 2.54, technology, distribution
VGI, 1.0, 0, 1.18, technology, gaming
(LWI16) 762.54

We reduced the number of titles as announced before down to 16.

Also the index suffered quite a bit (down max 34%) it could recover over the last weeks. Is this already a sign that the bearish tendency is broken? LWI16 lost 24% since 18th July.

At the moment only a few shares are higher than their spot prices (dividends included), ETC and LEM. ETC announced that it is on track to sign a contract with a RL company (see last announcement) in order to provide tours for their staff on Etopia Island – Etopia Island is a concept which is encouraging the development of renewable and sustainable technologies. Could this be the reason for the latest movement of the share? And LEM, as we are LEM we shouldn’t comment about ourselves, please refer to our announcements.

The shares of THI, HCL and also DDE are still main troublemakers. For HCL we hopefully will learn soon about WSE 4 which should give the share a push and DDE is apparently still digesting its SPO. THI on the other hand is lacking a proactive reporting lately…and a SOP is running which is a high yield bond TGB. Are people reluctant after the experiences made with all these fraudulent banking systems with high interests in SL.

A good thing is that most of the companies in the Index restarted or continue to pay dividends. We take this as a good sign.

Share prices for LWI are at 1.9 $L. We think this is rather an optimistic price, however, we all know how volatile the market is and can be..

Reminder:
Our index doesn’t use weighted market capitalization because of missing free float. Unfortunately, but with the criteria below we believe to have selection criteria which are rather adapted to the situation and reflects the market quite good enough:

(1) Market cap (> 1.5 million $L)
(2) Free float (> 20%)
(3) Market presence (since three month on the board)
(4) performance till now (weighted, dividend included = positive)
(5) Business idea
(6) Management skill, communication
(7) Economic branch the company is active in