Market research - DDE:WSE

Delicious Demar Enterprises (DDE:WSE)
https://www.wselive.com/trade/order_entry/44

Net Tangible Asset: L$4.966
EPS: L$0.340
P/E Ratio: 10.78
Monthly Revenue: L$1472118.00
Monthly Expenses: L$791393.00
Monthly Earnings (Net Profit): L$680725.00

The key figures for DDE:WSE let hardly space to add some critical statements. DDE is a real estate company with an incredible history log. This success is a combination of a diversified strategy which is using main and island sims as well as rental/sales activities.

DDE experienced a slow down during the summer depression in SL caused by gambling ban, banking crisis, VAT etc. However, the flexible strategy of DDE permitted to adapt accordingly and without losing too much even use this period to expand the portfolio. DDE reached a critical mass which permits to start expanding in a regular and controlled way. Occupation rate of its land is at 97%.

DDE owns 9 island and 7 mainland sims today which makes it to not only one of the biggest real estate companies in SL but probably the most profitable one. Also net profit published in the financial section are given before dividend so in reality a bit lower …;-( … but the profit is still very attractive!

It would be good if WSE would give more support in filling out the financials as it is not very clear – at least not for me.

The clear business model of DDE is a key factor of its success. However, it can also be a thread as the critical mass is already reached and further expansion could affect the profit margins negatively. It would be important therefore to use the critical mass to develop new services and products which can add further added value to the existing business.

DDE is still mainly a one woman show. However, concrete plans exist for the near future to expand the management structure and to increase the staff.

And what message does Delicious give us on our way? “ my numbers speak for themselves. DDE is the single most lucrative company on the WSE..” we believe her….

Monthly dividend in a three month time we see at 0.15 $L/share and share price at 5 $L and NTA of 6 $L.

Positive aspects
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Strong financial data
Clear and proven business model
Excellent management skills
Realistic perspective
Reached critical mass permits further expansion
Excellent communicator

Negative aspects
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One woman show
Additional product and service development

Greetz
Casper Trebuchet
LEM, CEO
House of derivatives (LFB, LWI, LHH, LPI as IPO)
Analyst, WSE