The weekly average of the basket is again low with 38.84. However, three elements have to keep in mind. First: WSE 4.0 should be released soon which should bring new momentum in HLC and linked to this HCL is slowly stepping towards the 2nd February where the next dividend payment should be occur. Second: RDX announced an interesting share transformation program which is in the interest of the common shareholder. This program should be executed in the next coming months and will bring nice dividends and also awareness in regard to the growth potential of this company. Third: The partnership in between APZ and SLM seems to be fructose. The SLM share will surely get some support due to the potential which is still mostly unexplored in this partnership. As only a little improvement is needed to break the trend for LFB we keep optimistic. At actual prices LFB still has a ROI of over 50% pa.
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Situation on 5th October 2007 for LFB (compare also with our blog or prospectus):
HCL = 0.98 (1.28) $L, weight =20
RDX= .87 (1.06) $L, weight =20
SLM= .46 (0.79) $L, weight = 4
Weekly basket value = HCL*20 + RDX*20 + SLM*4 = 38.84 (49.46)
Average basket value (8th June-5th December) = 51.93
Spot basket value on 8th June = 73.76
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Keep in mind that HCL was already at 2.63 $L two month ago and even higher in spring 07 and the volumes on WSE rebounded powerful after the summer depression what will generate profits to HCL.
If shares of HCL or RDX would only climb 0.85 $L the value of the basket would bypass the value from the spot=73.76 and the shareholder would get a higher dividend.
The minimum dividend of LFB is 0.2 $L/share/month and was paid just before. However, a maximum dividend of 0.7 $L/share/month is feasible if the basket performs.
Greetz
Casper Trebuchet
LEM, CEO
House of derivatives (LFB, LWI, LHH and LEM IPO Booster as not approved IPO)
http://lemurinvest.blogspot.com
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