WSE communicated recently that WSE 4.0 will be born in mid-January 2008. A “worldwide launch of the World Stock Exchange to the mass market as the world’s leading internet-based stock exchange platform to be used for educational and entertainment purposes”-to use their words will then follow. WSE expects that trading volume will exceed 10 million $L per 24h and 50’000 additional users my join the stock exchange.
LEM is less optimistic but even if only 10% of this is true volumes in WSE will at least double which will affect the profitability of WSE. Furthermore quite a few IPO are waiting to get their approval which should bring a new dynamic into this cyber exchange market.
Logically HCL shares will profit from this development. I don’t have to use enchanter skills to imagine that LHH has some potential through the volatility of this market and the rather promising outlook for HCL shares. As a matter of fact LEM finds itself in a most paradox situation. If HCL will rise LHH shares will follow and highest share values for HCL will be frozen for our LHH investors. You can see this with a laughing eye, however, for us it is more a question to overcome possible nightmares caused due WSE-Lemurs from Roman mythology…lol.
Let us explain this with an example. The lucky investors among you who bought LHH at IPO prices (1 $L/share) can already count to get 3.67 $L/share back on 15th March 08. Not a bad performance in six months…! Imagine now if HCL would climb to new highs like 3 or even 5 $L/shares. The pay back ration would then increase approximately to 4 or even 7 $L/share!
So LEM can only wish you more happy trading in both HCL and LHH and for us an exploit in risk management.
Statistics for HCL shares (period before):
Average share price in last 30 days: 0.98 (1.18) $L/share
Minimal share price : 0.78 (0.48) $L/share
Maximal share price : 2.63 (2.63) $L/share (2.66 as indicated is a rounding bug which got noticed by WSE as such)
Max. daily volume : 147’557 (353’321) shares
Min. daily volume : 100 (8’150) shares
Statistics for LHH shares:
Actual share price (24h): 2.24 (3.41) $L
Minimal pay back price: 3.674 (3.674) $L
LEM wishes you a merry Christmas and a successful New Year
Greetz
Casper Trebuchet
LEM, CEO
House of derivatives (LFB, LWI, LHH and LEM Knock-In WSEIndex/LEM IPO Booster as not approved IPO)
http://lemurinvest.blogspot.com
============ reminder ==============
LHH is a derivative with call character on HCL shares. It freezes the highest share price of HCL once a predefined barrier is reached. See details in our prospectus WSE or our blog to learn more about it.
Spot date : 15SPE07 : 0.68 (1.70) $L
End date : 15MAR08
HCL at spot (15SEP07) : 0.68 $L
Barrier for HCL : 1.70 $L (passed on 26th October 2007)
LHH IPO issue price : 1 $L
HCL = 2.63 $L (status at 14th November 07)
pay back = HCL/ HCL spot * LHH IPO
minus management fee of 5%.
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