Thursday, January 31, 2008

LEM: Business report (January 2008)

Summary
=================================================================================
NAV rose slightly from 3.82 to 4.08 $L per share during January 2008.
Net profitability of equity after dividend was up to 6.12% per month (previous=5.89%)
Dividend is 0.045 $L /share/month

As WSE is closed only limited trading was possible during the first days of January. However, we were lucky with some transactions which had a positive impact on our earnings.

LEM started to finance real estate projects. A first project on mainland (Gomphus) was realized. Based on the experiences further investments are possible.

LEM changed its board to better reflect its businesses. A first board meeting will be held in the beginning of February.

LEM will continue to develop new financial derivatives expand our financial services for third parties and intense our activities to bring RL companies into SL.

Results for January 08 (December 07)
================================================================================
Income ($L):
------------
Financial products : 372’240 (181’399)
Trading : 54’300 (54’900)
Consulting : 4’250 (4’250)
Stock sell : 162’830
Others : 117’146 (15’825)
TOTAL : 372’240 (200’838)

Expenses ($L):
--------------
Financial Products : 117’995 (84’154)
Donation : 0 (0)
Tier : 6’000 (6’000)
Wages : 10’000 (10’000)
Stock purchase : 133’551
TOTAL : 267’546 (117’500)
Profit ($L) : 104’694 (100’684)

Asset ($L)
----------
WSE : 5’170’314 (4’741’752)
SLCX : 956’005 (1’015’474)
DSE : 39’432 (56’230)
ISE : 23’463 (21’740)
Land : 6’000 (6’000)
Loan : 0 (0)
Cash : 809’241 (768’825)
Investment : 15’000 (15’000)

Total : 7’573’382 (6’651’021)

Liabilities ($L)
----------------
Loan : 500’000 (0)
Dividend : 86’234 (114’895)
Total foreign capital : 586’234 (114’895)

Constitutional capital LEM: 1’710’756 (1’710’756)
Constitutional capital LFB: 462’540 (462’540)
Constitutional capital LWI: 130’026 (130’026)
Constitutional capital LHH: 1’572’705 (1’572’705)
LEM Future Fund : 518’000 (518’000)
Reserves : 2’488’428 (2’041’415)
Profit : 104’694 (100’684)
Total equity : 6’987’148 (6’536’126)

Total liabilities: 7’573’382 (6’651’021)

Monthly dividend/share : 0.045 $L /month
NAV 4.08 (3.82)
EPS 6.12% (5.89%)

Notes:
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(1) General: LEM is waiting to WSE 4.0 and has some expectations. First that the number of interesting IPO will increase and secondly that this will have a positive influence on the volums. The fact that WSE has their own currency (WIC) opens a door to new virtual businesses and which are independent from LL and its policy. We don’t see this negatively.
(2) Consultancy work was again down which is mere a question of RL occupancy of myself. We still are looking to find ways to expand it. +
(3) Trading brought steady returns of 54’300 $L and this even with a WSE down. We are not planning to aggressively expand this business in 2008
(4) LEM still has an important participation of roughly 5% at HCL. Part of this investment is related to risk management because of our derivative LHH which is a high score product on HCL shares. However, we see these investments still as strategical as we believe in the future of WSE. As outlined under (1)
(5) LFB:WSE: Nothing can be said at the moment as the shares of the basket are not traded as is LFB. We think however, that LFB will restart trading where it was halted. LEM changed the prospectus to put it in line with new LL banking rules. We are no longer guarantee anything and paying dividends instead of fixed interests…good wording to all of us.
(6) The derivative LWI:WSE reached its end on 18th January 2008. As outlined before we will try to go into a SPO as soon as WSE 4.0 is opening again
(7) LHH:WSE: No changes. Pay back value is still 3.67 $L/share.
(8) LEM Foundation. We will further invest in Etopia Island to support their sustainable efforts. A new SIM is operational and ETC will go through a SPO in January/February. LEM foundation will support this SPO financially. This investment reflects our commitment to sustainable investment.

(9) LEM Future Fund (LFF): As WSE is closed no actual portfolio value can be calculated. We will inform our investors as soon as WSE is open again.
(10) LEM has a new board and a new HQ (see link on our blog) from 1st February 2008 on. The board will consist of four members:

-Saya Sakai (ladies first), CDO, Chief design and sales officer
in alphabetical order
-Konner McDonnell, CCO, chief communication officer in LEMspeak
-Smithers Daviau, CTO, chief technical officer and master bunneh
and
-plus me, as CEO.

The changes are needed as LEM is growing and diversed its activities into new business branches.

At this place I also want to thank the leaving board members for their tremendous contributions which turned LEM into a successful business and for their friendship which hopefully will continue.

Net profitability of equity after dividend is 6.12% (5.89%) p.m.
Dividend is 0.045 $L/share/month

Next report:
===================================================================================
Next report will be published on March 2, 2008. Updated values for NTA, LFB, LWI and LHH are published on our blog (http://lemurinvest.blogspot.com)

In case of further questions please IM Casper Trebuchet or send me an e-mail: casper.trebuchet@gmail.com

Greetz
Casper Trebuchet
LEM, CEO
Analyst, WSE

House of derivatives (LFB, LWI, LHH, LEM IPO Booster as not yet approved IPO at WSE)
http://lemurinvest.blogspot.com

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