LEM feels obliged to give an update in relation to the latest news from LL and WSE but also about ourselves.
We basically support the new ruling from LL also applied in a not understandable way and think that this will not only help to reduce fraud and thefts inside SL but also to reinforce SL economy in the mid and long run.
To diverse our businesses LEM started a co-operation with a SL-estate company in order to realize real estate projects where we see a lot of growth potential.
All these events will influence the profitability of our company negatively during January. On the other hand we will create an even more stable fundament which will allow future growth for LEM.
As soon as WSE 4.0 is operational we will hold a shareholder meeting and elect a new board in accordance with the new constitution of WSE.
New bank ruling/WSE trading halt:
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2008 really started hectic but LEM thinks only for the good. The trading halt at WSE of 30 days was a major event for us and we wrote already about the impacts this has on our activities. They are important but can be seen as an investment in the future development of something new – the first worldwide cyber stock exchange market! LEM thinks that this investment risk is worth to be taken.
The new banking policy of LL is aiming in the right direction in the mid and long term. However, LEM will be affected with some of its businesses. First we sit at the moment on quite a large cash position which is either frozen on WSE or stuck in our LL account or locked in other banks. No way to get it out or even realize some minor interests anymore. As we speak of roughly 1 million $L this may affect our earnings (compare with our financial report).
More worrying is the actual situation in SL bank environment. You just have to read the forums to understand that the situation can only be described as chaotic and helpless. We wouldn’t be surprised to see different banks vanish after 22nd January and probably even some of the stock exchanges. We don’t hope this of course but have to consider this possibility in our calculations. Right now we are heavily invested in Capex where we held major positions in YEP, MECH, WPM and ITA. These positions aren’t too much bank related except WPM. ITA belongs to another risk category.
Listening to the announcement of today from WSE - https://www.wselive.com/research/announcement_detail/3319 - we believe that WSE developed a convenient solution for the banking problem which will bring the world stock exchange to new heights. If this happens LEM is nicely positioned with its portfolio.
Real estate:
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Real estate is our pain in the neck, at least it looks like. Not surprisingly as Lemurs are artists in life adaption to the habitat of Madagascar but not necessarily in gifting the world with exploding population growth on all continents. LEM doesn’t refuse growth but sees more vertical growth potential among our existing product chains. Even our support for sustainable development with LEM foundation on Etopia Island must be seen that way.
After quite a bit of consideration and analyzing the situation LEM decided not to go directly into real estate business in SL as it is not our core business. Nevertheless, we are persuaded that real estate represents an interesting business opportunity in SL and many successful companies listed on WSE show us that this is true, eg. DDE, ETC, HOT, LNL or SIM. LEM is holding important participations in those companies and will not rethink its position as long as the ROI is as high as it was till now.
However, we will do real estate but in a different way. LEM created a co-operation with Saya Sakai Inc. a company we know since a longtime with which we will realize real estate projects (Trebuchet Sakai Estate Inc). Saya Sakai Inc. is doing the marketing and management whereas LEM is financial partner. Saya Sakai Inc has more than 1 SL year experience with product design and real estate management. TS Estate purchased today a first SIM on mainland and will further develop this business Gomphus (137,110,251).
Board:
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LEM will change its board to be more coherent to its growth and development strategy. As soon as WSE 4.0 is in place we will hold a shareholder meeting where we also will nominate the new board in accordance with new constitution of WSE 4.0.
IM me if you have any question or send me an e-mail casper.trebuchet@gmail.com
Greetz and happy waiting
Casper Trebuchet
LEM, CEO
House of derivatives (LFB, LWI, LHH)
http://lemurinvest.blogspot.com
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