Friday, June 19, 2009

Liquidiation of LEM - final step

Hello shareholders,

as announced we took a final step and will liquidate LEM over the weekend. We will cash out the shareholders but keep our portfolio. After longer reflection and discussion with major shareholders it seems to us the best solution to apply.

It comes out that the final dividend you can expect is exactly 1.52 $L per share. You can check this figures here

The assets are difficult to evaluate as the ask/bid ratios for our portfolio are rather unhealthy. We took 90% of the Ask prices, stipulating that it would be difficult to sell them for a good price. To give an example I got suggestions for 1 $L per RDX or 1.25 $L for a DDE...lol

This money will be paid out over the weekend

We asked ISE to destroy our LEM-shares (in the name of Casper Trebuchet) till Sunday so that we only have to pay a dividend on the remaining shares.

We also kindly asked ISE to give us a link to a secure ISE-ATM to pay in the money (500'000 $L) as we lost a bit overview during the recent changes and developments. They already answered so that we can proceed as planned.

We feel sad about our liquidation but we think it is the best solution.

As LEM we will continue on a private basis but stay dormant and follow from distance how things develop on virtual economy within Second Life. At the moment we don't have the time nor the interest to do anymore.

If you have questions don't hesitate to ask me.

Greetz
Casper Trebuchet

Monday, June 1, 2009

Financial report - May 2009

LEM:ISE ended May 2009 with a profit of 41’671 (34'227) $L before dividend payment. NAV declined to 1.71 (2.04) $L/share. The dividend is set to be 0.015 (0.015) $L/share and was distributed just before

May was a stable month.

LEM started to sell its position in DDE because we will not IPO our latest derivative which is a basket on different companies at ISE. As a result we want to reduce our portfolio and invest the “liberated funds” differently. As we have written it at different other occasions we consider that our portfolio is too large in relation to the other assets. In selling some shares we can reduce our risk considerably and also produce a more sustainable NAV.

In consequence the NAV sank from 2.04 down to 1.71 $L/share. However, we have to consider that it is extremely difficult to estimate a NAV in virtual markets, especially as the liquidity is low what makes it rather difficult to sell the shares for a good price. As we sold 70’000 shares of DDE we reduced our portfolio already in a significant way which helps to stabilize the value of the remaining assets.

Those obtained funds are kept right now mostly on the currency exchanges in cash. LEM is not excluding that we will reinvest some of the funds in virtual shares again when we think the price is appropriate.

The profit is higher this month as we could consider two dividend payments of RDX. This might have a negative impact on the results of next month. We hope, however, that other earnings can be generated which will more than compensate those effects. We also have to consider that CAR only paid a part time dividend and others none.

LEM is paying a dividend of 0.015 $L which is a pay out ratio of 48%. The remaining rest of the profit will be reinvested.

The balance sheet and PL-sheet is given below

Our outlook for June is stable. We cannot guarantee the level of income as it continues to depend partly on the future of currency exchanges in SL and the outcome of different investment projects which are in elaboration.

Don’t hesitate to ask questions. You can reach me per IM, in the forum or directly over my email : casper.trebuchet@gmail.com

Greetz

Casper Trebuchet
CEO, LEM:ISE
http://lemurinvest.blogspot.com