LEM ended the fourth quarter 2012 with a net profit of 217'000 (1’292’755) $L. The overall value of our portfolio (NAV),evaluated at our new evaluation method – which is 10% of market price- is actually at 0.70 (0.70) $L/share, unchanged since the 3rd quarter. Dividend was already distributed in December 2012.
Details are given under :
https://docs.google.com/spreadsheet/ccc?key=0AmsUoA28lTawdHFZekc2X3pneXhqM1R5V3VJUDRaSGc#gid=8
Shareholder’s equity: 1'400'000 (1’410’000) $L (with new evaluation method of 10% of market price)
Net Profit: 217'000 (1’292’755) $L
Dividend: 150’000 (120’000+30’000 bonus) $L, already distributed
2’000’000 shares, nominative value: 0.5 $L/share
NAV: 0.70 (0.70) $L
----------------------- Figures in ( ) of last month
The last quarter was rather average for us. On one hand our protfolio produced rather nice dividends, in fact as high as ever before and we also had some consultancy revenus as trading income. However, we also had to book a loss on BOTS of 150k which is related to a long story. It's because of a deal we had as we were looking to bring a derivative on the market in which this title would have played a major role, that happened more than 1 year ago, but unfortunately such couldn't be realized. A potential profit for us turned therefore into a loss, so is life. Anyway and nevertheless, BOTS remains to be a key pillar in our portfolio as we strongly believe in the products and the way the company is managed.
So overall, we still came up with a profit of 217'000 $L what I think isn't a bad result. So let's touching wood that things will continue in 2013 the same way as they did till now. We will also try to diverse our portfolio as right now it is too centered on three titles, which are BOTS, EARNS and GVC. For such we are seeking for new business where we can apply our go-in and exit strategy. In the same time we keep an eye on ADS, BOOT and MRX which don't make us smile.. Titles in virtual markets are focused on dividends and not value, as the latter cannot be verified. Or you ask me to apply the same strategy, stopping to pay dividends as those are only for losers and start a nice self trading in own shares... it's worth a thought or also not, it's more a question of ethics I suppose...lol
However, if people think that they should buy LEM at 2.7 $L per share as it happens right now, then they are simply nuts. The added values of LEM are mainly contributed through consultancy services which are in most cases not directly connected to CAPX. They may come or they don't, you cannot table them. So if you as an investor want to be on the safe side, you do your maths better on the other revenues we have (dividends and trading income). If you consider such and then an average dividend of 90k $L per quarter is quite realistic, what makes roughly 0.015 $L/share per month. A share price of 1.38 $L is then much better adapted. We have placed a purchase order at 1.38 $L and will keep it up in the future.
So happy New Year to all of you and the confidence you have showed to us. If you have further questions then don't hesitate to contact us. You know that we always try to be attentive to your requests and questions as the cows by Dawson, our most liked cartoonist...
Happy trading to all of you at CAPX....
Greetz
Casper Trebuchet
LEM, chairman
http://lemurinvest.blogspot.com
