LEM - Report and dividend

Summary
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NAV rose in July from 1.637 to 1.908.
Net profitability of own capital is 9% /month
Dividend is 4% /share/month

LEM also got caught in the latest turbulences caused due technical problems in WSE and the new LL gambling politicy. However, due to diversification of our portfolios we could largely compensate our losses in certain titles.

Our first derivative-LFB- is starting to show a positive trend, mainly driven by RDX. We hope that this tendency will continue. LWI on the other hand is actually in train to be readapted to the latest changes, as companies de-listed from WSE and others want to join or start to fulfill our criteria. The index as a whole stayed stable during the last 10 days and even start to be bullish again. We don’t see any reasons to panic therefore.

We will continue politicy to develop new financial derivatives and put them on the market in order to become one of the leading derivative company in SL.

Furthermore, we will continue to expand our financial services for third parties and intense our activities to bring RL companies into SL.

These measures will positively influence the future profitability of LEM

Results for August (May-June)
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Income ($L):
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Financial products : 358’698 (668'725)
Consulting : 10’000 (46'000)
TOTAL : 368’698 (714'725)

Expenses ($L):
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Financial Products : 170’000 (414'510)
Donation : 20’000 (23'000)
Tier : 13’000 (10'000)
Wages : 10’000 (12'000)

TOTAL : 213’000 (459'510)

Profit ($L) : 155’698 (255'215)

use of profit: 80'000 dividends, 330’913 go into next reporting, 112’295 go into reserves)

Asset ($L)
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WSE : 2’617’427 (4'532'918)
AVIX : 1’361’450 (831'003)
DSE : 56’000 (60'000)
ISE : 17’000 (0)
Land : 120’000 (120'000)
Loan : 2’500’000 (0)
Cash : 700’000 (600'000)
Investment : 14’000 (10'000)

Total : 7’395’882 (6'153'921)

Liabilities ($L)
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Loan : 3’500’000 (2'800'000)
Dividend : 80’000 (80'000)
Total foreign capital : 3’580’000 (2'880'000)

Constitutional capital LEM: 2’000’000 (2'000'000)
Constitutional capital LFB: 999'640 (1’000’000)
Constitutional capital LWI: 430’026
Reserves : 211’001(98'706)
Profit(+pre-period) : 330’913 (175'215)
Total own capital : 3’815’882 (3'273'921)

Total liabilities: 7’395’882 (6'153'921)

Monthly dividend/share : 0.04 $L /month (0.02)
NAV 1.908 (1.637)


Notes:
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(1) Again we did a bit of trading. Strongest positions we held in HCL, AVIX, AIC, LNL, THI.
Because of LWI we are obliged to manage a large portfolio, however, our objective is to reduce it as most as possible in order to go for more strategical investments.

(2) Our consultancy income was reduced to due the fact that we had no time left to push our projects. We weren’t in holidays but our customers were..;-). We plan to put more emphasis to this during August.

(3) LFB is still in the minus. However, recent development showed that the downward process is broken and we hope to see the basket becoming bullish in the future. This could be driven by the shares of HCL and AIC which we think are both undervalued.

(4) LWI needs to be rebuild as different companies left WSE and the new LL gambling politicy caused a turmoil. However, gaming will still be a major activity of the avatars in SL and that is why gambling activities will remain in the index. We just reduce the portion of it. The “new” adapted index will be published in a couple of days. I can already say that the index survived the last ten days of turbulence without loosing too much feathers which shows that panicking is a bad strategy. Nobody knows what will happen tomorrow but we don’t neglect the facts and figures. And the economy in SL was growing till now each month with >10%. Does SL has already developed a kind of self dynamic…we will see.

(5) Derivatives: We continue to develop and bring derivatives on the market.

(6) LEM Foundation. Actually the foundation is managing 45’000 $L and there are no concrete projects in sight. LEM Foundation is an independent initiative from LEM in order to support innovative environmental projects within SL. It is paradox but apparently nobody cares about environment and we cannot use our funds. Ideas are welcome…! Our only environmental engagement we do directly over LEM as we held an important stake in ETC. Projects can be suggested to Casper Trebuchet.

(7) Thoughts
Fundamentalist exist everywhere who want to gift us with their “better” world together with SOP’s and regulation. Also creeps who are just interested to steal your money. The strength of SL, however, was that there were virtually no rules or regulations or even taxes. This is exactly the environment which creates innovation. And the avatars thanked in their way as they build up a functioning naturally build up social community with own ethical values.

We don’t need attorney’s or moral apostles but more freedom in SL..

Next report:
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Next report will be published on September 2. Updates values for NAV, LFB and LWI are published on our blog (http://lemurinvest.blogspot.com)

In case of further questions please IM Casper Trebuchet

Greetz
Casper Trebuchet
LEM, CEO

House of derivatives (LFB, LWI)
http://lemurinvest.blogspot.com

LFB - update

We put our weekly update on our blog- a little bit delayed due to inaccessibility of WSE. The basket increased significantly its value over the last 10 days. It rose to 69.03 which is an increase of more than 5% since 22nd of July and this even taking in consideration all the turbulences on WSE and in SL.

The reason is easy to see. RDX has practically no free float. Apparently, one investor bought 100k of their remaining shares last week which represents 0.1% of all outstanding shares (100 millions) and was able to propel the share value up to 6.

As no announcements of RDX are coming along we wonder whether RDX is really worth 600'000'000 $L. Anyway, for the investors of LFB this is good news as if the up-going tendency is continuing we soon will reach the minimum barrier of 2% which means higher dividends for you.


Greetz

Casper Trebuchet
LEM, CEO
House of derivatives (LFB, LWI)
http://lemurinvest.blogspot.com

Intermediary reporting for LEM/LFB/LWI

In accordance with WSE we have to report our business activitities which include our derivatives LFB and LWI.

However, it looks as our WSE account is wrecked due to technical problems which are minor we suppose but hinder us in doing our accounting properly.

Anyway, our regular reporting for LEM will occur on 31th July. For the time being we only can contest that we are on track and will pay a monthly dividend of .04 $L/share for LEM. A complete report will be produced on 2nd August together with the dividend payment.

For LFB and LWI it is almost impossible to come up with concrete statements as we are still struggling with the new WSE-system.

LFB and LWI got also trembled by the new LL gameing politicy, however, negative effects could be neutralized. Whether secondary effects of the LL-politicy will affect other business activites in SL like real estate it is still to early to conclude something.

LWI will not change its strategy as the index is reflecting the average market and gameing is part of it. We continue to apply our criteria to select titles as they were published on our blog (httP://lemurinvest.blogspot.com) independently whether they are active in the game industry or not.

Greetz
Casper Trebuchet

LEM, CEO
House of derivatives (LFB, LWI)
http://lemurinvest.blogspot.com

LEM - dividend announcement

LEM will rise dividend from 0.02 to 0.04 $L/share.

Dividend paiment is on 1st of August.

Reporting for the month of July will be done on the same day.

Casper Trebuchet
LEM, CEO

House of derivatives (LFB, LWI)
http://lemurinvest.blogspot.com

Update

We adopted the charts which are available on http://lemurinvest.blogspot.com or http://www.slquotes.com/custom/lemur ... have a look!

Spot index references were taken on 18th July at 1pm SLT.

The following titles have been considered.

ALL
AMA
AMS
BOB
CBE
CIG
DDE
ETC
FDP
GCS
HCL
HOT
HUI
KJL
LEM
LGO
LLL
MDS
MYT
SBJ
SLM
SNL
THI
TMA
VGI

Remarks:

We choosed the following selection criterias:

(1) Market cap (> 1.5 million $L)
(2) Free float (> 20%)
(3) Market presence (since three month on the board)
(4) performance till now (weighted, dividend included = positive)
(5) Business idea
(6) Management skill, communication
(7) Economic branch the company is active in

Well, we all know Pareto's 80/20 rule and it should be better Casper’s 50/50 as the condition are not given to really apply those criteria. If you add a bit math and calculate the probability that our decisions are mathematically relevant please know that I already passed to the soothsayer's camp....lol...No seriously. Our index is not the truth of all truths its simply a way to collect data in a systematic way, interpret them logically and in relation to own business experiences and then publish them graphically to the public in order to create an actual image of the economy in SL.

To select the companies in accordance to our criteria list we had to lower the entry barriers.

Everybody is invited to beat the performance of WSE index (LWI) with his own portfolio! In the last four weeks the performance was >40% we hope that this will continue in the future.

As always I’m gladly answer all your requests and inquiries, just IM me.

And a last word to the notorious misspeller’s in SL. LWI is not a company it is an derivative which will expire in six month's time on 18th January 2008. This is quite a long time in SL.

Greetz

Casper Trebuchet
LEM, CEO
House of derivatives (LFB, LWI)

Update -LWI on the WSE board

Just short.

LWI is on the board.

We thank everybody who gave us his confidence and his support... LWI25 rose almosr 50% in the last 4 weeks - we cannot promise but hope that this development will continue in the future especially if we think on the increasing economy in LL but also new interfaces to RL like WIC which will open new markets for WSE.

Our inquiry about the number of titles we should consider in our index gave a clear result.

100% of the 14 answers we got totally are going for an index with only 25 titles. We fully support this result and will adopt our chart accordingly.

We dropped LWI34 already form our chart in http://lemurinvest.blogsport.com or directly in http://slquotes.com/custom/lemur/ as you can see.

All titles in the index have been reviewed and the final spot values were taken on 1pm SLT of today 18th July

At the moment the needed technical changes are ongoing. As soon as done we let you know together with the list of companies.

Greetz
Casper Trebuchet

LEM, CEO

House of derivatives (LFB, LWI)

LFB- Down again...is there any hope

The value of LFB basket shows only one tendency...downwards (compare with our blog http://lemurinvest.blogspot.com) . Is there any bottom line motivating the company owners of HCL, BNT, RDX and AIC to comment this situation because our figures don’t reflect their reality or is this situation just a sign that the whole market place will blow up soon?

We are notorious optimists …;-)…and don't share such a black vision either LWI - our WSE index which is as IPO on the WSE board- wouldn't be in the green as you also can easily take from our blog.

The problem is the composition of the basket as it come out. HCL, RDX, AIC and BNT are heavy weights. Either they have a lousy reporting or important share holders who dump their shares (do they know more than we do?) or there is no free float. We should have lanced puts for these titles…. SLM and AMA on the offer hand are going through SPO’s which are watering their share values.

But no problem for the share holder of LFB. Even if the basket dropped its value for more than 12% since its creation you still get a minimum dividend of 2% per month and if you buy at 9 $L as the title is right now, your dividend effectively rise to even 3% per month!

And there is still hope that AIC, BNT, RDX, HCL, SLM and AMA will develop nicely so that you will get the maximum dividend of 7% per month.

Should we be pessimists then?

Greetz

Casper Trebuchet
LEM, CEO

House of derivatives (LFB, LWI)