1 Billion Linden Dollars

The WSE, 2 months after the opening, has reached a market capitalization of more than 1 billion Linden Dollars, or the equivalent of more than 4 million American Dollars.

Please find below the list of quoted companies, sorted by market capitalization.

The figures speak for themselves ...

Pasha Boucher
Translation By Bella March

GCS vs ACE

Ginko Currency Services (GCS) and Apez Currency Exchange (ACE) are both companies active on the currency exchange market.

Seen the recent quotation of ACE and the fact that it never has distributed dividend, we have to valuate the company based on her net income.

Analysis of the prospectus, shows that the price/EPS of GCS is 72.83 against 202 for ACE. The ratio indicates that it will take 72 month of earnings to payback the initial capital investment in GCS, against 202 months for ACE.

The Earning Yield, the equivalent of the Dividend Yield but calculated on the net earnings, indicates on the other hand the percentual monthly return, which is 1.37 % for CGS and a pale 0.49 % for ACE.

The Earning Margin, or the capacity to generate earnings, is favorable for ACE with a 6.09 % almost the double compared to GCS. On the other hand, earnings per share or EPS, is only 0.069 for GCS, almost 9x the ridiculous value of ACE.

Conclusion
The Earning Margin on it's own, almost twice as big for ACE compared to GCS, is insufficient to justify the extremely excessive pricing of ACE. Furthermore, a Price/EPS ratio of 72 and a Earning Yield of barely 1.37%, indicate clearly an over valuation of the CGS shares at the 5L$/share price level. The same is equally true for ACE with multiples 3x higher than GCS.

In the meanwhile, based on current data, Pb Asset Management remains negative on GCS and strongly negative on ACE. Only a price drop, below 3 L$ for GCS and 0.5L $ for ACE, will make these shares interesting.

Pasha Boucher
Translation by Bella March

Importance of Dividend Yield

The Yield Dividend is an indicator that reflects the return of a stock and is expressed in %. Since return is created by capitalizing the dividend and since the dividend is distributed on a monthly basis for the majority of enterprises, we will only consider the Monthly Dividend Yield here.

Why is the Dividend Yield so important ?

Because there is little economic data available for the companies being tracked and, if available, the data is not certified by a controlling organization, the dividend remains the only useful parameter to indicate trustworthiness of the company, her transparency and her willingness to share her business profits with her own stockholders.

Pb Asset Management selects, for her own investments, companies with a Monthly Dividend Yield above 3% and having a positive Dividend Growth (the percentual variation of the dividend compared to the previous month).

Why go for a Dividend Yield bigger then 3% ?

The 3% monthly return is the minimum return for a cash savings account at any bank in SL. Rates currently vary from 0.09% per day (2.7% monthly) until 0.3% per day ( 9.7% monthly). With these high interest rates and an SL economy that grows 15% per month, one can expect much higher returns from the stock market, seen the more risky nature of the capital market.

Pasha Boucher
Translation by Bella March

Actual IPOs

IPO is the Initial Public Offering of shares concerning a company that decides to be traded in a Stock Exchange.

This operation allows the company to get quickly the money to finance its activities.

At this moment there are 11 companies that looks for shareholders in WSE market to finance their business.

Further, we present the analysis of the Companies, ordered by capitalization/asset. As the asset consists in a in cash and holdings, a low rate means that the partners shares in the society real stuffs and not only words!

Rating:
SN: Strongly Negative
N: Negative
M: Mediocre
S: Sufficient
G: Good


Company: Silvano Gaming Corporation (SGC)
Asks 2,5 million L$.
At the end of the IPO, will capitalize 5 million L$.

Cash on Hand: L$15,000.00
Land Owned: 1,024m2
Land Value: L$12.00/m2
Net Tangible Assets: L$27,288.00

Monthly Income: L$5,000.00
Monthly Expenses: L$0.00

Capitalizazion/Assets: 183 (SN)
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Company: Builders Paradise (BPA)
Asks 5 million L$.
At the end of the IPO, will capitalize 30 million L$.

Cash on Hand: L$10,000.00
Land Owned: 8,192m2
Land Value: L$20.00/m2
Net Tangible Assets: L$173,840.00

Monthly Income: L$30,000.00
Monthly Expenses: L$6,000.00

Capitalizazion/Assets: 172 (SN)
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Company: Padgett Gadgets (PGI)
Asks 3 million L$.
At the end of the IPO, will capitalize 15 million L$.

Cash on Hand: L$116,516.00
Land Owned: 0m2
Land Value: L$0.00/m2
Net Tangible Assets: L$116,516.00

Monthly Income: L$190,872.00
Monthly Expenses: L$0.00

Capitalizazion/Assets: 128 (SN)
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Company: Karlfeldt & Delgado Mutual (KDM)
Asks 10 million L$.
At the end of the IPO, will capitalize 20 million L$.

Cash on Hand: L$252,902.00
Land Owned: 18,408m2
Land Value: L$10.00/m2
Net Tangible Assets: L$436,982.00

Monthly Income: L$497,021.00
Monthly Expenses: L$32,981.00

Capitalizazion/Assets: 45.7 (N)
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Company: Logo Coding (LGO)
Asks 500,000 L$.
At the end of the IPO, will capitalize 2 million L$.

Cash on Hand: L$50,000.00
Land Owned: 512m2
Land Value: L$9,000.00/m2 (it will be an error: L$ 9,000/m2, probably L$ 9/m2)
Net Tangible Assets: L$4,658,000.00 (correct: L$54.608)

Monthly Income: L$75,000.00
Monthly Expenses: L$0.00

Capitalizazion/Assets: 36 (N)
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Company: XD Trading (XDT)
Asks 1 million L$.
At the end of the IPO, will capitalize 10 million L$.

Cash on Hand: L$23,000.00
Land Owned: 22,640m2
Land Value: L$20.00/m2
Net Tangible Assets: L$475,800.00

Monthly Income: L$242,000.00
Monthly Expenses: L$198,400.00

Capitalizazion/Assets: 21 (N)
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Company: Brautigan & Tuck Holdings (BNT)
Asks 40 million L$.
At the end of the IPO, will capitalize 140 million L$.

Cash on Hand: L$1,600,000.00
Land Owned: 845,000m2
Land Value: L$17.00/m2
Net Tangible Assets: L$15,965,000.00

Monthly Income: L$3,500,000.00
Monthly Expenses: L$1,000,000.00

Capitalizazion/Assets: 8.7 (M)
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Company: Sarah Nerd Estates and Mainland Holdings (SNE)
Asks 4 million L$.
At the end of the IPO, will capitalize 40 million L$.

Cash on Hand: L$1,500,000.00
Land Owned: 393,216m2
Land Value: L$11.00/m2
Net Tangible Assets: L$5,825,376.00

Monthly Income: L$750,000.00
Monthly Expenses: L$375,000.00

Capitalizazion/Assets: 6.86 (M)
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Company: Atlantis Land Corporation (ALC)
Asks 5 million L$.
At the end of the IPO, will capitalize 20 million L$.

Cash on Hand: L$100,000.00
Land Owned: 372,680m2
Land Value: L$15.00/m2
Net Tangible Assets: L$5,690,200.00

Monthly Income: L$538,000.00
Monthly Expenses: L$398,000.00

Capitalizazion/Assets: 3.51 (S)
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Company: Cooperative Investment Group (CIG)
Asks 500,000 L$.
At the end of the IPO, will capitalize 1 million L$.

Cash on Hand: L$1.00
Land Owned: 20,640m2
Land Value: L$19.00/m2
Net Tangible Assets: L$392,161.00

Monthly Income: L$606,372.00
Monthly Expenses: L$54,257.00

Capitalizazion/Assets: 2.54 (B)
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Company: SL Investors Fund (SLI)
it's a fund that invests in WSE, so we need anther kind of evaluation; we'll do it in another post.

Conclusion:

There are too much companies that ask for L$ without having enough cash, or that have money but evaluate their company 1000% the real value.

Rating "100" means that company correspond to "1" real value!!!!!!! and "99" Know How!!! We're in SL, so Know-How doesn't matter too much!

Pasha Boucher
Translation by Mr McCoy Ducatillon