Jul 8th 2012, 19:11 GMC Gold Mountain Capital
by Legolas Delgado
The week that was 7/2 – 7/8 - GMCThe week that was 7/2 – 7/8 - GMC
Cash – L$ 3,081.89
BOOT – 100,000 @ 0.9787 – L$ 97,870.00 (90)
EARN – 17,000 @ 2.9543– L$ 50,233.10 (90)
GDI – 6,359 @ 2.4814 – L$ 18,831.33 (90)
GVC –60,000 @ 11.9113 – L$ 714, 678.00 (90)
MSX – 23,371 @ 0.981 – L$ 22,926.95 (90)
SEC – 364,673@ 1.5718 – L$ 573,208.74 (90)
VGW – 100,000 @ 1.0023 – L$ 100,230 (90)
GMC – 616,890 @ 0.0 – L$ 000,000.00
Total – L$ 1,581,130.99
Last Week Capitalization – L$ 1,776,734.28
Increase/Decrease = L$ -195.603.29
% Increase/Decrease = -12.37%
Starting Capitalization – L$ 960,100.00
Increase/Decrease = L$ 816,634.28
% Increase/Decrease = 64.68 %
90 Day Average Price (90)
The NAV per share will remain at L$ 0.46.
In the last week I have posted the financials and bought back a large portion of GMC shares for the treasury. This has cause a large decrease in the overall capitalization of the fund. However this reduced the liabilities that GMC holds, making the NAV remain almost unchanged. For those wondering the buyback actually increase the funds value by .0032 because the shares were bought back a slightly less than what the NAV has increased to now.
It would seem as though almost the entire exchange is going through a lull phase.
BOOT has posted market expected dividends which has led some to sell off with a slight profit or break even amount in search of a higher yielding stock. This selling has put some downward pressure on BOOT leading it to so far be a break even stock for those who bought in at IPO. I still need to follow this closely as SL works its way through the summer months. I do not expect to see a large jump in profits for BOOT until the fall but then we may see dividends of .015 to .02. If BOOT can begin to pay a standard monthly dividend of L$ 0.02 or higher come fall, we should see the stock move towards L$ 1.20. If we do not see some progress by end of September I would begin to build concern over BOOT as a long term investment versus other potential CAPEX listed companies.
GVC, I cannot really speak much on GVC as Kafka has been sick. What I expect to happen is for profits for this last month (June 2012) to have faltered due to his absence from work. However the investments that he had made in prior months should pick up some of the deficit caused by his inability to work while hospitalized. That being said, my faith is fully placed in Kafka and I know when he is fully healthy GMC and the work he does will pick right up where it left off. Kafka, I hope you are feeling much better, a friend of mine went through what you are going through right now and it can be very scary. My thoughts and prayers are with you.
ADS seems to be suffering from less logons during the summer. They have become so big that macro events in SL will affect the company and its profits heavily. My analysis would have me believe that after summer conclusion ADS will move back towards previous record high incomes. My concern would be that if after summers finish they are unable to regain record profit levels, they may be falling to continue with the innovation they had thrived on since last summer. I would bet on the stock continue to slowly fall until early October when we get their September report.
SEC, I am still waiting to see the results of their latest development. It may be hard to judge the success of this project with it being released at the beginning of summer. So far with SEC I see a ton of untapped potential waiting to be released. If SEC gets all of its assets in line dividends of L$ 0.03 to L$ 0.04 are not out of the question. For being one of the most visited sites in SL, it does not seem to generate enough revenue.
That’s all for now, I would like to take this moment to say I have finally moved into my new house and after a week of waiting my internet was finally turned on. How strange it is to live without an internet connection.
NOTE: If anyone is looking to sell off ADS shares. I am willing to do a stock swap at the rate of 100 GMC for 47 ADS shares. Please contact me if this is of interest to you.
1,000 GMC = 470 ADS
10,000 GMC = 4,700 ADS
100,000 GMC = 46,700 ADS
500,000 GMC = 232,500 ADS
I am also open to other trades; please contact me if you come up with a reasonable offer.