Aug 5th 2012, 18:11 GMC Gold Mountain Capital
by Legolas Delgado
GMC Update - Results of VoteGMC Update
Cash – L$ 19,815.61
BOOT – 100,000 @ 0.9673 – L$ 96,730.00 (90)
EARN – 17,000 @ 2.8509 – L$ 48,465.30 (90)
GDI – 6,380 @ 2.4873 – L$ 15,868.97 (90)
GVC –60,000 @ 12.14 – L$ 728,400.00 (90)
MSX – 23,371 @ 0.9559 – L$ 22,340.34 (90)
SEC – 364,673@ 1.4123 – L$ 515,041.80 (90)
VGW – 100,000 @ 1.0008 – L$ 100,080 (90)
GMC – 616,890 @ 0.0 – L$ 000,000.00
Total – L$ 1,546,742.02
Last Capitalization – L$ 1,583,119.31
Increase/Decrease = L$ -36,377.29
% Increase/Decrease = -2.30%
Starting Capitalization – L$ 960,100.00
Increase/Decrease = L$ 586,642
% Increase/Decrease = 61.10 %
90 Day Average Price (90)
The NAV per share is now L$0.45
It has been several weeks since the last update for GMC, I have been very busy in real life and unable to post an update. Things have returned to normal and I should be back on pace to post an update every week.
The result of the vote is that 400,000 shares of GMC will be destroyed. I have submitted my request to Skip Oceanlane and I believe when he finds the time he will destroy the shares as I have requested. Keep in mind GMC will still have 216,890 treasury shares available.
General Market Statement – Overall the summer has led to large declines in stock prices. I believe that as we come to a close in august and even into September we will see share prices start to pick up again. I believe this because some of the returns you can currently get from dividends are outstanding.
BOOT – Recently a much higher than expected dividend was posted by BOOT and this came as a pleasant surprise. Although we are still in the thick of the summer months it appears that the investments the BOOT has made are already starting to payoff. I expect that as the summer comes to a close and the cold starts to set in for the northern hemisphere the income for BOOT will continue to grow and so will the dividends. I would not be surprised if BOOT pays a dividend of over L$0.02 for a single month by December.
EARN – Continued profit increases are really the motus operandi for EARN. However, the SPO has created a large amount of downward pressure because the dividend per share have regressed back to levels not seen since the company first started trading on CapEx a year ago. Those who bought in at IPO a year ago are probably finding it a perfect time to sell off their stake in EARN and look for a higher yielding stock. (And with how low BOTS is trading I know it won’t be hard to find). That coupled with the selling atmosphere that has taken hold at CapEx this summer has forced the share price below what would normally be considered average. I expect to see EARN stay below L$3.00 until January. This could change if their profit suddenly spikes or dips. But as it stands it will take that long for the per share dividend to return to previous levels. I would like to point out however that at current levels EARN is yielding 21.33% ROI from dividends.
GDI – Texla runs a company that makes a good profit, that being said she seems to show up in waves around the exchange. I really consider GDI a gamble. Not because I believe she cannot run a quality company, but because I do not know what faith others may place in her. If she were to post a quarterly dividend similar to past dividends, the return would be fantastic. I just buy shares when I can get them cheap and hope that the sterling performance of GDI will return.
GVC – The FED merger has come as a surprise. I am excited because shareholders are giving up nothing and gaining a ton. I really have not had a full amount of time to analyze what the effect of this merger will be. But considering the track record of these two companies, I believe we can expect greater returns. I would like to say however, I am sad to see one of the original 25 companies being absorbed.
MSX – Although the reporting methods are a bit difficult to understand, what I have pulled from this companies financial reporting is that revenue is increasing and expenditures are decreasing. I was able to buy shares in MSX rather cheap when there was a panic selloff. I will continue to monitor the progress of this stock and hope that it continues to grow.
SEC – Although since the 1st of the year SEC has been a disappointment as far as growth goes, we are coming into their strongest season. Last year before they developed two new products, SEC was able to net 114,950.00. With the new products and services that have come along I believe that they should be able to break their previous net income record. If come the end of October we do not see an improvement in SEC I believe GMC would start to look to sell of it stake in the company. Rest assured, GMC purchased it’s shares in SEC at a very good price and still would be net positive selling below even current market price.
VGW – Although the return on investment is not as high as we would like to see. The company is as solid as they come, rather than focus on volume they choose to focus on quality and that has led them to be a very successful and stable land company. There has not been any real “growth” but there has not been a real decline either. Of all the stocks in the GMC portfolio this is one of two that has not when down over the summer months.
GMC – The summer has led to stalled growth for GMC. We were making great strides forwards toward the L$ 0.50 mark but the complete downward pressure across the entire market has halted that movement. At this point I find it hard to believe L$ 0.50 is possible by the company’s anniversary. I will continue to follow up on the market and look for new trends and shifts so that I can position GMC for continued success.