Jul 1st, 12:54 SAS Special Situations
by Wenden Xeno

June Financials

* 0.0485L Dividend paid for the May period
* Target Dividend Downgraded to 0.03L
* Bad month forces 113K write-down
* Assets still 13.1% more than at IPO
* shareholder votes to decide on future policy.

From dividends received (5245L), sale of stock that has appreciated in value (32689L) and a mixture of advertising and report sale revenue (821L) we achieved a profit in June of 32305L allowing for a June dividend 0.0485L per share- which has just been paid. 25% of our profits were used to buy back shares to boost share price and 75% for dividends as per company policy.

A poor performance in June has forced the reduction of our target dividend from 0.05L to 0.03L as of July to keep asset growth sustainable. Of course, 0.03L is still much higher than the dividends offered by our competitors.

June was a really bad month for the SAS portfolio. In particular, ACE value has withered by 46% from a post IPO share price crash (probably caused by ACE being in IPO for so long) and ISE has also taken a dive to 10% less than our purchase price. Sensing a colossal ISE crash caused by the large sell off by a main holder, I sold half our ISE stake (hoping to buy back twice as many shares at the 1L level) however this was a mistake as the ISE price found support and rallied back to its current 2.85L level. All in all our stock assets were reduced by 113K L during the June period. 3 record breaking months have been followed by a very bad month for SAS.

Nevertheless, our total assets are still 13.1% higher than at IPO (having increased from 310,000L to 340,413L), we have paid massive dividends 3 months on the trot, and our share price has ballooned from 1L to 2.92L. I expect ACE to recover back to the 1L area and with the new dividend target reduced to 0.03L, believe it is realistic to continue the growth hitherto experienced by SAS shareholders. I should also point out that whilst ACE and ISE suffered, our holdings of BDVR and JAM are still performing extremely well at +66% and +79% respectively.

With this in mind, I aim to introduce a raft of new initiatives to SAS policy to help maintain sustainable growth above the 300,000L portfolio benchmark that I have set (It is our policy to always keep stock assets above 300,000L).

In the coming weeks, I shall be asking SAS shareholders to vote on the following measures designed to improve profitability in response to the expected SL summer economic cool-down:

1. A vote to close the HQ (to save a nominal 2,400L in rent payments every month)- perhaps turning it into a stockmarket museum to continue providing a service for ACE clients.

2. To Stop the share buyback scheme- so that more money can be paid out in dividends.

MONTHY BALANCE SHEET (JUNE)


Income 53755
Expendiature 21450
Profit (loss) 32305


75% profit paid out as dividend= 24229
25% profit used for stock buyback= 8076
Dividend to be paid (per share)= 0.0485

Assets 340413
(+/- IPO) 13.1

Share Price= 2.92
(+/- IPO) 192

Market Cap 1460000




Income-

Dividends 5245

Stock sales 32689
Advertising 500

Report sales 321

TOTAL 53755

Expendiature-

Stock purchases 20000
texture uploads 250
Rent 1200


TOTAL 21450




Assets

liquid assets 38669


short term investments 291744



data package 10000 10000

TOTAL 340413


OUR CURRENT SHARE PORTFOLIO (CURRENT TOTAL VALUE = 291744L)
(VALUE AT IPO WAS = 276000L)
(=106% IPO benchmark)

Stock: ACE
No. shares: 49925
Mean Buy price: 1L
Current price: 0.54L
Value: 26960L
Gain/loss (L$): -22966L
Gain/loss (%): -46.0%

Stock: JAM
No. shares: 82442
Mean Buy price: 1L
Current price: 2.0L
Value: 164884L
Gain/loss (L$): +7284L
Gain/loss (%): +79%

Stock: BDVR
No. shares: 20000
Mean Buy price: 1.4L
Current price: 2.32L
Value: 46400L
Gain/loss (L$): 18400L
Gain/loss (%): +66%

Stock: NDX
No. shares: 5000
Mean Buy price: 3.87L
Current price: 3.73L
Value: 18650L
Gain/loss (L$): -700L
Gain/loss (%): +3.6%

Stock: ISE
No. shares: 5000
Mean Buy price: 3.17
Current price: 2.85
Value: 14250L
Gain/loss (L$): -1600L
Gain/loss (%): -10.1%

Stock: JCF
No. shares: 20000
Mean Buy price: 1.00
Current price: 1.03
Value: 20600L
Gain/loss (L$): +600L
Gain/loss (%): +3%