Tuesday, April 15, 2008

EMFI Dividends for March 08 to April 08

There was: 1,871, 740,241 in excess capital, this compared to 2,220, 679,028 last month, this is a graduated fall due to the following reasons:

  • The Eve stock market is in freefall… Nine stocks lost value although twelve gained value to counter balance this. There is large concern over Ionia’s continued disappearance (6LTD, FRPB and LMTA) and FIN/FIN-U’s statement that they will not be able to meet minimum bond payment levels in the long-term, and missing dividends;
  • Several shares have reduced their dividends levels, like BMBE where Ray McCormack has resigned, EMFI would like to thank him for his efforts to date;
  • There was 30% of the fund not paying dividends this month, the stocks not paying out this month include: 6LTD; FIN-U; FRPB; T2AHL; TCCS; and Zero. In short the eve stock market is not working. On a positive note AATP paid double dividends and EMFI received its second 1billion plus dividend to date; and
  • EMFI have re-valued the portfolio to try and reduce the NAV of these stocks, this will have an effect on dividend levels in the medium term as dividends are low and NAVs are falling, however trading income is higher than usual. EMFI have reduced FRPB and 6LTD by a quarter…and have taken a 2.75 billion hit…this will be repeated over the next three months to gradually reduce exposure to these stocks whilst maintaining a certain level of dividend for investors.

Scam reserves have been released to cover the value reduction in major stocks as well

The dividends were distributed as follows:
* 1,509, 979,205 paid out in dividends
* 46,793,506 for Fund Management duties;
* 23,396,753 as half the normal wage bill of 46,793,506, which was split between audit staff, staff and trustees;
* 187,174,024 retained capital (as hedge against scams).

The retained capital pool now stands at: 187,174,024 which will be reinvested on this occasion to increase shareholder returns.

Trading News:
Nine stocks have lost value, so the overall climate is unfavourable;

PIF and PSRS have completed their full buyback/liquidation…many thanks for showing how it should be done Nyphur;
One stock is still closing: SHMEC; and
New stocks invested in: BSAMR, BSAMT, CRDE, and STR-H

Trading Alerts:
Dividend income should have increased this month but dividends have not been paid by: 6LTD; C-R-A; FIN; FIN-U; FRPB; T2AHL; TCCS; and Zero.

This is an income shortfall of approximately 1.2 billion on top of the shortfall of 1,388,629,038 for last month…a HUGE shortfall…huge gap and weakening of the market place…in effect there is no enforcement, or sanction system in the stock market at present…

Discussions have taken place with the main parties and at two corporations, both of which have resumed dividends. One of these required a change of CEO

So a final dividend of:
* 159.1 isk per share, a fall from 188.76 isk per share last month, but above the market average at present, as so many stocks are not paying out (FIN, FIN-U, FRPB, 6LTD, Zero. etc)...so return on original NAV are down…but we are not out, and we at EMFI have been selecting some above average performing stocks to see us though this tight patch. All the best, Ghost Emperor.

Click the image below to review our current portfolio: