Company Stock Report - SIM

Sienkiewicz Investment Management (SIM)

Rating - Strong buy $L0.66, Buy $L1.05, Long buy $L1.10, Accumulate $L1.50

Ok, after reviewing SW's reports over the last few days I noticed something that I thought needed addressing. The weekend roundup stated that SIM was showing the warning signs of a crash, then Wednesdays daily report listed it with a BUY rating. I know this must look contradictory, but taken at face value, they are only stating how it looks.
I thought it best I delve a little bit deeper and earlier this week I spoke with the "big-seller" Shaun Altman and finally last night with SIM Corp. CEO, Pablo Sienkiewicz in-world.

So on to the analysis: My report is individual and proposes my own unique overview (with the help of my staff), so I will refrain from quoting or poking holes in other analyst reports or the CEO's responses to those.
(Disclaimer: I do not hold any SIM shares. I have no relationship with CEO Pablo Sienkiewicz or his c-class team)

Shaun Altman has dropped his position over the month from 1.28M @ 85.4% to a little under 900k (@59.8%) and still dropping! I had a conversation with Shaun at WSE and asked why he was dropping the stock so cheap. "How can I sit waiting for this dividend when other stocks (HCL) are doubling?" It seemed the delayed dividend was the major cause for the sell off as Shaun labeled SIM a "liability". The next day SIM posted the dividend and after another chat with Shaun, he stated "ok, I'll stop selling below $L1.03 now".
Why is this important to the analysis? This stock is 100% market owned. Therefore, Shaun's position with it was; "the market". There is an open order of 500k shares for $L1.05 currently, which is obviously this major shareholder...

Pablo Sienkiewicz has been quick to rebuke comments made about SIM in recent weeks and is a member of SL users against VAT group in Second Life. The company was hit hard by VAT as initial capital was limited to $L1.5M and the promised "fixed" dividend meant that operational costs were already tight. After speaking with Pablo about the future of SIM and his thoughts on VAT and the DDE joint venture, it's clear that he has a forward vision for SIM has the company and shareholders (the owners) best interests in foremost. With no controlling stake in the company, I feel the current issues being faced by other companies with "trust" and the possibility of a CEO-run are not so prominent here.

In summary, the numbers predicted by Delicious Demar for the Simlicious joint venture, Pablo's commitment and plans for more than 3 sims in the coming months, a more stable entry price for the stock and better chance for a diversified market holding and the promise of "fixed" dividends (which so far have been the biggest pull and most precarious issue for the company) I see strengthening in areas other companies are weakening.

Some other numbers:
You will notice NTA is still just under $L1.00 in the companies first month returning to business. This is promising with only 1.5 islands and the October problems with the WSE market. The new, more profitable venture with Delicious Demar Enterprises and the WSE market recovering and the bulls are beginning to return...a chance to grab a 30% stake in the company at $L1.05 with a guaranteed $L0.04/share monthly return via dividend...

Cash: 368,467L
Mainland held: 0 meters
Value of mainland (at 7L per meter): 0L
Islands: 1 1/2
Value of islands (at $1675 US each): 460,625L + 231,000L
WSE portfolio: 189,923L
Open WSE buy orders: 0L
Other investments: 200,000L
-----------------------------------------
Total Assets: 1,450,015L
Debts - none
Net Assets: 1,450,015
Shares outstanding: 1,500,000
Net Asset Value per share: 0.966L
================================
OPERATING STATEMENT
Revenues:
Tier: 124,400L
Dividends: 0L
WSE Trading income: 24,783L
------------------------------------------------
Total Revenue: 149,183L
Expenses:
Tier: 147,730L
------------------------------------------------
Total Expenses: 147,730L
Profit/Loss: 1,453L

If anyone has any comments, suggestions or corrections to this entry, please, as always contact Logansan Oh in-world or post a comment on http://swassets.blogspot.com.


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Sincerely,
Logansan Oh
- CEO, Chairman