Nov 1st 2011, 12:16 GDI GDInc.
by Telexa Gabardini
GDI October Financial Report SPO InformationGreetings,
Normally I do not post monthly statements, and only post the quarterly's since moving over to Capex. Since GDI has an ongoing SPO in the process, I have decided to update investors by posting a monthly statement for GDI for October. This should help not only current investors as well as new investors make an informed decision to invest into this SPO. I have taken advantage of the Linden land deal that ended on the 23rd of October by adding 4 new islands. These were purchased in result of a demand for them and are currently rented. The sims generate an additional $31,000 a month profit and this falls right in line with my proposal for the SPO. This has resulted in quite a few rentals being vacated as the residents choose to upgrade. The vacancies have now been remodeled with new builds, and will be ready for new tenants in the next few days. this has allowed me to maximize prim use and will result in additional profits. The plan is to add at the minimum of 15 additional sims, resulting in an additional $465,000 per month in profits. Of course this depends on the success of the SPO as well as the prices paid for the sims. Best case scenario would be to have the SPO sell out in full and through careful negotiations of prices for sims, GDI could acquire an additional 24+ new sims, resulting in an additional $744,000+ monthly profits. This would push GDI over the $1,000,000 a month in Net Profits. Do not confuse that with Revenues, GDI currently has monthly revenues in excess of $3,000,000, and should the SPO sell out and all desired sims are purchased, GDI would see monthly revenues in excess of $5,300,000.
Currently the SPO is selling at $8.00 per share, and with a book value of $22.01, GDI is one of the most, if not the most undervalued stocks listed on the exchange. Since transferring to Capex GDI has paid dividends for three quarters thus far totaling $1.06+ per share. The next highest dividends paid would be Capex, and ADS paying thus far $0.487 and $0.481 respectively. Should GDI have a successful SPO and all plans for sim purchases are realized, dividends should far exceed $1.00 per quarter. However if dividends are not your only basis for investments, GDI has proven to increase value as a company thus far, not on the back of shareholder contributions, but with retention of profits as well a wise business decisions through low cost sim purchases. An investor purchasing shares at GDI's IPO has so far seen an increase in value of 320% at current share price and an increase at book value of 667%. GDI has proven to be a safe long term high yield investment and will only continue to be.
Through our SPO we are asking to raise from investors an additional $1,200,000 for the purchase of new sims. This is less then 7% of our current asset value, and being raised through the sale of 150,000 (18.75%) of the outstanding shares. Please remember we have already took the initiative to purchase 4 sims ahead of the completion of the SPO, already increasing the value of GDI. Take a few moments and review GDI's financial reports, and please post any questions or comments in our forums, and i will be happy to address them. Below you will find a brief October financial report as well as a link to a more detailed report.
Thank you for considering to invest in GDI, and we hope you choose to do so.
Company Assets: $17,605,077.87
Total Revenues: $3,283,951.87
Total Expenses: $3,016,065.00
Retained Earnings: $267,886.87
Outstanding Shares: 800,000
Market Price: $8.30 (10/22/2011)
Earnings per share: 6.45
Cash earnings per share: 4.02
Price/Earning ratio: 1.29
Book Value per share: $22.01