December 2015 Profits Paid
Capital: 13,216,912
ROI: 1.12%
Total Profit: 154,397
Divs Paid: 84,918
Div/Asset: 0.27
As many of you know, December was an incredibly tough month for LQD. Let's get the bad news out of the way first....
1) The loss of Forex funds in November not only cost us significant capital, but demolished our IPO momentum. And to tie it all up of course, less Forex capital means less profits. I estimate it will take at least several months to get our FX income back to what it was.
2) Cryptsy is no longer processing withdrawals in the major currencies, most specifically BTC. I was able to withdraw most of it early on by other means and at only a slight cost and I expect to have the rest out this month. More significantly though, Cryptsy trading had been a fairly large part of our income and that is lost forever now as I will not be using Cryptsy again at least under current management, even if they start processing withdrawals again.
3) We had a large overflow investor of 30 BTC pull his investment which normally wouldn't be that big of a deal except I really don't want to sell NXT at the current price. This forces me into a sort of balancing act between returning this BTC without losing BTC trade capital.
After all that, I'm still optimistic in our future. Many would gone down after taking these hits, but I'm a fighter and while I still have a chance, I fight on!
Here's the good news:
1) Those of you who watch the balance sheet have noticed a lot of changes happening. I've spent about a hundred hours slimming our balance sheet down to just a few currencies and trading them on high volume exchanges. For the near future, we will just be trading BTC, USD, LTC, ETH and of course, NXT. I added Kraken for ETH and BTC-E for LTC.
2) I've also implemented margin trading on Bitfinex and Poloniex (LTC/BTC and ETH/BTC). This will allow larger trades which will maximize profit even with smaller profit margins.
3) LQD owns almost exactly 1% of the total amount of NXT which I'm patiently sitting on. I think that NXT will have a strong 2016 with all the really positive developments going on. I expect a significant rise in price which will allow some conversion to BTC and thus increase trade capital.
Finally, yes, our dividends and thus our share prices have taken a significant hit. I apologize to all of you that have taken a loss. If you look at my holdings, you'll notice that I've accumulated more and not sold and so I share your pain. However, don't lose hope. I believe our ship will be righted and we will return to our former glory and beyond.
To those of you who sold during this rough season, I ask you to not write us off completely. Please return in a few months, review how we are doing and re-consider another investment.
To those of you that are holding with me, I give you my sincerest thanks. I think the bad times are behind us and good times are ahead. I expect that you will be rewarded for your loyalty.
To those of you looking at LQD fresh, I say these are the times where value investors take risks and sometimes are significantly rewarded. LQD is solid and the strategy is still solid. Every company has rough spots and December is not reflective of who we are.
I continue to be committed to LQD and NXT as much as ever. On to 2016!!
Liberty