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Massive, is to say the least when talking about Dementu Club’s vast empire. They control 11 Organizations and 11 Companies in three different industries. This is a constellation that properly ran, can be a goldmine, but just a mine if run by a reckless GM. Crazy Man is the person most frequently representing DCM in public, and seems despite his name, like a sharp character. Though I hope he have some help running all those companies. But lets get down to business and see what’s really up.

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Going through my checklist, DCM actually starts of a bit weak on the presentation side; No dividend- or profit estimates. Dividend Yield is however publicly known, and admittedly high. But I can’t se them mentioned in the financial Report. Since most companies are Q5, theoretically there should be good profits. Something that might turn the more political investor is there seems to be a lack of information about shareholders meetings, elections of Chairman, etc. Also, no information about what right of vote one receives with the shares. How this works is not as important as that we are informed. Besides this, there financial report is really neat laid out and full of information that’s easy to interpret ate. One of the better designed Financial Reports so far, but just a few pieces missing.

On the Risky side, there is not very much to complain about. The average Q is high throughout the company and gives good stability. The only thing one could remark on is the lack of diversification, though this is really a matter of taste. More safety or a higher expected return. DCM goes for the latter, slightly more risk and potentially higher return. Since most some 90 percent of the company is in food business one should monitor that market closely if heavily invested in DCM. To sum it up, there’s medium to low risk in this company and most comes from the lack of diversification, which could also be strength under the right circumstances. The fact that the companies are spread out over the world reduces a piece of the risk as that they have a few weapon companies.

On the Reward side there is the high dividend yield, somewhere around 20%, if you are patient you could probably squeeze out a bit extra, catching the shares low. The cash reserve is on around 10% of Total Value, and that is in our opinion is a bit on the low side, though not a big concern. The employment rate in the factories on the other side is very good, there it was only two companies at the time of our Rating with missing employees and the skill level is over all good. An other factors serving DCM is controlling a well read newspapers. They are also very active on the .com forum, which probably gives a little extra bit of volume on the ERX. All in all, Crazy Man seems to be a man in control with a good firm under his feet. DCM has earned a Certificate of Investment Grade and Rated BBB+.

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One could argue for a higher grade, but there are a few letdowns. One of the major flaws is on the reporting side, not having shareholders meeting, no dividend- or profit projections. There is a profit page in their financial report, though under construction. The cash rate is also a bit to low for aspiring for some kind of A. On top of this, we’d like to see a bit more history before giving out A’s.
These are all small matters, and for the investor who believes in big companies, this one has a really nice edge through it’s food focus. If you want to invest in the food business, DCM is probably by far the best shot available on ERX! At 0.24G per share, we would like to give this a BUY recommendation.
We recomend this share as a good long term investment up to 0,34G. We project the shareprice to 0,66G in 4-6 months, based on current dividends and reinvestment.

Kind Regards
Yossi Ghinsberg
Chairman
GBi Rating Co., Ltd



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