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LIG Assets Chairman Jeffrey Love Letter To Shareholders
Posted June 6, 2011
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DALLAS, TX -- LIG Assets Inc. (PINKSHEETS: LIGA) announced today the following message from its Chairman, Jeff Love:
LIG Assets will release first and second quarter 2011 financials after the June 30th quarter closes. The Company has been focused on a growing number of business opportunities that have required management's focus. The company has also completed the relocation of its headquarters during the quarter.
Outlook
2010 represents a strong and successful year for LIG Assets. The strategy introduced two and a half years ago is working well and over the course of the past year, the Company has repositioned and strengthened its portfolio.
Globally, the economic recovery has been remarkably robust, with strong strength in demand for oil products. The strength and durability of the recovery appears sustainable.
We are confident that LIG Assets is well positioned in these dynamic conditions, with a diverse portfolio and flexibility in capital programs. Tightening spare capacity in oil has encouraged our continued focus in that area.
The Company's experience draws on its ability to seek value-added opportunities that benefit from strengths in management and renovation. LIGA has confidence in the market recovery and its ability to drive profitability through comprehensive renovation.
LIG Assets has expanded and added several business opportunities to the Company's portfolio.
Income Generation
Our principal business objective is to generate income for distribution to our shareholders. We will derive this from several sources. The spread between interest income on our mortgage-backed real estate and costs of borrowing for the real estate has historically generated revenue for the Company; this is anticipated to continue.
LIGA buys and sells portfolios of REO and mortgage-backed real estate. A combination of adjustable, floating, and fixed-rate mortgage backed real estate portfolios designed to perform through a wide range of interest rate environments is employed. Leverage of these assets enhances our returns, where available. In addition, the Company earns revenue from our assets.
LIG Assets Core Base
• Corporate seed capital and resulting ownership interest
• Residential Properties
• REO purchases
LIG Assets, Inc. and the Oil and Gas Market
We are participating in oil and gas exploration and development prospects that have been developed by well-respected international industry leaders and are in areas of long term proven production. We have taken a diversified approach to oil and gas prospects and our risk/reward analysis and profile varies for each prospect that we examine.
When I look at the oil and gas market, I am encouraged. Just this past week, Sterne Agee raised its expectations for US and European benchmark oil contracts for 2011 and 2012. It sees WTI crude averaging $100/bbl in 2011 and $104 in 2012. RBC Capital noted, on May 20, 2011, near-term momentum is returning to the majors as Big Oil develops into Big Gas, where long-term growth is stronger, prices have further to run and scale and integration translate more effectively into competitive advantage.
It is anticipated that LIGA's prospect oil and gas fields will self-finance its current operations and future projects will continue to increase profitability. LIG Assets will contract out the current continued production and exploration.
REO Properties and Distressed Assets
LIG Assets acquires REO properties directly from lenders that foreclose the property. Real estate owned or REO is a class of property owned by a lender after an unsuccessful sale at a foreclosure auction. Our assets are typically located in prime national locations, which enhance our ability to reduce marketing time while maximizing loan recovery. The REOs purchased are provided with owner-financing for homebuyers with less-than-perfect credit and no credit check is normally required.
The Company creates investment income by purchasing and reselling distressed properties. Properties that will generate a one hundred percent profit from cosmetic or functional property improvements are targeted. The rehabilitation process typically requires on average six months to a year.
I am enthusiastic about the long-term prospects in real estate and look forward to making additional investments with a focus on purchasing sub and non-performing real estate mortgages, REOs, and other distressed bank assets. This is an excellent time to focus on this market.
Current Portfolio
LIG Assets has owned and purchased properties valued in excess of an estimated $30 million. We are actively filling the void left by banks, hard money lenders, and mortgage companies in the real estate marketplace.
Through the Company's asset based lending program, real estate investors have the potential to earn an eight percent annual return on their investment which is paid monthly, with an option to purchase LIG Assets stock at a discount to market.
The Company acquires, rehabilitates and sells commercial and residential real estate, providing second chance opportunities for home buyers and restoring structures to help promote growth in the economy. Residential properties are presently being sold in Texas, Oklahoma, Michigan, Chicago, San Diego andVirginia Beach, Virginia.
Dallas, Texas: Home office for real estate investment venture to purchase and sell properties throughout the United States.
Oklahoma City: March 2011, opened an office in Oklahoma City for the purchase and sales of real estate.
Chicago: March 2011, opened a second regional office in Chicago to serve the Chicago area and the State of Illinois. This has been one of LIG Assets most active real estate sales markets.
The Company expects to open additional offices in the highest sales regions.
Current Residential Properties
In 2010, LIG Assets, Inc. purchased over 250 residential properties. This property package and the resulting monthly net income will be leveraged to assist in the purchase of other projects. The properties are managed by a professional management group.
This broad spectrum of income-producing investments allows LIG Assets the freedom to invest in newer and promising investments.
Strong Outlook Based on Historical Operating Performance
2010 represents a year that exceeded expectations, with strong underlying growth that serves as the foundation for 2011. With our investment portfolio now set for ongoing growth and continuing improvement in our cost base, we are positioned for sustainable, profitable growth. The underlying performance and cost base of the company continues to improve.
We recognize that wherever we are active, we must operate responsibly and are committed to taking the necessary steps toward financial transparency.
We have positioned our portfolio to deliver growth and have a clear and definitive plan to deliver that growth. LIGA is continuing to strengthen its internal capability, and has set an objective to significantly improve its development processes during this year.
Looking forward, we can now project a growing company, with many high quality options, and an exciting future. I am optimistic that for LIG Assets, Inc. tomorrow will be even better than today.
Jeffry Love
CEO and President
LIG Assets, Inc.
1700 Pacific St.
Suite 2680
Dallas, Texas 75201
To learn more about LIG Assets, Inc., please go to: http://www.ligassetsinc.net
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