Global Investment Limited (SGX:B73)

[MrSinkie95]

tiagong is subsidiary of a big firm

 

[ValueInvestor]

tiagong is subsidiary of a big firm

which firm???????????????

 

[ValueInvestor]

SGX many value traps
i last time kanna trapped gao gao

learnt it via experience and painful lessons

u are lucky here many bros advise u, u can siam this value trap

 

[xsainty]

SGX many value traps
i last time kanna trapped gao gao

learnt it via experience and painful lessons

u are lucky here many bros advise u, u can siam this value trap

Thanks for the advise! i was screening around for good value stocks, and GIL just seems so attractive at the given yield and PB. Yes kinda agree on the value trap part as i dig further.

 

[omgurapig]

SGX many value traps
i last time kanna trapped gao gao

learnt it via experience and painful lessons

u are lucky here many bros advise u, u can siam this value trap

Hello, how do u identify value traps? Is it cos the price of the stock never rise over the yrs??

Sry noob here..

 

[GiraffeValue]

Global Investment Limited

very chao kuan one, they got sexy dividend, trading at huge discount to its NAV. But

They are obsess with rights issue. Then dilute your share gao gao.

 

[GiraffeValue]

dont be hardup over dividend!!!

It's time to start another thread on that liao... Newcomers never learn.

 

[Perisher]

It's time to start another thread on that liao... Newcomers never learn.

He already got one,
[OFFICIAL]Don't be hard up over dividends

don't encourage him to start threads unnecessarily.

 

[ValueInvestor]

Hello, how do u identify value traps? Is it cos the price of the stock never rise over the yrs??

Sry noob here..

got many sorts of value trap

but generally I would say value traps are those that give u way below index returns... as such u would be better off investing in the index instead

for the case of GIL your NAV per share keeps dropping over the years due to rights and script


other examples of value trap is like stamford land, NAV also keeps dropping

 

[xsainty]

Global Investment Limited

very chao kuan one, they got sexy dividend, trading at huge discount to its NAV. But

They are obsess with rights issue. Then dilute your share gao gao.

Does it help that the own CEO, Boon Swan Foo is vested 10.95% into the stock?

 

[Perisher]

Does it help that the own CEO, Boon Swan Foo is vested 10.95% into the stock?

Yes, it helps. It's best to have owners who are long term heavily vested in the company as well.

 

[ValueInvestor]

Does it help that the own CEO, Boon Swan Foo is vested 10.95% into the stock?

yup that's good, the more % the better

best he can bring it up to say 20-50%

so that when he does rights issue he feels the pain too


currently 10% still so so.... I think they charge like 1% management fees

 

[JustTrade]

One way of preventing dilution is to opt for script dividends.

 

[xsainty]

One way of preventing dilution is to opt for script dividends.

Yes, but would it be a vicious cycle of not getting any cash dividends at all? but just shares annually.

 

[MrSinkie95]

which firm???????????????

either GIC or temasek. heard from friend b4

 

[ValueInvestor]

either GIC or temasek. heard from friend b4

Dun think so wor

 

[MrSinkie95]

Dun think so wor

http://www.investmentmoats.com/singapore-stocks/global-investments-limited-gil-rights-issue/


paiseh. is affiliated not subsidiary

 

[Asphodeli]

http://www.businesstimes.com.sg/com...Echobox&utm_medium=Social&utm_source=Facebook

[SINGAPORE] Residential mortgage-backed securities and collateralised loan obligations didn't turn out to be very good investments during the global financial crisis. For one Singapore-listed mutual fund, they still aren't.

Six years on and Global Investments Ltd continues to pay the price for buying the riskiest parcels of RMBS in Australia and junk-rated loan tranches in Europe. The fund is trading at an about 38 per cent discount to its S$291.8 million in net assets, the steepest since mid 2013, and Chairman Boon Swan Foo admits it's been a "massive struggle."

"It was extremely difficult not only in the management but also in the restructuring side of it," he said in an interview from Global Investments' head office near Orchard Road, Singapore's shopping mecca. "We've had to change the board and of course, we had to do a lot of cleaning up in the legacy assets." Global Investments can trace its origins back to a fund structured and managed by Babcock & Brown Ltd, the Australian global investment and advisory firm that collapsed in 2009 with a balance sheet full of debt. Mr Boon, a senior adviser to Singapore's state-owned investment company Temasek Holdings Pte, took over the company and in September of that year appointed ST Asset Management Ltd, a wholly-owned unit of Temasek, to manage the portfolio.

Global Investments owned A$46.1 million (S$46.5 million) in face value of securities backed by residential and commercial mortgages in Australia, according to its June 30 report. That included some unrated classes of Seiza 2006 Trust notes, which have suffered A$23.3 million in impairment value.



The mutual fund also held 19 million euros (S$30.3 million) in face value of a basket of CLOs packaged and sold by Ireland's Avoca Capital Holdings, an investment company that specialises in leveraged loan management. They carried a cumulative impairment value of 9.44 million euros, the accounts show.

"This pool of assets has deteriorated over time because of delinquencies and ratings downgrade," Jason See, the managing director of ST Asset Management, said in an interview. "There's impairment and the trend is still going on. We continue to evaluate and monitor the situation, whether to divest or hold on for the future cash flows."

The RMBS and CLOs are among so-called hard-to-value Level 3 assets that made up about 23 per cent of Global Investments' portfolio as at the end of June. The mutual fund held 35 per cent of its assets in bonds, 28 per cent in listed equities and 8 per cent in cash and other net assets.

Despite everything, Global Investments hasn't posted a loss since an initial S$33.9 million setback in 2009. It recorded net income of S$24.3 million in 2014 and a S$28.8 million profit the year before that. Dividend payouts have also increased every year since 2010.

The fund booked an S$8.25 million net gain by selling down its holdings of listed equities to S$80.53 million in the second quarter. Between June 30 and July 7, it trimmed its holdings of Shanghai-listed shares to less than S$1 million from S$18.5 million, sidestepping a deeper stock market rout over July and August.

Its debt holdings increased by S$27.05 million in the second quarter to S$103 million. The rated portion of those securities had a weighted average score of Ba3, or three levels below investment grade. The debt holdings had an average annual coupon of about 7.2 per cent. As of December, they included notes issued by Unicredit SpA, Societe Generale SA and Barclays Plc, as well as Li Ka-Shing's Cheung Kong Holdings Ltd, according to its 2014 annual report.

Mr Boon, who owns about 11 per cent of Global Investments, also sits on the boards of China National Offshore Oil Corp and Dongfeng Motor Corp. Because the fund doesn't manage the underlying assets directly, he relies on trustee reports to evaluate his next course of action.

"It depends on the value of the market, and markets change from time to time," he said. "We're holding on in the expectation that if we're lucky, we'll be able to get good buyers at the right price."

BLOOMBERG

 

[JW2015]

Is this buy able now?
I see it has a very high yield it's in penny stock category

And there is blogger who has very large position in this.

 

[Asphodeli]

Already got warning liao lo this counter...many people say it's a value trap...you still want to buy?

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