(24-12-2012, 12:59 PM)dzwm87 Wrote: [ -> ]Contributions from the JV is based on proportionate consolidation into the P&L statement. I do not think they are included under associates' income as this is shown clearly under its 2012AR or unless I had interpreted it wrongly. Correct me if I am wrong 
I am not talking about its JV and the sale, just commenting on the associates which account for more than half the total asset of GPI and perhaps why GPI is trading at a discount to its book value
Apologies my bad. My reply was referring to guru's
"No movement of the share price? The market is impartial to this transaction?"
Should have quoted his post given it seem I could be replying to yours instead! (:
(24-12-2012, 01:13 PM)shanrui_91 Wrote: [ -> ]I am not talking about its JV and the sale, just commenting on the associates which account for more than half the total asset of GPI and perhaps why GPI is trading at a discount to its book value
the significant associate is GP battery, which is very illiquid. If it was to simply use market price for its valuation, it would be very easy for the management to jack up the price of GP battery and make the balance sheet look very good(how to do it? just look at Aspial).
I think that it is fair to use equity method rather than mark-to-market valuation to account, though, how much discount/premium to apply for the valuation of GP Industries is completely a different question.
is this a fair deal?
how to gauge?
1. It is interesting to find out from the AR that GPI uses rare earth (magnet) for their acoustic products. Since China is a rare earth producer that will mean that they will be less affected in the event of worldwide shortage.
2. The latest buyback occurred in Jan and the highest price done was the 12 month high of 48.5 cts. Does that mean that delisting is unlikely? Why would the majority shareholder want to push the price higher if they intend to delist? Any comments? Thanks.
3. Notice another thing. The total NAV (not per share) of GPI has been falling for the last 5 years. What should one make of this? Thanks!
Upon completion of disposal of Shanghai Jingting Automobile Harness Limited, GP Industries will be flushed with about 62.8 million sgd.
In view of the inefficient holding structure between Gold Peak and GP Industries, and the eagerness of Gold Peak to increase the shareholding in these years, I think a probability for a GO is high. Or am I daydreaming ?
<vested>
with so much cash (60 over million) , why don the company pay the shareholders a one off special dividend ?
Is the battery business dependant on the global automotive industry ?
how do u know the structure is inefficient
(20-05-2013, 10:01 PM)pianist Wrote: [ -> ]how do u know the structure is inefficient
Gold Peak has no other mayor businesses except this GP Industries.
Interestingly, they seem to be doing a lot of share buy back in GP Industries