13-12-2012, 05:16 PM
(13-12-2012, 02:49 PM)Boon Wrote: [ -> ](12-12-2012, 10:28 PM)Nick Wrote: [ -> ]Hi Boon,
I used the figures from FY 2010 till date since this represents the years which STAM took charge. Looking at the 4Q financial statements for each of these years, I extracted the gain on disposals from the P&L Statement:
FY 2010
Gain on Disposal: $0.100 million (Settlement of Cash-flow Finance Solution Ltd)
FY 2011
Gain on Disposal: $3.608 million (Divestment of Series Residual of Newgate Funding & RMBS Notes)
9M 2012
Gain on Disposal: $1.253 million (Sale of recently invested equities and partial sale of FLY Leasing shares)
Total: $4.961 million
Hi Nick,
To really gauge the performance and capability of the new management over the period from 2010 to now, for realized capital gains on divestment of investments, I would count only the following 2 disposals:
1) Gain on disposal of AHM 2005-4 1A3 RMBS in 2011 of SGD 1.105 million
2) Gain on disposal of recently invested listed equity in 3Q2012 of SGD 0.286 million
Strictly speaking, the other asset disposals were realized at a lost - these assets were bought at much higher costs by the previous management team B&B. Most of their values had been fully or partially impaired.
On gain of disposal of $1.253 million for 9M2012, of which $1.090 million was booked in 3Q2012.
From the cash flow statement of investing for 3Q2012: Proceeds from sale of financial assets = $7.104 million
From the 3Q2012 current-asset-review for recently invested listed equity, it is stated that: During the quarter, GIL purchased a total of S$30.65 million in listed shares, of which S$5.88 million was subsequently sold. The net profit on the sale of shares amounted to about S$286,000 Therefore, proceed from sale of listed shares inclusive of gain of $286,000 should be $6.166 million.
This will leave 7.104 – 6.166 =$ 0.938 million, being proceed from sale of OTHER financial asset, out of which 1.090 – 0.286 = $ 0.804 million is profit.
This does not make sense. Am I missing something?