This presents a good opportunity for them to divest their stake completely and recycle it into higher yielding investments. FLY Leasing at US$16 is valued at 5.5% dividend yield - fairly certain they can find corporate bonds with higher yield. They could even double their recurring income by investing in the recent CLNs they bought. The portfolio of listed equities should also benefit from the 1Q rally.
(Not Vested)
In my opinion, the management may not divest Fly Leasing as it could increase its annual dividend payout and serves as a diversification of investment risks unless the company fundamentals change.
(Vested)
(09-04-2013, 10:36 PM)Boon Wrote: [ -> ]Annual Report 2012
http://www.globalinvestmentslimited.com/...AR2012.pdf
Read the AR. The management has sold some Fly Leasing. In my opinion, the management should not divest Fly Leasing completely as it serves to divest its investment risks.
The good news is there are no rights issue this year.
(Vested)
PROPOSED RENOUNCEABLE NON-UNDERWRITTEN RIGHTS ISSUE OF UP TO 340,566,462 NEW
ORDINARY SHARES IN THE CAPITAL OF THE COMPANY (THE “RIGHTS SHARES”) AT AN I
SSUE
PRICE OF S$0.143 FOR EACH RIGHTS SHARE, ON THE BASIS OF TWO (2) RIGHTS SHARES FOR
EVERY FIVE (5) EXISTING ORDINARY SHARES IN THE CAPITAL OF THE COMPANY HELD BY
SHAREHOLDERS OF THE COMPANY AS AT A BOOKS CLOSURE DATE TO BE DETERMINED,
FRACTIONAL ENTITLEMENTS TO BE DISREGARDED
http://info.sgx.com/webcoranncatth.nsf/V...3003F5E7A/$file/17_20130506_ProposedRightsIssue.pdf?openelement [Rights Issue]
http://info.sgx.com/webcorannc.nsf/Annou...endocument [1Q 2013 Results]
http://info.sgx.com/webcoranncatth.nsf/V...3003FD100/$file/18_20130506_ChangeOfFrequencyOfDividendDistributionAndDividendGuidance.pdf?openelement [Change on DPU Frequency]
Wow this was unexpected ! They are aiming to raise net proceeds of $48.5 million. This is the third consecutive year of rights issue so the Management is aggressively growing its portfolio. Pros: More diversification of its income stream. Cons: Deployment into 'value' assets may not be easy in current times. I wonder will they seek to grow the operating lease segment with this proceeds.
(Not Vested)
Just curious do forumers see this as a good move by the fund for being increasingly aggressive in this bull market.
Or do you see it as a bad thing with the continous cash calls? (what for give dividends when you are taking money back)
GIL RECORDED 22.8% GROWTH IN PROFIT FOR THE FIRST QUARTER OF 2013
- Net profit after tax increased 22.8% to S$9.8 million for the first quarter of 2013
- Total revenue surged 142.1% while total expenses increased by 5.9% in 1Q 2013
- Total comprehensive income attributable to shareholders increased significantly to S$11.8 million in 1Q 2013 from S$4.3 million in 1Q 2012
- EPS = SGD 1.18 cents
- Net Asset Value per Share grew to 23.7 Singapore cents during the first quarter of 2013 from 23.0 Singapore cents in 4Q 2012
---------------------------------------------------------------------------------------------------
From profitability perspective, it looks impressive – need to look into free cash flow in detail – will do that
On the rights issue, it is a surprise. Wondering how the market will react?
On changing dividend distribution frequency from semi-annually to annually - I don’t like it - the more frequent the better – note that UMS pays dividend on quarterly basis
(Vested with stake substantially reduced – divested 90% and left with 10%)
I like GIL's performance but their 3rd round of rights issue and scrip dividends clearly shows that management is in a rush to grow AUM for their own benefits.
not vested
(07-05-2013, 12:20 AM)Boon Wrote: [ -> ]On the rights issue, it is a surprise. Wondering how the market will react?
with a sell off , of course
