GIL has invested $6.01 million into CLOs, $5.79 million into bonds and $2.08 million into listed equities. There are $28.20 million balance from the recently raised rights issue proceeds. The first two investments (assuming no payment default) should be cash-flow positive for the Fund.
http://infopub.sgx.com/FileOpen/39_20130...eID=251950
(Not Vested)
GIL with PE = 3x, NAV = 0.245, Dividend yield = 10%.
There are a number of value for money equities where the market value is below its NAV. GIL is an example.
I see GIL making small investments in equities and bonds which are definitely better than leaving the funds earning nothing in the bank.
Of course, drop in prices for GIL means there is greater value for long term investors.
Quote:GIL with PE = 3x, NAV = 0.245, Dividend yield = 10%.
- How did you get P/E of 3X? By annualizing their half-year results which consists of several one-time gains, not least of all the gain on sale of the two aircraft which contributed 30% of total half-year revenue? P/E is hardly useful as a valuation metric if the earnings are not recurring.
- NAV per share is 0.2156 post-rights issue.
The Board of Directors of Global Investments Limited wishes to announce that the Company will be releasing its financial results for the third quarter ended 30 September 2013 on Tuesday, 5 November 2013.
GIL closed at 15.8 cents which implies a dividend yield of 9.5%.
(Not Vested)
A good move. Head I win, tail you lose. I wonder how much they are claiming and what amount they can recover from the litigation.
Quote:21 December 2013
Announcement of Litigation
The Board of Directors of Global Investments Limited (the "Company") wishes to announce that the Company has on 19 December 2013 filed writs in (1) the Supreme Court of Victoria, Australia and (2) New York County Supreme Court against Babcock & Brown LP, Babcock & Brown Rail North America LLC, Babcock & Brown Rail Management LLC, Babcock & Brown Rail Investment Management LLC, Victoria McManus, George Stone, Ross Sullivan, Larry Littlefield, Richard Umbrecht, Babcock & Brown Global Investments Management Pty Ltd, Julian Blackley, Emma Yim, Dominic Millgate, Peter Hocking, Mark Juan, Brad Hopwood, Tim Ellen, Babcock & Brown International Pty Limited, Babcock & Brown Rail Funding LLC for, inter alia, false and misleading representations made to the Company in respect of its investments in railcar portfolios through Babcock & Brown Rail North America LLC (the “Investments”), breaches of fiduciary duties, and breaches of duty and contract.
The Company will be claiming for the losses suffered by the Company from the Investments which will include the amount of the Investments and costs and fees paid in connection with the making of the Investments. The Investments were fully written off as at 31 December 2009.
For both suits, lawyers have been engaged on the basis that their fees would only be paid by the Company from and limited up to the amount recovered from the lawsuits, if any.
The result of thelitigation is not expected to have any significant impact on the financial performance of the Company for the financial year ending 31 December 2013.
<not vested>
(22-12-2013, 11:46 AM)cyclone Wrote: [ -> ]A good move. Head I win, tail you lose. I wonder how much they are claiming and what amount they can recover from the litigation.
Quote:21 December 2013
Announcement of Litigation
The Board of Directors of Global Investments Limited (the "Company") wishes to announce that the Company has on 19 December 2013 filed writs in (1) the Supreme Court of Victoria, Australia and (2) New York County Supreme Court against Babcock & Brown LP, Babcock & Brown Rail North America LLC, Babcock & Brown Rail Management LLC, Babcock & Brown Rail Investment Management LLC, Victoria McManus, George Stone, Ross Sullivan, Larry Littlefield, Richard Umbrecht, Babcock & Brown Global Investments Management Pty Ltd, Julian Blackley, Emma Yim, Dominic Millgate, Peter Hocking, Mark Juan, Brad Hopwood, Tim Ellen, Babcock & Brown International Pty Limited, Babcock & Brown Rail Funding LLC for, inter alia, false and misleading representations made to the Company in respect of its investments in railcar portfolios through Babcock & Brown Rail North America LLC (the “Investments”), breaches of fiduciary duties, and breaches of duty and contract.
The Company will be claiming for the losses suffered by the Company from the Investments which will include the amount of the Investments and costs and fees paid in connection with the making of the Investments. The Investments were fully written off as at 31 December 2009.
For both suits, lawyers have been engaged on the basis that their fees would only be paid by the Company from and limited up to the amount recovered from the lawsuits, if any.
The result of thelitigation is not expected to have any significant impact on the financial performance of the Company for the financial year ending 31 December 2013.
<not vested>
A very opportunistic move. As you said, GIL can't lose. If they can recover even a fraction of the original US$54.6 million investment in BBRNA, shareholders will benefit greatly.
anyone still following GIL? its trading much lower now at 14 cents, down from the recent high of 16 cents
I also noticed they now have scrip dividends, the recent one priced at 13 cents
The drop in price is probably due to the 1.5 cents dividend XD.
Any thoughts on whether dividends will be maintained at 1.5 cents for FY 2014 ? Not sure if they provided a guidance. Seems like they are heavy on equities and listed bonds which may not be able to provide an income stream large enough to maintain the payout. Any views ?
(Not Vested)
Here are my takes :
1) Please note that the frequency of dividend distribution had been changed from semi-annual to annual basis. The share had recently gone Ex-Dividend (DPS of SGD 1.5 cents) – which accounted for main bulk of the price drop, as Nick has mentioned.
2) Another possible factor I guess could be - Market is worrying on a possible Right Issue – a fourth consecutive one in 4 years.
3) On 8 January 2014, the Company announced that the Manager is entitled to the Manager Incentive Fee of SGD 1.215 million (on top of base management fee for FY2013 = SGD 1.573 million). This is the first time the Manager will be receiving the Manager Incentive Fee since its appointment on 25 November 2009. Interestingly, this was a “share price based incentive scheme” which I do not like.
4) Lack of transparency/disclosure on what they have invested in in the Listed Equity and Bonds portfolio – have no clue.
Portfolio as at 31-12-2013 :
Oerating Lease Asset (3%)
Listed Equity (36%)
Loan Portfolio and Securitization Assets (35%)
Bonds (22%)
Cash (4%)
5) How could one do a reasonably good earning projections on a Portfolio in which details on 58% of the Portfolio (Listed Equity + Bonds) are not disclosed.
(not vested)