Global Investments

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(08-05-2013, 01:32 PM)lazyplane Wrote: Wow. With GIL share price plunging to 16 cents after the rights issue, the ex right share price in theory will now be 15.5 cents.

Not sure who are the buyers now, but i would have waited until post rights to buy this share. Very siong to keep funding this investment regardless of the dividend yield

Oops sorry, never done rights issue before...
kinda forgot they issued the rights at a discount to current trading price.
just curious how you arrived at the ex-right price of 15.5 cents.

I took (14.3 x 2) + (17.0 x 5) / 7 = 16.22 cents.

So i thought today's closing price of 16.2 is pretty accurate.
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(08-05-2013, 06:05 PM)l0nEr Wrote:
(08-05-2013, 01:32 PM)lazyplane Wrote: Wow. With GIL share price plunging to 16 cents after the rights issue, the ex right share price in theory will now be 15.5 cents.

Not sure who are the buyers now, but i would have waited until post rights to buy this share. Very siong to keep funding this investment regardless of the dividend yield

Oops sorry, never done rights issue before...
kinda forgot they issued the rights at a discount to current trading price.
just curious how you arrived at the ex-right price of 15.5 cents.

I took (14.3 x 2) + (17.0 x 5) / 7 = 16.22 cents.

So i thought today's closing price of 16.2 is pretty accurate.

As the shares today still possess the right, you should not be use 17 cents.

hence (14.3 x 2) + (16.0 x 5) / 7= 15.5 cents is price of the share ex right based on current market sentiment .

And because the shares drop so much, u can have a feel that retail investors are really NOT keen to pump more into the counter. I suspect that there will be more dumping after people subscribe to the rights shares at 14.3 just to "gain" the perceived profit for the new shares.

In theory , they should not be doing so because it just plunge the value of their holdings but retail market especially is not always rationale.

Am keeping out from this counter until I think Mr Boon cannot fund his right shares ... ha ha ha ha....
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(08-05-2013, 02:44 PM)CY09 Wrote: Just curious in its rights announcement, it mentions proceeds could be used to invest in :
(3) Equity or debt in companies with exposure to operating leases.

Do they mean companies that deal with renting out their property etc, Landlord counters, REITS etc?

The Rights proceeds this time, like the previous one, could be used to invest in

(i) High yield bonds, hybrid investments and public equity investments;
(ii) Loans, receivables or asset-backed securities that banks are looking to divest as they continue deleveraging to improve their capital base; and
(iii) Equity or debt in companies with exposure to operating leases.

For item (iii), my take is – in general it refers to companies that are in the business of renting out any leasable assets - business equipment, manufacturing machinery, office equipment, material handling equipment, computers, tractors trailers, aircrafts, ships, trains, cars, cranes etc, (IMO, by definition, property should be included, but it is debatable).

Under the previous management, Babcock & Brown, the company had made operating lease related investments only in aircrafts (Fly Leasing and GIL Aircraft Lessor No:2) and trains (Ascendos).

Last year, the new manager, STAM, initiated investments in Asia listed equities - this Asia Equities portfolio which made up of 51 securities as at 31 March 2013, has 13% exposure to the real estate sector – it is highly likely that some of these securities are Landlord counters or REITS.

I would take it that if item (iii) does not include property, item (i) “public equity investments” does.

(Vested)
Research, research and research - Please do your own due diligence (DYODD) before you invest - Any reliance on my analysis is SOLELY at your own risk.
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GIL Wrote:COMPLETION OF SALE OF THE GROUP’S TWO BOEING 757-200 AIRCRAFT

The net accounting gain after taking into account the net proceeds arising from the redelivery by the lessee and the sale of the two aircraft is approximately US$5.45 million which is higher than the previous estimate of US$2.65 million

....

In light of the net accounting gain arising from the Transaction, the Company is pleased to provide dividend guidance of 1.5 Singapore cents per share in respect of the financial year ending 31 December 2013.

So, if there hasn't been a surprise additional gain, the dividend guidance wouldn't have been the usual 1.5c? Hmm....
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hm.. I wonder why they pay out so much in dividends but keep asking for right issue every year?

Might as well keep the cash and re-invest it, hope they stop diluting shareholders~
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(15-05-2013, 06:18 PM)felixleong Wrote: hm.. I wonder why they pay out so much in dividends but keep asking for right issue every year?

Might as well keep the cash and re-invest it, hope they stop diluting shareholders~

Can you imagine what the share price might be if there's no dividend?

If price is supported, then you can issue rights.

Rights is one easy way to raise the market cap.
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Latest calculation of ex right price... Today is the last day..
Based on mkt share price of 0.158 now so

Ex right theory price is 0. 1537.

If this is bad, wait til post rights tomorrow. Seems like a possibility that this will drop below 0.143 rights price for the share even...

Ouch.

Angry
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(13-06-2013, 03:02 PM)lazyplane Wrote: Latest calculation of ex right price... Today is the last day..
Based on mkt share price of 0.158 now so

Ex right theory price is 0. 1537.

If this is bad, wait til post rights tomorrow. Seems like a possibility that this will drop below 0.143 rights price for the share even...

Ouch.

Angry

Was so tempted to lock in some share on GIL today. But withheld my order after re-reading this thread.

Can any bros tell me since GIL invested in equity/ shares recently, (and since most shares index in the world dropped), does it mean that GIL profit will also drop ? Will this have an impact to their dividend forecast ?

Or will the change in valuation of the shares be reflected only if they sell the shares ?

tks
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GIL records its listed equities investment at market value so it will book fair value losses if the market valuation of its equities drop. This has no effect on cash-flow. If GIL is holding these investments for dividend income, it should be fine. But if I recall correctly, they have also been trading equities to generate realized gains as profits. So this strategy will not work unless they decide to short sell equities. In line with decline of asset valuation across the board, GIL recent rights issue and the divestment proceeds from the 2 aircraft should give it a sizable warchest to carry out acquisitions (hopefully).

(Not Vested)
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
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Looks like the share price dropped to 0.143.

Which is the rights exercise option.Pity, I wanted to exercise the rights. Looks like I won't bother now.

What would happen if the rights issue fails?
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