Global Investments

GIL has proposed a 2H 2010 dividend of S$0.005 payable in Jan 2011.

But more importantly, it has proposed a 2 for 5 rights issue @ $0.138 to raise $21.39 million to fund potential investments.

SGX Announcement: http://info.sgx.com/webcoranncatth.nsf/V...90035C698/$file/98_20101230ProposedRenounceableRI.pdf?openelement

Personally, I have never been a fan of investing in a fund unless the fund seeks a majority stake in their investments. GIL (now managed by Temasek) together with MIIF and MPSF are the 3 remaining business trust funds listed here.

3Q Presentation Slides: http://www.globalinvestmentslimited.com/...3Q2010.pdf

(Not Vested)

I met the mgt before this year. They are good people. Problem is the assets are mainly based in Europe and US...

I am vested in this counter, but I did it more as an asset play since it was (And still is) trading at a steep discount to NAV.

The counter ran into significant problems during the credit crisis. Some of it was due to the fact that the previous manager Babcock and Brown ran into severe problems and was placed into Administration. They have since dumped the old manager and moved to a Temasek-backed company STAM. The assets never seemed to be at risk, but during a recession and during such a severe recession the stock took a massive pummelling. It is really interesting to read all these old posts in 2009 and 2008 tinged with utter panic and how the world is going to end.

But anyways, the company is vested in really strange Assets like plain loans, mortages, infrastructure and aircraft that makes it a challenge to value (and makes you wonder how management keeps up with all of this). They even held a music library once but sold it.

> But anyways, the company is vested in really strange Assets like plain loans, mortages, infrastructure and aircraft that makes it a challenge to value.

This are what is termed as subprime assets. If there is a sale, it would be a distressed sale.

Boon Swan Foo dumped $5M to buy a big stake... I salute him for doing this national service, so later he can manage the assets and collect the fees.

actually what happened to Boon Swan Foo now? no more running companies? :O

http://info.sgx.com/webcoranncatth.nsf/V...B0036CACA/$file/18_20110525UseOfProceedsFromRightsIssue.pdf?openelement - GIL has used $6.06 million from its recent rights issue to purchase loan assets.

GIL has forecast a 1H 11 distribution of 0.75 cents per unit which gives rise to an annualized yield of 9.1%. GIL generated $7.3 million profit in its 1Q 11 report or 1.6 cents per share. 1Q 11 report - http://info.sgx.com/webcoranncatth.nsf/V...E003501B8/$file/17b_20110512SGXQuarterlyReport1Q2011.pdf?openelement

While the fund operation has turned around with the change in Management, nonetheless the 'exotic-ness' of their underlying investments may not necessarily be appreciated by most investors (including myself). Perhaps, forummers will knowledge on operating leases and loan securities may enlighten us ?

(Not Vested)

GIL utilized $2.71 mil from the rights issue proceeds to purchase Class D floating rate notes of BMI CLO I and $3.27 mil to purchase Class E floating rate notes of ALM IV, Ltd. $9.45 mil of the rights issue proceeds remain untapped. GIL has forecast 0.75 SG cents distribution for 1H 2011 which gives rise to a yield of 9.38%. GIL generated 0.86 SG cents core earnings in 1Q 2011 so is there a possibility of increased DPU in 1H 2011 ?

(Not Vested)

GIL owns 1,051,000 shares of NYSE listed FLY Leasing (4.1% stake) currently valued at US$11.60 per share.

http://www.flyleasing.com/layouts/54/upl...s/9145.pdf - FLY released its 2Q results and proposed 20 US cent dividend.

http://www.flyleasing.com/layouts/54/upl...s/9144.pdf - FLY acquires 49 aircrafts boosting its portfolio by 80%. This is done without raising any new equity.

It will be interesting to see how the declining quality of the Western debt market will impact GIL in the coming quarters.

(Vested)

(04-08-2011, 11:42 PM)Nick Wrote: It will be interesting to see how the declining quality of the Western debt market will impact GIL in the coming quarters.

(Vested)

I thought this would be a good stock to short/sell.

Thoought this thing will yield more than 10%