Global Premium Hotels

Hi, thanks all for your insights and concern for me. In any cases, I sold off all my stakes last Wed, 1 day before a regional 2% drop, netted $1.8K profit (I bought before the 1.01cent dividend). Currently out of play, may look for re-entry after all the world is flush with funny currency...

(28-05-2013, 09:50 PM)tonyking Wrote: Hi, thanks all for your insights and concern for me. In any cases, I sold off all my stakes last Wed, 1 day before a regional 2% drop, netted $1.8K profit (I bought before the 1.01cent dividend). Currently out of play, may look for re-entry after all the world is flush with funny currency...

Re-entered this counter @ $0.26, same reasons as before with the continuous and huge insider buying by its Chairman, plus a favourable bullish divergence emerging today when all REITs and most "defensive plays" have pickup...

I'm curious how they can execute the split-and-prosper strategy with GHP (and fragrance) when the share price is less than 30 cents.

Share price needs to be above 50 cents before a company can execute a split.

Unless billionaire owner intends to buy these two companies until to over 50 cents?

(04-06-2013, 10:07 PM)tonyking Wrote:

(28-05-2013, 09:50 PM)tonyking Wrote: Hi, thanks all for your insights and concern for me. In any cases, I sold off all my stakes last Wed, 1 day before a regional 2% drop, netted $1.8K profit (I bought before the 1.01cent dividend). Currently out of play, may look for re-entry after all the world is flush with funny currency...

Re-entered this counter @ $0.26, same reasons as before with the continuous and huge insider buying by its Chairman, plus a favourable bullish divergence emerging today when all REITs and most "defensive plays" have pickup...

Hi Nathanmaloney,

To be frank, I am not sure.
If e chairman wana push up e price, best, I simply ride e wave.
If he want to buy back private, even better.

If it drop, at least I know I bought at price lower than some of his most recent purchases. And he spent more millions than my thousands.
On paper, NAV, EPS, PE looks okay, devils lie in details but still action may speaks louder than words.

Cant say no risk, but personally I am comfortable taking.

(05-06-2013, 11:24 AM)nathanmaloney Wrote: I'm curious how they can execute the split-and-prosper strategy with GHP (and fragrance) when the share price is less than 30 cents.

Share price needs to be above 50 cents before a company can execute a split.

Unless billionaire owner intends to buy these two companies until to over 50 cents?

(04-06-2013, 10:07 PM)tonyking Wrote:

(28-05-2013, 09:50 PM)tonyking Wrote: Hi, thanks all for your insights and concern for me. In any cases, I sold off all my stakes last Wed, 1 day before a regional 2% drop, netted $1.8K profit (I bought before the 1.01cent dividend). Currently out of play, may look for re-entry after all the world is flush with funny currency...

Re-entered this counter @ $0.26, same reasons as before with the continuous and huge insider buying by its Chairman, plus a favourable bullish divergence emerging today when all REITs and most "defensive plays" have pickup...

GP Hotel posted its Q2 earning on 2 Aug 13, neg.improvement in earnings but it looks like it need more cash to prepare for its new hotel development at 165 & 167 Tyrwhitt Road, it also looks like additional costs are incurred for the development & interestingly its Q2 did not provide any updates on it. There's also no dividend declared for this quarter, casting a doubt on the dividend yield for this counter.

If the fixed notes which OCBC is advising & yet to be confirmed, should it materialise & at a low enough rate, the counter should rise again. After all, the current interest rate in SG is almost all time low, and the rate can only rise in future, getting a fixed note cash infusion is a savvy idea, if the rate is low enough (such as 2-4% for a 5-10years note).

Today, 5/8/13 the Chairman Koh Wee Meng bought another 1,000 lots@$0.2552, spent $255,200; though the counter ended at $0.25 with traded volume 2,179lots.

Wonder what will it need, to catapult the stock price to rise?

6/8/13 the Chairman Koh Wee Meng bought yet another 1,000 lots@$0.255, spent $255,000. Why aren't other investors following? {Thinking}

chairman can keep raising his fees but investors have no power to increase dividend payout?

(06-08-2013, 09:46 PM)felixleong Wrote: chairman can keep raising his fees but investors have no power to increase dividend payout?

But the truth can be found in annual report 2012, his fee is below $250, 000 per year. Would you spend your annual salary one shot to buy the company in which you are a non-exec chairman? Furthermore, since listing of less than 2years, he spent so much,at least $15mil.+in which I also lost count of his purchases. . E past 2 years of income as chairman fee is not even $500k if you read last 2 ARs. I wonder he's either obsessed with his coy or he's really find it cheap n undervalued by e stock market price. Look at the volume, its like saying this is a penny worthless coy.but this is e Fragrance value hotel chain, only hotel 81 is competiting in e same category.

Am I missing anything or I simply have to be patient to wait for e mkt to realise its value?

(06-08-2013, 10:23 PM)tonyking Wrote:

(06-08-2013, 09:46 PM)felixleong Wrote: chairman can keep raising his fees but investors have no power to increase dividend payout?

But the truth can be found in annual report 2012, his fee is below $250, 000 per year. Would you spend your annual salary one shot to buy the company in which you are a non-exec chairman? Furthermore, since listing of less than 2years, he spent so much,at least $15mil.+in which I also lost count of his purchases. . E past 2 years of income as chairman fee is not even $500k if you read last 2 ARs. I wonder he's either obsessed with his coy or he's really find it cheap n undervalued by e stock market price. Look at the volume, its like saying this is a penny worthless coy.but this is e Fragrance value hotel chain, only hotel 81 is competiting in e same category.

Am I missing anything or I simply have to be patient to wait for e mkt to realise its value?

This whole group has a strategy - keep buying their own shares and do stock split. However, in most cases - they are all fundamentally expensive or at least you can find cheaper alternative elsewhere in the mkt place.

I have long given up on second guessing what is happening. However, should something goes wrong with the business proper and their stakes are living on leverage, then their wealth will crumble should they fail to meet margin calls. Its a typical scenario, nothing new.

Caveat Emptor
Not Vested

greengiraffe's comment strike me, how does GP Hotel compare against other Hotel or Hospitality counters. I did a table comparison by 1) PE ratio 2) Price/NAV & 3) Dividend Yield.

The results is surprisingly good for GP Hotel, really! See for yourself, anyone with a Shareinvestor account, can do similar filter & get the same results. [vested]



Attached excel file, for your research...