Global Logistic Properties (GLP)

Now trading at $2.26. Up 30 cents from IPO price $1.96. Not bad, 15%. Forummers who stag at this counter, get some coffee money liao.

Funny got people here say dun subscribe to the IPO... alamak... just stag it la... since its obvious the IPO will open higher.

Don't like nevermind, just know that other people will like to buy from you later if you are alloted at higher prices, that is more important.

(19-10-2010, 04:50 PM)RSeth Wrote: Funny got people here say dun subscribe to the IPO... alamak... just stag it la... since its obvious the IPO will open higher.

Don't like nevermind, just know that other people will like to buy from you later if you are alloted at higher prices, that is more important.

There lies the difference between this forum and others.
Many forum members here based their investment decisions on stock fundamentals rather than pure mob sentiments.
I stag but I do agree with their analysis of GLP's fundamentals at current juncture.

Stock market insanity is hard to predict and typically, it is not a good habit to depend on it for building of fortune.
Although in some cases, like GLP and MLT IPOs, the outcomes are rather predictable and the probability of losses is low.

Anyway, for those who gotten their kopi money(it won't make you rich, for sure), it probably will be nice if you donate some to charity.

(19-10-2010, 04:50 PM)RSeth Wrote: Funny got people here say dun subscribe to the IPO... alamak... just stag it la... since its obvious the IPO will open higher.

Don't like nevermind, just know that other people will like to buy from you later if you are alloted at higher prices, that is more important.

I think it's fair to say I invest, and avoid all forms of speculation (this also includes stuff like lottery, 4D, mahjong and stuff).

Even if this GLP IPO appears to be a "sure thing", I will not attempt to stag it because I like to be disciplined on the small things. If I can't discipline myself not to speculate on the small stuff, then I probably cannot depend on myself to for the "big stuff".

(19-10-2010, 05:05 PM)yeokiwi Wrote: Anyway, for those who gotten their kopi money(it won't make you rich, for sure), it probably will be nice if you donate some to charity.

Donate some for hosting bills.

(19-10-2010, 04:50 PM)RSeth Wrote: Funny got people here say dun subscribe to the IPO... alamak... just stag it la... since its obvious the IPO will open higher.

Don't like nevermind, just know that other people will like to buy from you later if you are alloted at higher prices, that is more important.

I don't want to bring bad luck to other people

(16-10-2010, 01:27 PM)koh_52 Wrote:

(16-10-2010, 01:02 PM)pianist Wrote: i just sold the 2 thick prospectus with some newspaper to garang guni for 3 dollar + enough for a chicken rice later ;p

for me, i allocated 1 lot GLP...will sell of if price touches $2.25.
pocket kopi $ 2250-(1960+30) = $260 can go JB top-up full tank plus seafood for4 pax.

Now, thinking of applying how many lots of MIT

Hehe, yesterday donate little to hosting, today kopi $ come in liao.
Sold GLP at 2.25....pocket $260, human nature make little siok siok, loss an elephant keep quiet.

Applied 21 lots MIT kena 3 lots...heng arh.

This recently listed blue chip announced its 1H results today in SGX. Its 1H PATMI (excluding fair value gains) rose to a whooping $145 million on the back of revenue of $224 million. Seems like a high margin company ?

http://info.sgx.com/webcoranncatth.nsf/V...A00326C5B/$file/GLP_2Q_Results_Announcement.pdf?openelement [2Q Results SGX]

Not Vested

A case of non-disclosure?

Business Times - 08 Dec 2010

End of truce may spell a harder grind for GLP

Non-compete clause with ProLogis ends in Feb; tougher battles in China may lie ahead

By FELDA CHAY

(SINGAPORE) A non-compete agreement involving Global Logistic Properties (GLP) and a potential rival is set to expire early next year, and could lead to stiffer competition for the group in its targeted growth market of China.

The clause was not specifically disclosed in the recently listed firm's IPO prospectus. BT understands that this could be due to a confidentiality agreement between the two parties, but it creates a situation where many investors who bought into the IPO - the biggest since Singapore Telecom's listing - had no knowledge of this impending development.

The non-compete clause was entered into by GLP with US-based ProLogis, one of the world's largest owners, managers and developers of distribution facilities. Sources told BT that under the clause, ProLogis is prevented from acquiring and building such properties in China, while GLP cannot acquire and build these facilities in Japan. The clause expires in February next year.

Without mentioning ProLogis or the clause, GLP said in its prospectus that it has 'no specific plans to develop new facilities or acquire land bank in Japan'.

'When we deem the market conditions appropriate, we will consider developing new facilities in Japan in 2011 in locations that we believe would enhance our current network and complement our customers' business and expansion plans,' it added.

BT understands that the clause stemmed from ProLogis' earlier sale of all its China operations and property fund interest in Japan to GIC Real Estate (GIC RE) in late 2008 for US$1.3 billion. GIC RE, the property investment arm of the Government of Singapore Investment Corporation (GIC), then rebranded the assets under the GLP name. When contacted, GLP declined to comment on the clause.

The lifting of the non-compete clause could see ProLogis emerge as a major rival to GLP in China. GLP, which listed in October this year, owns and manages logistic properties in China and Japan. In its recent financial results statement, GLP said that properties - including land held for future development - that it owns in China come up to a gross floor area (GFA) of 71 million square feet valued at US$2.5 billion. In Japan, the GFA of its facilities amounts to 30 million sq ft, valued at US$6.2 billion.

While it said it had no specific plans for Japan, the group has identified China as a key growth market. Currently, China makes up about 29 per cent of its total portfolio, and Japan the remaining 71 per cent.

Prior to the 2008 sale of its properties, ProLogis was a leading player in the logistic facility business in China. It owned 20.7 million sq ft of completed properties and properties under development, as well as about 290 hectares of land. It also had interests in five China joint ventures and one property fund, of which the firm's share aggregates to 4.4 million sq ft. All were sold to GIC RE.

ProLogis remains a big player in Japan. While it sold its interests in a Japan fund to GIC RE, it retained its other assets. According to GLP's prospectus, ProLogis is the second largest player in the country with a net leasable area of about 8.6 million sq ft, behind GLP's 28 million sq ft.

Investors worry now that it could pose a major threat to GLP once the non-compete clause is lifted.

Shareholders whom BT spoke to said the non-compete clause, and its impending expiry, is something they would have liked to have known of, given that it involves the two markets that GLP was active in.

'This might affect their future earnings,' said one institutional investor. 'In a prospectus, a company has to disclose anything that might affect earnings.'

Under the Securities and Futures Act, a prospectus is usually required to contain all the information that investors and their professional advisers 'would reasonably require to make an informed assessment' of matters such as the rights and liabilities of the firm, profits and losses, financial position and performance, and prospects of the issuer.

'Information that assists with the investment decision or helps an investor in the company make an informed decision ought to be in the prospectus,' said David Gerald, chief executive and president of the Securities Investors Association (Singapore), or SIAS. But he pointed out that it was difficult to make a general judgment, as the details of each case are different.

In the prospectus, under 'risk factors', GLP stated that competition in the sector in China and Japan is 'intense', and that 'a number of international logistics facility providers have expanded (or we expect will expand) their operations to China'. The group added that 'we expect many of these providers have sufficient financial, managerial, marketing and other resources to be competitive, and may have more experience in logistics facility and land development'.

Any such developments could have a material adverse impact on its business, it said.

Yesterday, GLP's shares closed flat at $2.18.

Now that this is in the newspaper, it may end up becoming a mini public outcry, since ultimately GIC initiated the IPO and has benefited from it. My own view remains that GIC shouldn't have taken the IPO route as its divestment strategy.

If there is indeed a non-compete agreement between GLP and ProLogis, to make sure all involved in the IPO would come 'clean' before GLP enters the public stock market, it should rightfully be explicitly disclosed in the prospectus.

We shall see how this will evolve...