GL Limited (formerly: Guoco Leisure)

[cfa]

About Molokai, read that there had been strong resistance from the locals against developing the land for tourism and wind farm.

So far no taker from GL ?

[propertyinvestor]

About Molokai, read that there had been strong resistance from the locals against developing the land for tourism and wind farm.

So far no taker from GL ?

He is right. But some small plots has been sold over the past months. But they wont be able to get rid of the whole area anytime soon.

[cfa]

Is this land bought buy GL present management or inherited from previous management ?

[propertyinvestor]

Is this land bought buy GL present management or inherited from previous management ?

Previous management. When it was still known as BIL international

[valueinvestor]

About Molokai, read that there had been strong resistance from the locals against developing the land for tourism and wind farm.

So far no taker from GL ?

He is right. But some small plots has been sold over the past months. But they wont be able to get rid of the whole area anytime soon.

Were the sales of these small plots reflected in latest BS or P&L ?

[propertyinvestor]

About Molokai, read that there had been strong resistance from the locals against developing the land for tourism and wind farm.

So far no taker from GL ?

He is right. But some small plots has been sold over the past months. But they wont be able to get rid of the whole area anytime soon.

Were the sales of these small plots reflected in latest BS or P&L ?

Not sure about that, even if there is, they are very insignificant. You can refer to last year's annual report or the 2009 report on more details how they accounted for such land sales.

Ive written it off totally frm my SOTP valuation. Its not exactly the type of Cash generating Unit im interested in for GL.

[valueinvestor]

This property in Molokai is classified as development property and valued @us$178.3m in BS of AR of 2011. About NTA US$13 cents per share.

[d.o.g.]

Some information on Molokai for those who are interested:

(the shutdown in 2008)
http://www.cntraveler.com/islands/2008/0...on-Molokai
http://the.honoluluadvertiser.com/articl...60431.html

(one year later)
http://www.mauinews.com/page/content.det...17428.html

(pig farms, wind farms)
http://themolokaidispatch.com/molokai-ra...spectives/

(selling some land to the local university)
http://www.mauinews.com/page/content.det...64250.html

[propertyinvestor]

I dont understand why you guys are so obsessed with Molokai properties? Its peanuts compared to the Hotel / Oil and Gas royalties asset. If they can raise cash from it good. But really, its not material to begin with.

[d.o.g.]

I dont understand why you guys are so obsessed with Molokai properties? Its peanuts compared to the Hotel / Oil and Gas royalties asset. If they can raise cash from it good. But really, its not material to begin with.

There are only 5 assets identified in the FY2011 annual report:

Guoman Hotels
Clermont Leisure
Bass Strait Oil Royalty
Molokai Properties
Denarau Properties

Of these, Guoman is clearly the largest. The smallest are Denarau (US$5.6m book value) and Clermont (casino license valued at $US46.5m). The book value of Molokai (~US$170m) actually exceeds that of the Bass Strait Oil and Gas Royalty (US$134m).

So the only asset that can definitely be ignored is Denarau. Clermont, probably. Guoman clearly merits the most time and attention. Molokai and Bass should probably be given at least a look depending on the price of the stock - if it's cheap enough it may not matter. Of course, if the decision to buy hinges on the value of that last 20% of the assets, maybe the stock is not cheap enough.

And cheap is not always good. Cheap can stay cheap for a long time. Quek Leng Chan has many ways to extract value, in the form of salary, director fees, related party transactions etc. Minority shareholders have only a (non-guaranteed) dividend to look forward to, and have to hope for other fools to pay a higher price for their stock.