Global Investments

[dtane]

From what i have read, they have not ruled out share consolidation. Just that at the AGM in April 2015, this is not on the books. They will reply at a later date on what they intend to do and it just might be a share consolidation.

"The Company intends to comply with the MTP Requirement which is a continuous listing requirement in due course and remain on the Mainboard of the SGX-ST. The Company does not intend, however, to conduct a share consolidation exercise at the time of its Annual General Meeting in April 2015. It will make a further announcement of its plans to meet the MTP Requirement as and when appropriate."

[sgpunter]

If Global Investments is going to unwind, why are they still doing the scrip dividend scheme? Need more funds to unwind?

Its one of my speculations. I don't think Global Investments has anything concrete as yet now on how to bring the price up to $0.20 consistently but I wouldn't be surprised if unwinding is one of the options to be put on the table.

[asphodeli]

Hmm AGM on 30 April, but my shares are with SCB. Time to sign up and attend, since next day is Labor Day

[Gaudente]

2q results rather disappointing, but 7.5 cents dividend confirmed http://infopub.sgx.com/Apps?A=COW_CorpAn...480c042b09
I'm quite surprised nobody posted before , am I the only one still vested with this piece of junk ?

[sykn]

Hi, I pulled out completely a few months ago, because a forummer argued that a fund like this one consistently earning above 10% returns is really quite incredible! If they cannot, then the paying out 10% dividend yield on the stock cannot possibly last. The same can be said for HPH Trust whose DPU is higher than its net profit; I pulled out of that one too. Just my personal take on these two companies. Happy SG50!

[DCF]

Hi, I pulled out completely a few months ago, because a forummer argued that a fund like this one consistently earning above 10% returns is really quite incredible! If they cannot, then the paying out 10% dividend yield on the stock cannot possibly last. The same can be said for HPH Trust whose DPU is higher than its net profit; I pulled out of that one too. Just my personal take on these two companies. Happy SG50!

Do note that the NAV is 21c, much higher than the share price of 15c. With this, and since the assets are mainly financial in nature, to produce a 10% return in share price only require a 7.15% on asset. With gearing, it is even easier. Given that the first half profit of more than $12M, paying out 7.5c is affordably since that total bill is $10m. So 10% pay out is sustainable. It has been so for a few years.

I think the attractiveness of this share come from the sharp drop in share price during the GFC, the mismanagement of the fund, before being bought over by the current owner and management team. The share price has yet to recover close to NAV. So happy to be paid at 10% dividend to wait for that to happen.

[wisebee]

Hi, I pulled out completely a few months ago, because a forummer argued that a fund like this one consistently earning above 10% returns is really quite incredible! If they cannot, then the paying out 10% dividend yield on the stock cannot possibly last. The same can be said for HPH Trust whose DPU is higher than its net profit; I pulled out of that one too. Just my personal take on these two companies. Happy SG50!

Do note that the NAV is 21c, much higher than the share price of 15c. With this, and since the assets are mainly financial in nature, to produce a 10% return in share price only require a 7.15% on asset. With gearing, it is even easier. Given that the first half profit of more than $12M, paying out 7.5c is affordably since that total bill is $10m. So 10% pay out is sustainable. It has been so for a few years.

I think the attractiveness of this share come from the sharp drop in share price during the GFC, the mismanagement of the fund, before being bought over by the current owner and management team. The share price has yet to recover close to NAV. So happy to be paid at 10% dividend to wait for that to happen.

I read the 2015 Q2 report. The group half year earning per share is 0.91 cent. This is more than the dividend of 0.75 cent. So what is the problem?

[Gaudente]

So what is the problem?

The problem is total comprehensive income for 2q2015 was only 678,000 SGD.

[wisebee]

So what is the problem?

The problem is total comprehensive income for 2q2015 was only 678,000 SGD.

Thanks for the info. The comprehensive income for the latest quarter is indeed very much lesser, but Year to Date comprehensive income is SGD9,716,000. This works to to approx 0.7 cents per share which is slightly lesser than the dividend of $0.075.

[sgpunter]

Been looking at Global Investments and concluded (in my opinion  )  that it is undervalued at current price of $0.134. Based on the latest 2Q result, the assets are worth: -

Ascendos Investments Ltd: $0.014
RMBS: $0.013
US CLO: $0.023
EUR CLO: $0.014
Listed Equities: $0.058
Bonds: $0.074
Cash On Hand: $0.017
TOTAL: $0.213

The unlisted portfolio are not junk assets and in fact generate pretty decent returns. I'm also quite sure they are sufficiently impaired as ST Asset Management is conservative and the value is not artificially inflated. Hence, the market is grossly undervaluing these assets based on the current share price. 

Another thing I noted is that Global Investments had disclosed taking positions in Shanghai listed equities in 4Q14 and 1Q15 results (Oct 14 - Mar 15). Shanghai Composite Index was 2364 - 3336 during that period. In their latest result announcement, it was disclosed that subsequent to 30 Jun 15, Global Investments had sold off its Shanghai listed equities with a negligible position remaining by 7 Jul 15. Between 1-7 Jul 15, the Shanghai Composite fell from 4054 to 3727. Nevertheless, based on their purchase levels earlier, I am assuming that there should be a gain on the sale. Kudos to the Management on selling off their entire position as we all know that the Shanghai Composite has since fell to 3100+ levels.  

Its difficult to say whether the dividend of $0.015 (11.2% yield) is sustainable but one thing I know for sure is even if dividend is reduced to a very achievable $0.01, the yield on this unlevered fund would still be around an attractive 7.5%.