G. K. Goh Holdings

[camelking]

no doubt, certain investment made by G K Goh was quite profitable, but there were good opportunities they let go too early, e.g. Tasek Corporation.

in March 2007, G K Goh bought 24.9 million of Tasek share @RM 3.4 for long term investment.

in Nov 2008, during GFC, G K Goh, sold its entire stake in Tasek to Hong Leong Asia @RM 3.8.

today, Tasek is traded in Bursa Malaysia above RM 8 (after 1.5 to 1 share consolidation), almost RM 6 (not including any dividend, there were significant dividend declared by Tasek over these years)


Comparatively, G K Goh has been holding on their loss-making euNetwork since 2007 til now.


I don't know what to say already.

Can't Agree more .........
GK Goh has not been able to make money from EVERY investment and in the process, they even dare to incur losses on some ventures.......
Crappy company, aren't they?



Now, let's move on..

[freedom]

no company can make money all the time. It is just fact one must accept.

But no good company will keep the losers and sell the winners. No good company will say "it's long term investment", but sell within a short period with no significant fundamental change.

A man honors his words(for euNetwork, but not for Tasek?). A man admits his mistakes and rectifies them.

---

if G K Goh could be a good money manager, at least must be better than most retail investors, potentially it would be worth much more instead of less than its book value.

[dydx]

Just released FY11 (ended 31Dec11) AR makes interesting reading.....
http://info.sgx.com/listprosp.nsf/6c6be9...900230820/$FILE/GK_GOH_SR11.pdf

G.K. Goh has declared a $0.02/share Final and a $0.04/share Special - a total of $0.06/share in dividends - which will be paid on 18May12, with 'XD' date fixed for 30Apr12.

With NAV/share at $1.14 (as at 31Dec11) - against yesterday's (22Mar12) closing share price of $0.81 - and bearing in mind G.K. Goh holds quite a few pieces of good investments, there appears to be still quite good margin of safety. How do fellow forumers think?

[freedom]

My thought is that the conviction of buying into euNetwork is very strong. not just for G. K. Goh Holdings(held through G. K. Strategic Holdings Pte Ltd), but also for the holding company G. K. Goh Investment(held through Alpha Securities Pte Ltd, deemed interest from G. K. Goh Holdings), and the owners themselves, Goh Geok Khim and Goh Yew Lin.

the holdings of euNetwork for each and every of them(extract from announcement made by euNetwork this morning):

[wrap]
[table=shareholder]
G. K. Goh Strategic Holdings Pte Ltd
Alpha Securities Pte Ltd
Goh Geok Khim
Goh Yew Lin[/table]
[table=No. of Shares]
1,325,694,847
447,063,926
245,001,136
91,875,426[/table]
[table=No. of Shares After Bond Exchange]
1,963,986,951
694,637,126
358,881,940
142,489,117[/table][/wrap]

bravo for them if euNetwork turns out to be something like "the next Wilmar"

[camelking]

Just released FY11 (ended 31Dec11) AR makes interesting reading.....
http://info.sgx.com/listprosp.nsf/6c6be9...900230820/$FILE/GK_GOH_SR11.pdf

G.K. Goh has declared a $0.02/share Final and a $0.04/share Special - a total of $0.06/share in dividends - which will be paid on 18May12, with 'XD' date fixed for 30Apr12.

With NAV/share at $1.14 (as at 31Dec11) - against yesterday's (22Mar12) closing share price of $0.81 - and bearing in mind G.K. Goh holds quite a few pieces of good investments, there appears to be still quite good margin of safety. How do fellow forumers think?

I did an exercise whereby 2/3 of its financial assets, holdings in associates and long term investments was slashed. Then I added on its cash holdings less amount due to trust clients and loans. I got around 74 cents with CD.
I think G.K. Goh fair-value its invesments periodically. So, 2/3 off its fair-valued investment, it is quite a safe margin.

I noticed the Goh family last purchase of G.K. Goh shares was 25 Nov 2011. AND THE PURCHASE PRICE WAS ALMOST 70 CENTS.

i am sure they know their company best. So, maybe 70 cents is a better entry price.

[freedom]

no matter how you read it, its current liability likely requires its cash to settle in a way or another. Its current liability might not be cash & cash equivalent segregated under SGX-DT Rules, but they are owed by G K Goh to its customers,and probably to be settled in cash. it would be much safer to deduct all its current liability from its cash to derive its net cash position.

extract from its Q4 2010 financial announcement and annual report 2010.

Cash and bank balances of the Group include fixed deposits of $28,752,000 (2009: $30,472,000) and other cash and bank balances of $21,596,000 (2009: $5,531,000) of a subsidiary company which are segregated under SGX-DT Rules and
represent funds deposited by customers and accruing to customers as a result of trades or contracts in SGX-DT.

20. Trade creditors
Amounts segregated for customers 78,090 24,580
Amounts due to forex and clearing brokers 8,698 254
Amounts due to securities brokers 675 −
Others − 4
87,463 24,838

Amounts segregated for customers
The amounts bear interest at market rates and are repayable upon demand.
Amounts due to forex and clearing brokers
The amounts are not interest bearing and are settled within 3 days.
Amounts due to securities brokers
The payables are not interest-bearing and are settled within 3 days.

although from its cash flow statement only around 50 million is cash segregated under SGX-DT Rules and representing funds deposited by customers and accruing to customers as a result of trades or contracts in SGX-DT, all its liability probably requires cash to settle in a short period.

I think I forgot something else here.

customers' money is not just under SGX-DT rules. I am not sure whether GK Goh offers any future trading in other exchange than SGX-DT. If so, at least cash flow statement does not include segregated under other exchange, e.g. CME.

Also, there is customers' money for margin requirement under its FX trading, which is certainly not under SGX-DT.

though net cash might not be cash minus all its liabilities, cash minus only cash segregated under SGX-DT sure overestimates its net cash position.

[dydx]

Rationally speaking, the fair intrinsic value of each G.K. Goh share should be at least - or rather, at a premium over - its latest and rather conservatively stated NAV/share of $1.14, unless the underlying investments are mostly duds.

We just have to refer to G.K. Goh's few realised and highly creditable investment successes in the last 2 FY's - and also how and when they bought into them - which have raised its NAV/share and funded the great dividends, to appreciate the 'magic' of the management's investment operation. While such good investment results cannot be repeated easily, I think there is reason the believe that over time, G.K. Goh under the present management should deliver good investment results after discounting the usual year-to-year volatility.

[camelking]

Rationally speaking, the fair intrinsic value of each G.K. Goh share should be at least - or rather, at a premium over - its latest and rather conservatively stated NAV/share of $1.14, unless the underlying investments are mostly duds.

We just have to refer to G.K. Goh's few realised and highly creditable investment successes in the last 2 FY's - and also how and when they bought into them - which have raised its NAV/share and funded the great dividends, to appreciate the 'magic' of the management's investment operation. While such good investment results cannot be repeated easily, I think there is reason the believe that over time, G.K. Goh under the present management should deliver good investment results after discounting the usual year-to-year volatility.

Unfortunately, for the many years that i have invested in GK, it never ever gone above the NAV of the company. (don't mind if market prove me wrong in future)
More importantly, the Goh family has never ever bought any shares near to the NAV either. They bought from 50 plus cents to 70cents and stopped completely.

Are they practicing margin of safety? Maybe, I dun know.

They are the owner of the co with 57% or so stake and if they don't even buy at the level, why should minority shareholders, with no influence and insider information of the co, buy at and above NAV?

They are shrewd investors, aren't they?

Of course, i would very much like the share price to go above 1.14 as i hold shares in GK.


Another thing, maybe some times should be spent on understanding EUnet....they seem pretty keen and confident.......hmmmm

[dydx]

Of course, informed or smart investors will always demand at least a reasonable margin of safety. My main point here is to highlight G.K. Goh's fair intrinsic value rationally should be at a premium above its NAV, as it is a well managed company, has a few good investments in its portfolio, and has a track record of investment successes to back it up. Whether Mr Market would want to realise this fair intrinsic value fully in the share price in the future, I cannot tell, as it is not possible to predict, and will likely be dependent on catalyst events and/or market speculation.

If we just use $1.20 as a rough estimate for G.K. Goh's fair intrinsic value, against yesterday's (23Mar12) closing share price of $0.81 - now being traded on a 'CD' basis inclusive of $0.06/share in total dividends - there appears still a pretty good margin of safety which suggests to me the share price may well go higher closer towards 30Apr12.

[freedom]

some track records of G. K. Goh

[wrap]
[table=period
end]
2007
2008
2009
2010
2011[/table]
[table=equity
('000)]
412,357
277,045
290,932
312,662
360,429[/table]
[table=dividend paid
('000)]
-
16,380
3,182
4,758
15,859[/table]
[table=gain(loss)
of equity]
-
(118,932)
17,069
26,488
63,626[/table]
[table=%
gain(loss)]
-
(28.8)
6.2
9.1
20.3[/table]
[table=% cumulative
gain(loss)]
-
(28.8)
(24.7)
(18.3)
(2.8)[/table]
[table=Straits Times
Index]
3,482.30
1,761.56
2,897.62
3,190.04
2,646.35[/table]
[table=%
gain(loss)]
-
(49.4)
64.5
10.1
(17.0)[/table]
[table=% cumulative
gain(loss)]
-
(49.4)
(16.8)
(8.4)
(24.0)[/table]
[/wrap]

is not exactly apple to apple, as STI is ex-dividend.

some of its long term investment

unquoted unit trust(2005 - 2010):
30,344 - 55,611 - 59,541 - 33,548 - 43,920 - 46,856, not sure about cost or any addition or divestment, but I suspect the impairment of 27 mil in 2008 was mostly related to the unit trust(as the company never did any impairment on euNetwork til 2011, long term investment as at the end of 2008 wast mostly euNetwork and unit trust), so far the company has not really written back much of its impairment.

euNetwork:
cost around 40 million (through various rights issue, convertible bond), market value: around 32 million, impairment of 7+ million in 2011

Value Monetization Ltd:
cost: US$6,312,450, profit from first dormitory sale: S$7.5 mil , profit from the other dormitory sale: S$7.5 mil, and possible gain(loss) from liquidation of remaining investment

Eastern & Oriental
cost: (unknown, est. book value around S$60 mil), profit from sale to Sime Darby: S$51.2 mil, remaining market value: S$25.9 mil

Boardroom
cost: S$26.4 mil, market value: est. S$30 mil.