Purchase of Global Investment Limited (Non-REIT)

I have purchased 70,000 shares of Global Investment Limited at an average price of $0.149 (which is actually quite high) in my first foray into Non-REIT counter. Here are the statistics.

• Current Yield = 10.07%  
• Price-to-book Ratio = 0.662
• Assets per unit = $0.245
• Debt per unit = $0.02 (including current liabilities)
• Gearing = 6.67%

I did some calculations on the portfolio which they have and here are some of the highlights.

• It has cash of $51 million which translate to $0.0629 per share.
• It has listed equity of $24 million which translate to $0.0296 per share.
• They are going to monetize their Aircraft investment which is $44 million and that translate to $0.0543

This has already translated to a secured NAV of $0.147 which is almost their trading price. This would also mean that you are buying the other assets worth $0.078 at only $0.002 per share. This to me is favourable and is better than the REITs currently. However, just a note that the assets are risky with credit rating below investment grade for most of them and some of them are already in default. However, I have figured out that I am risking only a little for these assets so it is worth a try.

The investment is about $10500 which brings me about $1,050 per year. Quite good. I wonder whether I should sell some of my holdings to buy this again. (In my portfolio, there are REITs which have risen so much that it is no longer attractive.)