Current Price at $0.18
- Current Yield = 8.33%
- Price-to-book Ratio = 0.782
- Assets per unit = $0.249
- Debt per unit = $0.02 (including current liabilities)
- Gearing = 6.52%
Global Investment Limited has published their results which is very encouraging. Here are somethings which I noted.
GIL did took risks by continuing to invest in risky assets which are unrated (START VIII CLO Limited). In my analysis, I have written them off completely. And they have also invested in RESIMAC BASTILLE TRUST SERIES 2012-1NC which have good credit rating.
Overall, here is my analysis. Secured NAV is at $0.145 (which consist of listed equities, bonds, Fly leasing, Aircraft deal and cash). I did recognize some other assets which they are holding (those with a credit rating) and arrive at a conclusion that their NAV is $0.175.
At current price, it seems a premium but you consider that you are spending $0.05 per share to buy $0.60 of assets which are considered high risk. To me, it is a risk worth taking.
I am holding on to 157,000 worth of shares, bought at two trenches and is sitting on a handsome paper profit (as I bought it at a cheaper price). They are implementing a script dividend which I intend to subscribe as it will boost the secured assets of GIL.
- GIL sold its US RMBS at a profit, a portfolio which I have written down significantly because of its CCC rating.
- GIL start to monetize FLY Leasing at a profit as well.
- Its listed equity has a small profit.
GIL did took risks by continuing to invest in risky assets which are unrated (START VIII CLO Limited). In my analysis, I have written them off completely. And they have also invested in RESIMAC BASTILLE TRUST SERIES 2012-1NC which have good credit rating.
Overall, here is my analysis. Secured NAV is at $0.145 (which consist of listed equities, bonds, Fly leasing, Aircraft deal and cash). I did recognize some other assets which they are holding (those with a credit rating) and arrive at a conclusion that their NAV is $0.175.
At current price, it seems a premium but you consider that you are spending $0.05 per share to buy $0.60 of assets which are considered high risk. To me, it is a risk worth taking.
I am holding on to 157,000 worth of shares, bought at two trenches and is sitting on a handsome paper profit (as I bought it at a cheaper price). They are implementing a script dividend which I intend to subscribe as it will boost the secured assets of GIL.
Information like what you described here is going to be quite useful to me. I will post a link to this post on my site. I am sure my members will find that helpful.
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