Welcome

Welcome to my investment blog where I share with you my analysis of REITs in Singapore.

I hope that my investment philosophy will bring me a steady stream of income apart from my job. I am aiming for at least $3,000 per month which can sustain the current expenses of myself and my family.

Do enjoy reading my blog and post any comments that you have. I welcome them because it is a time to learn from each other.

When I am looking at investing in REIT, here are some of the guidelines that I am looking at. Feel free to comment on it. I am willing to listen to ideas.

-> at least 8% yield.
-> Price that is lower than its NAV.
-> Low gearing (if possible)
-> High secured NAV.

Current Dividend income is $3,300/month.

Wednesday, May 8, 2013

Analysis of Global Investment Limited (Non-REIT)


Current Price = $0.16
  • Current Yield = 9.38%  
  • Price-to-book Ratio = 0.708
  • Assets per unit = $0.255
  • Debt per unit = $0.026 (including current liabilities)
  • Gearing = 10.2%
  • Secured NAV = $0.169
Global Investment Limited has announced its results which are quite favourable except for their proposed rights issue. At current price, it is already 9.26% with a favourable price-to-book ratio. Its secured NAV (according to my estimation) is also at $0.169 which is higher than its trading price. 

This pricing is a response to the rights issue where it drops from $0.17. I just thought that it is quite unnecessary for raise more funds at this juncture because it will dilute the NAV and secured NAV as well. Moreover, they said that they will be in a position to seize opportunities that comes along the way does not really appeal me. I don't know when it will happen. If there is a delay, our dividends might be affected.

Just a quick data on how it looks like after rights issue. Price will be $0.155

  • Current Yield = 9.67%  
  • Price-to-book Ratio = 0.767
  • Assets per unit = $0.223
  • Debt per unit = $0.018 (including current liabilities)
  • Gearing = 8.3%
  • Secured NAV = $0.161
Nevertheless, it may seem to be an opportunity to buy on weakness since its trading price is below secured NAV. I am heavily exposed to this counter already (having 157,000 shares) so I will just look forward to securing its rights and apply for excess. I look at it in totality and it still seems a good deal.



5 comments:

  1. I agreed with you just price offer doesn't matter to sell your property, there ought to be differ facilities that can convince the mind of client.

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  2. I hope that my investment philosophy will bring me a steady stream of income apart from my job.Global Investment Limited has announced its results which are quite favourable except for their proposed rights issue. At current price, it is already 9.26% with a favourable price-to-book ratio.I agreed with you just price offer doesn't matter to sell your property.

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