S-REIT Investment Blog: Purchase of Global Investment Limited (Non-REIT):
'via Blog this'
After my first purchase of Global Investment Limited, it has appreciated to a high of $0.174. I am just glad that I am able to make a decision and carried out before the massive appreciation.
I did some analysis on the assets which are not secured and found that there are some assets with credit ratings. They ranges from BB to CCC which are not very high. Nevertheless, they do carry some value, so I made some discounts to their value which I am comfortable with and has added another $13 million to its value. This brings its secured NAV to $0.168 which is very close to its closing price at $0.17.
I am still following my philosophy of "expecting zero capital appreciation and depreciation" and focus solely on the "yield", I felt that it is still a good buy especially it has dropped from its high of $0.174. Thus, I made another investment by buying 87,000 shares of GIL. Currently, I am holding on to 157,000 shares of GIL which gives me a total of $2,355 of dividend for the year 2013. That is almost $200 per month.
Hi, do you mind telling me why this counter is selected even though the income is going down?
ReplyDeleteHi Lilian,
DeleteI understand that the income is going down. But I am looking at it from a valuation point of view. It is already so low and they are still maintaining their dividend payout.
Moreover, they are making new investments which are some safe and some risky. Will income go up? We don't know but there is a potential.
The price may not go up but I am not worried about it as I have always expect zero appreciation.
Hope that helps.