Analysis of Global Investment Limited

Current Price on 21st Nov 2016 = $0.133

• Yield = 11.28%  
• Price-to-book Ratio = 0.68
• Assets per unit = $0.204
• Debt per unit = $0.008 (including current liabilities)
• Gearing = 4.1%
• Secured NAV = $0.196 (147% of trading price)

Global Investment Limited has always been in my radar but it just happen that I did not blog about it. Converting all my dividends into shares increased my holdings to 737,000 shares which is huge and it is currently worth about $100,000. Let's take a look at the statistics.

The yield continues to be high at 11.28% which is very good for me. Considering that its price has not dropped much, this is ideal as a high yield savings account. Moreover, with price-to-book ratio at 0.68, we are buying at 32% discount. They only have to generate a equity yield of 7% to help us enjoy a at least 10% yield. With little debt, there is no risk of company failing.

With close to $100,000 invested in this, I am getting $11,280 in dividends per year which is about $1,000 per month. With some cash coming in, I am still thinking of increasing my investments in this. Aiming to increase to one million shares at this point.