about the land acquisition at Semenyih at about RM30++ psf = i have no idea whether this is a reasonable price to pay. Maybe you can educate me on this? Deferred payment incurs additional interest cost.

about the acquisition of PNT = PNT comes with a profit guarantee of RM10.0M for 2 to 3 years. By then, Batu Kawan will be in full swing. Bear in mind that GOB is in the process of submitting building plan for approval by the Penang city council for a GDV of RM660.0M for Batu Kawan by the end of this year. If your holding period is for 2 years, then PNT should not present a risk.

about the diversification into F&B business = F&B business normally will earn money. Not as much risk as compared to PNT acquisition.

about the land disposal at Seri Kembangan. The disposal of 15.56 acres of land at Seri Kembangan is part of the 19.6 acres held by Taman Equine Industrial S/B. Good news is that GOB still have about 108 acres of land intact at Seri Kembangan (52.0 acres + 56.1 acres) and not the 90+ acres remaining that we once thought.

Icon8888 is right. This is a company which is entering into a high growth phase by virtue of Batu Kawan, JV with Lembaga Getah and the tail end development at Taman Equine/ Seri Kembangan. DaMein is already considered a done deal (95% sold) with profits showing up next year.

Refer to this article:
http://www.themalaysianinsider.com/business/article/momentum-building-up-at-global-oriental

I am just wondering how will the share price be in the days leading up to the rights issue??? Right now, the share price performance is really disappointing~!!

wonder when the funds will ride in and shore this counter up.....

The risks that i can see: (i maybe wrong):
Close relationship with Malton - just take a look at the recent acquisition of land - with deferred payments - from Malton Bhd. - personally, i do not know whether this is a good sign or not.
Diversification into non-property related business - example; PNT RM50.0M
Selling pressure - presumably from Patrick Lim - but selling pressure expected to cease - after the rights issue.

@ Icon8888,
If Patrick Lim is the one who is disposing his block of shares all this while, then, i think the selling will stop after the shares have gone ex-right. I don't think he will be interested in subscribing to the rights issue and therefore should be more than willing to dispose everything off before ex-rights date.

Please correct me if i am wrong here.

opefully, Symlife performs the shares buyback during this time of depressed share price....and reward us with more treasury shares....

@ watchme, the NTA around 1.35 is pre-dilution. Post dilution will have a lower NTA backing.

Hi Icon8888, i would like to dispose about 10% of my portfolio. But then, how can i go about doing it to avoid dilution? I mean, do i dispose the mother share just before they credit the rights into my account or do i dispose the mother share together with my rights during the 1 week trading period?

@ icon8888, how about those who want to sell ? can we sell the mother share once the rights have been credited into our accounts?

come on....it was RM1.0x since Apr'14 until now....this counter (together with SymLife) really can test your patience to the limit.

@ icon8888, thanks for your input. Never thought about that one.

i love symlife. Today, langsung got no volume....

@ Icon8888, maybe something as through as GOB ? hahaha...like Symlife part 1 to part 10? hahaha....

@ icon8888, just wondering, can you do a write up for SymLife?

@ James70/ Icon8888, please correct me if i am wrong in my explanation up there.

@ Rich3118, property developers actually recognize revenue by progressive billings. They cannot recognize the revenue all at one go, but rather to recognize revenue by stages via the Architect Certificate of Completion.

For example, earthworks and piling will normally be the first 10%. (If not mistaken, this is the slowest part of the construction project because they are literally laying down the foundation). Hence, by completing this 10%, the banks will release 10% of the monies to the developer and the developer can recognise 10% of this revenue.

It is no different than buying a house from a developer. Normally, at the back cover of the S&P agreement, there is a chart of progressive billing whereby the bank will release the monies to the developer based on the progressive stage of completion.

I believe what happen during 2014 is that most of the projects have already matured, resulting in a significant drop in progressive billings (compared to 2013). During 2014, GOB is actually focused on DaMein and kick start the Galleria (12% completed during 2014) and Springville Residence (21% completed during 2014). We expect to see these three projects to mature during 2015 and this will bring about very high progressive billings which will in turn improve the operating cash flows.

Credit to James70. I got this data from James70 and he is very hands on with his investment.

@ Rich118, Hopefully, i can help you on this matter. If you refer to James70 posting on Aug 1 2014:

"If we look at the 2014 Annual Report, their focus right now is to finish DaMen (44% completed), Galleria (12% completed) and Springville Residence (21% completed). These 3 projects with a GDV of RM1.54B and Gross Development Cost of RM1.285B are in the initial to mid stages and will complete for 2015 save for the Galleria."

What this means is that for 2014, there is a decrease in progressive billings which ultimately reduces the cash inflows generated from operating activities by ($82.6M). This is consistent with the reduction in property development cost by $24.9M. Rest assured, when both DaMein and Springville is completed during 2015, the progressive billings will hit 100% and this will further improve on the operating cash flows during 2015.

Another point worth nothing is the big ticket item being the purchase of PNT of RM50.0M. Hence, GOB actually needs to draw down big time on their bank borrowings of $178.4M during 2014. I think they have taken this into consideration when disposing the 15.56 acres of Seri Kembangan land and the rights issue pending from shareholders.

In conclusion, this means the increase in the cash and cash equivalents at the end of the year is mainly due to a huge reduction in the operating cash flows (reduction in progressive billings) and an increase in the investing cash outflows (to finance PNT) which resulted in a need to draw down on their bank borrowings.

@ Icon8888/ James70,
Don't know whether you guys can help me or not. Just went through the maths behind the disposal of 15.56 acres.

I derived the COST price per square foot = RM84.30 (approximately).

Disposal Price = RM142.35M
Gains arising from disposal = (RM85.22M)
COST price of land being disposed = RM57.13M

COST price per square foot = RM84.30 (approximately).

Why is this higher than the NBV price per square foot in the Annual Reports of RM28.60 per square foot?

@Icon8888, went through the Bursa Announcement for the disposal of 15.56 acres of land at Seri Kembangan.

Good news is that GOB still have about 108 acres of land intact at Seri Kembangan (52.0 acres + 56.1 acres). This is because the 15.56 acres that they disposed off is part of the the 19.6 acres held by Taman Equine Industrial S/B.

@ watchme, thanks for your answer. This means, if the warrant is trading at RM0.20 and the exercise price is RM0.80, hence, if i buy 1x warrant and intend to convert the warrant to shares, i will need to pay RM1.00.

Am i right?

coma liaw........

what happens if you buy the warrant from the open market? Say if the warrant is trading at RM0.20, how much do you need to pay to convert the warrant to the mother share? Is it RM1.00?

@ watchme, thanks for your explanation. Do you need to pay a conversion premium when converting the warrant to mother share? If yes, how much is the conversion premium?

@ icon8888, thanks for your fast response...but i cannot find the latest (november dated) circular at bursa. Just asking, have they post it up there yet? Thanks for your patience, as usual.

@ CAF POW; just asking about the warrants/ options. Given the exercise price is at RM0.80 which is 5 cents delta to the TERP; RM.075. Hence, when the price of the mother share is at RM1.00, we can say the option is in the money. Hence, the price of the option should increase, right? But then, increase by how much to the listing price?

What is the listing price of the options? Any ideas?

@ icon8888, just asking from the net assets backing per share perspective. What happens to the shareholders who subscribe in full to the rights issue? Post - rights issue, the net assets backing per share will drop from its current level of RM1.3x? I think it will halve to RM0.7x per share. Am i right?

Hence, we can say that the post rights actually dilute the net assets per share backing?

come on Symlife...wakey wakey....

i hope can hit RM1.20....did buy some during the recent market correction....wanna cash out to finance for the rights issue.

Given that the rights issue is scheduled towards the end of Nov'14, we still have 3 weeks to see show....

@ icon8888, crap....my paycheck comes in on 28th Nov.

@ icon8888, just asking, when will they release the prospectus to all the shareholders? Also, when do we need to pay for the rights issue? Mid Dec or late Nov?

with this rights announcement, will the share price fly tomorrow?

patiently and slowly waiting here......................

@ James70, yup. You are right on this. Experience is still the best teacher. I have to admit...these past few weeks have been pretty nerve wrecking....

@ James70, thanks alot for your advice on GOB....great to see you here....:-)
my losses for Symlife is slowly narrowing...11 cents to close gap ~!!!

yes....but do you think my average price of RM1.07 is considered quite high?

@ Icon8888. My average price is RM1.07. Glad we are just RM0.07 cents difference. The past few weeks have been a real test of courage... have been reading all your articles over and over again just to be courageous.

Hi Icon8888, what is your average price? care to share???

what is the meaning of QE3 28.29.10???

@ JN88, just asking, Yellen confirm the money printing party still going on? No QE fears already?

@ JN88; every single one of them....my soldiers ain't gonna die for nothing....

it seems the FED holds the entire world hostage...

Hi James70, just a quick question. How much do you think they are going to priced the free warrants? Looking to close the gap on the RM0.16 per share losses...

is there any warrant valuation model that you can share with me?

Hi James70, i maybe abit slow...just asking, where is the discount brought about by this carnage?

The lowest the rights can go is RM0.50 per share because the par value of the share is RM0.50. That means my theoretical ex-rights price is (RM1.07+RM0.50)/2 = RM0.79.

Hence, if the market price before rights is at RM0.75, the theoretical market ex-rights price is at RM0.63.

This means i will still be losing RM0.16.

Am i missing something here? Please advice.

@ james70, great to see you here. But what good does it do to me since my average price is at RM1.07? Please elaborate.

Also, do you think they will postpone the rights to next year when market sentiment improves for the better?

see,,,,if you and me are unwilling to subscribe, then the question now is will they postpone the rights issue? Don't forget...management needs the monies from the rights issue to beef up their coffers.

@ JN88, it seems you have more experience than me. Do you mind to come over to GOB thread to help advice me ? I am in a dilemma now...

it will be a joke if the rights issue is hold now...for those who buy at more than RM1.00, it means subscribe and you still lose money and if you don't subscribe, you will still lose money~!!! Majority maybe unwilling to subscribe and this is bad for management because they are unable to fill up their coffers with the rights proceeds.

@ millionboss + kudamuda; to be fair - the whole market is in deep red now...not only SymLife. Symlife considered quite strong liaw.....

just asking, any chances they might delay the rights issue to next year?????

@ laughdieme77, my average entry price = RM1.07. What is your take? Live with this flushing?
Few options ahead:
Option 1: Exploit this market to average down...then, when the rights issue come, hope the market price at rights issue is higher than the new (lower) average price. Take note i have no more bullets left. The ONLY way to free up capital is by selling off a portion of the mother share and then subscribe to the rights issue. This can only work if the market price during rights issue will be more than the average price.

Option 2: Do nothing.

@ kuah, just asking, how to protect the capital when you have lost a portion of it? albeit, a small portion?