Posted by watchme > 2014-11-11 16:16 | Report Abuse

force sell

Posted by Icon8888 > 2014-11-11 16:21 | Report Abuse

yes you can sell

Posted by Icon8888 > 2014-11-11 16:22 | Report Abuse

but your mother share price would have been adjusted downwards

Posted by watchme > 2014-11-11 17:02 | Report Abuse

tomorrow back to 98

Posted by kancs3118 > 2014-11-11 17:58 | Report Abuse

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?

Posted by watchme > 2014-11-11 18:42 | Report Abuse

NTA at around 1.35 by this month end result, how could it go wrong....just buy n keep

Posted by Icon8888 > 2014-11-11 19:44 | Report Abuse

kancs I really don't have an answer.

Posted by kancs3118 > 2014-11-11 20:37 | Report Abuse

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

Posted by watchme > 2014-11-11 20:38 | Report Abuse

KSL bonus issue ex date likely mid Dec....good entry point now

Posted by kancs3118 > 2014-11-13 10:11 | Report Abuse

@ 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.

Posted by Icon8888 > 2014-11-13 12:24 | Report Abuse

ya, same thinking here

Posted by watchme > 2014-11-14 07:25 | Report Abuse

where is all the volumn? good sign?

Posted by Rich118 > 2014-11-14 07:28 | Report Abuse

Price keeps falling. Back to my original question. What we see that others don't or what others see we don't? We see the positive side and the deep value. I keep accumulating the last few days. Anybody can provide any negative side of the views so that we can have a more balance view.

Posted by kancs3118 > 2014-11-14 09:59 | Report Abuse

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.

Posted by watchme > 2014-11-14 12:40 | Report Abuse

long term, buy on average after rights...I also stuck avg at 99 level.....

Posted by Rich118 > 2014-11-14 22:02 | Report Abuse

@kancs3118, thanks. The transaction with Malton involved purchasing land at Semenyih at about RM 30+ psf, if I can recall.. So, deferred payment is better, isn't it? Question is whether RM 30 psf at Semenyih rasonable?

I am also puzzled why a company making cash call through rights issue let itself distracted by putting RM 50 mln in biz beyond its sphere of competences? How do you rate the integrity of the management?
The company seems to be short of cash flow.... Firstly, selling land to raise RM 142 mln, then rights issue to raise approx RM 120 mln. Total 250-300 mln, then throw 50 mln into tableware biz. Make biz sense?

Posted by kancs3118 > 2014-11-14 22:59 | Report Abuse

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~!!

Posted by Rich118 > 2014-11-14 23:11 | Report Abuse

Directors are exercising share options at RM 1.00 per share. So, at 91 sen is really cheap man!
U said PNT 10 mln profit guarantee for 3 years, so the actual purchase is only 20 mln. It is profitable then should be ok.

The 108 acres of land at seri kembangan - are they near to the 15.56 acres sold?

Batu Kawan GDV only 660 mln? Or is it just part of the land there being developed?

Posted by miapancho > 2014-11-15 00:44 | Report Abuse

i got 4000 units of gob,,,so what i will get for the rights n how much i must pay?????????????????

Posted by watchme > 2014-11-15 06:51 | Report Abuse

4000..u can buy 4 rights, pay RM 2000. Then you also get 2000 FREE WARRANT..if I am not wrong

Posted by iska > 2014-11-15 08:14 | Report Abuse

I'm also not keen on GOB's kitchenware and F&B biz as tracking and valuing a diversified company is harder than a pure property play. However, Corelle kitchenware is rather popular in Singapore, and I do use them a lot at home, so perhaps its kitchenware biz is ok. I now own more than 1m GOB shares and will slowly accumulate as it pulls back. Still hoping that GOB starts to pay good dividend so that we don't have to sell the shares each time it goes up to lock in some returns.

Posted by kancs3118 > 2014-11-15 08:45 | Report Abuse

@iska, mind to share what is your average cost of GOB? Mine is RM1.07 - i am stupid for not selling to lock in profits and then buy back at lower cost. This counter definitely allows us the opportunity to profit a few rounds by buying low and selling high.....

Posted by iska > 2014-11-15 09:40 | Report Abuse

Hi kancs, mine is about M$1 now. I took profit one round.
Fyi, I have always liked prop stocks - they are easier to analyse. I had the good fortune of making 7-figure profit from investing in Iskandar theme stocks in 2013, and exited the market during the initial part of the end game. You can check my 2013 postings.

I have ridden on SGX prop stocks for a while now, but revisited Bursa stocks recently, but now only own 2 counters - GOB and E&O - both Penang theme play.

But my mainstay is still SGX prop stocks as I can only rely on kind souls like Icon8888 and Google to research on Bursa counters, and not able to meet the management personally during AGMs (too troublesome for me). In Singapore, I can attend the AGMs and get a feel of how honest and able management and top shareholders are, and so I feel more confident to buy a stock in larger amounts.

I am a tad wary of GOB because there is no major, strong shareholder. That may mean the shares are passed around among small retail shareholders who may be weak holders.

Posted by Rich118 > 2014-11-15 10:35 | Report Abuse

Looks like we have quite a number of like minded people in this GOB forum. Iska, thanks for sharing. Agree that Icon8888's analysis is well researched and investment case logically reasoned.

Weak retail shareholders throwing jewel, I am not too concerned. If the value is there and managemnet no hanky panky, the price will eventually reflect the value. A company cannot be priced at 92 sen for too long if it's EPS is conservatively sustained at 20 sen for the next two years, and land bank worth at least RM 5 per share (at current mkt land price).

Investors with good holding power will definitely gain. I recall Icon8888 only conservatively target to double in three years.

As far as value is concerned, I m not worried. Only thing keep me concerned is how trustworthy the management is as far as minority interest is concerned. They make good money but not paying a single sen dividend over the last 5 years. They raised money thru rights and selling land, but bought into a company which is not related to its core biz.

Posted by Rich118 > 2014-11-15 10:38 | Report Abuse

Kands, waiting for your comments on RM 660 mln GDV for its Batu Kawan land. 200+ acres. Shouldn't it be more?

Posted by Rich118 > 2014-11-15 10:40 | Report Abuse

Kancs*...... My finger is too big for an iPad key pad

Posted by kancs3118 > 2014-11-15 12:45 | Report Abuse

@ Rich118, the total GDV for Batu Kawan is about RM1.8B. The RM660.0M GDV is a subset of this RM1.8B. Being told by the sales representative from GOB that the project for Batu Kawan should last the group a good 8 to 10 years.

For the RM660.0M, assuming if a house is priced at RM500K, they need to conservatively build about 8000 units.

Total land size at Batu Kawan is about 350 acres. Total showing in the annual report is about 200.0 acres. The rest is still at Penaga Pesona pending transfer.

Posted by kancs3118 > 2014-11-15 12:53 | Report Abuse

SymLife is also quite a good company. Current share price is about RM1.00 with a RM2.00 net assets backing. It is like you pay RM1.00 to get RM2.00 net assets. Assets carried at book value without revaluation yet. Post revaluation, this share can easily reach RM2.50 per share.

Check out James70/ Icon8888 posting for SymLife.

Posted by Madsua > 2014-11-15 12:54 | Report Abuse

Beautiful penang

Posted by 宋 雪芬 > 2014-11-15 12:57 | Report Abuse

Has GOB mention how they will use the money collected from right issue? if they r using it to draw down the debts/borrows then seems no point to subscribe since they did not declare any dividends, shareholder did not really profit from their earning so far.

We actually can also foreseen that the property market may not hv good performance as previous years, starting next year people purchase power may reduce due to higher burden of living expenses after GST implemented and higher interest rate from the bank.

I am actually quite struggle whether to subscribe to the right issue or sell the stocks.

Posted by Rich118 > 2014-11-15 20:51 | Report Abuse

At 50 sen, I will subscribe. No doubt there is deep value in this stock. Just wonder, with the expected softening of property market going forward, could we possibly get a cheaper entry price than the current 92 sen if we wait a while? People are less sanguine about property sector at least for the short term. We may need to be on for a while before seeing the unlocking of the value to be reflected in the share price. Any views from Iska, Kancs3118, Icon8888 or James?

Posted by Rich118 > 2014-11-15 21:00 | Report Abuse

Also one more point, any major shareholders undertake to fully subscribe its entitlement? Who underwrite in case the rights are not fully subscribed?

Posted by Rich118 > 2014-11-16 00:58 | Report Abuse

Kancs3118, thanks for recommending Symlife. I have been accumulating Plenitude as well. Net cash company with net cash RM 396 mln (RM 1.46 per share). No gearing with land bank carrying at purchase cost in the 1990s. I had a chat with its senior management the other day and was informed that it bought a piece of land at Balik Pulau in year 2010 at only RM 17.50 psf. If total land revalued, it could be easily worth 3.00 per share. Plus the 1.46 cash, we are looking at 4.50.

Just that ppl now are less sanguine about property stock, anticipating softening of property market next year. If interested, we can discuss separately at Plenitude forum. I did not post anything at Plenitude forum as I do not find any interesting interaction there.

Posted by kancs3118 > 2014-11-16 09:57 | Report Abuse

need to take a break - just finish Penang 2nd Bridge Marathon.

Posted by iska > 2014-11-16 10:51 | Report Abuse

Hi Rich, thanks for your note on Plenitude. The land in Balik Pulau is about 2.3m sf. I Googled asking prices for land in the area, and it seems that M$50psf is the market price, although it all depends on what approvals have been obtained for the land. Assuming a more aggressive value of M$60psf of Plenitude's land, that will mean a paper profit of M$42.50psf, or a total of $97.75m. Divided by 270m shares give a per share basis of 36 sen. That will add to existing NAV of $3.63, bringing it to M$4 (this includes its cash).

Of course, if my estimate of land price in Balik Pulau is too low, then the figures would be bumped up.

But thanks Rich, I will look at Plenitude in details when free. Had owned it before in 2013, but had exited.

Posted by iska > 2014-11-16 11:03 | Report Abuse

Rich, re where Msian prop stocks' direction vs the physical market, I am also curious.. but if you look at the case of Singapore, u will notice that even though a glut in the physical market was predicted 3 years ago, and the physical property prices did fall over the past few quarters, if one were to invest in the right property stock, there would be money to be made.

Reason being that many property stocks trade at huge discounts to NAV, in Singapore as well as Malaysia, and probably in many other countries too. I think this is due to the "supply" factor - property is one of the biggest economic sectors in many countries, and hence they are represented in stock markets by several listed entities. This makes "supply" of property stocks (both in number of counters as well as total issued shares of all property stocks) too big for demand to be equally matched. Basic economics - when supply is huge, price is low, everything else being equal. Hence, prop stocks tend to be in general undervalued, and hence safer. It also means that when bad news surface (like an impending glut), the effect on a stock may be quieter (because it's already trading at say 40% of NAV). And if that counter has an earnings and dividend payout story to tell, it may just perk up its share price despite the general prop market's malaise.

Case in point: if you look at all the negative news in the physical prop market in Singapore, and compare with the prices of property stocks like Chip Eng Seng and Lee Kim Tah, you will see that there is no direct correlation between what the physical market is shouting and the trend of these 2 stocks' prices.

I am not sure if that will happen in Malaysia and Bursa, but I suspect the undervalued stocks with big earnings stories to boast of (especially if it comes with good dividend payment or corporate actions) may just stand out despite the fears in the physical market.

Posted by Rich118 > 2014-11-16 13:45 | Report Abuse

Thanks Iska.

Agree with your analysis on prop stock direction vs physical market. Do you think GOB could fit the bill you just described of good dividend (maiden dividend :)) & corporate actions like merger into larger Desmond Lim property empire or injection of Damen into PAVREIT?

Interesting to note that u also owned Plenitude. What make you sold? The too conservative management that is obsessed to keep cash to buy land at low price during crisis & keep dividend payout at only about 20%? If u look at the list of properties there, their big land bank in Tebrau, Johor and Puchong, Selangor are carried at cost price in 1999. To me, this is an ultra safe counter with no management integrity issue at all ( I wish I can say the same for GOB but can't as did not have chance to interact with its management yet). Look forward to your sharing & exchange on Plenitude.

Posted by kancs3118 > 2014-11-16 14:39 | Report Abuse

@ rich118, hopefully, you can evaluate the logic of my thinking. Just skim through the F/S of Plenitude and yes - this is a strong company with zero debt. To top it off, yes - it has plenty of undervalued land which will translate to fat profit margin.

THe problem is that as a retail investor, i am not rich. My budget is not that big. Given my budget, if i bought Plenitude (vs. GOB), then, volume is an issue because i can only buy 1 Plenitude for every 2.5 GOB.

If both counters experienced a RM0.50 increase in their share price, then GOB should give me more returns given the volume that i have.

What do you think of my logic?

Having said this, i admit - Plenitude is a good counter to accumulate and keep for the really long term. I will definitely KIV this counter. Thanks for your recommendation.

Posted by watchme > 2014-11-17 07:52 | Report Abuse

bought before n exit ,,,good counter to keep long term with dividend play.

Posted by watchme > 2014-11-17 13:56 | Report Abuse

downtrend again...where is the support? collect cheap and wait

Posted by watchme > 2014-11-17 13:57 | Report Abuse

wait till Wednesday to recheck support

Posted by erica > 2014-11-17 19:46 | Report Abuse

If I have 4000unit, how many i can exercise the rights??and how many can I get for free detach warrant...anyone can help me......?.?

Posted by Rich118 > 2014-11-17 22:44 | Report Abuse

Kancs3118, on your question above. My thinking is 50 sen increase from 2.60 is about 20%,while 50 sen increase from 90 sen is about 55%. A 55% increase of 2.60 is approx. 1.40.

Similarly, a 50 sen drop from 92 sen for GOB will wipe out more than half of your capital :),

Bottom line is how much upside/downside, in terms of %, you see from GOB and Plenitude vis-a-vis the associated risks.

I do not look really look at the absolute value but rather percent of return or percent of downside risk.

Posted by watchme > 2014-11-18 08:05 | Report Abuse

every 1000 units, can buy 1000 units right at 50 cents/unit, ie: RM500. Every 2000 units right subscribe, you get 1 free warrant (1000 units)...correct me if I am wrong

Posted by watchme > 2014-11-18 09:32 | Report Abuse

technically oversold, soon will rebund

Posted by 宋 雪芬 > 2014-11-18 10:26 | Report Abuse

the share price keeps going down, seems like the right issue don't give any positive effect to the stock and the shareholders also don't look good at it

Posted by Insider_Tips_81 > 2014-11-18 10:57 | Report Abuse

possible drop to 0.6?

Posted by 宋 雪芬 > 2014-11-18 12:05 | Report Abuse

if drop lower then no one want to take the right issue, might as well sell the right and buy the mother during the trading period

Posted by watchme > 2014-11-18 17:56 | Report Abuse

new shareholder entry to the company at above RM1.....the share price now likely being pressed lower to allow them to average down their cost before rights is announced

Posted by miapancho > 2014-11-18 21:25 | Report Abuse

any sifu on this GOB SITE who is expert at right issues,, please miss call to my mobile, i will call you back... my mobile 0193629402..i am located at subang airport area,, I AM VERY INTERESTED TO DISCUSS ON THIS SUBJECT FROM OUR EXPERT SIFUS... or you can send me an e mail at-- harcharanjit.jalaursingh@malaysiaairlines.com





IF I HAVE 4000 UNITS OF GOB,,,THEN HOW MUCH WILL I GET FROM THE RIGHT ISSUE EXERCISE... I BOUGHT LAST TIME AT 89 CENTS.... IS IT WORTH TO SUBSCRIBE THE RIGHT ISSUE????? OR JUST SELL THE SHARES NOW IT SELF.. BUT I NOTICE THE PRICE IS DROPPING DAILY,,,I THINK BIG BOYS ARE SELLING NOW,, AND THEY WILL BUY LATER WHEN IS CHEAPER.. FURTHER MORE PROPERTY SECTOR WON T DO THAT WELL NEXT YEAR DUE TO GOVERNMENT CONTROLS PLUS GST...PLEASE CORRECT ME IF I AM WRONG..THANK YOU