What will be the net cash position of the company after the sales. Cash proceed - rpgt - estimate disposal expenses - debt rm197(march 15) - deferred tax liability? Should we consider this deferred tax liabilty?
riskabsorber, u mentioned earlier that a capital reduction wud avoid it classified as pn17...can u explain further your reasoning ,my limited knoeledge cud not understand your statement, thanks ya !
Happyman, I just mentioned Golden Land would not be classified as PN17 because they still have plenty of land bank and its business still in continuing. They carry on with capital reduction might for the future re-consolidate the par value. Since they seek to maintain the listing status, Pursuant to the Proposed Disposal, GLBHD would be classified as an “Affected Listed Issuer” as GLBHD is deemed to have triggered the prescribed criteria under Paragraph 8.03A of the Listing Requirements. For clarification, GLBHD will not be classified as an “Affected Listed Issuer” under Practice Note 17 (PN17) of the Listing Requirements.
This is just a proposal for special dividend and capital reduction. Might have another round when EGM and approval of capital reduction by High Court. Overall still positive unless the deal goes off.
Post the 0.88 payout... the company has no more income as the other assets are pending development... no income only expenses
Post the 0.88 payout... the income before expenses could well be just FD interest... and the share price could be just about 0.50... ie 260m x 4% x 10 divide by 222m... IF no expenses....
Previous quarter wasn't too encouraging. Selling at a rather high PER. The only attraction is the proposed sale of some assets to FGV. And especially the 88 sen special dividend from this sale. The insiders who knew about this and had loaded up over the past few months are the main beneficiaries. Probably cashing out for the capital gains over the past few trading sessions judging from the price decline. Soon, this counter will be forgotten again.
But having said that, this is one counter I'd want to speculate on if the price gets low enough. The sale is expected to go through in early 2016. Potential for at least a 30% gain on capital here, in less than a year. The only risk is FGV deciding to abort. Not impossible considering the scrutiny over its proposed purchases. But as long as this counter remains above its support level, the risks to capital are acceptable.
If the 1m is stuck in the bank forever because it is committed to something like in GLBs case....... and the inflation rate is 7.5%.... sooner or later the 1m would be worth 400k in purchasing power
High NTA is a mirage
Buying 10 with 5... good only if the 10 can be had immediately
tribaleps r°Moi ....so you're saying, if you have a million bucks in the bank, it should only be worth RM400k because RM1m x 4% x 10?
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
riskabsorber
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Posted by riskabsorber > 2015-06-17 10:11 | Report Abuse
Who went to the AGM for FGV ?