very strong selling pressure for this counter. It seems not many are interested in this rights issue and are more interested in dumping this share before rights.

funny....no body wanna sell any shares at this price....

when is it going to hit RM1.00?

Hi all;
just want to know - any updates on the Langat2 project located at Sungai Long? The new Selangor state government gonna buy the land? If yes, how big?

@ JN88, do you mind to elaborate why the land at Kajang may be acquired by the state government?

RM450K to RM600K is not exactly low cost lar...

this sell down does not make sense... the share price should have appreciate given that we are about 2 week to the rights issue...

Hi all - about the concern that the property market will not do well next year. Well, let me share my experience as a Penangite.

There is a strong demand for property priced between RM450K to RM600K in mainland Penang. Indeed, there is a significant shortage of "affordable" housing to house the middle class income earners in the state of Penang. A visit to the Batu Kawan sales office shows the land at Batu Kawan will be used to predominantly build affordable housing priced at RM450K to RM600K.

@ 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.

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

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.

@ 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.

@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.....

@ JN88, why the funds will not ride this share if the big boss is holding 30%++? Not enough liquidity?

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???