@ hng33, good point....about Tropicana vs LG vs GOB...
let haters be haters lah...i doubt anyone of them know where is Batu Kawan (friendly stone) located at....if they just care to spend about 4 hours to travel down to Penang Second link - they can find GOB's Batu Kawan land is located 10 minutes (maximum) from Penang Second Link.
It is no coincidence that Malton also has a JV running at BK.
I believe now GOB + Malton is having tarik session on how to develop their crown jewel Batu Kawan Land.
I also doubt these haters have any idea how Penang state government is going to make Batu Kawan to be Penang's next metropolitan city.
GOB is a very good and very attractive counter to buy. However, I feel that Syndicate still in accumulation stage, that's why they press the share price. As long as all of us still holding the share, syndicate will not let it fly. If all of us not willing to throw, then it wont fly. This is truth, and nothing much we can do.
Since GOB yesterday have up so much, today it just need to absorb sell pressure from those profit taking. Malton, GOB related stock also start moving now
Bought at RM0.505 . Please read article written by faye Tan's: "GOB to hit 71 sen by end of this month" under the Blog Headlines on Friday 18th September, 2015. Very insightful information for those who are not acquainted with GOB and the impact of the proposed sales of USJ mall.
Just image instead of 48 sen dividend as suggested by faye Tan, say even 20 sen dividend declared will definitely boost up the share price! Furthermore, rerating is coming soon for GOB provided the sale of USJ mall goes Through.
I prefer GOH than its warrant as it conversion a bit too high. If GOB resume declare regular dividend onward instead of opt for just one off special dividend, warrant conversion will not be adjusted.
My apologies...after the disposal of da'mein, net cash from the sales proceed should be more than RM78M.
This is because RM488M need to deduct the property development costs Tax is computed after this line...hence, tax is supposedly to be lower....thus increasing the net cash (to be more than RM78M).
kancs3118, net cash after sales is RM321m. GOB will receive the RM488m in cash. The selling price already incorporated the property development costs (sunk in cost). For full calculation, refer to my blog
. If there ever will be a special dividend, it will not be until the sale is completed. This will be well into next year. By that time the market may have gone to west sky.
@ FayeTan, went through your computations. Indeed, it seems you have added the existing cash on hand (before the sales of Da'mein of $488M). So, if looking at that point of view, you are right. For me, i just look at $488M sales and not looking into - the existing cash on hand, - and the proceeds from the disposal of the 2x leasehold land at Seri Kembangan.
Also, i think you need to factor in corporate tax at 25%. Even though the property development costs for Da'mein is treated as sunk cost, yet this is deductible against the sales proceeds of $488M to reduce the tax liability arising from the disposal.
Don't worry if you didn't book your profit last week. There will be another chance. Expect big corporate exercise soon from the proceeds of last few assets sales transactions. It might correct further but it will come back again later.
You might want to sell now if you expect profit to come in next few days. Can slowly accumulate more during correction if you want to see big profits in long term.
Time will proved whether its is trap or not, if GOB share price still trade sideways below 51sen for next 6 month or after completion of Da'men in Q1 2016, then it can only consider trap.....a value trap.
For those who are interested to invest in GOB, please check GOB's website to learn more about the company's operations and performances. Regarding the recently published sales of USJ mall for RM488/- millions to Pavilion, there are 480 units service apartments (Tower A already completed 20th Floor and Tower B up to 12th Floor) and 68 units of shops/offices (5-6 storeys) within that 8.98 acres of freehold land development but not meant for sale to Pavilion. How much is the profit earned from sale to Pavilion REIT, GOB has yet to inform SC but it should be substantial in the regions of over 90 millions.
GOB is a value play and my valuation of 71 sen is based on net cash (most conservative method). Theoretically, no company should be valued less than its own net cash.
I forgot to mention also there are many projects undertaken by GOB, all of them are well supported and within Klang Valley. Please check GOB"s website for further details on its operations and performances. Somehow, after reading through the website, I felt strongly that this Company is well managed and I also believed that soon shareholders will see dividend forthcoming.
To be more conservative, just court its cash, need to exclude landbank revalue surplus, and just peg its landbank at its book value instead of market value....unless, GOB disposed it for gain. GOB will gradually develop the land, extract value with better profit margin in future.
GOB current project should be able to support its earning visibility for next few year as most of them are well strategically located.
Share price up and down almost everyday, there is nothing wrong if you want to reap profit now, be small or big profit both consider good trading as only realize profit is real profit.
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kancs3118
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Posted by kancs3118 > 2015-09-18 14:15 | Report Abuse
@ hng33, good point....about Tropicana vs LG vs GOB...
let haters be haters lah...i doubt anyone of them know where is Batu Kawan (friendly stone) located at....if they just care to spend about 4 hours to travel down to Penang Second link - they can find GOB's Batu Kawan land is located 10 minutes (maximum) from Penang Second Link.
It is no coincidence that Malton also has a JV running at BK.
I believe now GOB + Malton is having tarik session on how to develop their crown jewel Batu Kawan Land.
I also doubt these haters have any idea how Penang state government is going to make Batu Kawan to be Penang's next metropolitan city.