Posted by kancs3118 > 2015-12-29 13:07 | Report Abuse

For the rights call:
Now, if they managed everything properly and not to diversify into PNT and F&B, they may not even need to dispose Da'mein (especially on such unfavourable terms) and to keep this crown jewel for recurring rental. I am not saying the disposal of Da'mein is wrong - indeed - it pays off the loan - but i am questioning the rationality of the management. What are they trying to achieve? Whether they have put to good use the resources that they have?

Perwira Nadi Trading:
If you look at the balance sheet, there is a purchased goodwill of RM30M for the purchase of Perwira Nadi Trading - their Corningwell business. This means they overpaid PNT by RM30M for what is essentially a distribution business - distributing Corningwell plates, bowls, glasses, cups, "sah pou ang chang"...How many of us (forumers), restaurants and hotels in Malaysia is using Corningwell products? How many of us routinely changed our plates, bowls, glasses, cups, "sah pou ang chang"? My house is using free Jacobs plate - the one given free when you buy a few tins of Jacobs biscuit. I mean - is it worth to pay such a huge goodwill? RM30M?

Posted by kancs3118 > 2015-12-29 13:07 | Report Abuse

In conclusion:
If you take into consideration their rights call , then their diversification into F&B and PNT, the disposal of Da'mein with unfavourable T&C, the disposal of BK land - ....you come to a conclusion something is not right with this company's management. Seriously, there is something very wrong with this company. They are essentially stripping assets from this company - building up a huge cash pile for future endeavors. But then, if the recent article in Focus Malaysia is anything to go by - please don't expect special dividend payout. Rather, the monies will be used to buy Desmond Lim's privately held land. Whether this is going to be a profitable endeavour, i really do not care and i don't give a damn since i have sold everything.

Sometimes, i think ....what if i hold back and sell when the price gets more solid? especially in the first half of next year when the company turns into a net cash position. But then, i seriously doubt if next quarter's result will be good - i suspect it may turn into a loss making quarter given that they still need to charged off some costs for Da'mein and their F&B is dragging them down. Anyway, i really do not care and i don't give a damn since i have sold everything.

That is all i want to say.

Posted by Parkson > 2 months ago | Report Abuse

Loss making stock TP 10 sen.

Posted by chinaman > 2015-12-29 14:49 | Report Abuse

this look like Tony Fernandez modus operandi. all loss put under AAX to make Airasia always look good

Posted by GoldenShares > 2015-09-13 14:24 | Report Abuse

as i said b4, something wrong with the management, but ikan bilis prefer to follow icon8888, now at least kancs3118 realised, not too late, : )

Posted by chankp7010 > 2015-12-29 17:29 | Report Abuse

For kancs3118 - I really appreciate your frank and candid information. Your views on F&B and PNT are relevant and definitely sore points to investors. Judging from the market price movements since announcement made on disposal of Batu Kawan Land, many investors have actually concurred with you. I believe there are many valid reasons also - some hindered, some obscured and some obvious to onlookers like you.

I also agree that the Board and Management tend to have very close link/connection with Malton and its boss. I also feel strongly that the terms on sale of De'man (USJ project) more favour to buyer (Pavilion REIT). Still the purchase price is reasonable and enabling GOB to monetize its property with immediate cash to settle debts and providing funds for developing Ampang Land.

Also the BK sale is close to RM8 per sq ft, not much difference from RM10/- market value at this time. Of course, Land will always increase in value over time. But, GOB requires Cash and this sale fulfil its requirement.

Posted by kancs3118 > 2015-12-29 18:10 | Report Abuse

@ chankp7010,
about the JV with Lembaga Getah at Jalan Ampang. It is not as clean as it seems.

For the Jalan Ampang project, GOB actually roped in an investor to provide the financing for the project. From what i know - it seems to be like a convertible preference shares - whereby it gives the right to the investor to receive coupons during the early stages - and when the project matured - the investor has the right to convert to become a preference shareholder. Come and think about it - it seems the investor is better protected than the shareholders. Of course, during the initial part of the project, it is the same like servicing a loan. Instead of paying the interest to the bank, you pay the interest to the investor. When the project progresses and the risk becomes lower, then the investor maybe able to convert to preference shareholders. But the funny part is that if the investor did convert, the profits for the Jalan Ampang development may get split (i am not so sure about this part). That means - you and i (who are the ordinary shareholders) will not receive that much as we need to split it with the investor. I would rather opt for them to issue loans/ debentures to do this as to protect the profits from being thinned out.

I am not saying this is wrong.

Just imagine - if they do not "diversify" into PNT and F&B, the issuance from rights call coupled with the sales proceeds from Da'mein can get channeled into the Jalan Ampang project and the BK project.

For me, investing is not supposed to be constantly trying to second guess the directors. It is supposed to be done in confidence -whereby you are confident that the directors are out there - working hard to maximise the shareholders wealth.

Honestly, i felt very tired - so, i sold off everything. It is better that way. I admit - i am defeated and therefore, i surrender.

Posted by hng33 > 2015-12-30 09:11 | Report Abuse

Bought more GOB at 54sen

Posted by davidkkw79 > 2015-12-30 09:13 | Report Abuse

Thanks kancs3118, hope all sell out their stake then only share price can up. Too many shares are in small investors hands.

Posted by chankp7010 > 2015-12-30 09:51 | Report Abuse

For kancs3118 - Investing is a very tricky business, you need perseverance, patience, skill and a bit of good timing in order to gain. Otherwise, you may as well surrender (give up). I strongly feel that GOB's board of directors and Management had done a good job in disposing loss making subsidiary that owned land in Batu Kawan, and also to monetize Da'men for RM488 millions. Time is bad and cash is likely to be King very soon. Come next year reporting, you may see GOB strong results to spur market prices to a new height.

For hng33, you have done a good job by buying more at 54 sen. I believe you can make a good deal from this counter soon.

Posted by riskabsorber > 2015-12-30 10:54 | Report Abuse

Last night, PAVreit announced the proposed acquisition of Intermark. The terms are much more favorable for Intermark. Whereas, the terms given to so called "close relation" to acquire Da'men were unfavorable to GOB. That's is one of the reason the price drop more than 20% after the result released.

Posted by riskabsorber > 2015-12-30 11:39 | Report Abuse

Next quarter, they will have another round of foreseeable losses to provide. Investing in the management that will protect its shareholders rather than the interest of its own directors. I strongly believe that the disposal of BK land is not under the arm length transaction. Even go for "bank lelong" also will not get this kind of price.

Posted by kancs3118 > 2015-12-31 10:51 | Report Abuse

now, i know why the Batu Kawan land is disposed so cheaply at approximately RM30 per sqf. The purchaser is Batu Kawan Development S/B.

A while back , during Oct 2012, Malton enters into a RM3.8Billion JV with Batu Kawan Development S/B - the one who purchase the land from GOB. BKDSB’s entitlement under the JDA is 18% of the GDV of the Proposed Development, subject to not less than RM300 million, which represents the minimum return expected by BKDSB from the Joint Venture.
http://www.propertyguru.com.my/property-news/2012/10/31413/malton-batu-kawan-team-up-for-rm3-8b-project

I hate to speculate - but it maybe probable that Malton receives some form of kickback from this BK land disposal at the expense of GOB. (maybe contribute lesser to Batu Kawan Development S/B??? in exchange of them having 350 acres of land at such a cheap price???)

Well....looking at the series of events, i think that despite GOB is going to be in a net cash position in 2016, its future endeavours is questionable as it is highly likely to be used as a front to benefit Malton.

I maybe wrong but when in doubt about the company's fundamentals and management - better cash out.

Posted by kancs3118 > 2015-12-31 10:51 | Report Abuse

Anyway - happy new year 2016 to all. This is my last posting for GOB and i will NOT be visiting GOB thread anymore. Don't care liaw....sell already...the BK Land disposal is so bloody cheap....no comments.......will not be visiting this GOB thread anymore.

Wishing you a happy and prosperous new year 2016. Huat arrrrr~!!!

Huat arrrrr~!!! Huat arrrrr~!!! Huat arrrrr~!!! Huat arrrrr~!!!

Posted by YOLOOOO > 2015-12-31 12:37 | Report Abuse

okay, ppl sell i buy, ppl buy i sell hahahaha

Posted by chankp7010 > 2016-01-04 12:12 | Report Abuse

GOB's 3rd quarter results have shown earning per share =14.48 sen; borrowings RM255.9 millions, Cash RM89.3 millions. Fast forward to 4th January 2016, 2 major transactions have yet to be taken into account. (1) Sale of Da'men in USJ for RM488 millions. (2) Sale of 51 % of Batu Kawan land via 100% owned subsidiary Penaga Pesona Sdn Bhd for RM41 millions. The latter sale will generate profit RM43.24 millions (due to accumulated losses in prior years) As in the case of De'men, not much details have been given, and can safely assumed to make RM80 millions x 72.5%=RM58,000,000/- ( 27.5% is attributed to landowner) Thus, even without taken in property dev profits, trading profit , GOB will have RM101.24 millions + 9 months report up to 30/9/2015 of RM65.8 millions totalling RM169.74 by 31/12/2015. eps will be 75 sen. Additionally, cash flow from sales of 2 land and property will further reduced borrowings. In fact, GOB will have net cash in hand after the 2 transactions are completed before 31st March 2016. As it is I don't see any good reasons why GOB share price is still dropping. It should instead have move upwards.

The above is just my viewpoint. If you are not agreeable, please state the reasons to help me improve my understanding of investment. Kyy advocates buying shares if earning this year is better than last year! GOB has nicely fits into this category.

Posted by hng33 > 2016-01-04 15:59 | Report Abuse

Bought more GOB at 52sen, average down holding cost

Posted by slbzr > 2016-01-04 17:33 | Report Abuse

good move

Posted by hng33 > 2016-01-06 09:48 | Report Abuse

Bought again more GOB at 52.5sen

Posted by riskabsorber > 2016-01-06 11:37 | Report Abuse

waiting at 50 sen.

Posted by hng33 > 2016-01-06 15:59 | Report Abuse

Bought last and FINAL BIG batch GOB at 52sen, averaging down total average holding cost now to RM 53.1sen

Posted by smartly > 2016-01-06 16:02 | Report Abuse

ready to move !?

Posted by YOLOOOO > 2016-01-06 16:24 | Report Abuse

tsk tsk, ini gob memang beh ki

Posted by smartly > 2016-01-06 16:28 | Report Abuse

boh lat...

Posted by chankp7010 > 2016-01-06 16:33 | Report Abuse

In my posting on 4/1/2016, GOB's half year profit was 14.48 sen (EPS) instead of 9 months results.
My apologized for the mistake. As GOB financial year is ending 31st March 2016, my prediction still stands.

Posted by eskaylien > 2016-01-06 17:37 | Report Abuse

hi chankp,
your analysis is essentially correct except the eps should be halved, as its issued shares totalled 455m.

The problem with gob is it sold a substantial portion of its crown jewel in Batu Kawan at a not very lucrative price, leaving only the RRI development and a few smallish landbank in KL.

Its share price is no doubt at a sharp (at least 60% in my estimate) discount to its NTA, but the market now needs to know what the directors are going do to sustain its property business beyond its now smallish landbank portfolio.

Posted by Edward Wong > 2016-01-06 22:42 | Report Abuse

Will go down to 50 sen?

Posted by riskabsorber > 2016-01-07 10:10 | Report Abuse

Currently, GOB has 3 proposed disposal, 1) PROPOSED DISPOSAL OF A PARCEL OF LEASEHOLD LAND BY PERTANIAN TAMAN EQUINE SDN BHD FOR A CASH CONSIDERATION OF RM43.30 MILLION, this disposal likely will be completed in this financial year. 2) PROPOSED DISPOSAL OF 51% EQUITY INTEREST IN PENAGA PESONA SDN BHD FOR A TOTAL CASH CONSIDERATION OF RM41.0 MILLION, this disposal may not complete the sale this year as the date of signing was almost end of December. 3) PROPOSED SALE OF A SHOPPING MALL AND CAR PARK BAYS BY EQUINE PARK COUNTRY RESORT SDN BHD TO PAVILION REAL ESTATE INVESTMENT TRUST FOR A TOTAL CASH CONSIDERATION OF RM488 MILLION, this proposed disposal is the most critical and it determined the share price upward or downward significantly. As at to-date, the company is yet to announce whether the conditional of the SPA has become unconditional. This disposal likely will not record in this Financial year end.

Posted by Edward Wong > 2016-01-07 18:12 | Report Abuse

Thank,riskabsorber.

Posted by jc5360 > 2016-01-08 13:41 | Report Abuse

is Da:men usj opening today?

Posted by riskabsorber > 2016-01-08 16:08 | Report Abuse

The trend will go down further as investors are starting to doubt on the corporate governance. Wait at 47 sen.

Posted by confuse > 2016-01-09 11:26 | Report Abuse

GOB loss making, revenue drop(RM 35 million last qtr lowest past 5 years) no dividend stock why still worth 51.5 sen?
http://klse.i3investor.com/servlets/stk/fin/1147.jsp

Posted by confuse > 2016-01-09 11:29 | Report Abuse

Sales drop but bank borrowing increase good sign?
6. BORROWINGS AND DEBT SECURITIES
As at As at
30.09.2015 31.03.2015
RM’000 RM’000
Short term borrowings:
Bank borrowings 67,003 38,000
Hire-purchase creditors 346 437
Bank overdrafts 295 3,145
67,644 41,582
Long term borrowings:
Redeemable preference shares
Bank borrowings
961
254,462
961
211,879
Hire-purchase creditors 451 625
255,874 213,465

Posted by 龙正 > 2016-01-09 16:47 | Report Abuse

will GOB still get a chance to rise back within this 2 months?

Posted by Mohd Fahmi Bin Jaes > 2016-01-09 16:54 | Report Abuse

so far no. always drop from 60 to 51cen. change others

Posted by luckyman > 2016-01-09 18:00 | Report Abuse

Many other property counters are trading near their 52-week lows. So, GOB is also following the trend due to poor overall property market sentiments despite some of them registering good profits. Just 2 cents.

Posted by riskabsorber > 2016-01-11 10:40 | Report Abuse

Please have a look on the first day Da'men Open Door. https://www.facebook.com/damenusj/?fref=ts
Many shops yet to start business which also indicates that it do not fulfill the 70% of NLA. Besides, the clause mentioned that if the average gross rent per sq ft less than 9.20, each 10 sen will reduce 6mil of purchase price. Hence, the 488m is subjected to change.

Posted by Edward Wong > 2016-01-11 16:06 | Report Abuse

So far how many cents below the $9.20--riskabsorber?

Posted by riskabsorber > 2016-01-11 16:44 | Report Abuse

I do not want to make any prediction. However, based on the knight frank (one of the real estate research & consultancy firm) reports dated for 1H 2015. http://content.knightfrank.com/research/179/documents/en/malaysia-real-estate-highlights-1h2015-3065.pdf

The KL golden prime area's average rental per sq ft is between RM6.50 - RM11.00. I do not know how much can rent out at USJ area. Just my opinion, even The Garden Mid Valley also just rent for RM7.80 per sq ft. How much can it rent for USJ ? Even same price with MV, RM9.20-RM7.80 = RM 1.40 or 84 mil lower than RM488 mil.

Posted by Edward Wong > 2016-01-11 23:37 | Report Abuse

That means RM 404 mil. may be expected...still good price,though...

Posted by Mohd Fahmi Bin Jaes > 2016-01-11 23:38 | Report Abuse

going 0.490

Posted by opteron82 > 2016-01-11 23:40 | Report Abuse

riskabsorber, all your info is wrong. the link you mention is for condo or office. Not the rental fee for retail mall.
Mid Valley average where have RM7.80/sqft so cheap.

Please refer below document page 93.
http://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download/?name=EA_DS_ATTACHMENTS&id=168193

Posted by opteron82 > 2016-01-11 23:48 | Report Abuse

[INSIGHT NEWS]:Hearsay recently opened DA:MEN mall will be handover to Pavilion REIT in March 2016.
https://www.facebook.com/MYRetail.Insight/posts/484785698391697

Posted by riskabsorber > 2016-01-12 07:54 | Report Abuse

My apologies for the wrong info. That's difficult to compare as I can't get more info for the shopping complex near USJ. However, the average rental per sq ft at Selangor area is only 10.12. What you think will it get for new complex like Da'men ?

Posted by riskabsorber > 2016-01-12 10:55 | Report Abuse

I believe insiders have noticed the average rental price is changed and start selling. Otherwise, the price won't adjust so significantly.

Posted by Mohd Fahmi Bin Jaes > 2016-01-12 10:57 | Report Abuse

Sell

Posted by riskabsorber > 2016-01-12 11:13 | Report Abuse

Based on Malton's annual report page 14, http://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=172304&name=EA_DS_ATTACHMENTS

Total contract value for Da'men, shop offices and 480 units of Service Apartments are RM426mil.

Posted by riskabsorber > 2016-01-12 15:26 | Report Abuse

Looks like today will reach 49.5 sen.

Posted by opteron82 > 2016-01-12 19:51 | Report Abuse

riskabsorber, I correct your info again.

Total contract value get from malton to build for Da'men, shop offices and 480 units of Service Apartments are RM426mil.

Actual Total contract value is higher than RM426mil.

Posted by riskabsorber > 2016-01-13 10:20 | Report Abuse

opteron82, do you mean the actual cost higher than the contract value ?