Posted by Lewes > 2015-06-09 12:21 | Report Abuse

Now dropped back so much at 1.63 Any one can advise what price is worth buying?

Posted by kengpc > 2015-06-09 13:02 | Report Abuse

gross cash per share rm3.03 as per alliance bank research and will fall under pn16 & 17 as cash base company

Posted by kengpc > 2015-06-09 13:18 | Report Abuse

co still hv land abt 8k ha in Indonesia and less than 500 ha in Sabah....looking at 12/2014 financial statement ...borrowing non current liabilities 88m and current liabilities 88m total bat 176m , equity reserves rm421m....I think at this level can take some position

Posted by riskabsorber > 2015-06-09 13:41 | Report Abuse

All worries about the PN17. However, it should not fall under PN company because the land bank in Sabah and Penang still under the control of Golden Land. Just wonder how they calculate the gain from the disposal with only RM0.07 per share? The company do not propose any dividend distribution from the disposal. Based on simple calculation, the total borrowing is RM 150 million, and after disposal, the net cash will be RM505 million. Cash per share will be around RM 2.50. Even just 10% of RM2.50 as dividend will be 25sen.

Posted by Joel > 2015-06-09 13:49 | Report Abuse

Risk, r u sure?
I aimed Glbhd pass few days ago.
Today Is a chance I think.
Hope it would be go lower price.

Posted by theavengers > 2015-06-09 14:33 | Report Abuse

thank bricks ...

Posted by riskabsorber > 2015-06-09 15:21 | Report Abuse

Joel, as per the announcement, the land at Penang around 20 acres is not part of the disposal. Just the dividend whether how much they want to declare is totally out of our control. I think the calculation of the disposal taken into the consideration of revaluation reserve. That is the reason why the gain from disposal only 7 sen but the announcement by them about the cost of investment was around RM125 million for the 4 subsidiaries.

Posted by kengpc > 2015-06-09 15:49 | Report Abuse

yes must be revaluation as equity reserves rm421m but cash in bank rm18m in 12/2014....so min cash in hand shld be ard rm480 after repaying bank loan

Posted by riskabsorber > 2015-06-09 16:07 | Report Abuse

No worries. Based on listing requirement, Golden Land will not be fall under PN17 company as the property segment still able to generate revenue. Until end of the month, it will reveal how much they want to declare as special dividend as the financial year end is 30 June.

Posted by taipan70 > 2015-06-09 16:45 | Report Abuse

How do they derive only 15.23m gain? Anyone can help to explain?

Posted by bjgdila123 > 2015-06-09 17:51 | Report Abuse

sell it going south .... already

Posted by r°Moi > 2015-06-09 19:17 | Report Abuse

Without going into the details.... First impression is...


What the hell is the whole idea?? So many companies and lands involved and looks like pretty troublesome.... but profit only 15.23m and later have to tie up the loose end of PN 17 bla bla... no wonder dropped 16%...


Profit only 15.23m... what... the management very tired of running the group already is it?? Surendder??

Posted by Bricks > 2015-06-09 21:32 | Report Abuse

Reason why there is "only" a profit of RM 15.23m is because there was some substantial (I think it was over RM300+ million) revaluation reserves under their equity which is then transferred into retained earnings. What this means is that it has converted RM 300+ mil from paper gain from properties to real cash.

Put it a different way, if the management did not revalue its lands and it sold its business today at the same offer, it would have profited RM 300+ mil plus another RM 15.23m. Hope that explains =)

I'm surprised the market sold it heavily over this good news. I do hope I made the right call today though... made quite an entry today. *fingers crossed*

Posted by xterrorsinx > 2015-06-09 23:22 | Report Abuse

Bricks has explained it well.. There are two different accounting treatments to land in terms of its value.

You can choose not to revalue, and when you sell it, you net profit in the end. On the other hand, if you choose to revalue, it is directly transferred into Equity in the revaluation reserve. Well this does not go through the profit and loss therefore no "profit" however, shareholders benefit through paper-gain. Eg. increase in Net Asset per share.

Either way, the gain will be realised. This is good. And i see that as an indication the other land held by the group should be revalued. Now (1.6) should be a good entry point. I dont see how much further it can drop.

also to explain why this company might enter PN17- it has mentioned in the company's statement that if it receives this much cash at a go, this will breach the threshold in PN17, which states a company with cash more than 70% will be a cash company- technically no core business and should therefore be suspended. Yes once sold 655m is more than its market cap. This is crazy. More further upside hopefully! management utilise the cash properly!

Posted by r°Moi > 2015-06-10 07:59 | Report Abuse

Ya in short GLB is cashing out; realising a very very big part of its RNTA of 3.01 per share


But.... nevertheless...

Posted by kk123 > 2015-06-10 08:06 | Report Abuse

Maybe the land is not golden.
Else the price & gains shld be much higher

Posted by riskabsorber > 2015-06-10 09:50 | Report Abuse

this is the trick by the management to lure the speculators. Only those fundamentalists will notice the retained earning increased so significantly after the disposal. Post disposal RE 419,391 minus RE as at 31.03.2015 (74,418) = RM 344,973 which is equivalent to RM 1.55 per share. This can be distributable as special dividend or bonus issue. Put it another explanation, if the company do not want to fall into PN17 status, they can carry on capital reduction by giving out the cash as special dividend more than 30% on the proceed.

Posted by theavengers > 2015-06-10 11:37 | Report Abuse

at the end they cancel d deal .. wahaha

Posted by r°Moi > 2015-06-10 11:48 | Report Abuse

The but.... The nevertheless...


Another big drop... market is seeing thing very differently.. with good reasons.. with drying liquidity


This is a clear warning to those who have a fetish on companies with prices with deep discounts to their NTA

Posted by r°Moi > 2015-06-10 11:50 | Report Abuse

This is a clear warning to those who have a fetish on companies with prices with deep discounts to their NTAs

This is as close as you can get to the high RNTA... and see what is happening...

Posted by kentrade888 > 2015-06-10 14:35 | Report Abuse

special dividend coming.

Posted by supernova > 2015-06-10 14:52 | Report Abuse

parking first

Posted by Lewes > 2015-06-10 18:51 | Report Abuse

Should buy low now but exhauted the fund, too bad.

Posted by r°Moi > 2015-06-11 08:10 | Report Abuse

GLD is selling off all its core sources of income... way too very very big part of its business

Post disposal it will have no meaningful income except interest from FD....


Say special dividend 0.50 so at 1.50 you cost is 1.00


Ya NTA still 2.50 but you can see but can't touch as new planting needs money need time... property development needs money need time... maybe need time is even worst


So you are paying 1.00 for a company that only have interest from FD....


Interest from FD.... How much value you give to this? Is it a good deal to pay 1.00 for it??


So the situation is you are investing 1.00 in a company with 2.50 NTA but with no business income for at least 3 4 5 years...


Up to you if it is a good deal

Posted by LOOK009 > 2015-06-11 12:30 | Report Abuse

Fly in afternoon。

Posted by Supertonic000 > 2015-06-11 12:37 | Report Abuse

This is supposed to be a good news, price dropped sharply might due to manipulation , just my opinion.

Posted by riskabsorber > 2015-06-11 14:37 | Report Abuse

Ya rMoi, this disposal will bring the company to have no business income for the next few years. Yet, the land held at Indonesia about 8,000 acres need takes time to replant back and Gland need to re-build back it fundamental. However, the purpose of this disposal was given the opportunity to unlock and realized the asset. Currently, the palm oil price is around 2000-2300 per tonnes. The company with existing land bank only able to generate 60,000 - 70,000 tonnes of palm oil per year. Let's assume 5 years with profit margin of 20% on CPO and based on CPO price 2,200 = 70,000 tonnes x RM 2,200 x 20% x 5 years = RM 154,000,000. It only 23% of the proceed, which mean if Gland do not go thru the disposal, it will need to takes 20 years only able to get this RM655 million.

Posted by riskabsorber > 2015-06-11 14:39 | Report Abuse

Do you want to invest for 20 years for Gland or do you think to invest a company with the present cash value in 20 years time. Up to all to make the decision.

Posted by chonghai > 2015-06-11 17:34 | Report Abuse

Post sales of asset, GLBHD will have net cash of RM 2.1.
No company will ever trade lower than their cash position. The risk is not whether GLBHD will distribute the cash or how GLBHD　will invest, but whether FGV will pull the deal back.

Posted by riskabsorber > 2015-06-11 17:42 | Report Abuse

Whether FGV will pull the deal back or not is totally out of our control. The current situation is market sentiment worried about PN17 status, if pull back the deal it will go back to the price prior to announcement. But from this exercise, we can see that the management looks like do not want to continue with the business. If the deal void, they will certainly look for new buyers who are interested to expand their business in Plantation.

Posted by riskabsorber > 2015-06-11 17:47 | Report Abuse

FGV today also request for suspension due to pending material announcement.

Posted by r°Moi > 2015-06-11 18:00 | Report Abuse

Ya.. I said before... management looks like already rather tired with the plantation business... surrendering... even when the trees are maturing

Posted by r°Moi > 2015-06-12 07:59 | Report Abuse

riskabsorber

.... It only 23% of the proceed, which mean if Gland do not go thru the disposal, it will need to takes 20 years only able to get this RM655 million.


Afraid this argument is not right.....

Posted by LOOK009 > 2015-06-12 09:08 | Report Abuse

How many Special Dividend？1)0.50 ,2)1.00 ,3)1.50

http://mmhrxvv.blogspot.com/2015/06/glbhd-7382.html

Posted by supernova > 2015-06-12 09:18 | Report Abuse

special div means not in cash rite?

Posted by murali > 2015-06-12 09:19 | Report Abuse

U thought 1MDB ah, if not cash then in UNIT????

Posted by riskabsorber > 2015-06-12 09:48 | Report Abuse

rMoi, this is just based on the simple calculation, assume Gland sell 70,000 tonnes of oil palm per year and the oil palm price around RM 2,200 per tonnes. Each year the revenue about RM154 mil. And then based on the revenue of RM 154 mil, we treat this counter has 20% of Net profit margin each year and generate 30.8 mil profit. It will need to take 20 years in order to realize the RM655 mil. This argument is just based on simple calculation. Besides, all the land under this disposal plan are leasehold land and average expiry date is around 2075. Mean around 60 years left.

Posted by chinchiahor > 2015-06-12 11:24 | Report Abuse

I dun have problem buying into the company at such reasonable price now to enjoy the potentially high net cash nta of rm2.1 per share besides another rm1 per share of other tangible assets. Even in the extreme scenario of the company distributing all the cash i.e. rm2.1 per share & strike a deal with a suitor for RTO on GL Bhd(if the management is tired already)… what is the complaint? :))

One just got to decided whether one is interested in this value gain play, forget about the growth
issue. Realising the tremendous nta value of the company which may take more than 20 years to earn(not factoring in NPV) is fantastic deal!

Posted by r°Moi > 2015-06-12 13:18 | Report Abuse

...... this counter has 20% of Net profit margin each year and generate 30.8 mil profit. It will need to take 20 years in order to realize the RM655 mil.



riskabsorber


In 1 year GLBs value will be... 30.8 mil + RM655 mil.


In 20 years the value will be... 20 x 30.8 mil + RM655 mil.

Posted by riskabsorber > 2015-06-12 14:41 | Report Abuse

rMoi, this argument is merely for the purpose to calculate if Gland do not sell the 4 companies. It will need to take 20 years to generate the profit. Taken away the NPV factor because just simply assess the value of the disposal and reject the offer. Post disposal, Gland will only have RM 655mil with its 3.5% - 4% FD interest. But most of the companies which like C.I Holding, Jobstreet, after disposed the core business, the management are capable enough to re-build the fundamental with the proceed. RM655 mil invest at 3.5% FD will get 23mil per year to cover the expenses yearly about 25mil. If the company do not want to continue the business in any sector, what is RM655 mil can be done ?

Posted by davidkkw79 > 2015-06-12 18:16 | Report Abuse

rm 655 mil can be used for remuneration of board directors

Posted by Supertonic000 > 2015-06-15 11:14 | Report Abuse

Sth is brewing....

Posted by theavengers > 2015-06-15 12:19 | Report Abuse

nothing !!!

Posted by LOOK009 > 2015-06-16 10:29 | Report Abuse

wait high dividend .

Posted by Supertonic000 > 2015-06-16 16:20 | Report Abuse

Lai liao.....

Posted by theavengers > 2015-06-16 16:21 | Report Abuse

look at price today ...i think they have collect enuf share at 1.4

Posted by calvinkm > 2015-06-16 16:26 | Report Abuse

0.90 dividend ?

Posted by riskabsorber > 2015-06-16 16:43 | Report Abuse

Gland need to come out regarding the future prospect on the company. Since there is the worries about the PN status. The special dividend will be just a bonus. Company prospect is more important as how the management able to transform and use the cash proceed effectively. If the special dividend are given too high, it will jeopardize the company performance at the future.

Posted by LOOK009 > 2015-06-16 16:46 | Report Abuse

more than 90 cents。

Posted by calvinkm > 2015-06-16 16:46 | Report Abuse

ok, i like bonus