GSH: Road To Riches

The share price of GSH Corp. soared from 1 cent in late March 2012 to the current level of around 10 cents (Friday’s close of 10.2 cents), a 10-fold increase.
According to GSH’s 1H2012 financial report, Goi Seng Hui (Popiah King) was allotted 2,000,000,000 subscription shares on 10 July 2012 for US$10.8M (S$13.8M) – this works out to 0.69 cts(S) per share. On 11 July 2012. Rega Investments Ltd also was allotted 671,510,215 conversion shares for converting its loan of US$3.1M to the company. Following these 2 allotments, the number of issued shares of GSH had increased from 1,975,899,925 to 4,646,899,925 shares.
At a market price of 10 cts, Goi’s stake would be worth a staggering S$200M making a paper gain of S$189.2M b]or a massive gain of over 1,200% in barely 3 months[/b; while Rega Investments’ paper gain is over S$60M. This is certainly a feat that few investors can match.
Should Goi were to dispose off just 10% of his holding at 10 cts a share, he would have recouped his original capital plus a profit of 50%. His remaining stake in GSH would then be at zero cost or no risk of capital loss in the event of business failure - a situation that most investors would simply love to be in.
With its move into the China property market and its limited cash resources of under US$20M, GSH can be expected to embark on more fund raising soon to support its business. Since the company’s issued share is already well over 4 billion, a share consolidation exercise could also be expected.
Have to respect this “Popiah King” for his brilliant move.
 

I wouldn't say GSH made a brilliant move -- he got lucky and the market is dumb, valuing this biz at S$460 million when it has practically no earnings.

When the poor become rich, then he'd need luck. When the rich become richer, they don't need luck. Go ask G. Soros, W Buffett etc

Observer2:

GSH has proposed a rights issue. With Sam Goi holding 2.3 billion shares, he will be forking out 115 Million sgd cash for the rights shares. (5 cent a rights share). This is cash -- and this guy has not sold any GSH shares previously to cash in his paper profit. I never imagined he has so much $$$ under the pillow.

If anyone needs help....GSH rights trading at 2.7 - 2.8 cents.

If you buy now at 2.8 cents, you need to pay 5 cents to GSH to convert the rights into shares. Your total cost is 7.8 cents per share (not counting broker commission yet).

The mother share is now 7.8 cents. So might as well buy the mother straight away.

If you already have GSH rights and don't want to convert them into shares, you must sell them before trading stops (pls check date). Otherwise those rights will hv ZERO value.

Q: anyone can advise how to check how many GSH rights entitled?

A: 1 for 1. If you have 10,000 GSH shares, you get 10,000 GSH rights.

Q: when are the rights expiring and conversion amount to mother share?

A: Last trading : 5.00 p.m. on 20 May. After that, the rights go to zero value if you don't convert to the mother share. To convert rights, pay $50 per 1,000 rights.