Anyone holding GSH can comment pls? The big boss Sam Goi owns 46.5% stake in GSH. He is coming up with about $115 million to subscribe to the rights issue. I worked that out based on the net proceeds being about $246 million. This guy is putting down a big pile of cash. I am going to subscribe to the rights too!
As I expected, GSH (8.1 cents) has recovered from the sell-down during the period when the rights were trading. Well, there were people who didn't have the $ or the appetite to exercise the rights. Or they were selling down their GSH mother shares in order to pay for the rights. One thing I told myself to be clear about -- Sam Goi is going to pump in more than S$100 million to exercise his rights. He will certainly be motivated to do well by GSH. Let's see how the journey unfolds.
I was just reading the very first post in this thread by observer2, where he noted that Sam Goi paid for 2,000,000,000 subscription shares on 10 July 2012 for S$13.8M.
And then I compared that with the 2,296,384,988 shares he has just subscribed for under a rights issue. These cost him a total of S$114.8 million !!!
Sam Goi is really betting big money on this newly reincarnated company. It will focus on property and construction industries in China, while still keeping its electronics distribution business in emerging markets. I think this is the heaviest investment he has made into a single stock, and it's a safe assumption that it will go geat guns.
Far East is surely going to lend its firepower to GSH's ambitions in China real estate ....
straitstimes today :
FAR East Organization has invested $36.25 million in Singapore-listed GSH Corporation.
Far East's investment vehicle Goodview Properties has bought 500 million shares at 7.25 cents per share from Rega Investments, which was a lender to GSH Corp.
This will give Far East Organization a 5.06 per cent stake in the company.
don't apply usual FA to this counter. The hand of Goi is too strong. GSH closed at 8 cents liao, even though the market is down. Market cap of $780 million even when the earnings are paltry. The future is the story.
7.7 Cents -- I think it will hentak kaki at this level for a long time. Why? The earnings power has yet to show. Wait till July-Dec 2014 to see how the property sales do in first project in Malaysia.
