Current Price on 20th March 2019 = $0.128
- Yield = 7.81%
- Price-to-book Ratio = 0.658
- Assets per unit = $0.196
- Debt per unit = $0.001 (including current liabilities and perp securities)
- Gearing = 0.4%
- Secured NAV = $0.196 (104% of trading price)
Global Investment Limited has been trading quite steadily at around $0.128. I am vested with over 500,000 shares so naturally I will watch it closely. Let’s take a look at the statistics.
Yield is currently at 7.81% which is decent actually although there are REITs which gives higher yield. This is of course pales from the earlier days where it gives 11% yield. It’s price-to-book ratio is 0.658 which means we are getting at 35% discount to its net asset value. Because it has no debt, all their assets are considered secured.
I have read public reports that says that China debts are defaulting by quite a lot so their exposure to China domestic debt is quite a concern even though it is rated at AAA. They have $55 million invested in it which is about 15% of their NAV. Therefore if it is wiped out, its NAV will reduce by 15% only.
They have also commence share buy back which shows that the management thinks that their shares are very much undervalued that buying back shares is considered a good investment. This is good for shareholders because our holdings will increase because the denominator aka total number of shares are decreasing.
Overall, I think it is quite stable and fairly valued. I will be just holding it to collect dividends which they would generate every half a year.
