Asset play - GL limited

Instead of sitting on my current holdings and hoping that the bull doesn't lose its energy, I decided to reap some profits from OCBC (after reaping Genting last month) and put the freed capital into other 'down' stocks with potential of rebound. Recent purchases made are M1, Singtel, Comfort Delgro and GL limited. Regretfully, I didn't watch the market closely last year and missed the semi-conductors' crazy price climb. Now I am not sure if it's a good time to jump into the bandwagon or just let it run on without me. Venture Corp has made it into the STI with a sky high price currently (you could check out the climb from year 2015). I shall not start another 'if only I could turn back time' grouse.

The latest addition to my portfolio is GL limited [B16], which I happened to chance upon with a stock screener. It is an investment holding company under the Guoco Group. It holds a portfolio of hotels at prime locations in the UK. Part of its income comes from the Bass Strait Oil royalty.

Based on its financial statements, its Asset value per share is approximately $1.24. Now it holds a price-to-book ratio of 0.8. Debt-to-equity is low. Dividend per share has been consistent. That's what I took a liking to. On the side note, its free cash flow is a bit disappointing. The company has growth potential if the global economy outlook is favorable for tourism and if it unlocks value in the loss-making assets to generate other business revenue.

Some risks as mentioned in the Chairman's statement are - uncertainties around the full impact of Brexit, the continued threat of terror attacks and an expected increase in room supply.

It will remain under monitoring as an asset play stock.


Next post: Elder's favourite indicators


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