Shares & Derivatives
GRP – Analysis of Purchase Part 1
By Musicwhiz  •  December 11, 2009
[caption id="attachment_2270" align="alignright" width="150" caption="Photo by tomsaint11"]Photo by tomsaint11[/caption] This is not meant to be a long rambling post and in-depth analysis of GRP Limited, though of course any justifications and basis for my purchase should be rendered in at least enough detail to provide readers with sufficient information about the company and its merits/demerits to enable them to delve further on their own. I had set out to look for a company which provided good and steady yield, instead of a combination of yield plus growth, and GRP stood out with its fundamentals, boring but steady business and strong Balance Sheet and dividend policy. Note that since GRP can be classified as a dividend yield company, I will not go into too much details on the prospects and future plans section, as these are as yet unknown anyway and cannot be articulated with any clarity. Background (taken from GRP’s website) GRP stands for General Rubber and Plastics Limited. The Company was established in 1977 as a supplier and manufacturer of high-end quality hoses and fittings for the marine and oil and gas industries. In 1990, an office and production facility at Tanjong Penjuru Crescent, Singapore was acquired for the purpose of machining, fabricating and warehousing Hose & Fittings close to our customers. In 1993, Region Suppliers, an international supplier of Precision Measuring Instruments, was acquired as a wholly owned subsidiary of the GRP Group. In the same year, GRP (China) was formed to take advantage of the opportunities being presented in China, particularly uPVC Pipe and Fittings Manufacturing for the local construction industry. The Company is also Master Distributor for brands like Dunlop, Goodyear and Elaflex. In 1996, construction of an 11,000 square metre Industrial & Commercial Office Facility in Singapore was initiated. It was completed in 1997. The Company thus has 4 main divisions as follows:- Read more...
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By Musicwhiz
Musicwhiz who is in his 30s is educated in accounting and works in the investment line (but not in a bank, financial institution, brokerage or fund house). He has a have a full-time job and investing is his side-line as well as passion. Musicwhiz is a value investor and his technique is derived from the teachings of Warren Buffett, Benjamin Graham and Phil Fisher. He incorporate all aspects of their investing style, and modify his value investing style to the Singapore market.
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