Shares & Derivatives
Global Investments Limited Still Way Below Its Net Asset Value- Unable To Unlock Intrinsic Value Despite Share Buy-Back
By Investment Income for Life  •  July 12, 2020
Global Investment Limited ("GIL") share price has surprisingly recovered back to its pre-March 2020 crash level. This means that its share price performance seems to have outshone the STI which is amazing. The Net Value Asset per share of GIL is around S$0.187 per share. Its latest share price of S$0.137 per share as at 9 July 2020 represented a discount of 26.7% given that most of its financial assets are already fair valued through profit and loss.
  1. Contingent convertibles (CoCo) made up the bulk of GIL's investment portfolio
The bulk of the investment of GIL are held in the higher risk asset class of Bank Contingent Convertibles (CoCo). Coco is a fixed-income instrument that is convertible into equity if a pre-specified trigger event occurs. CoCo is actually a creature created to help under-capitalised banks and to prevent a similar global financial crisis in 2008-2009. Hence Coco is a high risk but high yield financial instrument. As can be seen above, GIL has...
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By Investment Income for Life
I am an Accountant by training and is currently working in a global MNC in the Supply Chain industry. During my free time, I enjoy reading up on topics such as stock investing, insurance planning and property investment. Since 2012, I have started penning down my thoughts on certain financial matters while striving to achieve financial independence.
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