Global Investments Limited (“GIL”) has maintained its net asset valuation per share which hovers around S$0.1832 as at 30 September 2020. For October’20 and November’20, its stock price has also remained stable despite the recent market turmoil where most stocks plummeted, largely due to the daily share buy-back exercise. The accounting for its investments are also marked to fair market value. Hence at market price of S$0.137-S$01.39 per share, this represented a discount of between 24% to 25% to its most recent fair valuation of S$0.1832.
Based on total dividends of S$0.009 for this year, the dividend yield from holding GIL at S$0.138 (as at 13 Nov 2020 market price) is about 6.52% per annum with a potential capital upside of 24%-25%.
Risk Area to Note:
The bulk of the investment of GIL are held in the higher risk asset class of Bank Contingent Convertibles (CoCo).