GL GL GL
It’s been all over the news for the past week or so with the local stock newspapers highlighting potential issues with their accounts as per the auditors notes to the FY16 audit report.
I used to call this company a darling back in 2011-2012 and again in 2013-2014 where we did very well as shareholders esp with the warrants @ the time. And have been made to look a fool for not holding them last year.
Again I’ve heard every rumour possible and I am continually impressed by the creativity of investors. Normally I would say there’s no smoke without fire but I’ve heard and seen enough bs regarding stock news in this country that before I pass judgement I still need to see more facts. I do find it interesting that Kaohoon which previously had positive articles on GL were the ones to come out with an opinion piece against the company, anyways until we learn more enjoy this article from Bloomberg.
This one came in the form of an Ernst & Young LLP auditor. As he reviewed Group Lease’s 2016 financial statements, Sophon Permsirivallop felt the need for a few disclaimers before signing off. Those familiar with the language of annual reports know this can be a major red flag. Over nine pages, Permsirivallop listed his grievances, expressing particular worry about intercompany loans:
Group Lease “provided loans to the company’s subsidiary in Singapore, who in turn loaned out to two groups of borrowers in Cyprus and in Singapore. These borrowers are also shareholders of the company and have pledged their shares in the company against those loans with the company’s subsidiary in Singapore. The loans were subject to pledging of securities of properties in Cyprus and Brazil, Cypriot government bonds, stocks of other overseas companies and shares of the company as owned by the borrowers.”
If you didn’t follow all of that, don’t worry. In simple terms, Group Lease was lending to its subsidiaries and, as a guarantee for those loans, was receiving its own stock. According to Ernst & Young, if the value of that stock were excluded, the collateral would be sufficient to cover less than 60 percent of the debt.
Source: Bloomberg
Disclosure: We do not hold any shares in GL
Piyada
hi p pon!, This is Hui. have been following your blog.
have seen GL and can not help but thinking of you and p’ por.
Hope you are well. just want to send out my regard. 🙂
Pon
Gl-W2 brings back good memories 🙂
Bo Stenberg
GL01P1704A up 468%, end of business 13.4.17.
Bo Stenberg
Make that 13.3.17.
Pon
You can watch the live streaming of today’s conf here.
https://www.facebook.com/INVESTOR-41-371187773251625/
Xav
My research has uncovered quite serious historical information relating to GL. I don’t think it has been raised in any news forum yet to any specific degree. Maybe someone will dig it out or maybe everyone already is aware?
Xav
Xav
Scratch that they have already addressed it during the analyst meeting.
Pon
Such as?
Xav
On the 9th I found an announcement about the CEO being under investigation by the Japanese SEC for stock manipulation. Kaohoon reported the story on the 10th but didn’t mention who the person was. Wedge Holdings did have a statement confirming it was Mitsuji Konoshita.
But he addressed it at the meeting yesterday that he was cleared of the charges.
Pon
ah yes, non-issue in the end.