Is there reason to expect the hotel chain to do very well as it has in the past? From a stock pt of view, Fragrance Group has been a 7-bagger in just the past 3 years (ie, from Apr 2009 -- Apr 2012). From 7 cents to 49 cents!!!! Any more juice left after the hotel arm is partially divested thru an IPO?
Hi MacGyver, thank you for your advice. i have went to subscribe for the ipo shares yesterday after listening to your suggestions. the market has been volatile in recent weeks. lets hope this ipo can make some kopi money
Hi MacGyver, thank you for your advice. i have went to subscribe for the ipo shares yesterday after listening to your suggestions. the market has been volatile in recent weeks. lets hope this ipo can make some kopi money
Little bird says there is kopi money to be made for those lucky to get the IPO shares. For longer term investors, the money is a bit difficult to envisage because GPH has big debt. Its long term Loans amount to $443,035,000 --- using 2.5% interest a year, the company has to pay $11 m in massive interest cost. When the interest rate rises, the company will have to pare down its debt or the interest cost will balloon further. To put it in perspective, GPH prob hit S$25 million in profit before interest expense for 12 months of 2011. So, $11 m interest expense resulting in pretax profit = $14m. AFter tax.....?
