Billionaire Sam Goi (inset) went on a buying spree between March 2015 and Jan 2016 (as marked on the chart). GSH Corporation stock has run up 70% in the year to date -- from 25 cents to 42.5 cents.
Executive chairman Sam Goi appears to have signalled his conviction that the stock was undervalued when he bought 22.83 million shares throughout 2015, ceasing to do so in Jan this year.
During that period when he was buying, as the chart shows, the stock went into a dive.
CEO Gilbert Ee got his timing well by buying, on two ocassions, in Jan and March this year -- which was just three-four months before the stock started a steep rise.
| No. of shares bought | Price range | Period of purchase | Direct and deemed stake (%) | |
| Sam Goi (Exec chairman) | 22.83 m |
23 - 38 cents (approx) |
Mar 2015 - Jan 2016 | 958,389,875 (48.48%) |
| Gilbert Ee (CEO) | 913,600 |
20 - 25 cents | Jan - Mar 2016 | 158,543,078 (8.02%) |
GSH unleashed a share buyback spree in May 2016, starting with a modest 120,000 shares at 25 cents apiece.
By Oct, it had bought back 18.1 million shares.
Aside from the strong buyback, and given zero coverage of the stock by analysts, it is not apparent what fundamentals have contributed to the rising stock price, especially since 19 Oct when it started its surge from 30 cents to 45 cents.
1H2016 was loss-making (negative $407,000), with revenue plunging 48% to $41 million.
The balance sheet is heavy with net debt of S$331 million attributable to shareholders as at end-June 2016.
GSH has three properties under development in Kuala Lumpur and Kota Kinabalu, Malaysia. It also owns the Sutera Harbour Resort in Kota Kinabalu, comprising two five-star hotels – the Pacific Sutera and Magellan Sutera Resort -- a 104-berth marina and 27-hole championship golf course.
In June 2014, the Group led a consortium to acquire the 259-unit Equity Plaza (renamed as GSH Plaza) from Keppel Land and Alpha Investment Partners for $550 million - or $2,181 psf.
Raffles Place, where it is located, has a shortage of new strata-titled offices.
The sale of GSH Plaza's strata offices was launched in April 2015 after it underwent a complete refurbishment which reportedly added $400 psf of value to its sellable area of 260,000 sq ft.
GSH plans to move its corporate headquarters to GSH Plaza from Changi North Way.
