Sell @ $0.06. No more left. Since I slept so well after selling my entire FSL stake yesterday and realising a huge loss, I’ve decided to clear more of my junks. Will not impact my portfolio performance as I’d removed it (written off) from my portfolio a couple of years back. This is also a non-dividend yielding stock.
GTC was bought in ’07 and they never did recover from the last crisis. I had a quick last look at their latest financials. GTC continue to be making losses, largely due to the huge Depreciation Expenses. At the Cash Flow level, there was actually a $4.6Mil Operating Profit and the Cash went up to US$27Mil. That explains why they’d been able to actively do their share buy-backs.
The above were my reasons (excuses) for having clung on to GTC. They’re actually profitable (at Operating level) and the regular share buy-backs ought to enhance shareholders’ value (NAV = US11ct++). I was also hopeful that they may get acquired or the major shareholders make a G.O. (General Offer).
But, after 5 years, I decided to get off this non-stop downwards ride. I have to admit I’m not good at analysing such companies. There’s also always the nagging suspicion that the major shareholders being non-Singaporean and the bulk of their operations being offshore (mainly Taiwan), may just be taking us for a ride (after 5+ years, no growth, only decline => no new ideas + continue to get paid salaries). 🙁