"The problem with the products (be they timber or anything else) was that the average fees being deducted from most schemes (not just GTP / TIM) was around 50% of the capital. “The worst we ever saw was 74%."
It's also true that GTP grabbed a large chunk (as big as ~58% as I remember) of investors’ upfront application fee (or "the capital") as its "profit before tax".
One awkward thing of the big "profit" was that the whole "investors upfront application fee" had been paid by only ~10% by the end of the FY (June 30 each year, in the old days), with the rest in form of GTP loans to the investors.
Another awkward thing was that not even a single tree for the scheme had been planted and not even a single piece of land had been available for planting that tree before the big profit (and dividend) announced.
Obviously, GTP had hidden these costs to the later years. But the real cost for GTP to establish and to maintain those trees were much higher than it appeared – even bigger than its total income - this is why GTP has to have a big fall now.
GTP Price at posting:
17.0¢ Sentiment: Sell Disclosure: Not Held
