GUL is now down to 20 048 632 AGM shares.AGM holds 30 086 767...

GUL is now down to 20 048 632 AGM shares.

AGM holds 30 086 767 GUL shares.

Quoting from the last GUL Annual Report.

David Deitz salary was $72 000 with other options issued worth $76 000

The other two directors, Lee and Atkinson dragged in $25, 000 each salary with options of an equivalent amount.

The total cash remuneration to the Directors was
$121 966 and options worth $124 958

For $250 K I am questioning what the Directors have added to GUL. All I see is that they have eroded the asset base to the tune of losing 3 million AGM shares.

Total GUL shares on issue is 126 million.

The worth of the AGM shareholding to GUL is AGM SP x 0.1591. At 79.5c this equates to 12.6 c. This is way above the GUL shareprice of 7.5c and of course doesn't take into account the properties.

The sad thing is that every GUL share was reduced in value by 2.4c due to the sell down in AGM holdings required to pay the directors fees (For nothing!).

I can't see the point in GUL continuing.

To me the best way for GUL shareholders to get the 12.6c value would be to distribute the AGM shares to GUL shareholders at a rate (rounded)of 1 AGM share for every 6 GUL shares.

This would also mean that AGM could cancel around 5 million of its own shares since it owns 30 million GUL.

The properties should be sold and the cash distributed. Since GUL has a $17 million loss running there should be no tax implications.

This is the best way to unlock GUL's value. Stop the $250 K bleeding for directors doing nothing and basically let individuals who own GUL get a hold of the AGM shares which are worth close to double what the GUL shares are worth.


Chinkiat