The stock now trade at $1.50, so there is no incentive for existing holders to agreeing to issue more share and dilute any potential gain. Now management might say that, it is because of the recapitalising proposal which cause this rally.. well I say.. YES maybe.. but the increase is most likely in part due to Tokyo got given the right to host the 2020 summer Olympic game. Which was announced early Sunday morning.. Surely management timed this release to coincide with the Olympic announcement.
This stock is not going to go back to sub $1, but there is plenty of upside potential if does not get recapitalise at $1.50
After the successful Tokyo bid announcement. Real estate price can only go up… I’d be very surprise if management sell current asset for 7% less than current book value.
WITH CURRENT NTA AT $4, COMMERCIAL PROPERTIES LOOKING TO INCREASE BY ABOUT 10% IN THE NEXT 12 MONTHS.. POTENTIALLY NTA COULD INCREASE TO ABOVE $6…. WE WANT AT LEAST $2.50 TO RECAPITALISE. OTHERWISE THERE IS NO DEAL… DON’T SELL OUT CHEAPLY
GJT Price at posting:
$1.51 Sentiment: Hold Disclosure: Held
