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GRAND POWER LOGISTICS GROUP INC. V.GPW

"Grand Power Logistics Group Inc through its subsidiary provides air-freight forwarding and sea-freight services, customs brokerage, logistics, warehousing and distribution, as well as other value added services."


TSXV:GPW - Post by User

Comment by C32BTTon May 04, 2016 11:37am
173 Views
Post# 24840665

RE:RE:RE:RE:Company buying back shares

RE:RE:RE:RE:Company buying back sharesThe price it's currently trading at definitely doesn't reflect a rational market.  Like you said, the NAV of GPW is much higher than just $0.04.  Looking at the company's assets the majority of the $29.9 million in total asset is quite liquid in the form of equities, cash, and receivables and then the rest being in commercial real estate, so the price should reflect something closer to those asset's value.  And, the company doesn't have any intangibles or goodwill as assets on the books too.

Since you mentioned another company.  If you look at SYL or Symax Lift, which is another Chinese company (in China not Hong Kong) they had a similar problem with the market not valuing the company for what it's worth and decided to go private.  Last I check just before privatization they had a NAV of about $0.30 and it was trading on the TSX at $0.16, but the company went private on a price of $0.25/share, which represented about 67% premium above the trading price.  Similar situation could happen with GPW in my opinion and thought I'd share.
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