Forum Archive Index - October 2003

["David & Jill Stevenson" <djstevo@quicksilver.net.nz>]

Shayne,

             Interesting that you traced GPG entry into the IHG register . Up to a 5% holding they don`t kick up much dust. I see from a 28/7 holding they,by placement offer , moved to a near threshhold of 19 .98 % .The placement  boosted their holding by nearly 15 million shares at  a 25 cents  placement price to a position where IHG shares a month later trade at over double that price. Okay, you say they have had to put in 8.2 million dollars to improve liquidity  That requirement seems a concern to us and others but does not faze GPG from their privileged overview.From that  limiting position their next action will have to be significant. Unfortunately they have the luxury of playing their hand like notes on a keyboard. While GPG was smaller in size they had to pursue an investment in a relatively short time frame . Now ,with a portfolio in 3 continents, they can bide their time. This results in better quality outcomes but does not help an investor. attempting to predict their moves.GPG is on the Register of another European Technology company.Lacking GPG overview we can`t foresee their plans at synergies from possible amalgamations trans continental etc Look at their holding in SOH in that regard in Australia where a looming interest MYOB have moved in tandem with GPG to a 32 million share  13 % holding..

            Look at CNB (retained over 12 years) ,acquired ex the BIL schism ,GPG have nurtured that investment since . . Taken over by GPG at ,I think 35 cents, it has hit two dollars. It is,as a property development company, perhaps not a good example   of investment shelf life  as while retained it produces a spectacular dividend yield to it`s 68% majority shareholder GPG and is geared to the phenomenon of the Australian property boom. Dividends normally however are an inconsequential aim of GPG.It is surprising GPG changing tack from traditional investment policy now getting into intellectual property and technology fields. This must be the result of other Director`s influence on the stamp-collecting approach of Sir Ron Brierley. Maybe a sign of the times.This is no criticism of that man`s abilities  ,his record over many years is nothing short of outstanding.. Did anyone listen to Linda Clark`s interview with Tony Gibbs ? What an asset he is to the company. A man who worked on a Kibbutz at 16 years of age .A school drop out. But what a record of successes.  Sir Ron Brierley must regard him as one of his wisest acquisitions .Except for a fortnightly phone  call to Sir Ron Brierley he has total autonomy (trust) with he and other Directors . What an example compared to some companies that produce more words than action.

 

                            David S.