Monthly Archives: February 2019

That’s why I buy Global Brands (787.HK)

I saw a lot of people inquiring about the reasons for buying a brand of profitable brands. Therefore, I will briefly talk about the detailed analysis. I will wait until the net is removed in March, because the length will be slightly longer.

The reason why I bought the target is very simple. It is only for the “incidents” that may occur. I am not gambling on the reversal of my performance. I do not believe that the business of the target can be reversed in the next one or two years. Therefore, the purchase of the target is pure. It is an event-driven event that may occur. The main reason for the trigger event is that the company announced a special interest of 0.28 yuan per share, which can be used to scrip dividends, while the major shareholder has disclosed the intention to choose to use the stock to scrip. Assume that most of the minority shareholders will choose cash dividends. If only the majority shareholder chooses to scrip dividends, then the current shareholder will calculate the dividends of up to 810 million yuan, which will be converted into shares at a price of about 9 cents per share. After the completion of the scrip dividend, the major shareholder can exchange about 9 billion new shares, and its shareholding will be greatly increased from the original 33.88% to nearly 68%!
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