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  1. #1
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    Gulf Bank going from 125b to 250B

    It's been in the news a while, Gulf Bank (BGUC) is going from 125B to 250B with 23% free and 77% paid ups, trading is suspended for their GA meeting. Generally one would expect a price drop with 77% paid ups, but Gulf Bank is pulling a rabbit out of it's hat. Is anyone paying attention to their numbers? Let's see...1) their share price is below book value...hmmm??? 2) Their PE ratio is sitting at 2.6 WHAT??? There is NO lower ratio for banks listed on the ISX 3) They were up over 100% in both net income and profit for 2012 NICE!! 4) Their Q1 2013 revenue is equal to North Bank who's sitting at 2.15 or so per share. 5) They have management skills, Iraq Holding Company - Kuwait own 51% minimum. If and when there's ever a run on the ISX, 77% paid ups at 1 IQD will be one to laugh about. I sold SMRI to cover the paid ups...took Warka 2 days to complete the transaction.

  2. #2
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    Hmm, must be a Shia ran bank.

  3. #3
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    Honest question?

    Quote Originally Posted by cowpoke View Post
    Hmm, must be a Shia ran bank.
    Is it....?
    ---------------------------------------------------------------
    "Sumerian News", that "the real value of the coin is the value of goods received by the individual and on the strength of the national economy"

  4. #4
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    But, per the Sansar Report :
    "...banks with foreign strategic owners trade at a 71% P/E multiple premium to the other Iraqi banks. We see a similar divergence between banks that are "Islamic" and thus trade at a premium vs. "non-Islamic" banks that trade at a discount."

  5. #5
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    Add this to the mix, from the same report : While Iraqi investors seem to clearly make a distinction in valuation premium given to banks with a strategic owner to those without a strategic owner, we see no positive correlation between economic value drivers and trading multiples. Instead, we see a negative correlation between economic return and valuation multiple.
    Perhaps the negative correlation seen in the market is associated with investor psychology which focuses on nominal share-price rather than P/E multiples. Hence investors view a bank trading at 2 dinars to be more expensive than a bank trading at 1 dinar irrespective of P/E multiple of the two banks. Therefore, banks that earn high returns do not necessarily see their share price move up; this in turn depresses the P/E multiple for those companies.

  6. #6
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    Hopefully Warka will open this up for us.

     

    Gulf Commercial Bank (BGUC) approved in its GA today (June 17) increasing the capital through 77% rights and 23% bonus issue from IQD125bn to IQD250bn.

    (Courtesy Rabee Securities)

    Last edited by HumbleGenius; 06-17-2013 at 01:53 PM. Reason: Adding credit for source
    ---------------------------------------------------------------
    "Sumerian News", that "the real value of the coin is the value of goods received by the individual and on the strength of the national economy"

  7. #7
    Per my broker, the 77% paid up subscription began yesterday 8 July 2013 and will last 15 days for eligible shareholders. They are subscribing for me tomorrow.

  8. #8
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    Yep

    Quote Originally Posted by ISX Junkie using Aljazera View Post
    Per my broker, the 77% paid up subscription began yesterday 8 July 2013 and will last 15 days for eligible shareholders. They are subscribing for me tomorrow.
    I copied and pasted the ISX News in my letter to Warka requesting my Free Shares and the Paid Ups. Pending a non response I will contact the ISX itself, as I have in the past and expressed my concerns as to the Warka ISX Department not providing services required as a broker. Warka should have announced this on Sunday 7/7 or yesterday at the latest.

    I suggest others send their requests also.

    HG
    ---------------------------------------------------------------
    "Sumerian News", that "the real value of the coin is the value of goods received by the individual and on the strength of the national economy"

  9. #9
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    Quote Originally Posted by ISX Junkie using Aljazera View Post
    Per my broker, the 77% paid up subscription began yesterday 8 July 2013 and will last 15 days for eligible shareholders. They are subscribing for me tomorrow.
    OK, I'm jealous...but only a little jealous. I can now almost buy it at subscription price (If I could have a buy order executed). There is this GEM out there called "Rabee", they ONLY require 100K! Have you been reading their daily reports about all the dividends they have been distributing?

  10. #10
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    Any word

    Quote Originally Posted by ISX Junkie using Aljazera View Post
    Per my broker, the 77% paid up subscription began yesterday 8 July 2013 and will last 15 days for eligible shareholders. They are subscribing for me tomorrow.
    Junkie, have you (or anyone else that deals with a real brokerage on the ISX and own Gulf Bank) received your paid ups or free shares for Gulf Bank as of today?

    Thanks ahead of time.
    ---------------------------------------------------------------
    "Sumerian News", that "the real value of the coin is the value of goods received by the individual and on the strength of the national economy"

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