Great sharing as usual. Hmm...whats wrong with putting an offer that is attractive? Thought that would be fair to OCBC shareholders. GEH can always reject the offer and settle their own issues with their minority shareholders.
The correct way to value insurance is embed value. GE had report it each time they release results. the previous OCBC offer had been above embedded value. Let see what our independent advisor said. under law they are required to advise minorities correctly
I bought into Great Eastern @ $17.52 in Mar '23, have received $1.30 in dividends, & am lucky to not have been tempted into it when it was above $30 for most of 2018 because new investors then would still be losing.Looking for a raised offer soon, especially since I'm also holding Kuchai & Sungei Bagan shares in M'sia which owns 3.032 million & 1.73 million GE shares respectively.I also pity the owners of big blocks of GE who were cajoled into selling out to OCBC @ $16.99 last year: they lost out not only on 80c of dividends but also almost $10 per shr. Ouch for them!
Cannot just rely on embedded value Current PE is around 15.7. Even you buy at $36 . The PE will shoot ip to 30. It maybe over price . I am a great eastern shareholder . I bought the shares around $8 a share . I will support the offer price
Ask AIA and Chinese Life insurers to make their bid for the true value of Great Eastern. I think between 1.5 to 1.8x of EV bearing in mind the ASEAN market targets by Chinese Insurers. In such case, OCBC will walk away much much richer.
@@DrWealthVideos At the right price, OCBC should sell GE. Use the $1.6 bn to buy back own OCBC shares which are of better value. The ROE difference of DBS and OCBC explains the drag of certain business units within the OCBC financial conglomerate.
This is a business transaction where buyers want to buy at lowest price possible and sellers to sell at the highest price possible. Nothing to be emotional about it. Willing buyer willing seller.
i am both company shareholder. ocbc and great eastern. i bought ocbc @8.80 and great eastern @26.50. thank you for you sharing, very informative.
Both OCBC and GE are not doing themselves any favours by making minority shareholders bear the true costs of this exercise
Great sharing as usual. Hmm...whats wrong with putting an offer that is attractive? Thought that would be fair to OCBC shareholders. GEH can always reject the offer and settle their own issues with their minority shareholders.
Because GE low liquidity is also because of OCBC 90% ownership. So it is in a limbo. Can’t take OCBC out of the picture
The correct way to value insurance is embed value.
GE had report it each time they release results.
the previous OCBC offer had been above embedded value.
Let see what our independent advisor said.
under law they are required to advise minorities correctly
I bought into Great Eastern @ $17.52 in Mar '23, have received $1.30 in dividends, & am lucky to not have been tempted into it when it was above $30 for most of 2018 because new investors then would still be losing.Looking for a raised offer soon, especially since I'm also holding Kuchai & Sungei Bagan shares in M'sia which owns 3.032 million & 1.73 million GE shares respectively.I also pity the owners of big blocks of GE who were cajoled into selling out to OCBC @ $16.99 last year: they lost out not only on 80c of dividends but also almost $10 per shr. Ouch for them!
Very insightful and learnt alot, thank you Alvin.
Thanks for sharing yr insight Dr wealth! Fully agree with you!
Thank you for sharing.
Cannot just rely on embedded value Current PE is around 15.7. Even you buy at $36 . The PE will shoot ip to 30. It maybe over price . I am a great eastern shareholder . I bought the shares around $8 a share . I will support the offer price
You are the shareholder of course u decide whether to take or not.
Valued so much also useless, no one million per share they won’t take it. Sg investor famous for 狮子大开口
A low ball offer for long suffering shareholders..utterly disappointing
Ask AIA and Chinese Life insurers to make their bid for the true value of Great Eastern. I think between 1.5 to 1.8x of EV bearing in mind the ASEAN market targets by Chinese Insurers. In such case, OCBC will walk away much much richer.
Have not done any valuation on GE, but a quick look at its financials seems like it's deteriorating. Morningstar gives a valuation of 19.83.
Will 0CBC pay the customer this Great Eastern Insurance policy later 2 months and latter
............
Thanks for the timely insights
Thanks for the insight. 👍
great sharing!
Great share
Ocbc share holder will be happy
👍 thanks for sharing
I am a OCBC shareholder. Doesnt make sense to pay too much for GE that has lower earning yield than the bank. The acquisition is not yield accretive.
OCBC alr owned 90% and GE results are part of OCBC all these while.
@@DrWealthVideos At the right price, OCBC should sell GE. Use the $1.6 bn to buy back own OCBC shares which are of better value. The ROE difference of DBS and OCBC explains the drag of certain business units within the OCBC financial conglomerate.
It should not be so straight forward look at EV alone, it should be based on adjusted EV. Whether up or down need more technical consideration
Well valuation is an opinion and everyone’s got one. If the EV isn’t a good reference then GE shd stop publishing it else it becomes a price anchor
You don’t own ocbc shares.? That surprised me
this is a good video
Red Flag.
Ocbc will win.
As ocbc shareholder, it’s a fair value 😂
😂
its a low baller, GE holders will likely reject and ask for higher lol
GE underperforms because of inconsistent profits over the year. Insurance business condition in SG has deteriorated. It is very competitive.
But it makes up part of OCBC revenue and they don’t want to sell GE
only 5 players in SG
ntuc great easter manulife AIA prudential
more like oligopoly
@@MasterLeong888 i know you are savvy, but did you miss singlife?
wow fast hand fast leg nice!
ML also fast hand fast leg.
Fair price for ge given it's trading at $18 something
Well said
This is a business transaction where buyers want to buy at lowest price possible and sellers to sell at the highest price possible. Nothing to be emotional about it. Willing buyer willing seller.
Of cos. OCBC puts it out an offer. Let GE shareholders decide.
strongly agree
Dr Wealth, this is a business, not charity.... mind u
shareholders will reject the deal and ask for higher price i feel