Koon Yew Yin's Blog
Why I sold R Sawit & SOP to buy Jaya Tiasa - Koon Yew Yin
Koon Yew Yin
Publish date: Sat, 25 Jan 2014, 11:34 PM
Koon Yew Yin
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An official blog in i3investor to publish sharing by Mr. Koon Yew Yin.
All materials published here are prepared by Mr. Koon Yew Yin
All materials published here are prepared by Mr. Koon Yew Yin
Koon Yew Yin: 25th Jan 2014
If you look at R Sawit 2011 annual report you will see that my family owned a total of 51.4 million shares which we bought at an average price of about 60 sen and sold when the price went above Rm 1.00.
If you look at SOP 2011 annual report you will see that my family owned 15,4 million shares which we bought at about Rm 3 in 2010 and we sold when the price went above Rm 6.
About 3 years ago when we bought SOP their palms were younger and I could foresee its profit growth prospect. For the same reason we are using our entire sale proceeds to buy Jaya Tiasa.
At present, we do not have any more R Sawit or SOP shares. I have also sold all my TSH and Ta An to buy JT. Readers do not need to tell me R Sawit, SOP, TSH or Ta An is better than JT.
The price charts for R Sawit and SOP show that prices have appreciated while Jaya Tiasa share price has been depressed for a long time because it has not been showing much profit due to the young age of their palms. However, JT’s FFB production is projected to increase rapidly in the next few years as indicated by the FFB production chart.
On 18th Jan 2014, Alvin Tai, CFA from RHB research and I gave a talk on investment in the planation sector in Ipoh. About 120 people attended.
As all investors should know that the price of palm oil is the most important factor which affects the profit of all plantation companies. Alvin has calculation and charts to show that the current CPO price up trend will continue for the near future because Indonesia will have less palm oil for export. The reasons are:
A. Most of their palms are old and beyond their production peak.
B. Their economy is fast improving and people want to consume more palm oil.
C. There are more vehicles on the road and to reduce fossil fuel import, the Indonesian Government has mandated 10% use of biodiesel. As a result, 3 million tons of palm oil will be used to produce biodiesel. In 2012 Indonesia produced a total of 31 million tons of palm oil.
D. For the same reasons as in Indonesia, Malaysia is also mandating 10% use of biodiesel.
E. Due to population and economy increase of the whole world, more palm oil will be consumed.
Alvin considers Southern Acid and Jaya Tiasa are the best buys because SA is the cheapest among plantation shares and JT has the fastest increase of FFB production in the next few years and its share price has been depressed for a long time. You must bear in mind that famous companies like KLK, UP, SOP, TSH etc have been showing better earnings than JT before and they have been fully valued. They are no longer cheap. Moreover, their FFB production rate of increase will be slower relative to JT.
I am obliged to tell you that Jaya Tiasa is my major investment holding and I do not need you to buy to support its share price. If you decide to buy, you are buying it at your own risk. However, if you think that TSH, Ta AN, SOP, R Sawit are better, you do not need to tell me because I have already sold all of them to buy JT.
As I said before the most important share selection criterion is profit growth prospect and the faster the profit increases, the faster the share price will move up.
Koon Yew Yin
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Discussions
8 people like this. Showing 50 of 195 comments
Well everybody has opinion .
My opinion is jtiasa is nothing special until it can prove itself with real earnings .. Rather than a growth story .. Story like all politicians they can tell story but delivery zero.. Now let's not even go into politics as its more complex than share market ..
As of now it's earnings is peanuts latest qtr I think only 2 sen per share ..
Cash also not much .. I don't think this type of high geared low ,cash company.. This is my own view .. If I think jtiasa so good can also go on margin and buy ..
I have several margin account and they told me there is no value for warrant ..
Which broker give 70% - 80 % value to warrant ? Maybe I shld open another account with them..
U will always be taking huge risk when buying warrants , or any other derivatives
As for charity : most people lay low and not brag about it .. Else it's counter the charity spirit ..About philanthropy :
U can read about chuck feeney also .. He donated all his money until nearly bankrupt and remains under the radar and never brag about his wealth ..
He inspired ppl like bill gates to do charity work ..
2014-01-29 11:56
'People who have money have an obligation,' Feeney told Forbes last year. 'I wouldn’t say I’m entitled to tell them what to do with it but to use it wisely.'
'I became convinced that there was greater satisfaction from giving my money away and seeing something come out of the ground, like a hospital or a university,' he told the Financial Times last year.
Ok mr koon : hope won't be seeing another boring writeup/promotion on jtiasa eg "why I sell jtiasa for xxx shares ... Rather " why I sell jtiasa to build schools and hospitals " is most welcomed ..
At least the general/regular joe eg(muthu , Ahmad and Chong ) hear will be very happy
2014-01-29 12:15
Mulanya abang pun tertarik tapi kitar demi kitar dengan iklan basi macam ada yang tak kena. Ramai kata Jtiasa tak begitu baik, kalau ramai dah bagi pendapat bernas. Berbuih pub kalau tak naik-naik lebih baik diam saja. Dsonic dah berlipat lipat pulangan pun takde heboh sangat pun.
2014-01-29 12:23
Conclusion:
As I said before the most important share selection criterion is profit growth prospect and the faster the profit increases, the faster the share price will move up. To be able to make more money than ordinary investors, you must have foresight and guts. If you study this article carefully, with some imagination you should be able to foresee that Jaya Tiasa’s FFB production will continue to increase for the next few years and palm oil price up trend is sustainable in the near future. Moreover, Jaya Tiasa price has been consolidating for more than a year and it is very safe to buy now.
I am obliged to tell you that Jaya Tiasa is my major investment holding and I do not need you to buy to support its share price. My intention in writing this piece is noble. I believe I can help you to make more money. If you decide to buy, you are buying it at your own risk. However, if you think that TSH, Ta AN, SOP, R Sawit are better, you do not need to tell me because I have already sold all of them to buy JT.
I cannot continue to convince people to make more money. I can foresee the price is beginning to move higher and higher. Only time will tell who is right. This is my biggest investment in my life because I strongly believe I can double my money within 3 years.
THIS IS MY LAST RESPONSE. Best wish for the CNY and all the years to come.
Koon Yew Yin
2014-01-29 12:26
my son watched Transformer DVD at home from morning until night, day after day. He just loved Optimus Prime
Decepticon lying on the floor : The Fallen will rise again..
Optimus Prime : Not today... (fire a shot at Decepticon)
2014-01-29 14:25
please send my regards to your family Bumble Bee, etc. Wish them happy CNY as well
2014-01-29 14:27
Why are there idiots here bashing MR Koon for sharing his ideas? This sharing of information and ideas is supposed to be one of the functions of the forum. I do believe that Mr Koon does not need to manipulate small investors to make money in the stock market as proven by his incredible track record and research done on his stocks.
If you disagree with his opinion, just don't buy the stock he recommends. You don't have to defame someone and throw accusations at someone just because he wants to share his ideas. Time will prove who is right or wrong. Even though I'm only 21 years old I feel that a lot of people here who may be older than me are as childish as school kids. A lot of great contributors have left this forum due to the bunch of childish goreng-stock believers. What a shame to the investment community.
2014-02-01 02:12
Walaoeh i banyak salute u la mr.koon...it seems like u are the winner from others view the moment u....
吵架不过是争一口气，吵赢了又如何，不会因此而自信。
吵输了又如何，生活不会因此而改变。
无论输或赢，真理早已在那里。
无论输或赢，实力才是决定性力量。
做人的格局还是宽广点好, 让事实胜于雄辩 : )
2014-02-01 02:12
actually im wondering if mr.koon owe you money afterlife....he needs to make sure you win in an investment？ as far as i can see he warn ppl to analyze and decide own self...you buy lottery no open can go scold the company？ can but feels like dog bark too me？
2014-02-01 03:40
The Chart which Mr.Koon used on Jtiasa is not reflective of the bonus issues (two bonus for every one share held, which was ex on 03 Aug 2012). It gives a wrong impression that JTiasa's price plunged by 80% from the peak of RM10.00 to the current Rm2.00 and looks extra yummy at this level...In actual fact, it dropped from the peak of around RM3.40 to the current Rm2.20+, which is around 35%++
2014-02-02 17:04
Personally I bought Jtiasa way back in year 2011 at around RM4.50 (before the bonus issue) due to a report I came across in the The Edge on their future growth prospect.The CPO's price was above RM3,000pmt then if I m not mistaken. However, trading vol was thin and I decided to sell at around RM5+ one or two months after I bought so...not long after it's price shoot up to RM10, spurred by the bonus issues.... and the rest is history...
2014-02-02 17:15
My head really pusing ,@wt222 I dont know what is your motive of complaining in this thread .......
Is Jaya tiasa worth investing right now ? or wait until it fall below 1.50 or just give it a pass ?????
2014-02-02 17:48
If any of my info above is not correct pls kindly let me know lah,dun flag juz for.sake of flagging lah
2014-02-02 18:03
a few stupid senseless idiots parasites messing around without contributing!what a disgrace!
2014-02-02 18:05
my question post to you is jayatiasa worth investing at the moment.
My motive is to make money in investing .......
Anyone posting good article with solid facts and figure will get my support..
2014-02-02 18:08
Do u mean when mr.koon recommeded jtiasa.as the most.undervalued.stock in bursa then he is contributing...while others.hv diff opinion r idiots n parasite?good.point......
2014-02-02 18:10
I think jtiasa at this level is ok...but u can find some other.better stocks.....ta an is one good example...
2014-02-02 18:12
This stock does not belong to Mr Koon...I have already make some investment in Jaya Tiasa and intend to make more investment.I am just curious what you think of Jaya Tiasa not Mr Koon
2014-02-02 18:15
Again,jtiasa is ok to me....still monitoring their.debts leven n cpo level..looks like div will not be good in short term....unless.cpo moves above rm3000pmt
2014-02-02 18:17
If u want.to monitor the price movement of jt,then u hv to study.their.previous.pattern...it could b.a boring stock if e.tiong.family no action....
2014-02-02 18:23
dear Mr Koon , I have full respect for you that is why I bought some Jtiasa and Rsawit ..... with your recommendation.. For Jtiasa, I lost money.. For Rsawit, I still make a little if I sell now. OMG .. after so long and so many people condemned you on the recommendation of Rsawit ... as HOLLAND TIPS.. Today you come and tell us that you have sold all your Rsawit.........
2014-02-03 14:23
anyone wanna share his analysis on MKH/metro kajang (PE expected to drop to 5x in 1-2yrs to come & SHChan (which is making paltry profit in recent quarters).
anymore undiscovered palm oil co esp those not listed under palm oil sectors. TQ 4the sharing to all of u
2014-02-04 23:47
Posted by smallboy > Feb 1, 2014 02:12 AM | Report Abuse
Walaoeh i banyak salute u la mr.koon...it seems like u are the winner from others view the moment u....
吵架不过是争一口气，吵赢了又如何，不会因此而自信。
吵输了又如何，生活不会因此而改变。
无论输或赢，真理早已在那里。
无论输或赢，实力才是决定性力量。
做人的格局还是宽广点好, 让事实胜于雄辩 : )
---
the translation:
Quarrel but let off steam, and how noisy wins, will not be confident.
How noisy lose, life will not change.
No matter win or lose, the truth has long been there.
No matter win or lose, the strength is the decisive force.
Broad pattern of life or a good point, let facts speak for themselves:)
---
in malay
kebenaran sudah sedia ada dan akan terzhahir juga akhirnya...simple ma
2014-02-05 00:20
just to add the chart of Jtiasa is wrong,cuz it's not adjusted for bonus/spilt or anything,cuz it's only up frm abt 50c since 2009 feb,and down fr rm3.xx, not frm 9.xx
2014-02-05 00:26
vinext is right in saying that the price chart which I copied from Bursa Malaysia has not adjusted for the bonus/split. I am sorry.
The point I want to make is that the price of JT has been depressed for a long time because it has not been showing reasonable profit. As a result, almost all fund mangers cannot buy it because it will drag down the value of their funds if the price of JT remained depressed for the next few months.
I do not have the statistics to show how well the Malaysian funds are performing but in U.S. less than 5% of professionally managed funds can beat the market index.
Can some readers tell us how well our local funds and unit trust are doing?
The reason why JT has not been showing much profit is because, the company has been planting aggressively in the last 10 years and their last annual report shows that it has planted 62,700 ha which has a market value of more than its market capitalization. The average age of their palms is about 5.6 years which has tremendous profit growth potential and that is why I dare to buy more than 40 million JT shares. I am buying for value and profit growth potential.
As a said, to be able to make a lot more money than ordinary investors and fund managers, you must have knowledge, foresight and guts to buy JT when normal investors and fund managers cannot or dare not buy it.
If you look at JT's FFB production chart, you must be able to foresee that their FFB production growth rate will continue to accelerate for the next many years, bearing in mind that 11 or 12 years is the FFB production peak for oil palms.
Alvin Tai SMS to wish me happy CNY and said "time will tell that we are right in buying JT".
2014-02-05 05:31
1) for the last 20-22yrs,80-85% msia FM can't beat the mkt,same for the USA, & all over the world.
2) i began to see ur points:
a) 62,700 ha is alot,that's abt no7 in msia?
b) u r betting on darkhouse becoming tomorow's star,
TSH SOP r not value buy cuz they were ur ysday's star
3) but i stil dont undstand how u interpret rm800m debt & peet land issue (i was hoping u wil say 'dont forget timber is stil making $ to service such gearing")
2014-02-05 06:38
Mr koon,fyi,SAB is super undervalued since i 1st spotted it many yrs ago. The family is probably richer than IOI;s lee. They finance Lee. SAB's hummrock estateis abt 1000ac+, another parcel is privately owned by the shareholder,both r nex to SP setia. A big developer has approached them lately. Goin by RM4-5/sf, the land value is bigger than the mkt cap, but 4-5 was too conservative
2014-02-05 06:58
Mr KOON, i spent many hours on this site today, surprised that u just started to write here. THe young nowadays r really biadap & kurang ajar it seems, and many dont see the bigger pic u r trying to tell.
Anyway, something strikes me,i think i need to stopby to see u in ipoh, for a bigger plan. ALso, to re-analyze jT's annual report. Vinext@gmail.com me pls, tq
2014-02-05 18:40
Good Morning
Today is a Sunday. Time to visit www.chick.com
I think the time for Palm Oil to perform is here from now on.
Reasons:
1) From Now Till 2017 EL NINO IS RETURNING IN FULL FORCE
See Current El Nino Could Become Strongest on Record
ktla.com/2015/11/25/current-el-nino-could-become-strongest-on-record-national-weather-services-says/
2) From 30 Years Price Chart we see El Nino occurs during 1996/7/8 & 2006/7/8
coinciding with the Asian Financial Crisis (1997/8) & Great Recession 2007/8
See www.indexmundi.com/commodities/?commodity=palm-oil&months=360
3) Insiders Bought 21 Million JTiasa shares on 25/6/2014 at Rm2.58. At Rm1.30 JTiasa is now a great bargain
4) As FED has raised interest rate there is a danger of a repeat of 1937 when Dow crashed again. So just be careful - last 2 days Dow already crashed by 600 points
5) The Palm Oil Trees of JTiasa are now 6 -7 years young. They will produce an abundance of liquid gold for the next 25 years. This is the most opportune time to buy JTiasa shares near the bottom of the cycle.
6) With Ever Increasing Human Population & scarce land resources the demand for palm oil will rise & rise for many years to come. The lands bought in Pulau Bruit by JTiasa for as low as RM175 per acre are bound to appreciate in future years.
7) JTIASA WILL FOLLOW THE EXAMPLES OF BATU KAWAN, IOI & KLK INTO BLUE CHIP TERRITORY SOME DAY
Presented by
CALVIN TAN RESEARCH
Dated 20/12/2015
2015-12-20 10:29
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
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2014-01-29 11:40