Pak Lah

Uncle Koon. Congratulations for your Swkplnt! Your call for a buy at 2.40~2.45 days ago have made many richer.

2014-05-20 11:19

sunztzhe

Mr Koon,
TH Plant reached max value of RM 3.00 on May 14 2007 and hovered between RM 2.50 and RM 3.00 till May 5 2008, almost 1 year. Thereafter it took TH Plant 7 months to decline to a low of RM 1.00 on Dec 29 2008.

The fundamentals for TH plant had much improved since then. Based on yesterday's closing price of RM 2.17, the Market Cap per hectare is about RM 28,446 per hectare. If one compare to say RM 70,000 per hectare, the price of TH Plant could reach a potential max value of RM 5.33 if the dry weather continue till end of 2014. RM 70,00 per hectare was the recent recorded transacted price based on lower CPO price level.

As you are a long term investor with a focussed eye on a realistic fair value , what is your take on a realistic fair value for TH Plant?

2014-05-20 11:55

Koon Yew Yin

WAH! sunztzhe really knows what he is talking. He is telling you that TH Plant is still very much undervalued. It is safe to buy as the potential profit growth is tremendous- how high, I cannot tell.

You must see my article 'Plantation is due for re-rating' which I posted recently, where I said that I can see the bull charging from the PLANTATION.

2014-05-20 15:24

Yee Ren

Hi Mr.Koon, I looked through THPLANT annual report and found out the directors of this company own very little share and some of them did not own anything. Haven came across these as common sense that director own the share as much as possible and they fight hard to earn more money for shareholder and of cause for their own pocket as well. Besides, most of the shares owned by a numbers of local institution. Appreciate your thought. Thank you.

2014-05-20 22:38

Koon Yew Yin

There are good and bad reasons for top managers to be substantial shareholders. As you said they would naturally work harder to make more profit for the company and for themselves. Some times, they will sell their shares earlier before the company's announcement of bad news.

I believe in TH Plantation, the top people are professional managers and they are salaried workers. Almost all the IJM directors including Tan Seri Tan Boon Seng, are professional managers.

2014-05-21 09:11

Koon Yew Yin

I have just posted an announcement of my investment seminar on 1st June in KL. Please come so that I can meet and answer all your questions

2014-05-22 06:09

AdCool

As much as I would like to attend the seminar, unfortunately it clashes with my schedule for a church camp. Hence, I won't be able to make it. I have posted my earlier comment on your previous blog regarding the credit tightening in China and how it may impact the CPO price negatively. What is your view on that Mr Koon?

In addition, TH Plant posted a good Q1 results but yet Maybank investment recommended a Sell call for it. I noticed Maybank Investment is concern on the escalated cost of operating due to more matured areas to manage and even recommended a TP of 1.65, saying it is a premium compared to its peers.

2014-05-22 11:17

Iching88

correction ahead,come back in two weeks. : )

2014-06-04 13:46