THE INVESTMENT APPROACH OF CALVIN TAN
BY SEARCHING I FOUND THE DEEP INTRINSIC VALUE OF PM CORP AT LAST!
calvintaneng
Publish date: Wed, 10 Feb 2016, 12:23 AM
calvintaneng
0 1,844
Hi Guys,
I have An Investment Approach I which I would like to all.
I have An Investment Approach I which I would like to all.
These are the Asset Value of Pm Corp
1) ITS CASH POSITION IS RM143 MILLIONS.
2) ITS INVESTMENTS IN QUOTED & UNQUOTED SECURITIES = RM91 MILLIONS (Refer to 2014 Annual Report)
(Quoted Investments in Malaysia = Rm4.1 Millions. Unquoted investment Oversea = Rm85.287 Millions)
3) ITS INVESTMENT IN SUBSIDIARIES = RM80 MILLIONS
4) ITS LOANS TO SUBSIDIARIES = RM100 MILLIONS (NET AMOUNT)
(Refer to Annual Report 2003 To See Some Subsidiaries.
Example: Advances to Mui Media = Rm24 Millions. To Mui Enterprizes = Rm52 Millions
5) ITS PROPERTIES IF REVALUED = RM139 MILLIONS
a) Factory in Shah Alam, Persiaran Raja Muda...11,624 sq ft x Rm320 psf current value = Rm37 millions
NFI Factory.
b) Land beside NFI Factory (6 acres) ...........26148 sq ft x Rm320 psf current value = Rm83.67 millions (Book value only Rm16 mil)
c) Penang Warehouse in Bayan Baru...........Current Value Rm1.9 million (Book value only Rm404k)
d) Johor Jalan Mashur Warehouse (5,000 sf ft) Current value Rm1.2 Millions (Book value only stated Rm287K)
e) Hong Kong Factory 8,298 sf. Current value 8,298 x Rm848 psf = Rm7 millions (Book value around Rm1,1 million)
f) Singapore Tang Ling View Penthouse... 2,088 sf. Current value = Rm9 Millions
6) Good Will For Buying Over NetWork Food Business = Rm58 millions. (How much is good will to buy over Coca cola?)
7) Inventories recognized as cost of sales = Rm33.7 millions
The above are the Known Value that you can read from Annual Report & also by way of comparing with listed properties for sale on Propertyguru.com.my & other real estate entities.
Now for an update for what you yourselves can investigate.
Listed in Annual Report 2014 is Quoted & Unquoted Investments
The Quoted Investments are stated at only Rm4.1 Millions.
What are they?
Go to Mui Property Annual Report 30 Top Substantial Shareholders and you can see Pm Corp's Investment.
Coming in at number Top 10 is Jomuda Sdn Bhd (One of Pm Corp's 20 subsidiary companies) with 10 million Mui Prop shares. At closing price of Rm33.5 cents PM CORP Has Rm3.35 Millions Investment in Mui Prop
Now turn to PM Holdings Annual Report to SEE the 30 Top Substantial Shareholders.
In Top 3 Position is Megawise Sdn Bhd(Another Pm Corp subsidiary Company) with 82,749,507 shares. At current price of 29 cents Pm Corp has an investment worth of almost Rm24 millions in Pm Holdings alone.
Now just these two (Mui Prop & Pm Holdings) alone there is over Rm27.1 millions (CASH OR CASH EQIVALENT IN QUOTED SECURITIES) How Come Stated in Annual Report the Figure is only Rm4,1 Millions only?
So to get a better updated figure Rm27.1 - Rm4.1 millions = A Surplus of Rm23 Millions!! (Pm Corp is over flowing with CASH)
And then revealed in AGM is the US$6 millions from Laura Ashley South American Francise. 50% can be redeemed in 2015. US$6 millions now ballooned to Rm24.15 millions (One US Dollar = Rm4.15 now).
If what we can SEE from quoted shares in Malaysia the deep undervaluation WHAT ABOUT THE UNQUOTED SHARES OF RM85.287 MILLIONS OVERSEAS?
Mui Group has perfected the art of hiding value.
BY SEARCHING ANY BODY CAN FIND OUT THE TRUTH.
The TRUTH ONLY FROM WHAT IS REVEALED! WHAT ABOUT THE HIDDEN RICHES NOT REVEALED?
Only Tan Sri DR KHOO & PAULINE ARE PRIVY TO THE ULTIMATE SECRET!!
So let's summarize:
CASH = Rm143 millions
INVESTMENTS IN SHARES = Rm91 millions
INVESTMENT IN SUBSIDIARIES = Rm80 millions
LOANS TO SUBSIDIARIES = Rm100 millions
PROPERTIES = Rm139 millions (Remember: PM CORP is a Corporation. If price is right all can be Sold)
GOOD WILL FOR TAKING OVER NFI BUSINESS = Rm58 Millions (NFI already in both Spore & Malaysian Supermarket sales)
INVENTORIES RECOGNIZED AS COST OF SALES = RM33.7 Millions
Extra Rm23 millions from Mui Prop & Pm Holdings Investments (Pm Corp also got Pm Capital shares now delisted.)
And Rm24.15 millions from Laura Ashley South American Francise (Minus Original cost US$3 mil x 3.2 = Rm9.6 mil)
Another Surplus of Rm14.55 millions (Power Money Corp!)
WOW! RM682.25 MILLIONS
Now Divide by 700 Millions Paid Up Shares = 97.4 Cents A Share!
Deduct 30% DISCOUNT FOR THE INTRINSIC VALUE = 68.18 CENTS!
YES! THIS IS IT!!
THE INTRINSIC VALUE OF PM CORP IS ABOUT 70 CENTS PER SHARE!!!
Note: We have not included all the machineries and the revaluation of Rm82 Millions in Foreign Unquoted Shares & Also the Rm100 Millions loan to subsidiaries & other hidden Cash & Hidden Assets!!
Let's Review Again
Pm Corp is selling at a Huge Discount to NTA
Price 26.5 cents. Revised NTA is 97.4 cents. A Whopping 73% Discount to NTA Provides A Huge Margin of Safety
Forward P/E an undemanding 8.8%
Above All The Crowning Glory is the 30.18% Cash Pay Out.
Translated into 3 Years of 10.06% yield for year 2016, 2017 & 2018
PM CORP = POWER MONEY CORP!
Regards,
Calvin
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Discussions
1 person likes this. Showing 46 of 46 comments
SOME THOUGHTS ON ANALYSING STOCKS (KISS)
Ideally a stock you plan to purchase should have all of the following charateristics:
• A rising trend of earnings dividends and book value per share.
• A balance sheet with less debt than other companies in its particular industry.
• A P/E ratio no higher than average.
• A dividend yield that suits your particular needs.
• A below-average dividend pay-out ratio.
• A history of earnings and dividends not pockmarked by erratic ups and downs.
• Companies whose ROE is 15 or better.
• A ratio of price to cash flow (P/CF) that is not too high when compared to other stocks in the same industry.
Check out PMCorp's annual results over the last 10 years.
It is a gruesome company in my book.
Look for a better stock to put your hard earned money.
2016-02-10 08:22
Unless calvintan can summarise in 2 minutes what he is trying to communicate on this stock for the last 3 years, his above posting is too complicated.
2016-02-10 08:24
I do not trust a counter that never gives a dividend.
Have you not learnt from kyy's experience with xinquan?
2016-02-10 08:43
Good morning to all who can SEE.
Sorry for all who still cannot "see" anything until now.
An eagle can SEE 5 kilometers away.
Other flying birds can see 1 kilometer away.
Sorry for chicken on the ground that cannot see more than a hundred yard away.
Even if eagle tells chicken 10,000 times also useless because chicken is not endowed with the ability to see far.
It' instant recognition or it is nothing
.....Warren Buffet.
2016-02-10 08:52
Remember,
The top 1% of world riches made 50% of the world's wealth.
Pm Corp has proposed 8 cents Cash Pay out.
At 8 cents for a share worth 26.5 cents = 30.18% or 10.06% for each year of 2016, 2017 & 2018.
Buy now before price flies away.
2016-02-10 08:57
Revenues 2005 332.7m 2012 80.7m 2014 69.7m Calvintan recommended this stock 3 years ago, and yet its annual revenues declined over these years. FY 2015 9mths Revenues 50.2m (Q1 16.4m, Q2 17m, Q3 16.8m)
2016-02-10 09:23
All the property assets of Pm Corp were devalued by 3% to 5% over the last 10 years while Malaysia, Singapore and Hong Kong went into a Property Boom.
The Hong Kong warehouse has a book value of only Rm1.1 millions. If revalued it is over rm7 millions (up 700%)
All other assets have also appreciated in value by 100% to 500%.
You must SEE beyond the obvious.
2016-02-10 09:30
Pm Corp not generating profits?
There was once 3 blind men going to "see" an elephant.
One held the ears and said "the elephant is like a flabby pan cake". Another put his hands round one leg and disagreed, "The elephant is like a tree trunk">
No! No! Both of you are wrong! "See!" "The elephant is thin and long like a snake" while holding on to the elephant tail!"
The third blind man holding on to the elephant tail is like those who "looked" at the revenue from NFI.
Of all the investments of Pm Corp
1) INVESTMENT IN SECURITIES (BOTH LOCAL & FOREIGN) (RM91 MILLIONS)
2) LOANS TO SUBSIDIARIES (RM180 MILLIONS)
3) INVESTMENT IN SUBSIDIARIES (OVER RM80 MILLIONS)
4) INVESTMENTS IN PROPERTIES (NOW INCREASED TO RM139 MILLIONS)
The Least is from NFI as it is tail.
By focusing on revenue you have missed the Whole Picture. The elephant is not just ear, leg or tail alone.
You must "SEE" Pm Corp in its Totality.
Just take the 6 acres land on Main Road (Calvin went to SEE it personally) in Persiaran Raya Muda, Shah Alam. It was bought for Rm17 millions in 2009.
Current Book Value is only Rm16 millions.
BUT THE CURRENT MARKET VALUE IS RM83 MILLIONS!!
If Sold Just This One Investment Property Will make Rm67 MILLIONS!
What about Over RM82 Millions Invested Overseas when US Dollar was at Rm2.40
Now the US Dollars have gone up from Rm2,40 (More than 10 years ago) to Rm4.15
Up 72%. How much are these Rm82 Millions (Oversea money) now worth if exchanged and brought back to Malaysia?
Half a billion ringgit? Or more?
2016-02-10 09:51
Net change in Cash 2005 50.6m, 2011 (29.7m), 2012 38.7m, 2013 38.5m, 2014 (5.1m)
Cash & eq 2005 352m, 2011 60m, 2012 99.2m, 2013 138.5m 2014 132.4m
Free Cash Flow 2005 n.a. 2012 3.8m 2013 3.6m 2014 0.02m
Its cash and equivalent has fallen from 2005, though this has risen since 2012. Its free cash flow remains anaemic, next to nil.
2016-02-10 10:00
Why is calvintan excited over its return of cash from PMCorp? It is after all returning what is the cash in the company. Those who bought to "profit" from this cash payment will be disappointed. The price will just adjust to reflect this repayment. Meantime, promoters are hoping to cash out on the unwary.
2016-02-10 10:01
Its NAV per share today is 0.5143
Its NTA per share today is 0.4251
For a gruesome company, you probably will not pay above its NTA value.
For those who hope to profit from buying this, you will need to have a very big margin of safety, perhaps 60% discount from its NTA.
That means, buy below 25 sen.
\
Why even bother, there are so many good companies with better reward/risk ratio to own.
2016-02-10 10:05
Calvintaneng,
No need to call him names. Let the future decide who is right in future.
2016-02-10 10:07
Happy Chinese New Year
I am just exploring this topic to see where the undervalued situation in this stock arises.
2016-02-10 10:07
The NTA if revalued according to known figures is 97.4 cents.
If we also revalue those monies still not disclosed:
Rm82 Millions (INVESTMENTS IN FOREIGN UNQUOTED EQUITIES)
Rm100 Millions (LOANS TO SUBSIDIARIES FOR INTEREST)
Rm80 Millions (DIRECT INVESTMENTS INTO SUBSIDIARIES)
TOTAL HIDDEN INVESTMENTS (Enclude loan of Rm100 Millions) = RM162 MILLIONS
Let's just multiply it by 3x = Rm486 millions
Now divide by Rm700 million shares paid up
= Another 69 cents NTA
WOW! WOW! WOW!
97.4 + 69 = RM1,66 NTA For Pm Corp!
2016-02-10 10:15
Ckkhen,
I seldom call people names. Thank you.
This 3iii has done so much harm and damage to the people of invest lah that the website is almost going to close shop. He shouldn't do harm here, you SEE.
2016-02-10 10:17
If good stocks are not promoted bad stocks will be.
Let's see how www.i3investors Forum performed compared to invest lah forum
www.i3investor.com is now in Top 67 position.
With the intelligent and careful leadership of i3 forum team Our Website here will rise up to be among Top 10 Search Engines in Malaysia.
3 CLAPS & CHEERS FOR i3 FORUM TEAM
See www.alexa.com/siteinfo/i3investor.com
Now see how this iiinvestsmart degraded invest lah forum site to deplorable result
of 6,293 positions from top 1,000 positions! It's getting from bad to worse due to his arm chair good for nothing analysis.
See www.alexa.com/siteinfo/investlah.com
2016-02-10 10:39
Posted by 3iii > Feb 10, 2016 10:07 AM | Report Abuse
Happy Chinese New Year
I am just exploring this topic to see where the undervalued situation in this stock arises.
Haha!
He has just confessed, "I am just exploring this topic to see where the undervalued situation in this stock arises"
Your arm chair analysing will do you no good. Now you better discard your aeoncredit, dutch lady & coastal shares and switch to Pm Corp.
Especially your coastal shares as maybulk already fallen due to collapsing baltic dry index.
This is "GONG XI FA CAI" advise from Calvin
2016-02-10 10:48
Please check Dynaquest's latest SPG, how many stars were given to this company? What I know Dynaquest gave 1.5* in 2008's SPG, then in 2012, Dynaquest has discontinued giving combined rating to PMCORP. So, be extra careful with this company.
2016-02-10 13:36
Wong Heam Kiew
Pm Corp not in Dynaquest latest SPG. Don't worry. Once Dr Neoh put up his Website "In The Cloud" Pm Corp with such high CASH PAY OUT Will Soon Move Back into his Investment Radar.
When I subscribed to his Monthly Digest Years back I used to pin point his next monthly stock pick.
One of them was Astino. I bought into Astino one day and the next issue from his monthly digest's stock pick was Astino.
I was so happy by preempting Sifu Neoh's Stock picks.
I think Pm Corp is even better than Astino then. Given the same scenario & circumstances.
Calvin will give Pm Corp a 5* at the least.
2016-02-10 14:54
Pm Corp is not just chocolates.
SEE PM CORP IN ITS TOTALITY:
It is called PAN MALAYSIA CORPORATION
PAN means "ALL" ALL Means "EVERYTHING"
MALAYSIA = ALL OF MALAYSIA = & WORLD WIDE
CORPORATION = A Large Group of Companies Authorized To Act As A Single Entity!
So In Side Pm Corp Is A Large Group of Companies & Chocolate sales only play one small part only.
2016-02-11 10:09
Clarification:
Stockraider is one Great Guy in investlah forum. Because of him there is still some hope for investlah. As for iiinvestsmart he has a nice name and can understand some facts and figures only. I think he is one very shallow guy, without much substance nor wisdom.
2016-02-11 10:38
Clever cat will not waste time telling chicken to hunt at night. Because clever cat know chicken cannot see at night mar. Cat can see wat chicken cannot see mar ... u can waive a worm in front of a chicken ... chicken still cannot see one. Chicken must wait sun come out first ... must wait until PMCOrp or LCTH become blue chip first, must wait until PMCorp reach RM 1.00 first ... then onli can see mar. That's why we got proverb said ... seperti chicken kais pagi makan pagi, kais malam makan taik ... HAHAHAHAHAHAH ... AHAHAHAHAHH ... so, if u are ayam ... then dun lar try to hunt at night, nanti termakan taik. If u are eagle .. why u tok kok to ayam ? Ayam cannot see at night .. and also cannot FLY lar. U got understand boh. U can say got food 10 km away ... u think ayam can walk 10 km meh ? HAHAHAHAHAHAHAH !!
2016-02-11 10:39
3i has failed alot of investors loh.....!!
Counters like Pmcorp with alot of cash, listed equities and properties with no gearing sure worth alot of monies mah.....!!
The key valuation is liquidsation value which should worth at least Rm 0.50 to Rm 1.00 compare to share price of Rm 0.305 there is still big margin of safety loh....!!
Therefore it is obvious buy mah.....!!
Calvin is right to promote Pmcorp aggressively....if he don do that...others will promote overvalue & lesser stocks with no margin of safety loh.....!!
Calvin is providing a good social service to investors compare to the arrogant Leno loh....!!
Anyhow Leno...have not make any....good call for a very long time loh...!!
Yes raider like calvin call on Pmcorp....!!!
2016-02-11 20:44
CALVIN TAN ESTIMATES SOMEWHERE RM 1.00 PER SHARE.....RAIDER'S LEECH TECH CONFIRM THIS VALUATION.
HOWEVER CONSERVATIVELY RAIDER TAKE A 50% DISCOUNT FOR POTENTIAL UNCERTAINTY ,THUS THIS WILL GIVE A CONSERVATIVE FAIR VALUE OF RM 0,50.
IF READER LISTEN TO RAIDER AND CALVIN N BUY AT RM 0.265 YESTERDAY....U WILL MAKE AT LEAST 9% JUST WITHIN ONE DAY LOH.....!!
BUT STILL IT IS NOT TOO LATE TO BUY AT RM 0.29 NOW !!......BCOS THE CONSERVATIVE FAIR VALUE IS RM 0.50 TO RM 1.00, RESULTING IN BIG MARGIN OF SAFETY & PRICE UPSIDE MAH.....!!
FORGET ABOUT 3I NEGATIVE COMMENT.......BCOS HE HAS NEVER RECOMMENDED ANYTHING ENTERPRISING OTHER THAN HIS CUREENT HOLDING OF NESTLE, DLADY, PET DAG, PBANK WHICH IS OVERVALUE ....OWN MANY MANY YEARS AGO MAH.....!!
BTW....U MAY SAY RAIDER TIME THE MARKET....BUT IT IS NOT TRUE LOH.....!!
RAIDER IS USING B GRAHAM.......MR MARKET TECH.....BUY WHEN MR MARKET PESSIMISTIC & SELL WHEN MR MARKET IS OPTIMISTIC....A TRUE BLEND OF VALUE INVESTMENT MAH.....!!
THIS IS NOT TIMING.....WHEN U BASED ON VALUE LOH....!!
2016-02-11 20:47
nowadays cannot simply make buys call like last time lor, last time different capital ... now different capital mar ... u know i know wat i mean mar ... must be clever clever cari makan mar ... hahahahahHAHAHAHAHAH ... now, is time to enjoy LIFE lor ... u got enjoy life boh ? Still busy with 50 napshot aaaaa ? HAHAHAHAHAHAHHAHAHA ... HAHAHAHAHAHAHAHAH !!!
2016-02-11 22:37
http://www.thestar.com.my/business/business-news/2016/03/19/muis-transformation-is-anchored-on-strategy-of-less-is-more/ Good write up on MUI group.
2016-03-21 20:03
http://www.thestar.com.my/business/business-news/2016/03/19/dr-yus-elusive-stockbroking-deal/ Dr. Yu pursuit of PMHoldings (PMSecurities)
2016-03-21 20:05
>>>stockraider 3i has failed alot of investors loh.....!!
Counters like Pmcorp with alot of cash, listed equities and properties with no gearing sure worth alot of monies mah.....!!
The key valuation is liquidsation value which should worth at least Rm 0.50 to Rm 1.00 compare to share price of Rm 0.305 there is still big margin of safety loh....!!
Therefore it is obvious buy mah.....!!
Calvin is right to promote Pmcorp aggressively....if he don do that...others will promote overvalue & lesser stocks with no margin of safety loh.....!!
Calvin is providing a good social service to investors compare to the arrogant Leno loh....!!
Anyhow Leno...have not make any....good call for a very long time loh...!!
Yes raider like calvin call on Pmcorp....!!!<<<
raider, are you buying more?????????????
2016-06-09 19:43
Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$â¬Â£Â¥
Price of PM Corp today is 19 sen per share.
2023-06-04 16:13
Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$â¬Â£Â¥
This thread was posted on 10.2.2016. Price of PMCorp on 12.2.2016 was 30 sent per share.
2023-06-04 16:16
Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$â¬Â£Â¥
>>>>
Let's Review Again
Pm Corp is selling at a Huge Discount to NTA
Price 26.5 cents. Revised NTA is 97.4 cents. A Whopping 73% Discount to NTA Provides A Huge Margin of Safety
Forward P/E an undemanding 8.8%
Above All The Crowning Glory is the 30.18% Cash Pay Out.
Translated into 3 Years of 10.06% yield for year 2016, 2017 & 2018
PM CORP = POWER MONEY CORP!
Regards,
Calvin
>>>>
A gruesome company may remain gruesome for a very long time!
2023-06-04 16:19
Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$â¬Â£Â¥
>>>>
Let's Review Again
Pm Corp is selling at a Huge Discount to NTA
Price 26.5 cents. Revised NTA is 97.4 cents. A Whopping 73% Discount to NTA Provides A Huge Margin of Safety
Forward P/E an undemanding 8.8%
Above All The Crowning Glory is the 30.18% Cash Pay Out.
Translated into 3 Years of 10.06% yield for year 2016, 2017 & 2018
PM CORP = POWER MONEY CORP!
Regards,
Calvin
>>>>
A gruesome company may remain gruesome for a very long time!
2023-06-05 13:05
Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$â¬Â£Â¥
This thread was posted on 10.2.2016. Price of PMCorp on 12.2.2016 was 30 sent per share.
Price of PM Corp today is 19 sen per share.
2023-06-05 13:08
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The problem of pmcorp is its average annual ROTE is only 0.69%...
2016-02-10 08:10