I got a surprise by My Johor Sifu MG9231 whem he messaged me, "Kelvin Sifu, ajinomoto said its land will be forced acquired by gonmen for MRT project. Will be the compensation lucrative?

It brought back memories of 2008. 8 years ago I passed by Kuchai Lama, KL and saw the refurbishment of Ajinomoto factory. With that production will rise further & prospect looked bright. So I called My Johor Sifu (MG9231) to buy Ajinomoto at Rm2.50.

At that thime Ajinomoto was selling below NTA of Rm3.00 , a reasonable P/E of 8 with a diviidend of 5%.

Lo & behold! Ajinomoto is a Blue Chip today! And still moving up to the surprise of all.

So I took a closer look at the lands os Ajinomoto:

Refer to Annual Report: Under properties of the Company:

Ha! The Lands are still around Rm44 psf (Old Book Value). Why go gaga over it now?

Govt is force acquiring it for MRT Project!

So?

So must pay compensation lah!

Question is, "How much"?

A Search with Propertyguru.com.my shows no lands for sale in Kuchai Lama (very rare here as it is fully developed). So the nearest is Serdang about 5 minutes away. It shows Rm300 to Rm900 psf.

WOW! If Govt really give a fair value for acquisition then Ajinomoto shareholders kaya leow!

See my reply to my Johor Sifu

""Book value of industrial land only Rm44 psf. Current mkt value is Rm300 to Rm900 psf. Will get great windfall, kaya leow!"

How much My Johor Sifu already made in 8 years?

Let's see

Bought Rm2.50. Yesterday closing price of Ajinomoto Rm12.96

So a profit of  Rm10.96. Add 5% dividend for 8 years (12.5  sen x 8 = Rm1.00)

So price gain cum dividend = Rm11.96

So 478.4% profit for 8 years.

How much per year?

478.4 divides by 8 = Wahaha!  59.8% Yearly Profit for 8 years annually!

Hmmm?

I must call my Johor Sifu (MG9231)  to belanja abalone & sharkfin soup & mau sang wang durian. (I am just joking only.)

See his post from Ajinomoto thread:

Calvin advise for i3 forum readers,

As Ajinomoto has already surged by over 478% in 8 years Calvin suggests you to sell into strength at this most opportune windfall. The Top reason why prices go up is due to its location near the Sungei Besi Airport which will be converted to HSR Station HUB.

I think if you want to lock into VALUE LIKE AJINOMOTO When It was only Rm2.50

Just Buy these 2 Stocks

1) MUI BERHAD (Only 17 cents now. Dirt cheap like Ajinomoto was.) See my coming post on Mui Bhd

2) KSL (Only Rm1.18) KSL Has Prime Lands in KL , Muar, Batu Pahat, & Johor where HSR Stations will be located.

Learn Long Term Investing Like My Johor Sifu. This is the only way to true riches.

Regards,

Calvin Tan

Singapore

Why I discovered Ajinomoto in year 2008?

Because I lived in SRI PETALING before. And I used to pass by Kuchai Lama to Old Klang Road often. So you must invest in What You Know. 

Have a nice day.