TOP 10 VALUABLE INVESTMENT SECRETS MY JOHOR SIFU TAUGHT ME

JUNE 4, 2016 / CALVIN TAN / 0 COMMENTS

In Life We Need To Learn From Experts to short cut our learning curve. How glad was I to have met 2 Great Sifus in the State of Johor, Malaysia. One Expert Sifu is in Share Investments. And one Sifu is the Champion Landlord of Kota Masai in Eastern Iskandar.

Here are the Top 10 Valuable Lessons My Johor Share Investment Sifu Taught Me

A THIRST FOR INVESTMENT KNOWLEDGE

When Mr. L Tan was an accounting student in University Malaya he used to read the WeekEnd Malay Mail. Here Dr Neoh Soon Kean of Dynaquest would give a weekly write up highlighting One or Two Stocks of Bursa. L. Tan carefully cut out the precious investment articles by Dr Neoh – then read and reread them carefully. This was how he got all the solid investment lessons of life. He also subscribed to the excellent Monthly Digest of Dynaquest (Now discontinued). From here he got such great tips like PIE & AJIYA which made him millions!

2. BUY BUSINESSES THAT YOU USE

When his relative was warded in KPJ Hospital he saw the high medical fees, the long waiting lists. So he bought into KPJ .KPJ was a great growth story. From KPJ came Alaqar Reit – another great recession stock that emerged well all through the Lehman Brothers’ Crisis.

When his family members bought and used trolley loads of Premier Tissue & Cutie Toilet papers he started to buy NTPM at 50 cents. He later told me he made enough monies to buy tissues for his family for their entire life time.

3. SCUTTLEBUT

Ha! This was what he did by visiting companies or watching their businesses. So in year 2006 he told me to go and SEE Angsana Shopping Complex in Skudai Johor.

A visit to ANGSANA Showed 4 companies. On the ground floor is KFC & Pizza Hut, On second level is Kamdar selling clothes and fabrics. And on the highest floor is the clothing store called Yong Tai.

Of the four two businesses Stood Out – KFC & PIZZA HUT!

Every weekend KFC & PIZZA HUT Were Doing Roaring Business. One idea L. Tan had was this. In Malaysia the majority race is Muslim and they are forbidden to eat pork. So KFC should do very well.

So we loaded up on KFC & QSR. I like QSR more because QSR has both KFC & PIZZA HUT. As it turned out JCORP Later took both private.

4. HAMMER IT!!!

Hammer It? What is this? Ha! According to my Johor Sifu, if you have found a really good stock, you should not just nibble a little but HAMMER IT! That means, don’t just buy a little BUT BUY A LOT OF IT.

That’s how we both bought into KPS at 50 cents. And when KPS dropped to 39 cents we loaded up even more. KPS later shot up more than 1,000% to its all time high of Rm3.94

HAMMER IT? I bought and bought Pm Corp until I was in the Top 30 Major Share Holders. So is My Johor Sifu. He was in 30 Top Shareholders in quite a good number of Stocks.

4. RECEIVABLES IS NOT CASH

This was when I bought into Megan Media at around 67.5 cents. From the Balance Sheet Megan Media showed a P/E of only 3. NTA at over Rm2.00. It also pay a small dividend.

So many have been tricked by the “blue ray” disc hype touted by Megan Media Bosses. However, My Johor Sifu stood his ground & rejected buying into this popular stock which so many others bought.

Why? He questioned the High Amount of RECEIVABLES In Megan Media’s Accounts. RECEIVABLE IS NOT CASH. What is CASH Then? According to my Johor SIFU The Smart Accountant, “CASH IS ONLY CASH IF THE CASH IS RECEIVED AND DEPOSITED SAFELY IN THE BANK”.

Being not sure I still held on to my Megan Media shares and watched it carefully. Then one day to my surprise, I saw Insider selling 3 million Megan Media shares! And then they unloaded another 5 million shares! Insiders are bailing out!! The pilots are parachuting!!

Straight away I called my Remisier to sell off every Media Megan shares at 66 cents for a small loss. Next day to my chagrin Megan Media even rose to touch 70 cents. If only I had sold one day later? Then I would have made some profit? Why the hurry? Weeks passed. Then one day the horrendous result came out. Megan Media went limit down!

It plummeted to just over 30 cents. One Mr Teh thought it was bargain time & loaded up. Loading up falling knives? Megan Media went bankrupt and got delisted. It was found out later that all the Blue Ray Disc Factories were non existent. RECEIVABLES WERE ALL FAKE OR FICTITIOUS.

5) RIDING ON COMPANY SHARE BUY BACKS & INSIDER BUYS

When he saw MAMEE issuing Warrants he loaded up. Company Share Buy Backs on MAMEE helped to push up the Warrants. So he loaded up more Mamee warrants. It was really effortless. Riding Mamee Warrants when Company bought up Mamee shares and took it private later.

Same goes for PTaras Jaya. PTaras was into piling work for foundation. In high rise construction the first job is piling and so Ptaras Jaya will get paid first. How did he know? My Johor Sifu’s Brothers were Big Time Developers. Another thing is – PTaras Profit Margin is substantial. So he told me to buy PTaras Jaya at Rm1.40. Another reason is this. While exercising ESOS PTaras Jaya Top Boss also bought PTaras shares from open market at Rm1.90. So buying PTaras at Rm1.40 would be a bargain. As it turned out later PTaras went up 500% & split.

6. BEWARE OF SHARKS IN BURSA

Ha! This was new to me as My Sifu explained. Companies would set up con job from time to time. All fools and suckers will be conned if they are careless.

It’s like this. This is the modus operandi of Big Sharks & Syndicates

First go to the Middle East (this was popular then). Then set up Joint Ventures with Names of Some Unknown Foreign Entities with Important High Sounding Names. Get it staged with lots of noise and publicity.

Get (bribe?) the media to take pictures. Splash them out as Headlines in Malaysia.

Get analysts (more bribes?) to write glowing prospects of how much projected profits they will make.

Get stockists & remisiers to churn the stocks as if trading spikes up.

With this hooha, hype, fanfare and barrage of seemingly good news day after day before the gullible naive dumb gambling and speculating crowd – many are finally drawn and sucked into the trap.

At peak prices syndicates will unload & support the shares intermittenly. And after they have unloaded all to suckers the shares will go down. Some even collapse in limit downs.

7. INVEST – Don’t Trade Too Much

He showed me Warren Buffet’s style which he liked. Make a Few Good Solid Investments & Keep Longer Term. Don’t hit and run all the time. This will prevent erosion of performance by excessive and unnecessary fees. Compounding interest is the eight wonder in the world.

He bought Ajiya at Rm1.00 & sold Ajiya above Rm4.00. With 400,000 lots he made Rm1.5 millions. His Sifu Dr Neoh has 600,000 Ajiya shares & made more than him

8. WHY VALUE INVESTORS WITH MONEY SHOULD DO VERY WELL IN MALAYSIA

In Malaysia lots of Company Bosses Have Money But Don’t Know How To Invest. Many Accountants Have Knowledge But Got No Extra Money for Investment in Shares. You see, after deducting Car loan & housing loan the average Accountant has little monies left for Investment.

So The Chinaman Boss Has Money But Don’t Know About Share Investment. His Accountant on the other hand has the knowldege but no money to invest. And he has no incentive to teach his Boss how to invest. So most Chinaman Bosses will get their tips from hearsay or the media. This is where 70% of the people get conned.

So for the few Value Investors like my Johor Sifu the KLSE is a Great Place to find Great Value Buys.

9. CONCEAL KNOWLEDGE

Once I was in the Stock Market with my Johor Sifu. I saw one guy buying Sapura shares instead of SapuraTech to his ignorant.

Sapura is taking SapuraTech Private with extra Rm40 a shares.

The irony is this – both Sapura & Sapuratech are trading at 80 cents a share.

By buying SapuraTech you get one share of Sapura with 4 extra cent

Like this

One Sapuratech = One Sapura & 4 cents

So buy Saparutech instead of Sapura – you dummy!!

I wanted to warn the dumb guy but My Johor Sifu restrained me

“Don’t tell him. No point. He might not understand your good intention & might even give you a good scolding.” my Johor Sifu warned me. So let it be.

10. No POINT Talking To People Even In i3 Investors’ Forum

For this same reason my Johor Sifu – his ID is MG9231 seldom post in i3 Forum.

This is a Big Loss to all new investors who will be losing monies like the 80% who are destined to lose their monies in the share market.

Well I am more thick skinned & I did post & post. And now I found out by real experience. 80% of the people are not interested in long term value investing at all. Hot stock and hot tip of the day is all that matters.

It has been, is now & will be for forever.

Since we cannot change human behavoiur just leave them to their devises.

Now I must learn from my Johor Sifu & relax.

WHAT A WONDERFUL LIFE

MUI BERHAD – THE HIBERNATING GIANT WITH DEEPEST HIDDEN VALUE

MAY 22, 2016 / CALVIN TAN / 0 COMMENTS

MUI BERHAD – THE HIBERNATING GIANT

Posted on August 21, 2013 by Calvin Tan

“Many Shall Be Restored That Are Now Fallen; Many Shall Fall That Are Now In Honor.” – —- Horace.

MALAYAN UNITED INDUSTRIES BERHAD was founded in 1960. It has widely diversified investments in Hotel, Travel & Tourism, Insurance, Departmental Store like Metrojaya, Stock Trading Firm, & Food Manufacturing.

Above all MUI Berhad own Highly Valuable Assets in hotels, factories, offices, condominium, lands & houses All Over Malaysia & UK & USA!

In its heyday, MUI Bhd was once traded as high as RM24. The ‘Darling’ of Stock Traders & Analyst in KLSE at one time. It has gone out of favor and fallen on hard times. It once owned MUI BANK, which was sold & renamed Hong Leong Bank today.

The Share of MUI Bhd, together with its Sister Companies Or Subsidiaries : MUI Properties, PMI, PM Capital, PM Holding & PM Corp, have all Fallen More Than 90% of its Value!

Rumor Mongers have said, “Tan Sri Datuk Khoo Kay Peng sold MUI Bank. Took the money and invested in UK Hotels”‘ MUI Group bet on the Wrong Horse – Tengku Razaleigh!” You cannot touch MUI Group of Companies – they are really lousy. One By One They Go into PN 17.” PN 17 also stands for Prison No. 17.

That could mean execution – the doorway to delisting! And with the unfortunate news of divorce proceedings in UK, share prices have continued to fall lower and even lower! With so much bad publicity and negative sentiment-how to buy? You should only sell.

Only Sell? Definitely not! We have turned bullish on MUI Group. Why? These Are The Reasons To Accumulate MUI Berhad:-

No. 1) HIDDEN VERY EXTREMELY HIGH VALUE ASSETS.

MUI Bhd owned highly strategic properties in Prime, Prime Locations. Highly profitable Businesses like Metrojaya. High Value Attire Manufacturer like Laura Ashley in UK. And they are All Grossly Undervalued.

Take CORUS Hotel, Jalan Ampang KL, for a case study. In the 2012 Annual Report of MUI Bhd: CORUS Hotel was Valued at RM62 Millions. It Is A 13 Story Hotel sitting on Freehold land of 7,289 sq meter.

One sq meter equals 10.764 sq ft. So 7,289 sq meter is 7,289 x 10.764 = 78,458 sq ft. A piece of land was just transacted for RM3,300 psf last week. The highest price done in KL Because it is located very near to Petronas Twin Towers.

Now we know the value. CORUS Hotel is just across the road from Petronas Twin Towers. It should also be valued at RM3,300 psf. So CORUS Hotel land is 78,458 x 3,300 = RM258.9 Millions! Wow! The Underlying Land is valued at Almost RM260 Millions! What about the Value of the 13 Story CORUS Hotel?

Any Property Valuer Out There In KL? And What About The Existing Business Of The Hotel? We have been to PM Corp AGM for 3 years. Years 2010, 2011 & 2012 were all held in CORUS Hotel. And everytime we were there, business is so good – 70% to 80% occupancy.

Our Intrinsic Value for CORUS Hotel is RM450 to RM500 Millions! Computed from Land Value, Hotel Building & Existing Business. Book Value RM62 Millions Only. Why? Look carefully at the Annual Report (IT WAS LAST VALUED IN 1982 – 31 One Years Ago!!)

At Half Billion Ring-git, Value Has Gone Up 8 Times In 31 Years. This is Only One Of MUI Berhad Many, Many, MANY, MANY UNDERVALUED ASSETS!! You see, I am Shouting Out Its Value For All To See.

No. 2) UNFURLING SAIL TO CATCH TOURISM WIND IN 2014.

VISIT MALAYSIA YEAR. Yes! In Four Months’ Time Is VISIT MALAYSIA YEAR Again.

MUI Berhad has Hotels For Tourists to stay in, Travel & Touring Agencies To Bring Them Around. Metrojaya Departmental Stores for them to shop.

Insurance To Protect them (their loved ones) when traveling around. And Food Like Tudor Gold, Tango & Crispy Chocolate to buy. MUI Berhad will benefit from Increasing Tourist Arrivals.

No. 3) UNLOCKING OF VALUE THROUGH ASSET DISPOSAL

This is a new trend in MUI Group. PM Corp (4081) has sold off all Bank Of East AsiaShares, Johan Shares & The Woodland Factory (S’pore) for RM38.5 Millions.

While MUI Berhad has Sold Off George Kent Shares. PM Corp is Proposing Capital Reduction & CASH DISTRIBUTION

The Impending Announcement Of CASH DISTRIBUTION From PM CORP will draw attention to ALL MUI GROUP COMPANIES! AND THE UNLOCKING OF VERY, VERY VERY HIGH VALUE ASSETS BY PUBLIC OPEN MARKET SALE WILL CAUSE INVESTORS TO SIT UP & PAY ATTENTION.

MUI BERHAD – THE HIBERNATING GIANT WILL WAKE UP AT LAST!

INVESTMENT MAXIMS:

“TO BE GREEDY WHEN OTHERS ARE FEARFUL, AND TO BE FEARFUL WHEN OTHERS ARE GREEDY.”

“BUY AT THE FUNERAL – SELL DURING THE WEDDING.”

“BUY AT THE SOUND OF CANNON – SELL AT THE SOUND OF THE TRUMPET.”

“SELL WHEN KLSE WAS AT ITS EUPHORIC INDEX 1332 – BUY DURING EXTREME DESPAIR & PESSIMISM DURING ASIAN FINANCIAL CRISIS WHEN KLSE WAS At INDEX 262.”

“BUY SINGAPORE AIRLINE SHARES (SIA) AFTER 911 WHEN TWIN TOWERS CRASHED AND ALL TELEVISIONS SHOWED 2 PLANES CRASHED INTO TWIN TOWERS A MILLION TIMES.”

BUY WHEN THERE IS PANIC & FEAR & WHEN BLOOD IS ON THE STREETS.

HOW TO BUY? HOW TO GO AGAINST HUMAN EMOTIONS?

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Why invest in Johor now.

MAY 14, 2016 / CALVIN TAN / 0 COMMENTS

Why Invest in Johor Now?

By Ed Cheong –

May 4, 2016

Lately, there are plenty of negative news from declining growth numbers in many countries (especially China and Singapore) to declining investments, impaired currency exchange rates, lower commodity prices and increasing job losses.

The Star newspaper recently reported that Petronas Chemicals Group Bhd scrapped a giant elastomers project worth US$1.3bil as part of the Refinery and Petrochemicals Integrated Development (RAPID) project in Johor.

Moreover, although the Ringgit has regained some strength in the market (trading at 2.90 to the SGD), an oversupplied oil market and slower demand for fuel continue to pose great pressure on the currency.

So why invest in Johor now?

As the only state linked to the third largest financial centre in Singapore, Johor has been catching up with synergies long overdue. The good bilateral relation between Malaysia and Singapore established by the Prime Ministers of both countries has given Johor tremendous advancement momentum.

While other states in Malaysia suffer from lower trade receipts, tourism spending in Johor has increased with the strong Singapore dollar.

The state will also see better transportation links to Singapore in particular via the Causeway and second link. Both countries are meeting in June for their yearly leaders’ retreat which is expected to progress transportation links further. The MoU for high speed rail links has been reported to be signed then.

One more exciting prospect is having direct air links to China. This will begin soon between Senai Airport and Guangzhou, China. The AirAsia route will be expected to bring in thousands of wallet-padded Chinese tourists to Johor.

Johor also has a relatively low population density. With large growth in business, Johor will see a greater influx of workers and talent from other states in the near future. This new migrant population will need housing and services. It means existing home owners will see greater demand for rental returns.

Across the causeway, Singapore economy continues to restructure. Many companies both large and small will look to move operations to lower cost destinations. Johor with its vast land and good links will be the single biggest beneficiary. Many individuals especially Malaysians working in Singapore will look at Johor as the secondary home base either for recreation or retirement.

There has been little academic research on this future trend. But I am certain that Johor will be the first port of call for both companies and individuals alike.

I believe many buyers do not study enough the future housing demand for rental. Most buyers just buy what they can afford without evaluating other risks. This is logical but inadequate. Mass buying causes developers to react in reciprocation. For example, many small or mini apartments were sold in the last few years to cater to affordability. Sadly, equally many were returned to developers when fear set in.

You need to buy a good property when you can afford it. Migrant workers and retiring Malaysians will not live in small cramped apartments. Many prefer better quality homes which mean securing places with facilities in a good neighbourhood.

As prices continue to increase, it is still much better to buy earlier than later.