THE INVESTMENT APPROACH OF CALVIN TAN
WHY CALVIN TAN LIKES HIGH NTA SHARE SELLING AT DEEP DISCOUNT PRICE? The Answer Is Here!
calvintaneng
Publish date: Mon, 29 Aug 2016, 10:10 PM
calvintaneng
0 1,801
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.
Now let Calvin tell you a little secret about NTA (Net Tangible Asset)
To Calvin Tan Research NTA is CASH & Cash is also NTA.
Why is it so?
Let me illlustrate:
In year 1983 I tendered for a Company car called Opel Kadett. Made in 1980. The car was only 3 years old.
I bought it through tender for only Rm3,500. Asking price among car dealers were around Rm8,000. So paying less than 50% of dealer's price gives me great Value!
Now in year 1983 Company Road Tax were 4 times the cost of private car roadtax.
Example if a private roadtax is Rm100. The company pays Rm400. So since I am transferring it to private I sent the Company roadtax for a nice refund & then renew a private road. I made some money there.
Another thing was this. The Opel Kadett has a 1,200 cc engine. It has an aircond installed. Since the engine was only 1,200 cc it is underpower if I turn on the Aircond. One day I saw someone looking for a second hand aircond. And I sold the aircond to him for Rm410.
After using the Opel Kadett for 6 months I sold it for Rm5,900 for a nice profit of Rm2,400.
So you SEE
The NTA of the Opel Kadett has 3 components
1) Its Company RoadTax (Which I cashed out & changed to private)
2) The Aircond (of those days) which can be dismantled & sold.
3) The Car itself which I bought Far Below NTA - Market Value Was Rm8,000. I got it at more than 50% discount!
This is from real life experience.
And so I apply this in the Share Market.
And it has seldom fail me.
I bought Pm Corp for 9 cents years ago. Now with 8 cts Cash Payout my cost is only 1 sen.
SO BUYING HIGHLY DEFENSIVE SHARE LIKE PM CORP WITH DEEP DISCOUNT TO NTA AND HOLDING IT LONG TERM TILL ALL VALUE EMERGE IS THE WAY TO GO!!
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Discussions
1 person likes this. Showing 4 of 4 comments
NTA, not so much in fixed assets, but in (T) tangible assets. A lot of property counters not having land re-valued, not overvalued. It can be tangible if develop and sold off at high premium. Another case is receivable which can turn into bad debts, it can greatly change the high NTA. So in my humble opinion, believed in high NTA, but checked any tangible assets which can turn negative easily.
2016-08-30 08:30
Take a look at Maa, nta approx rm1.99 backed primarily by cash vs market price of 91.5 sen.
2016-08-30 11:34
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CS Tan
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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....
Amit Khindriya
NTA is not cash.....the fixed assets maybe overvalued in most cases.
2016-08-30 08:01