THE INVESTMENT APPROACH OF CALVIN TAN
'It's Instant recognition or it is nothing(Buffet on Margin of safety or undervaluation) Calvin Tan
calvintaneng
Publish date: Sun, 04 Dec 2016, 12:36 PM
calvintaneng
0 1,813
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.
In THE INTELLIGENT INVESTOR Warren Buffet wrote a par excellence chapter on The Superinvestors of graham-and Doddsville
I quote from page 544 4th paragraph
"It is extraordinary to me that the idea of buying dolar bills for 40 cents takes immediately with people or it doesn't take at all. It's like an inoculation. If it doesn't grab a person right away, I find that you can talk to him for years and show him records, and it doesn't make any difference. They just don't seem able to grasp the concept, simple as it is.
A fellow like Rick Guerin, who had no formal education in business, understands immediately the value approach to investing and he's applying it five minutes later. I've never seen anyone who became a gradual convert over a ten-year period to this approach. It doesn't seem to be a matter of IQ or academic training. It's instant recognition or it is nothing."
Further quote from page 547 5th paragraph
"You also have to have the knowledge to enable you to make a very general estimate about the value of the underlying businesses. But you do not cut it close. That is what Ben Graham meant by having a margin of safety. You don't try to buy businesses worth $83 million for $80 million. You leave yourself an ernomous margin.
When you build a bridge, you insist it can carry 30,000 pounds, but you only drive 10,000-pound trucks across it. And that same principle works in investing."
Calvin comments:
When I first read these words carefully I bought into HingYap. DNP, Halim, Perak Corp, Pm Corp, Triumphal, Cenbond, Oka, Muda, KPS, CMSB, CIMA, YTL Cement & Others selling Deep Discount to NTA. Of the over 100 stocks I owned almost 80% follow this principle of Buying Below NTA with Margin of Safety Concept.
As time passed I saw Triumphal, Halim, CIMA, YTL Cement & others taken private one by one. Others like D&P changed name to Wingtai & Hing yiap changed to AsiaBrand. Others like Perak Corp, Pm Corp, Cenbond, Oka, Muda gone up 100% to 600%. One or two were 10 baggers like KPS & Perak Corp. Others taken private were I&Peninsula, Johor Land, QSR, KFC, OPUS, PLUS, Mtd-Infrar, Courts, Paramount Garden, Gold Hope, Austral Ent, Pelangi Bhd, UM Land & others.
And so I continued this day picking deeply discounted shares which are overlooked, undervalue & not appreciated.
On 20th September 2013 I first recommended Pm Corp. And then a string of other overlooked & undervalue stocks
Today I am happy to say out of 3 years I have selected 4 stocks which are finally taken private.
Namely, Super Enterprize, Kulim, TMakmur & now THE STORE
Let's take a look at this totally neglected stock:
Overview
Headlines
 Be the first to like this. Showing 38 comments.
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calvintaneng Dear Any One Or Passer By,
Since nobody bother to comment on The Store I venture to give my 2 cents worth here. This Is Another Totally Overlooked & Ignored Share That I Like. Just Like I Like Ice Box Counters years ago when I bought ICE BOX Counters Like PM Corp at 9 cents, Kumpulan Fima at 35 cents, Weida at 35 cents, DXN also at 35 cents. Perak Corp at 60 cents, Pintaras at RM1.40, IQ Group at 33 cents, Daibochi at 60 cents, DKSH at 42 cents, Tasek Cement at RM2.20 & UMW at RM2.40 The Time To Buy THE STORE Is NOW when IT IS TOTALLY NEGLECTED! The Store Has NAP of RM6.40. P/E in single digit. Pays a small dividend. And best of all this year is VISIT MALAYSIA YEAR 2014. This Is Really A Consumer Laggard. The Store operates 51 Departmental Stores & Supermarkets within reach of the masses. This Year 28 Million Tourists are expected to Visit Malaysia. As most Tourists do not drive to out of the way Hypermarkets like MYDIN, AEON BIG, TESCO EXTRA Or GIANT - They Are Expected To Patronise Neighbourhood Supermarkets like THE STORE withing walking distance. So many Tourists nearby means so much more business for THE STORE! So If The World Should Go Into A Recession This Year of 2014 THE STORE Should Survive Because It Sells Day To Day Necessities Like Food & Sundry for CASH. This Is My Personal Observation Calvin Tan from PM Corp & MUI Berhad Forums
19/01/2014 22:00
passerby yo....one of the passerby at i3, kikikiki
negative, profit margin extremely low.......they are supermarket operators dominating at the small township but the competition is getting tougher & tougher with the entry of big size hypermarket like Tesco, Giant, Aeon Big, Aeon.....see the profit margin, already know manyak susah mau huat.....cari makan for survival still boleh kot.... not only competition from hypermarkets, competition from 24/7 convenient stores also eroding the profit margin ( 7/11, KKMart, 99Savemart, Kedai Runcit 1Malaysia, + conventional sundry shops ) this business need repeated or recurrent sales from the same group of customer , tourist contribution, i think negligible to their sales operations the high NTA is meaningless to company like TStore, unless they are developer that are selling away their assets as their final products.Not going to park my money here, there are more efficient counter to park our money
20/01/2014 10:19
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calvintaneng Passerby,
Good. Now I know the reason why people are not bothered with The Store. Anyway, since Jusco has gone up 300% and The Store has fallen 60% I think The Store Is Not A Bubble. I think it will still survive somehow. Maybe they might branch out into other development like F & N or Yeo Hiap Seng in S'pore. Who knows? By then it should return back to above RM5.00 Any counter you think safer than The Store? Whose price hasn't move much. An overlooked laggard? Please share. Thank you. By The Way, THE STORE PRICES ARE LOWER THAN 7 ELEVEN BUT HIGHER THAN HYPERMARKETS. SO IT IS IN THE MIDDLE TERRITORY. So it should do pretty well as this year is VISIT MALAYSIA YEAR 2014 & FOLLOW BY YEAR OF FESTIVAL 2015.
20/01/2014 10:44
passerby DKLS Industries Bhd.....if you like high NTA.....the cash pile is increasing, i personally think it is not the correct time yet.....
still under observation
20/01/2014 11:01
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calvintaneng I love DKSH. I bought it at Rock Bottom Price of only 42 cents years back. Mr. Market totally neglected and overlooked DKSH at 42 cents in those years. I can't buy any DKSH at over RM7.00 now.
Any more?
20/01/2014 11:05
ktsk88 Why should visitors bought things at the Store?. There are other hypermart/supermart like Tesco, Econsave also selling basic things. So what the big arguments that you talking about. How certain you are Calvintaneng that ppl will patranise Store? Because things is cheaper in Store?. How about the arguments of cost increase by electricity hiked, shortage of foreign labours, 6% GST in 2015...etc?. Won't all this contribute to higher price of basic necessities?. Then you think the Store earning will increased too and the share price?
Your arguments doesn't hold as you just mentioned all the inpending cost hikes in advising ppl in Hap Seng forum to sell Hap Seng. You really making a mockery of yourself.
20/01/2014 16:19
ktsk88 dksh is good shares and dkls is just so so. i think he is talking about dkls when it bought at around 40+ sen
20/01/2014 16:32
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calvintaneng ktsk88. no lah I never heard of dkls. dksh was traded at 42 cents in year 2009. At that time when DKSH was a BARGAIN and Nobody bothered. I love bargains. Bargains are always unpopular and overlooked. When so many people are interested in DKSH - it is no longer cheap anymore. You have to search else where for neglected counters like CEPCO & THE STORE & CYMAO.
Of course The Stone will also be impacted by rising costs. But The Store is only a transit point for foodstuff. Price is determined by Nestle Milo & Maggie Mee & Tudor Gold & Tango Chocolates. And Hup Seng biscuits for hungry stomachs. So The Store won't die as long as human stomachs go hungry three times a day. Why The Store Should Do OK in VISIT MALAYSIA YEAR 2014. 28 Million Tourists don't do their own cooking for 2 reasons: 1) Hotels don't allow cooking in their rooms. Boiling water for light snacks maybe. 2) Tourists are on holiday. And they feel happy. So why bother to cook. So no need to go to Hypermarkets to stock up on vegetables. Ready made food will do. Since The Store is located within Huge Population Density - more should trickle there. Of course there are those who prefer to pay a bit more in 7 Eleven & also to save more in Hypermarkets. Since there are 28 million tourists - the pie is big enough for all.
21/01/2014 13:25
ktsk88 Calvintaneng, you reasoning hold no waters. Tourist won't go for Maggi in the Cup, or Milo 3 in 1, etc. They go for local delicacies. Even you go to local destination for holidays, you go out for foods and not buying all those that you mentioned to prepare in hotel.
I didn't do my shopping in Store, Giant or Econsave, i do mine in Tesco/AEON/Sundry shops etc cos others located far from my housing area. So not all will subject to your arguments that The Store is most beneficial in this aspect.
21/01/2014 13:48
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calvintaneng Singaporeans always thronged THE STORE In TAMAN SENTOSA In JB Town. THE STORE Has Been There for ages. Maggie mee is only a reference to price hike. There is a wide range of goods in The Store. While traveling tourists can snack on anything they wish really.
28 million tourists equal to 1 for 1 malaysian population. The spillover effects will benefit all food & beverage sales only by degree and proximity to foot falls and access by human beings. Others are Hotels (MUI Berhad Hotels Fully Booked?) Tourism Attraction Fun Place Shopping like METROJAYA In Mid VALLEYMEGAMALL as a reference. And transport companies Car Rental Companies Air Lines Taxis Home Stay Etc Etc
21/01/2014 13:59
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calvintaneng If you are in Giant check out the excellent Tudor Gold & Tango chocolate. Can save you from heart attack and stroke. And if you are in Tesco do check out the 22 House Brand chocolates OEM by PM Corp.
21/01/2014 14:01
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calvintaneng TUDOR GOLD DARK CHOCOLATE WITH 55% COCOA CONTENT ALSO AVAILABLE IN AEON. THEY ARE THE BEST IN ITS CLASS.
21/01/2014 14:03
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calvintaneng Wow! The Store has gone up quietly from RM2.35 to RM2.96 without noise or fanfare.
25/02/2014 09:41
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calvintaneng Another Nice Discovery
THE STORE Is Selling at less than half the NTA value. Reasonable growth. Totally overlooked & neglected by Mr. Market. AND BJ CORP IS IN TOP 10 Shareholders! Another Hidden Jewel in BJ Corp's Many Valuable Assets/Companies!
03/09/2014 23:24
dickson leong sai lang this company is for long term, not for contra!! It will hit Rm10 in next five years!
14/09/2014 09:35
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calvintaneng YES! EMILY MERRILY HAPPILY IS CORRECT!
THE STORE HAS POTENTIAL TO TURN INTO A BLUE CHIP SOMEDAY! AND BJ CORP WILL BENEFIT A LOT! BJ CORP. YOU CAN BUY THE STORE OR BJ CORP!
14/09/2014 11:02
dickson leong sai lang buy tstore is better than put in FD! slowly slowly up and got dividend every year!
15/09/2014 08:14
Jolin Lai Chi Pet b'cos, nobody willing to sell at this current price. It is so undervalue!!!!!!!!!!!!!!!!!
27/01/2015 12:59
CFTrader Just avoid the store... just waste your time .. trust me ... I can't tell more because one of my parents is part of the management and it's deemed "insider" information.
04/02/2015 08:06
Jolin Lai Chi Pet nobody want to sell their good shares. The Store is the best of the best!!!!!!!!!!!
05/02/2015 22:39
27/02/2015 23:32
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calvintaneng ks55
Mulpha has been buying back shares below 30 cents. I think anything below 30 cents would be a real bargain. Mr. Lee the top boss still holding his 40 million shares bought at 46 cents.
02/10/2015 18:35
rotibaba the store worth for this price? impossible, almost 80% of business moved out selangor...
22/01/2016 20:31
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calvintaneng WOW! WOW! WOW!
Another Chun Chun Call by Calvin Tan Research On January 19th 2014 Calvin called for a buy on The Store at Rm2.35 Today, It is being taken private at a Nice Rm3.52 So price plus small dividend of 3.75% equal to a 50% Gain!! Now These Are The Stocks Recommended by Calvin Tan Research taken private 1) SUPER ENTERPRIZE Call to buy Rm1.25. Taken private Rm3.75 (UP A WHOPPING 200%) 2) KULIM Call to buy at Rm2.50. Taken private by Johor Corp for Rm4.10 (UP A NICE 60%) 3) TMAKMUR - Land of Prosperity Call to buy at Rm1.38. Taken private by Pahang Sultan at Rm1.90 (37% Profit) 4) AND NOW THE STORE Call to buy at Rm2.35 on January 19th 2014 at Rm2.35 . OFFER TO TAKE PRIVATE AT RM3.52 Plus 3.75% dividend = THE GAIN IS 50% YAHHOOOOOOOOOOOO!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Calvin Tan Research specializes in overlooked, under researched & undervalue stocks! HITTING JACK POT TIME AFTER TIME AFTER TIME!!!
28/11/2016 22:08
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calvintaneng WAHAHA!
MARKET IS DOWN. BUT THE STORE IS UP DUE TO ITS DEEP VALUE FINALLY SURFACING!!
30/11/2016 20:52
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calvintaneng Actually Rm3.52 for privatisation is way too low for such high NTA of Rm6.76
And all the Assets of THE STORE are all located throughout Cities of East & West Malaysia. Just by taking THE STORE private & break it up in piecemeal and sell them off one by one will make A HUGE FORTUNE TO THE LUCKY INSIDER!! This is indeed a very sad case! No body is interested in this TREASURE OF DEEP VALUE! All go up riding hot air balloons like IFCA, Sumatech, XOX, VSolar & other popular hot stocks of little real value!
30/11/2016 23:06
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As you can SEE from the above. In these 3 years since I first posted there are only a total of 38 comments. And not even one person clicked "like"
THE STORE qualifies as a NET NET Stock of Warren Buffet. Of course Warren later moved on the growth stock because Value Stocks were getting harder and harder to find. But Wlter Schloss stuck to Value Net Net Investing over a 40 year period. And it is now proven beyond doubt that NET NET Value Investing do give high rewards for those who buy and hold longer term.
One more thing: The latest quarter of Kulim & THE STORE both showed negative results. If we judge a company by one or two quarter earnings only then you will surely miss many stocks of Great Value.
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Discussions
Be the first to like this. Showing 16 of 16 comments
Posted by Amit Khindriya > Dec 4, 2016 01:11 PM | Report Abuse
What about CAP?
For all China companies?
Better stay away as the Accounts are manipulated. So the NTA cannot be trusted at face value. Last time there was Megan Media with con job by insiders.
Also you must check up on the quality of NTA like Hubline.
Hubline's NTA consists of rotten ships with only scrap value.
NTA based on highly real estate assets like prime lands, shopping malls, factories, shops, condos, landed houses are best! They are real estate.
As name implies these are REAL estates. REAL TANGIBLE NTA!
2016-12-04 13:32
calvin.
i feel tat you will like SMI.
another forgotten company with cash per share higher than share price...
2016-12-04 14:24
noah calvin.
i feel tat you will like SMI.
another forgotten company with cash per share higher than share price...
04/12/2016 14:24
Yes, I bought SMI before for its undervaluation.
I phoned SMI office to check on them but no forth coming answer.
So I sold and took a slight profit.
Maybe I will go attend AGM and get clearer picture next time.
So SMI is KIV
2016-12-04 15:33
Roger Lim Lets hope its the same for Bpuri
04/12/2016 14:25
Yes, I suspect Insiders want to collect more cheap BPuri shares on the quiet. I sure will love to buy more on weakness
2016-12-04 15:34
Ya...Calvin is right...i think all syndicate for mulpha, mui, mui ind, bjcorp, perisai, alam, zelan, kbunai etc want to collect lower...thats why after 4 years they still collect and now at 52 weeks lowest...LOL
2016-12-04 15:36
Ya...last time bjcorp 50c now 32c after 3 years
Last time mulpha 48c now 21c after 4 years
Last time perisai rm1 now 5c
Last time alam rm1 now 21c
LoL
2016-12-04 16:05
Posted by John Lu > Dec 4, 2016 04:03 PM | Report Abuse
Ya...last time bjcorp 50c now 32c after 3 years
Last time mulpha 48c now 21c after 4 years
Last time perisai rm1 now 5c
Last time alam rm1 now 21c
LoL
Yes ah?
Actually Calvin is looking to buy these again after GE14 Bull Run.
Hope mulpha, bj corp, perisai & alam don't go up in price yet by then. Hmmm? Except for Perisai I think I will load up on Mulpha, Bj Corp & Alam.
2016-12-04 16:07
One more thing, Koon Bee (Con bilis)
You better sell your conman corp, all flat steel & switch to DRB for the coming GE14 Bull Run.
After that just drop that name forever & change to Champion Buyer, ok?
2016-12-04 16:09
Ya...last time bjcorp 50c now 32c after 3 years
Last time mulpha 48c now 21c after 4 years
Last time perisai rm1 now 5c
Last time alam rm1 now 21c
LoL
2016-12-04 16:11
Raider wants to say a fair words on Calvin loh.....!!
Most of Calvin picks are deep deep undervaluation with big big margin of safety....a true follower of B Graham.
But u must give time for the stock to rerate mah....!!
Usually upto 2 to 3 yrs loh...!!
Calvin is not a momentum player....he is a value investors...his pick take time to rerate...but quite safe bcos of margin of safety loh..!!
2016-12-04 16:35
Posted by stockraider > Dec 4, 2016 04:35 PM | Report Abuse
Raider wants to say a fair words on Calvin loh.....!!
Most of Calvin picks are deep deep undervaluation with big big margin of safety....a true follower of B Graham.
But u must give time for the stock to rerate mah....!!
Usually upto 2 to 3 yrs loh...!!
Calvin is not a momentum player....he is a value investors...his pick take time to rerate...but quite safe bcos of margin of safety loh..!!
A BIG THANK YOU TO GREAT STOCK RAIDER!!
YES! CALVIN FOLLOWS GREAT CHAMPION SIFU DR NEOH SOON KEAN GREAT MARGIN OF SAFETY PRICIPLE!!
80% OF THE PEOPLE ARE CHASING HOT HOT MOMENTUM STOCKS OF THE DAY
HMMM?
DR NEOH CALLS THEM GREATER FOOLS!!
YES!
COMING SOON TO i3 FORUM
DR NEOH SOON KEAN ON "THE GREATER FOOL"
PLEASE STAY TUNED FOR UP COMING ARTICLE
2016-12-04 16:44
lol...
then i might be meeting you in the SMI's AGM then..
planning to go too...
just buy into this company due to its attractive valuation.
but 1 thing i can't understand is that why their investment holdings section will be making huge losses every q.
investment holdings supposed to generate income, not the other way round.
they did not care to comment on this.
gonna question them why is that so.
2016-12-04 20:26
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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
What about CAP?
2016-12-04 13:11