THE INVESTMENT APPROACH OF CALVIN TAN
Harrison - The Super Stock of Champion Johor Sifu. NTA, EPS & Dividend all Very Good (By Calvin Tan
calvintaneng
Publish date: Fri, 21 Apr 2017, 12:02 AM
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.
Hi guys,
Last week I received a call from My Johor Sifu - The Champion of Champions Among the Likes of Dr. Neoh Soon Kean, Fong Shiling, Warren Buffet & other Great Investors of Growth & Value Stocks.
He made a request to post this in i3 investors forum for the benefit of all serious long term Value Growth Investors.
The Super Stock is HARRISON Holdings
These are the salient points he messaged me
1) Current price Rm3.68. EPS is 27 sen. Translating to P/E 13.5
2) NTA Rm4.38 (Prime Prime Assets still at Old Book Value)
3) Proposed dividend is 25 sen (a jump from 15 sen last time). Translating to a dividend yield of 6.8%
4) If Harrison price goes up to Rm4.50 dividend yield is 5.5%. Still better than Bank FD of 4% now.
5) Company year in year out making 30 sen and above except for year 2014 where it disputed with custom due to some technical excise duty and settled Rm30 millions with custom department once and for all
6) The business resumed to normal from year 2015 and can easily make Rm30 millions due to nature of products such as Nestle, Dutch Lady, Coco cola products and basic neccessities like Milo & Maggee Mee.
7) Oil palm price remain high. Consumers are not really affected as most of these necessities are to be delivered to various small towns in Sabah and Sarawak.
8) It is recession proof business as it's turnover merely relate to basic necessities
9) Its history dates back to British colonial times. Name was Harrison crossfieldbhd. That means most of the estates in Sabah/Sarawak rely on its delivery of basic necessities.
10) There is a saying estate workers in Sabah have money but if Harrison does not deliver basic necessities in time, they will die of hunger.
11) Before dividend proposal was announced price hovers around Rm3.40 to Rm3.50. I don't think the effect of dividend has been priced in. I bought around Rm2.60 to Rm2.70. The effect will be priced in once it cross Rm4.10
Company Announcements
OTHERS HARRISONS HOLDINGS (MALAYSIA) BERHAD ("The Company" or "HHMB") - PROPOSED FINAL SINGLE-TIER DIVIDEND OF 25 SEN PER ORDINARY SHARE IN RESPECT OF THE FINANCIAL YEAR ENDED 31 DECEMBER 2016
| HARRISONS HOLDINGS (MALAYSIA) BERHAD |
| Type | Announcement |
| Subject | OTHERS |
| Description |
HARRISONS HOLDINGS (MALAYSIA) BERHAD ("The Company" or "HHMB")
- PROPOSED FINAL SINGLE-TIER DIVIDEND OF 25 SEN PER ORDINARY SHARE IN RESPECT OF THE FINANCIAL YEAR ENDED 31 DECEMBER 2016
|
|
The Board of Directors of the Company is pleased to announce that the Company intends to seek the approval from its shareholders for Proposed Final Single-Tier Dividend of 25 sen per ordinary share in respect of the financial year ended 31 December 2016 at the forthcoming Annual General Meeting. The dividend entitlement and payment dates will be announced in due course. This announcement is dated 12 April 2017. |
|
These were the sms he made to me while I erased other calls or past sms from my phone to make space for him.
Calvin comments:
In simple, straight to the point language My Johor Sifu messaged me. Then I replied, "I haven't bought any Harrison yet, how to post?" He replied, "Then go get some"
"Ha! I bought so many other shares until no more money left now. Waiting for cash from one house I just sold", I answered.
He said, "You should have sold your house last year and dump into the market now so hot!" "Ha how many lots do you want? At the closing price of Rm3.67. You will save on broker's commission?" "Ok, I hutang first, please let me have 3,000 Harrison shares at Rm3.67. I will pay you later.", I replied.
Note:
Now better keep your promise- Johor Sifu, You just sold me 3,000 Harrson shares at Rm3.67 on credit with zero commission & zero interest, Ok?" Hahaha! So good! So happy indeed. He's putting monies into my pocket. I think Harrison is a sure fire winner!
Now let's Calvin share more about Harrison Holdings Bhd
This was a nostalgic share we both bought in year 2006, I think, around Rm1.40. About the same time My Johor Sifu also mentioned Pintaras Jaya at Rm1.40. Pintaras Jaya powered up to Rm7.00 & split later (Up 500%)
However, I had taken profit on Harrison and had forgotten about it. Until My Johor Sifu messaged me.
Harrison is going to increase its Dividend payout from 15 sen to 25 sen.
Something's brewing there. Just like last time Tomypak at 40 sen suddenly declared a 4 sen dividend unexpectedly (Tomypak later surged to Rm4.00 and spilt (Up 1,000%)
Another stock was Daibochi which Dr. Neoh bought 1 million shares. We also bought at that time around 60 sen. Why? Daibochi manufactures plastic food packaging for Nestle.
So when we entered GIANT SUPERMARKET we SAW Daibochi everywhere.
A Sea of Green in Milo
A Sea of Yellow in Maggie Mee
A Sea of Red in Kit Kat
Everywhere is Daibochi. Daibochi made us tonnes of monies as its price followed Nestle's growth.
Ha! Now It is Harrison's Turn
Being the major Controlling Distributor of Milo, Maggee & other foodstuff for Nestle in Sabah & Sarawak - Harrison has captured this recession proof market by being Its Distributor throughout the towns, villages & kampungs of East Malaysia.
And Coco cola which Warren Buffet owns substantial portion, is also being distributed by Harrison. And wide range of health care & personal hygiene products also pass through Harrison many distribution channels & warehouses!
In USA Berkshire owns lots of Johnson & Johnson and Proctor & Gamble shares which are daily necessities. So is Harrison - it distributes recession proof necessities.
After many decades history Harrison's business is fully entrenched & penetrate & saturate all areas of Sabah & Sarawak.
It is like the arteries that bring blood to the very heart of East Malaysia. Without which it cannot survive just like blood circulates and bring nutrients & oxygen to every part of our human bodies.
So this is the type of business that Warren Buffet said, "Even a fool can run it"
And it runs so well that even if the stock market closed tomorrow and don't open for the next 10 years, we think Harrison will still do fine. Just like Wrigley Chewing gum has a 100 year history & survived - so will Harrison in East Malaysia. After all Harrison Crossfield has a 100 year history already.
Just like PIE, Harrison from now will be a Prime Dividend Stock.
With Earnings of Rm29 millions and Cash Payout of 25 sen it is about Rm17 millions payout. There is still a good yearly surplus of Rm12 millions left over after dividend payout.
Question is?
Will Harrison follows Dutch Lady's foot print by Increasing Dividends as Retained Earnings Increased. (Remember that Dutch Baby changed name to Dutch Lady. Earnings increased followed by Progessive Dividend Increment. Thus propelling Dutch Lady share price from Rm4.00 to Rm40.00 and more - up 1,000%)
Will Harrison follow Dutch Lady Into BLUE CHIP TERRITORY?
Only Time Will Tell
MY Johor Sifu thinks Harrison's Fair Price is Rm4.50.
He also said that the recent hype on logistic stocks have overlooked Harrison being a Huge Logistic SetUp with Warehouses & Distribution Centers Throughout East Malaysia!
So from Rm3.68 to Rm4.50 there is about 20% discount. From Rm3.68 to Rm4.50 there is 82 sen upside. He always has a very reasonable expectation.
Calvin thinks Rm4.50 is a sensible price, but it should cross Rm5.00 just like Scientex & Pintaras Jaya with so Solid Growth Story!!
But who knows? Last time we bought Ajinomoto at Rm2.50. To my surprise Ajinomoto rose to a high of Rm18.38 (Up 635% ). At this price Johor Sifu has switched to Harrison with undervaluation and far more potential for upside.
For Now All VALUE INVESTORS WILL ACCUMULATE THIS COMING SUPER STOCK CALLED HARRISON.
(Value Investors hold stocks for 10 or more years like Warren Buffet. So while DR. Neoh Soon Kean is the Benjamin Graham of Malaysia my Johor Sifu could be called the Warren Buffet of Malaysia. He buys and holds for very long time.). So 3 to 7 Baggars are very common. And 10 Baggars or more also occurred from time to time.
Regards,
Calvin Tan Research
Singapore
Note: My Johor Sifu is the Top 30 Shareholders of Harrison. He was also Top Holder in Ajiya with Dr. Neoh Soon Kean. He already sold out his Ajiya shares for a nice Rm1.5 million profit.
Do you want to know his name?
One day his name will appear beside Fong Shiling(ColdEye) & Dr. Neoh Soon Kean
For now I don't have his permission to disclose.
Further note:
According to Johor Sifu a defensive Stock like Harrison with only 13.5 P/E should trade at at least 15 to 20 P/E in the likes of Nestle & Dutch Lady.
So expect a rerating due to its increasing Dividend Yield Now.
RHB Investment Bank has included Harrison as one of its Jewels for Year 2017. Its modest target price for Harrison at Rm3.92 will soon be breached - only a matter of time!
Related Stocks
| Chart | Stock Name | Last | Change | Volume |
|---|
Market Buzz
More articles on THE INVESTMENT APPROACH OF CALVIN TAN
CALVIN TAN SAY, THANK YOU 9 MILLION TIMES FOR 9 MILLION PAGE VIEWS IN i3 INVESTORS' FORUM!
Created by calvintaneng | May 10, 2024
TSH RESOURCES (9059) The Events Yet Ahead. And They are Extremely Exciting, Calvin Tan
Created by calvintaneng | May 04, 2024
MKHOP (5139) What Is Its Current Forward P/E and Intrinsic Value, Calvin Tan
Created by calvintaneng | May 02, 2024
EPF & i FAST Funds (Singapore) Are Now in Top 30 Holders of TSH Resources, Calvin Tan
Created by calvintaneng | Apr 29, 2024
AFTER BPLANT TAKEN PRIVATE BY LTAT WE FINALLY SEE ITS REAL VALUE, Calvin Tan
Created by calvintaneng | Apr 27, 2024
Discussions
1 person likes this. Showing 37 of 37 comments
the evolution of a value investor to a growth and value investor.
Calvin good job.....
but Harison no growth one ah.....There is Bison buffalo (newly listed ) eating Harison market share.
2017-04-21 00:34
Posted by stockmanmy > Apr 21, 2017 12:34 AM | Report Abuse
the evolution of a value investor to a growth and value investor.
Calvin good job.....
but Harison no growth one ah.....There is Bison buffalo (newly listed ) eating Harison market share.
Good,
I have always bought in Value Growth stocks if price is within Value.
See Padini at Rm1.60. This week after 2 years it gave me another 100% chun chun jack pot when it hit Rm3.20!!
As for Bison I visited a few of their book/mag/titbits/what not?
outlets in several shopping malls like Giant, Aeon, Tesco & others.
I think only small impact on 7 Eleven.
For Harrison the Big Whale it hardly even make a tiny weeny dent.
See Harrison website
http://www.bursamalaysia.com/market/listed-companies/company-announcements/5079149
2017-04-21 00:41
my apologise, not Bison....another Sabah company recently listed in Harison business model.
2017-04-21 00:46
Buffett taking megamillion-dollar beating on IBM
value investors lost their touch in the new age.
2017-04-21 00:47
Hi guys,
Got to go sleep now. Tomorrow I go cross country driving.
So see all later.
Remember,
Coming up Next Will Be
A SEARCH INTO THE DEEP STRATEGIC VALUE ASSETS OF HARRISONS.
Its True Current Value How Much?
Last time Calvin bought CMSB at Rm2.40. At that time CMSB was selling at Deep Discount to NTA. As time proved CMSB's latent Asset Value Emerged & CMSB rose up over Rm10.00 into Blue Chip territory & split!
So stay tuned...
Good night
ZZZZzzzz,,,,....
2017-04-21 01:01
half of America are idiots.
gohkimhock > Apr 21, 2017 12:51 AM | Report Abuse
so when are you going to replace Donald Trump as POTUS?
2017-04-21 01:08
Good morning to all who visit here,
My Johor Sifu is an avid reader of Dr. Neoh's Weekly Investment Articles in the Malay Mail during his student years in UM, PJ. - circa 1970s/1980s
He would Cut Out the Writings of Dr. Neoh & studied over every detail & figure over and over again by heart.
Dr. Neoh's 3 yard sticks approach are:
1) The Stock should have high NTA. As a margin of safety.
This was how when Dr. Neoh recommended KPS around 45 sen in his monthly Digest in year 2006.
We both loaded up. This turned out to be a 10 baggar when it hit a high of Rm3.94 one or two years later!! At that time KPS was selling at 45 sen with High NTA over Rm2.00.
2) EPS (It should have good earnings per share.
3) A Reasonable Dividend
Now Harrison has increased its dividend the stock looks even more atrractive as My Johor Sifu has retired from being an auditor long ago. He lived solely from dividend yields - 6 figures to 7 figures? just by dividend alone?
So by ALL 3 Yardsticks HARRISON IS AN OUTRIGHT BUY!
2017-04-21 07:03
calvin god so many 10 baggers, but still at here helping us. im sure one day u will be standing beside fongsiling, neohsk, and johor sifu
2017-04-21 08:47
Calvin, you are not familiar with Harrison.
You donno what happen on the Kastam incident?
You donno why Kastam go after Harrison?
You donno what Harrison has been done until it get caught by Kastam?
You donno what is the impact after it being caught by Kastam
If you know all these, then you won't buy Harrison, as it will never go back to its glory times.
2017-04-21 08:48
Albukhary Calvin, you are not familiar with Harrison.
You donno what happen on the Kastam incident?
You donno why Kastam go after Harrison?
You donno what Harrison has been done until it get caught by Kastam?
You donno what is the impact after it being caught by Kastam
If you know all these, then you won't buy Harrison, as it will never go back to its glory times.
21/04/2017 08:48
Calvin replies:
Look at Sifu's Point no. 5
5) Company year in year out making 30 sen and above except for year 2014 where it disputed with custom due to some technical excise duty and settled Rm30 millions with custom department once and for all
We already discussed this. So it's settled
2017-04-21 08:55
Look closely at who are the directors of Harrison. One in particular, if u know u will not touch
2017-04-21 08:55
Surewin123 harrison RM4 how to buy?
21/04/2017 08:11
If you have extra Cash in Bank FD. And not going to use it in the foreseeable future. The best investment is to buy Harrison below Rm4.00 & keep it long term.
Just like Scientex giving increasing dividend every year with share price rising in tandem or like Dutch Baby to Dutch Lady last time
2017-04-21 08:58
If you are really good you should have called a BUY when it was trading at around 2.70-3.20
2017-04-21 08:58
this stock 10 years also same price, only got dividend. for those who just want a bit dividend can buy only,for those thinking of price appreciation can forget about it
2017-04-21 08:58
chkhooju If you are really good you should have called a BUY when it was trading at around 2.70-3.20
21/04/2017 08:58
Please note:
This is not Calvin's call
This is what My Johor Sifu asked to share
See he is transparent and already bought Harrison
Read:
"11) Before dividend proposal was announced price hovers around Rm3.40 to Rm3.50. I don't think the effect of dividend has been priced in. I bought around Rm2.60 to Rm2.70. The effect will be priced in once it cross Rm4.10"
Johor Sifu bought at Rm2.60 to Rm2.70
He came out to tell all because Harrison has settled its problems and now ready to go up another level.
So from NOW Harrison will perform.
2017-04-21 09:04
Apollo Ang this stock 10 years also same price, only got dividend. for those who just want a bit dividend can buy only,for those thinking of price appreciation can forget about it
21/04/2017 08:58
The increase of dividend from 15 sen to 25 sen means Management is NOW confident that Harrison is on firm footing & able to accelerate earnings (retained).
Surplus earnings will now translate into even higher and higher dividends in coming years.
On this count Dutch Lady (solely by way of DIVIDENDS) propelled from 40 sen to over Rm4.00
So DIVIDEND do play a part in Share Performance
Funds like Public, ASB & others love them!
2017-04-21 09:08
pputeh Look closely at who are the directors of Harrison. One in particular, if u know u will not touch
21/04/2017 08:55
We have studied this objection.
The Owners/Directors did not siphon monies but also Got their fair share solely from Dividend Payout.
This is very fair to all parties.
2017-04-21 09:13
supersaiyan3 I don't mean its a bad pick, but point 7-11 is totally wrong.
21/04/2017 09:21
Please explain why wrong?
Warren Buffet bought simple stocks like
McDonald - fast food
Coca cola - popular drink
Johnson & Johnson - healthcare
Proctor & Gamble - hygiene
Wrigley Chewing Gum
Cadbury, Kraft food & hershey - chocolate & biscuits
And Berkshire is No. One Big World Fund
2017-04-21 09:29
Calvin, what u think of OSK? current share price only 50% of NTA. And PE only 8x. worth investing?
2017-04-21 09:30
Posted by speakup > Apr 21, 2017 09:30 AM | Report Abuse
Calvin, what u think of OSK? current share price only 50% of NTA. And PE only 8x. worth investing?
According to OSK/RHB Iskandar Top Boss Mr. Law OSK is undervalue. The Boss of OSK is a conservative guy. So this will be a deep value asset play like DRB (DRB also got deep discount to Book Value)
2017-04-21 09:32
Thank you all for visiting
I am going for a long drive whole day.
Can only view from iphone
Please keep the conversation alive.
All productive questions/answers are welcome.
Many thanks & many happy returns
SEE all later
BON VOYAGE!!
2017-04-21 09:36
so this stock can't goreng lo? can only long term appreciate like buffet style 25% p.a? =(
2017-04-21 09:49
i having coffee break.
harrison already sold golden hope plantation to sime darby
now it is mainly involved with distribution and logistic work all over East Malaysia.
It has a total monopoly there with long history.
Barrier to entry will be difficult to anyone with all the strategic facilities and connections done through many decades.
So it is Has Rock Solid Monopoly and Defensive against competition.
As it distributes milo, maggee mee, coco cola and daily necessities It is also
RECESSION PROOF!
Better buy as much as you can before other Analysts or Research Houses discover this.
This Harrison is a stock even Warren Buffet would like to buy some.
The identical products like
Coca cola
Kraft
Nestle
Proctor and Gamble
Johnson and Johnson
are all found inside Harrison's Distributorship.
NOW THE CROWNING OF IT ALL
IS THE JUMP OF DIVIDEND FROM 15 SEN TO 25 SEN
A JUMP OF 60% EXTRA DIVIDEND
I AM SURE DIVIDEND BASED FUND WILL CONVENE MEETING AND BUY HARRISON LATER
SO WITH ONLY 18.2% FREE FLOAT SHARES LEFT
PRICE WILL CROSS RM4.00 IN NO TIME!!
BUY NOW WHILE THE BUYING IS STILL CHEAP!
2017-04-21 11:29
this counter though it is good but you keep mentioning dividend jump, is this year dividend payout is consistent? Is this company has fixed dividend policy like HAIO, Padini etc
2017-04-21 16:25
John Lu Rank 223 teach people to invest. Can u imagine
-------------------------------------------------
lol ...
2017-04-21 17:22
a rising tide lifts all boats....even this dead stock Harison and calvin pick.
of course one can wait to be lifted like a nice lady or one can do the lifting, be first in line in the rising tide.
"What seems too high and risky to the majority generally goes higher...and that applies to Gdex, Dnex, Vitrox, and the like.
This applies to good shares, , that is objective
what is high and what is intrinsic valuation? That is subjective
in this environment,
buy good shares that seems too high and risky to the majority
2017-04-21 18:40
Hi guys,
Over the past few days JOHOR SIFU again messaged me
MORE SALIENT POINTS ON HARRISON
1) "I see, I think quite a great support at this level and will move up when it approaches dividend ex-date
2) "If anybody with Rm100 million, they will not jump into this business as margin is rather thin. They will prefer doing property business which is one off"
3) "Put it this way, nature of this type has high barriers of entry"
4) "Margin no doubt is thin like YeeLee, DKSH, but collection normally sure because if the retailers refuse to pay, they will not be able to get necessary supply"
5) "It is a good sign the management up its dividend pay out from 150 to 250 without any demand from shareholders in view of their suffering year 2014 and 2015 when company was fined by custom department (2014) and fire incident in one of its warehouse (2015). If nothing unfortunate happen, I think the company will continue its dividend payout at this amount"
6) "The amount must also commensurate with the level of share price"
7) "As it still has plenty of Cash. Above Rm80 millions Cash or even higher in the Company."
8) "Cash as standby for emergency use, in fact is excessive, it has no problem of maintaining same level of dividend of 250"
Calvin comments:
As an experienced auditor with careful scrutiny of accounts JOHOR SIFU has pointed out all these salient facts.
There is no guessing game here. Real, down-to-earth investment in Growth - Dividend based Stock like Harrison for longer term.
As he thinks HARRISON's Fair Value is Rm4.50 so as price is still below Rm4.00 it will be worth buying some if you have not done so.
2017-04-23 20:30
Si fu calvin, any idea on Prkcorp?
Theme park will be opened on this june.
Tq.
2017-04-23 20:58
Newbie92,
I haven't check on the Theme Park yet. But at current price level Perak Corp is inexpensive.
2017-04-23 21:03
15 years ago Harrison was Rm1.30
Now Rm5.42
Next super stock is Tsh resources
2022-07-22 20:22
Post a Comment
Featured Posts
Don't Miss Out: Up to USD1,000 in Our Lucky Draw!
MQ Trading Signals
Time
Signal
Duration
Type
2024-05-13 09:00:00
TURTLE SYSTEM 20
5 Mins
SELL
2024-05-13 09:00:00
TURTLE SYSTEM 55
5 Mins
SELL
Apps
Top Articles
1
Koon Yew Yin's Blog
2
4
RHB Investment Research Reports
5
Future Tech
6
save malaysia!
7
8
MQ Market Updates
#
Stock
Score
Daily Stocks
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Featured Advertisers / Partners
Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
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....
Op3rs
Geng wo johor sifu.. Calvin when will you appear beside FongSiLing, Dr Neoh SK and johor sifu?
2017-04-21 00:30