Dear Fellow Investors in i3 Forum

 

What is a Hidden Gem?

 

A hidden gem is often not recognized until it becomes apparent & popular. For example uncut diamonds

Many of Calvin's stock picks looked like "Trash" to you guys at one time or another. Calvin follows Sifu Walter Schloss stock picking approach buying into Deeply Discount Stocks which are neglected, unloved & overlooked. If fact, Walter seldom told his investors what he bought for them or else they might get a shock as they were unpopular & even called "trash" by the investing crowd of his times. 

So today in Malaysia not many want anything to do with "TRASH" STOCKS.

May I tell you by illustrations that "One Man's Trash is Another Man's Treasure"

 

1) Uncut Diamond

 

Jaks at 40 sen was a hidden gem. Prestar at 46 sen was hidden gem. So was Rcecap at 27.5 sen & Waseong at 72 sen. Now already up 100% to 300%. So no longer cheap.

 

The raw jades dug out from the hills of Burma were unloved hidden gem. Once cut and shipped to Hong Kong & displayed in Glass Show Cases? Expect to pay a fortune. So the same applies to hot hot popular stocks. Many paid a fortune for them. Like Jaks over Rm1.60, Prestar over Rm1.30, Waseong over Rm1.60 & RceCap over Rm1.90.

But to make good monies you MUST BUY THEM CHEAP when they are still unwanted, unloved & yet to be discovered!!

QUESTION NOW IS. IS TA ENTERPRIZE A HIDDEM GEM?

Calvin presents you the facts & figures. Let's SEE if you are able to discern and decide.  Let everyone study & make your own conclusions then

 

TA ENTERPRIZE - ITS SALIENT FACTORS

1) AT 50.5 SEN Selling at 66% Discount to NTA of Rm1.45 It meets Ben Graham Margin of Safety (Ben only ask for 30% discount)

 

2) A LOOK AT ITS NTA CONSISTS OF ASSETS IN LANDS, RESORTS, HOTELS, SHOPHOUSES, OFFICES AND OTHER REAL ESTATES.

Let's Go to both TA & TAGB Properties Owned

Let's take TAGB (TA is Top Owner of TAGB)

Refer to Year 2016 Annual Report of TAGB

 

Listed are Top 10 Property Assets

 

List of Material Properties Held By TA GLOBAL BERHAD GROUP AS AT 31 DECEMBER 2016

 

No. Location Description Existing Use Date of Acquisition Approximate Age of Buildings (years) Carrying Value RM

 

1 Damansara Avenue, Bandar Sri Damansara, 52200 Kuala Lumpur. Freehold Commercial Land Area : 1,707,734 sq. ft Land Held for Development 20/07/2005 - 174,574,082

 

2 Menara TA One, 22, Jalan P. Ramlee, 50250 Kuala Lumpur. Freehold Menara TA One 37 Storey Office Building Gross Floor Area : 418,502 sq. ft. Land Area : 44,057 sq. ft. TA Corporate Head Office and Rental Income 07/08/1995 20 184,200,073

 

3 Bandar Serendah, Daerah Ulu Selangor, Selangor Freehold Commercial Land Area : 11,696,146 sq. ft Investment Property 13/2/14, 20/3/2015 - 160,530,749

 

4 Lot E, Block 7, District Lot 185, Land District 36, Plan 22865, West Georgie, Vancouver, Canada Freehold FortisBC Centre 24 Storey Office & Commercial Building Gross floor Area : 400,000 sq. ft. Investment Property with Rental Income 11/08/1995 25 197,453,006

 

5 27 O'Connell Street 2000, Sydney, Australia. Freehold Radisson BLU Plaza Hotel 363 Rooms, 5-Star Gross Floor Area: 301,392 sq. ft. Land Area: 18,514 sq. ft. Property with Rental Income 08/12/1997 17 268,645,653

 

6 205 Collins Street, Melbourne, Victoria 3000, Australia. Freehold The Westin Melbourne 262 Rooms, 5-Star Gross Floor Area: 269,098 sq. ft. Land Area: 32,292 sq. ft. Property with Rental Income 15/12/2008 17 371,953,275

 

7 No. 387, Qianjin Zhong Road, Kunshan, PRC 215300 Leasehold (Expiring on 29/6/2043) 387 Rooms, 5-Star Gross Floor Area: 400,611 sq. ft. Land Area: 90,654 sq. ft. Property with Rental Income 28/01/2011 11 172,647,836

 

8 20 Merchant Road, Singapore 058281 Leasehold Swissotel Merchant Court 476 Rooms, 4-Star Area 42,358 sq. meter Property with Rental Income 30/11/2009 18 583,643,125

 

9 509 Patak Road, Karon Beach, Phuket, Thailand. Freehold Mövenpick Resort & Spa 300 Rooms, 5-Star Gross Floor Area : 654,908 sq. ft. Land Area: 891,553 sq. ft Property with Rental Income 01/06/2012 29 350,523,764

 

10 1408 Anzac Parade, Little Bay, New South Wales, 2036 Australia. Freehold Residential Land Land Area: 1,463,892 sq. ft. Land Held for Development 30/05/2014 - 545,707,410

 

Note: The list of properties above shows the particulars of the top 10 properties in terms of highest net book values as at end of the financial year

 

OF THE 10 TOP PROPERTIES LISTED IN YEAR 2016 ANNUAL REPORT 

7 GOT RENTAL INCOME

2 ARE FOR DEVELOPMENTS:

i) BANDAR SRI DAMANSARA has now gone into construction of ATIVO CONDOS. Fact sheet shows that 50% has been Sold (For Condos just selling 40% cost is fully recovered. The rest will be very good profit) And blessed with a New Upcoming MRT nearby ATIVO will now be hot property in Bandar Sri Damansara

ii) Anzac Parade is in NSW, Australia

One more Commercial Lands as Investment in Serendah. Will benefit from Proton City!

 

THE ABOVE ARE TOP 10 ASSETS OWNED BY TA & TAGB

To SEE more complete & cmprehensive list we go back to Year 2011 AR

 

LIST OF PROPERTIES HELD BY TA GLOBAL BERHAD GROUP AS AT 31 JANUARY 2011

 

Location Description Existing Use Date of Acquisition Approximate Age of Buildings (years) Book Value (ACC) RM

 

1 Lot No 653, Mukim of Kluang Freehold Mixed Development Land Area : 4,144,999 sq. ft Land Held for Development 18/11/1994 - 7,520,991

 

2 Lot 2463, GM1783, Mukim of Batu, District of Kuala Lumpur Freehold Agricultural Land Area : 122,493 sq. ft. Land Held for Development 28/11/1994 - 2,050,92

 

3 2/3 of Lot 1580, EMR. 6715, Mukim of Batu, District of Kuala Lumpur Freehold Agricultural Land Area : 132,037 sq. ft. Land Held for Development 31/10/1994 - 2,951,123

 

4 1/3 of Lot 1580, Geran Mukim No 3602, Mukim of Batu, District of Kuala Lumpur Freehold Agricultural Land Area : 66,019 sq. ft Land Held for Development 7/2/2005 - 4,544,805

 

5 P T No 981, H.S.(D)1690, Mukim of Tras, Daerah Raub, Pahang Leasehold (Expiring on 4/12/2041) Residential Land Area : 72,387 sq. ft. Idle 03/06/1994 - 227,323

 

6 Idaman Residence 8, Jalan Law Yew Swee, 50250 Kuala Lumpur Freehold 18 units Condominium Built-up Area : 498,848 sq. ft. Condominium Held for Sale 26/2/2009 2 16,606,16

 

7 Lot 25 & 26, Section 58, Mukim and District of Kuala Lumpur Freehold Commercial Land Area : 43,496 sq. ft. Land Held for Development 31/07/1991 - 21,953,867

 

8 Lot 77, Section 58, Mukim and District of Kuala Lumpur Freehold Residential Land Area : 11,171 sq. ft. Land Held for Development 01/12/1995 - 7,876,677

 

9 Geran 27052, No Lot 174 Seksyen 57, Bandar Kuala Lumpur Freehold Residential Land Area : 44,192 sq. ft. Land Held for Development 19/10/2004 - 38,529,321

 

10 Damansara Idaman/Villas Grant No. 5963, Lot 2806, Mukim of Sungai Buloh, District of Petaling Freehold Mixed Development Land Area : 102,886 sq. ft. Residential Bungalow Projects under Development 22/01/1996 - 10,548,373

 

11 PT11253 - 11258, Mukim and District of Klang, TA Industrial Park Freehold 6 units Shophouses Land Area : 9,624 sq. ft Shophouses Held for Sale/Rent. 8/9/1993 10 681,583

 

12 PT 7346, 7347, 7348, 7349 Mukim of Serendah, District of Ulu Selangor Freehold Industrial Land Area : 386,059 sq. ft. Land Held for Resale 3/10/1992 - 3,400,509

 

13 PT 7137 Mukim of Serendah, District of Ulu Selangor Freehold Industrial Land Area : 87,000sq. ft. Land Held for Resale 3/10/1992 - 767,354

 

14 PT 7135, 7138, 7139, 7503 Mukim of Serendah District of Ulu Selangor Freehold Industrial Land Area : 261,154 sq. ft. Land Held for Resale 29/08/1992 - 2,111,184

 

15 Geran 15376, Lot 421, Mukim Kuala Lumpur Freehold Residential Land Area : 119,787 sq. ft Land Held for Development 27/7/2005 - 3,623,198

 

16 HSD 113435 PT 34081 & HSD 113436 PT34082, Mukim Sungai Buloh, Daerah Petaling, Negeri Selangor Freehold Commercial Land Area : 937,157 sq. ft Land Held for Development 20/5/2005 - 86,098,129

 

17 HSD 113426 - HSD 113433 & PT34072 - PT34079, Mukim Sungai Buloh, Daerah Petaling, Negeri Selangor Freehold Commercial Land Area : 1,156,720 sq. ft Land Held for Development 20/7/2005 - 117,350,423

 

18 Geran 27879, 26388, 26389, 28503-28505, 28508-28510, 37038-37040, 37034, 37037, 35373, 35374, 27619, 29013, 29017 & H.S.(D) 113001, in Seksyen 67, Mukim and Bandar of Kuala Lumpur Freehold Commercial Land Area : 129,888 sq. ft Land Held for Development 16/9/2005 - 85,417,964

 

19 H S (D) 12959, P T No 2910, Mukim of Pasir Panjang, District of Port Dickson Freehold 1 unit Townhouse Gross Floor Area : 1,367 sq. ft. Property Held for Internal Use 11/01/1995 8 93,854

 

20 Lot 11502, H.S(D) 52730, Mukim of Damansara, District of Petaling Freehold 3 Storey Shop-Office Gross Floor Area : 5,166 sq. ft. Property with Rental Income 18/08/1994 17 693,93

 

21 HS(D) 88660, PT No 13638, Mukim of Damansara, District of Petaling, Subang Business Centre Freehold 3 Blocks of 7 Storey Office Built-up Area : 47,146 sq. ft. Properties for Internal Use and with Rental Income 06/04/1995 14 7,846,353

 

22 Lot 24552, Section 20, Bandar Serendah, District of Ulu Selangor, Selangor Darul Ehsan Freehold Area : 36,167 sq. ft Own Use 15/2/2007 - 1,116,921

 

23 Geran 42988, 42989, 42990 in section 57, Town & district of Kuala Lumpur Freehold Area : 30,710 sq. ft Land Held for Development 22/1/2007 - 11,909,906

 

24 Geran Mukim 284, Lot 677, Mukim Empang, Daerah Hulu Langat, Negeri Selangor Freehold Area : 137,487 sq. ft Land Held for Development 25/7/2007 - 12,375,355

 

25 Geran 35222 Lot No 212 & Geran 29408 Lot No 211 Seksyen 89A Daerah and Bandar Kuala Lumpur with one and a half storey house building Freehold Area : 34,330 sq. ft Land Held for Development 28/8/2007 - 18,629,354

 

26 Geran 29264 Lot No 203 Seksyen 89A Daerah and Bandar Kuala Lumpur with one and a half storey house building Freehold Area : 26,299 sq. ft Land Held for Development 24/6/2008 - 15,862,890

 

27 Lot PT 22, HS(D) 63, Mukim and District of Kuala Lumpur Leasehold (Expiring on 24/3/2073) Residential Land & Building Gross Floor Area: 64,541 sq. ft Land Area : 55,694 sq. ft. TA Official Guest House 24/11/1993 13 21,213,136

 

28 Lot 37716 PN 10009 , Mukim and District of Kuala Lumpur Leasehold (Expiring on 26/3/2073) Residential Land & Building Gross Floor Area : 8,342 sq. ft. Land Area : 32,725 sq. ft. Property with Rental Income 30/03/1994 26 4,895,024

 

29 Menara TA One Lot 1261, G.39187, Section 57, Mukim and District of Kuala Lumpur Freehold 37 Storey Office Building Gross Floor Area : 418,502 sq. ft. Land Area : 44,057 sq. ft. TA Corporate Head Office and Rental Income 7/8/1995 14 203,759,267

 

30 Terasen Centre Lot E, Block 7, District Lot 185, Land District 36, Plan 22865, West Georgie, Vancouver, Canada Freehold 24 Storey Office & Commercial Building Gross floor Area : 400,000 sq. ft. Investment Property with Rental Income 11/08/1995 19 176,608,526

 

31 Aava Whistler Hotel, 4005, Whistler Way, Whistler, B.C. Freehold 193 rooms, 4 Star Hotel Gross Floor Area : 96,499 sq. ft. Land area: 110,355 sq. ft Property with Rental Income 4/9/2008 14 171,028,496

 

32 Radisson Plaza Hotel 66, Pitt Street, Sydney, Australia Freehold 363 Room, 5 Star Hotel Gross Floor Area: 301,392 sq. ft. Land Area: 18,514 sq. ft. Property with Rental Income 08/12/1997 11 248,824,677

 

33 Westin Hotel, State of Victoria, Australia Freehold 262 Room, 5 Star Hotel Gross Floor Area: 269,098 sq. ft. Land Area: 32,292 sq. ft. Property with Rental Income 15/12/2008 11 433,013,452

 

34 587, West 17th Avenue, Vancouver, B.C. Freehold Residential detached Gross Floor Area: 2,576 sq. ft. Land Area: 4,023 sq. ft. Property with Rental Income 3/5/2010 88 4,876,068

 

35 1107-638 Beach Crescent, Vancouver West, B.C. Freehold Condominium Gross Floor Area: 1,030 sq. ft. Property with Rental Income 27/2/2010 2 2,679,109

 

36 402-610 Granville Street, Vancouver, B.C. Freehold Condominium Gross Floor Area: 865 sq. ft. Property with Rental Income 27/2/2010 2 1,479,086

 

37 20 Merchant Road, Singapore 058281 Swissotel Merchant Court, Singapore-4 star hotel with 476 rooms. Area 42,358sq.m Investment Property 30/11/2009 12 607,279,65

 

TOTAL:           RM 2,356,444,983  (NOTE: BY YEAR 2011 TAGB GOT RM2.35 BILLIONS WORTH OF ASSETS.  AS OF NOW IN YEAR 2018 (7 YEARS HAVE PASSED WITH SYNCHRONISED REAL ESTATE BOOM IN MALAYSIA, HONG KONG, CANADA, AUSTRALIA). HOW MUCH THEY HAVE APPRECIATED IN REAL TIME VALUE?

 

NEXT YEAR IN 2012 TAGB ADDED 3 MORE PROPERTIES TO MAKE IT 40

See one from China

39 No. 387, Qianjin Zhong Road, Kunshan, PRC 215300 Leasehold (Expiring on 29/6/2043) 387 Room, 5 Star Hotel Gross Floor Area: 400,611 sq. ft. Land Area: 90,654 sq. ft. Property with Rental Income 28/1/2011  Rm182,841,695

 

TOTAL COMBINED ASSETS VALUE RM2.57 BILLIONS (Maintained at Status Quo Prices or Unchanged)

 

BY YEAR 2013 TAGB ASSETS ADDED 3 MORE UNITS TO 43

2 ARE FROM THAILAND

See

42 509 Patak Road, Karon Beach, Phuket, Thailand Freehold 300 rooms, 5 Star Hotel Gross Floor Area : 654,908 sq. ft. Land area: 891,553 sq. ft Property with Rental Income 01/06/2012  RM 271,058,930

 

509 Patak Road, Karon Beach, Phuket, Thailand Freehold 1 residence Built-up Area : 1,399 sq. ft. Property Held for Resale 01/06/2012 7  RM160,009

 

THE MOVENPICK HOTEL WAS PURCHASED WHEN RINGGIT WAS STILL STRONG. AND WITH THE CRASH OF CRUDE OIL THAIBATH WENT Up 30% AGAINST THE RINGGIT. SO THE PURCHASE WAS CHUN CHUN. KUDOS TO TA (TONY AND ALICIA FOR GREAT FORESIGHT AND BUSINESS ACUEMENT!!)

 

BY YEAR 2014 THE LIST OR PROPERTIES HAVE GROWN FURTHER. ACCOMPIED BY HIGHER BORROWINGS

AND SINCE THE COMPLETE LIST DEEMED TOO EXHAUSTIVE AS A BURSA RULE ALLOWED ONLY TOP 10 PROPERTIES ARE LISTED

THIS IS A MISTAKE!!

BURSA AND SC SHOULD REQUIRE COMPLETE LISTING OF ALL ASSETS AND PROPERTIES AS THEY ARE OF PARAMOUNT IMPORTANCE TO SHOW THE ACTUAL STATUS & COMPLETE INVENTORIES OF A COMPANY.

 

LAST TIME AFTER 2007/8 SUBPRIME CRISIS I RECEIVED AR FROM IJM SHOWING THE PRIVATISATION OF ROAD BUILDER BY IJM.

I WAS SO HAPPY TO SEE THE IMMENSE ASSETS OF ROAD BUILDER BOUGHT WHOLESALE BY IJM. SO I BOUGHT IJM AROUND RM2.20. IJM LATER POWERED TO OVER RM8.00 & I MADE 300%

 

 

To be continued...

Going for Lunch Break

See you guys later

Come back for more

 

TA mentioned Disposal of Hong Kong Assets for Rm67.4 Millions

This is not found in TAGB list of properties

Where then?

Follow Calvin as he continues searching into this hidden gem

Stay tuned....

 

OK NOW WE DIG DEEPER

 

THE SALE OF HONG KONG OFFICES WERE LISTED UNDER TA ENTERPRIZE AND NOT UNDER TAGB BECAUSE THESE TWO OFFICES WERE PURCHASED DURING THE YEARS WHEN TA EXPANDED STOCK TRADING BUSINESS TO HONG KONG AND OTHER PARTS OF THE WORLD

 

SO LET'S GO TO TA ENTERPRIZE ANNUAL REPORT OF YEAR 2011

 

IN YEAR 2011 TA ENTERPRIZE HAS 41 PROPERTIES

 

NOW LOOK AT THIS ONE

 

1203 & 1204A, 12th Floor, Tower I , Lippo Centre, 89 Queensway, Hong Kong. Government Lease (Expiring on 14/2/2059) Commercial Building Area: 4,045 sq. ft. Principal Business Office of TA Sec (HK) Limited 03/07/2001 RM 7,973,124

 

HERE WE ARE!!

 

THE COST OR BOOK VALUE STATED IS ONLY RM7.97 MILLIONS

 

OVER THE YEARS HONG KONG DOLLAR HAS GONE UP AGAINST THE RINGGIT. PRICES OF REAL ESTATES ALSO BOOMED IN HONG KONG

 

SO TA HAS DISPOSED THESE 2 OFFICES FOR RM67.4 MILLIONS

LET'S SEE HOW MUCH PROFIT

 

 

SO RM67.4 MIL - RM7.97 MIL = RM59.43 MIL

 

HOW MUCH BY PERCENTAGE?

 

DIVIDES RM59.43 by 7.97 = A WHOPPING 745% GAIN IN 7 YEARS OR MORE THAN 100% GAIN PER YEAR FOR EACH OF THE SEVEN YEARS FROM 2011 to 2018!!

 

THESE FACTS AND FIGURES COULD BE VERIFIED BY ANY ACCOUNTANT OR AUDITHOR!!

 

WARMEST REGARDS

 

Calvin Tan, Singapore

 

NOTE: SALE OF LITTLE BAY FOR RM774 MIL & SALE OF HK OFFICES FOR RM67.4 MIL WILL PARE DOWN DEBTS & REDUCE GEARING FURTHER

 

AND IF YOU MULTIPLY ALL THE UNDERVALUE ASSETS OF BOTH TA AND TAGB YOU WILL GET 3X or 4X MORE

 

IF ALL THE ASSETS OF TA AND TAGB ARE DISPOSED AT REAL TIME REAL MARKET VALUE?

 

ALL MIGHT GET BACK CASH WINDFALL OF RM1.00 EASILY!

 

THIS IS THE REASON WHY TA IS SO UNDERVALUE

 

PERFECTLY RIPE FOR PRIVATISATION LIKE SUPER ENTERPRIZE, KULIM, TMAKMUR AND THESTORE. OR POTENTIAL PRIVATISATION STOCKS LIKE WANGZNG AND WEIDA JUST AS OSK, KAF, BJ CAPITAL, AA ANTHONY AND HWANG WERE ALL TAKEN PRIVATE ONE BY ONE!!