Hi guys,

As a natural progression after Govt coffer is replenished by Petronas Revenue –  Next month in April would most probably be the Revival of ECRL

Calvin has already picked 5 stocks, namely AZRB, T7 Global,  Prestar, Masteel & Lafarge Cement to be among the beneficiaries of the ECRL – 688 Kilometer long

Today I shall add one more – TalamT (2259)

TALAM’S PRIME LANDS IN SERENDAH & GOMBAK  SIT RIGHT AT THE CROSS JUNCTION BETWEEN NORTH AND SOUTH ALIGNMENT OF KUALA LUMPUR – TANJONG MALIM PROTON CITY & THE PORT KLANG ON THE WEST  TO TOK BALI PORT OF THE NORTH EAST OF WEST MALAYSIA

IF ECRL IS RESTORED SERENDAH WILL BE THE PIVOTAL NEW HEART & CENTER OF ALL TRAFFIC- BE THEY HUMANS, GOODS OR RAW MATERIALS

SINGAPORE THRIVES BECAUSE OF ITS VERY CENTRIC LOCATION IN THE FAR EAST. SIR STAMFORD RAFFLES CHOSE SINGAPORE OVER MALACCA OR PENANG DUE TO ITS SUPREME LOCATION WHERE EAST MEETS WEST IN THE PASSING SEA. UP NORTH IS THE MALAYA HINTERLAND & DOWN SOUTH IS THE SPRAWLING INDONESIAN ARCHIPELAGO

SINCE THEN SINGAPORE HAS PROSPERED AND PROSPERED

NOW WE EXPECT SERENDAH TO RISE UP IN PROMINENCE

HOW WILL ECRL PROPEL TALAM’S ASSETS

LET’S TAKE A LOOK AT THE ECRL PLAN AGAIN

ECRL STARTS FROM PORT KLANG TO KOTA BAHRU. THERE ARE 3 MAIN PORTS:

1) PORT KLANG

2) KEMAMAN PORT

3) TOK BALI PORT

AND THESE ARE THE PRIME REASONS WHY TALAM LANDS IN SERENDAH WILL RISE UP IN THE VALUE CHAIN

RAILROADS BRING HUGE PROSPERITY TO ALL THE CITIES & PORTS ALONG ITS ROUTES

NO WONDER THAT WARREN BUFFET LIKES TO INVEST IN RAILROAD LIKE “UNION PACIFIC”

SEE

Warren Buffett Loves Railroads, and Union Pacific Fits the Bill

The railroad industry is extremely durable, and Union Pacific (NYSE:UNP) has proven to be no exception since its founding in the 1860s.

Railcars are a critical mode of transportation and move about 40% of U.S. freight as measured in ton-miles (the length freight travels). Without companies like Union Pacific, the country’s supply chain could not operate.

Perhaps it is no surprise why Warren Buffett (Trades, Portfolio) acquired leading railroad company Burlington Northern Santa Fe (BNSF) in 2010 for $34 billion, adding the company to Berkshire Hathaway’s (NYSE:BRK.A)(NYSE:BRK.B) portfolio of high quality dividend stocks.

Its railways connect with all of the major ports on the West Coast and Gulf Coast and serve many of the fastest-growing cities in the country. Union Pacific’s rail network also connects with some of Canada’s railways and all of Mexico’s major gateways.

Union Pacific has the best access to Gulf and West Coast ports and is the only railroad that serves all six major rail gateways between the U.S. and Mexico. Through rail industry partnerships, the company can also access roughly 90% of the population in North America.

Finally, it’s worth acknowledging the long-term durability of the railroad industry. Freight volumes generally follow population growth over long periods of time.

There will always be a need to connect consumers with agricultural, industrial, manufacturing, and logistics centers across the country. As a best-in-class operator with hard-to-replicate assets, Union Pacific will be there to meet this major need.

Trucks, barges, ships, planes and pipelines all compete with railroads to efficiently and reliably transport goods.

Rail transportation has been, and will likely continue to be, the best option for shipping bulk commodities such as grain, construction materials and energy products.

These materials have a high weight-to-price ratio and generally do not require time-sensitive deliveries. Railroads can transport these bulk materials using less fuel than trucks over long distances and are usually faster than using waterways, which face physical limitations. I expect rail’s market share of ton-miles to remain stable around 40% just like it has for a couple of decades.

Calvin comments:

OF THE TOP MOST IMPORTANCE IS THE ARRIVAL OF GOODS FROM CHINA THEN UNLOADED AT  THE WEST COASTAL PORTS OF USA & THEN TRANSPORTED ALL THE WAY ACROSS THE US CONTINENT ALL THE WAY TO THE EASTERN STATES

NOW ECRL IS PART OF CHINA’S ONE BELT ONE ROAD PLAN

FROM CHINA, TAIWAN, KOREA , JAPAN, HONG KONG & THAILAND WILL COME GOODS THAT ARRIVE AT THE NEW TOK BALI PORT OF AZRB (TOK BALI PORT WILL RIVAL BINTULU PORT ONE DAY &  T7 GLOBAL NOW GOING INTO MARINE BUSINESS AS WELL ) .. FROM THERE GOODS WILL BE TRANSPORTED BY ECRL RAIL TO THE PORT KLANG IN THE WEST AND CONTINUE ITS JOURNEY TO INDIA, MIDDLE EAST & THEN TO EUROPE. AND VICE VERSA.

ALL ALONG THIS NEW SILK ROUTE TOWNS & CITIES WILL PROSPER

AND TALAM HAVING MOST OF ITS PRIME ASSETS IN SERENDAH & GOMBAK WILL BOOM & BOOM IN VALUE

TAN SRI DATUK CHAN HAS BOUGHT TALAM SHARES AT 11 SEN

HIS SON CHAN TET EU HAS BOUGHT HUGE CHUNK OF TALAM SHARES AT 8.5 SEN

WHY ARE THEY PAYING FROM 8.5 SEN TO 11 SEN & STILL HOLDING UNLESS THEY SEE MUCH MUCH HIGHER VALUE IN TALAM

CALVIN HAS DONE AN INVESTIGATION & CONFIRMED WITH FACTS & FIGURES

DON’T MISS MY NEXT POST ON TALAM THE HIDDEN GEM

Director’s Particular:

Details of Changes:

Total no of securities after change

[TALAMT] Change In Director’s Shareholding – TAN SRI DATO’ (DR) IR CHAN AH CHYE @ CHAN CHONG YOON on 21-Oct-2014

Director’s Particular:

Details of Changes:

Total no of securities after change

2) Some Doubters have Posted in Talam Forum and mentioned that Talam has Rm300 Mil Debt or liability. Others still have questioned why Talam NTA is only 8.5 sen and Why Should Tan Sri Datuk Chan and His Son bought Talam shares as high as 8.5 sen to 11 sen?

Others still think that Talam might go into default

SO CALVIN WENT TO DO A MORE THOROUGH RESEARCH ON TALAM HISTORY

AND I GOT A WONDERFUL SURPRISING DISCOVERY!!

Let's go to ANNUAL REPORT OF TALAM

Scroll down to Properties owned by Talam

See

# Mukim Serendah Daerah Ulu Selangor Bandar Bukit Beruntung Negeri Selangor

178.41 Town ship Development Bukit Beruntung 

Freehold  Rm41,934,000

So TALAM Has 178.41 ACRES OF FREEHOLD LANDS IN SERENDAH VALUED AT RM41.934 MILLIONS

LET US NOW CALCULATE ITS VALUE PER SQ FT

First 178.41 x 43560 to get the per sq ft = 7,771,539.6

so land area is 7,771,539.6 million sq ft

Now divides 41,934,000 by 7771539.6 = Rm5.40 PSF

SO NOW WE KNOW TALAM LAND IS WORTH RM5.40 per sq ft

NOW WHAT IS THE CURRENT LAND VALUE OF SERENDAH

NOW WE CAN LOOK UP SUPERMAX THE GLOVE MAKER

SUPERMAX ALSO HAS A PIEC OF LAND IN SERENDAH

LET'S GO TO SUPERMAX ANNUAL REPORT

26. Geran No. 28698 Lot No. 1858, Mukim Serendah, Daerah Ulu Selangor,Negeri Selangor.

Land 404,685sq m Freehold 80,809,480

Property No. 26 of Supermax shows a freehold land in Serendah size is 404,685 sq meter with book value of Rm80,809,480 Over Rm80 Millions

Now convert Meter to sq ft by 404,685  x 10.764 =  4,356,029 SQ FT

now divides RM80,809480 by 4,356,029 = RM18.55 PSF

FROM HERE WE CAN CLEARLY SEE THAT TALAM LAND (TOWNSHIP LAND - ALREADY CONVERTED AND SUBDIVIDED HAS A BOOK VALUE OF ONLY RM5.40 PSF) SUPERMAX lands are valued at Rm18.55 psf or 3.43 times more expensive (also more inferior in status) to Talam

We have not even determined the current market value as yet

BIG BIG QUESTION NOW IS THIS

WHAT IS THE ASKING PRICE FOR COMMERCIAL/INDUSTRIAL LANDS IN SERENDAH TODAY?

A CONSERVATIVE VALUE WOULD BE ABOUT RM45 PER SQ FT

SO Divides 45.00 by 5.40 = 8.33 x more

Now let's multiple TALAM NTA Of 8.5 sen by 8.33

= 70.80 NET NET VALUE

YESSSS!!!

TALAM IS NOW 4 SEN & SELLING AT 70 SEN NET ASSETS BACKING

THAT MEANS THAT TALAM IS SELLING AT MORE THAN 90& DISCOUNT TO NET BOOK VALUE

AND THAT HAS NOT INCLUDED THE POTENTIAL APPRECIATION YET FROM ECRL PASSING THROUGH SERENDAH

TALAM ALSO HAS A CHUN CHUN 100 ACRES OF LAND IN GOMBAK (ECRL RAIL INTERCHANGE)

NOW WHAT IS THE FAIR VALUE OF TALAM THE HIDDEN GEM?

NOT LESS THAN 50 SEN IF PRIVATISED

SO BUYING TALAM AT 4 SEN & HOLDING TIGHT TIGHT MIGHT ONE DAY GIVE A WHOPPING 1,000% UPSIDE

BEST REGARDS

Calvin Tan Research

Singapore

Please buy or sell after doing your own due diligence