THE INVESTMENT APPROACH OF CALVIN TAN
MSM SUGAR IN CHUPING, PERLIS & NYLEX ETHANOL FACTORY IN CHUPING, PERLIS, Calvin Tan Research
calvintaneng
Publish date: Sun, 17 May 2020, 06:38 PM
calvintaneng
0 1,797
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.
Dear Investors & Traders,
Last Friday MSM Suddenly Drew in Buying Interest & share prices surged from 58 sen to 76 sen finally closing at 66.5 sen . MSM was Top 9 in Volume of 192 Million Shares day.
| KNM | 0.155 | 0.15 - 0.19 | 0.18 | +0.03 | 673,294,500 |
| HIBISCS | 0.53 | 0.525 - 0.60 | 0.58 | +0.065 | 487,512,600 |
| SAPNRG | 0.09 | 0.085 - 0.095 | 0.09 | +0.005 | 432,303,100 |
| GPACKET-WB | 0.49 | 0.44 - 0.585 | 0.465 | +0.005 | 419,926,800 |
| VELESTO | 0.135 | 0.135 - 0.15 | 0.14 | +0.005 | 357,207,300 |
| ARMADA | 0.18 | 0.175 - 0.20 | 0.195 | +0.015 | 314,185,200 |
| DGB | 0.025 | 0.02 - 0.03 | 0.025 | 0.00 | 243,106,400 |
| KGROUP | 0.095 | 0.07 - 0.10 | 0.075 | -0.015 | 193,512,300 |
| MSM | 0.585 | 0.58 - 0.76 | 0.665 | +0.09 | 192,926,800 |
Now Who Are The Buyers of MSM Sugar in Chuping?
To confirm that MSM Factories are located in Chuping, Perlis let us look at the Annual Report of MSM
Top 10 Properties owned by MSM Sugar
2. PN 39, Lot No : 2035,
Mukim Chuping, Perlis
21.05.2011 Leasehold-45
years
Rubber &
other crops
plantation
1,268.108 Acres - Rm23,441,000
At number 2 shows MSM owns 1,268 Acres of Land Planted with Rubber & other crops worth Rm23.4 Millions book value
3. H.S. (D) 145, PT,
Mukim Chuping, Perlis
21.05.2011 Leasehold-45
years
Rubber &
other crops
plantation
1,027.862 - 19,073
No. 3 is 1,027 Acres of Lands worth Rm19 Millions planted with Rubber & other crops
AND CHUPING AS WE KNOW HAS THE HIGHEST CONCENTRATION OF SUGAR CANE PLANTATIONS IN MALAYSIA
SO IT IS NO COINCIDENT THAT THE BIGGEST ETHANOL OR AMONG ONE OF THE BIGGEST FERMPRO OWNED BY NYLEX ALSO FOUND IN CHUPING, PERLIS
OK TO SEE THE PROOFS PLEASE REFER TO ANNUAL REPORT OF NYLEX AND SEE PROPERTIES OWNED BY NYLEX
At number 4) Proprietor:
Fermpro Sdn Bhd
Lot 1113
Mukim of Chuping
Perlis Indera Kayangan
HS (M)
16,190 Sq meter
Office building and factory.
01 Jul 2004 Leasehold,
expiring on
22 Nov 2046.
Rm 1,410,000
From the above let's calculate
It has 16,190 sq meter of land
To convert meter to sq ft just multiply by 10.764 sq ft = 174,269.16 sq ft
To convet to acres divide it by 43,560 = 4 ACRES
Plot 3 & 4, PT 924A
Mukim of Chuping
Perlis Indera Kayangan
24,280 sq meter
Spent molasses treatment pond.
01 Jul 2004 Leasehold,
expiring on
07 Feb 2059.
Rm820,000
How big is this piece?
To convert from Sq meter to sq ft just multiply 24,280 by 10.764 = 261,349.92 sq ft
To convert to acres divide by 43,560 = 6 ACRES
PT 2978
Mukim of Chuping
Perlis Indera Kayangan
HS (M)
8,100 sq meter
Office building and factory.
01 Jul 2004 Leasehold,
expiring on
07 Feb 2059.
Rm345,000
This piece is 8,100 sq meter
To convert to sq ft x 10.764 = 87,188
Convert to acre divides by 43,560 = 2 ACRES
So this is the Total Land Size 4 Acres + 6 Acres + 2 Acres = 12 Acres
FERMPRO Has A TOTAL OF 3 FACTORIES WITH A COMBINED LAND OF 12 ACRES IN CHUPING, PERLIS
WHERE THE BIGGEST SUGAR CANE PANTATION IS LOCATION
CHUPING IS ALSO THE SAME PLACE WHERE MALAYSIA LARGEST SUGAR COMPANY HAS MOST OF ITS SUGAR CANE PRODUCTION
NOW SHOULD YOU BUY MSM OR NYLEX?
BUY NYLEX OF COURSE
WHY?
THE OBVIOUS REASON IS THIS
SELLING SUGAR EARNS A LITTLE BUY WHEN YOU CONVERT SUGAR TO EHANOL YOU ADD VALUE TO THE PRODUCT
LIKE WHAT> ANY EXAMPLE
LIKE SELLING RUBBER SHEET OR LATEX OR SELLING LATEX RUBBER GLOVES?
RUBBER GLOVES OF COURSE!!!
SO IS CHICKEN
SELLING RAW CHICKEN OR SELLING KENTUCKY FRIED CHICKEN (KFC)
KFC OF COURSE! ONE WHOLE CHICKEN COST LESS THAN RM10.00 BUT ONE PLATE OF KFC WITH ONLY 3 PIECES OF CHICKEN COST MORE THAN RM10.00
NYLEX ETHANOL FACTORY FERMPRO GETS ITS SUGAR MOLASSES FROM MCM SUGAR NEARBY
SEE
LOOK AT THE HUGE TANKS FOR MOLASSES IN WHICH SUGAR IS CONVERTED INTO ETHANOL ALCOHOL
Now NYLEX HAS 12 ACRES OF LAND FOR ETHANOL WHILE HEXZA IS SLGHTLY SMALLER WITH ONLY 10 ACRES OF LAND FOR ETHANOL
IF HEXZA CAN GO LIMIT UP & MSM SUGAR CAN GO INTO TOP VOLUME THEN NYLEX BEING THE LAGGARD IS THE BEST BEST BUY NOW!!
NYLEX NOW 77 SEN
TARGET PRICE IS RM1.50
OR ANCOM WHICH OWNS 48.95% OF NYLEX
ANCOM PRICE IS 74.5 SEN
TARGET PRICE IS RM1.20
WHY ETHANOL
ANSWER IS VERY VERY IMPORTANT
GLOVE, FACE MASK & ISOLATION GOWN ARE ALL DEFENSE AGAINST COVID 19
ONLY SANITIZER IS OFFENSE OR AGAINST COVID 19!
ALL PROTECT ONLY SANITIZER ATTACKS!!!
SANITIZER MADE FROM ETHANOL WITH AT LEAST 70% ETHAL ALCOHOL CAN KILL COVID 19 VIRUS
ANYTHING LESS THAN THAT IS USELESS
SO DEMAND FOR SANITIZER WILL CAUSE PRICES AND DEMAND FOR ETHANOL TO SPIKE UPWARD
AND NOW IS THE BEST TIME TO BUY NYLEX & ANCOM WHEN MANY OTHERS ARE STILL IN THE DARK (JUST LIKE BEST TIME TO BUY COMFORT GLOVES WAS 88.5 SEN & BEST TIME TO BUY SUPERMAX WAS RM1.73 WHEN PRICES WERE CHEAP!)
BEST REGARDS
Calvin Tan Research
Singapore
Please buy or sell after doing your own due diligence.
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Discussions
Be the first to like this. Showing 8 of 8 comments
The cheapest source of ethanol is from petrol chemical. Food grade ethanol are more expensive and local malaysia production cannot beat china or thailand for this fact. Sales might be good but whether the company will be able to sustain profit will be another issue. Do you know that malaysia government impose 50% duties on food grade ethanol
2020-05-17 20:20
Ethanol is alcohol from plants like sugar cane or beetroots, while petrol based alcohol is isopropyl
I don't think Malaysia tax ethanol much as it is used for medical purposes as sanitizer
Isopropyl cannot be consumed as it is poisonous while hexza made ethanol into wine.
Since hexza limited amount of Ethanol could make it limit up Nylex with bigger capacity should do well
As of now few people are aware of the potential of Fermpro of Nylex
2020-05-17 20:39
Calvin has the sharp eagle eye. I love it. Even has the FERMPRO plant picture...
2020-05-17 22:07
Ancom, Nylex Boss Siew under investigation by MACC about rm100m tourism contract. Pls refer to press report. Better don't touch
2020-05-17 22:18
Is it?
Precisely Stanley of Supermax under investigation for apli people stayed away that Calvin bought Supermax at Rm1. 73
Still holding supermax even as it has gone up to Rm3. 97 more than doubled already
So we deal with company as it is in its prospect
A listed company like Nylex has a board of directors and auditors plus oversight by bursa
Nylex is not a private company
So very ok
2020-05-17 22:39
Sugar up is only a one off due to Hari Raya festive stock up
Once over it will be only so so for msm.
Plus sugar price is govt controlled
Nylex ethanol is not under price control
So when demand increases price also adjust upward
Plus demand for ethanol will continue to increase as all countries emerge from lock down and start using sanitizer to clean hands and disinfect everything everywhere every nation on earth
2020-05-17 23:36
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calvintaneng
One more thing
Do you realise the low cost of land prices for all 12 acres in book value
Total book value only Rm2.575 millions or only Rm214,000 per acre or only Rm4.90 psf
The Net Asset Value of Nylex already more than Rm1.80
If revalued NAV of Nylex should go up higher
In short, Nylex is Selling at Very Deep Discount to Book Value
While Gloves are selling many times price to book value both Nylex & Ancom are selling at Deeeply Discounted Price to Book Value
That makes them even more Valuable now
2020-05-17 19:09