THE INVESTMENT APPROACH OF CALVIN TAN

DIVIDENDS & INSIDERS BUYING & POSSIBLE PRIVATISATION OF PALM OIL CO ARE DEFENSIVE, Calvin Tan

calvintaneng
Publish date: Thu, 16 Jun 2022, 11:18 PM
calvintaneng
0 1,676
Hi Guys,

I have An Investment Approach I which I would like to all.

Dear Investors of i3 Forum

Today Calvin taking a break from posting. But One sincere friend called & shared his experience in Palm oil shares he bought for dividends

So I promised to post on his behalf the findings


See 


Reposted from Bplant Forum

steveccwong

Bplant's Actual Dividend Payment Record:

2022 - 7.3ct
2021 - 8.35ct
2020 - 1.00ct
2019 - 1.00ct
2018 - 7.00ct
2017 - 19.50ct
2016 - 14.50ct
2015 - 13.0ct
2014 - 6.00ct
Total = 77.65ct (Over a period of 9 years & 2022 is still going to receive dividends).

So, for me, investing in Bplant for long term dividend payment basis, will very soon ensure my Bplant is FOC (free of charge) because I will continue to receive dividends from Bplant.

The above is actual record from Bplant's website.



Note: Steve Wong is a retired Banker with Experience hands On in Palm oil Business

He owns more than 1 Million shares of Bplant for long term dividends





One day, if something excellent comes out from Bplant benefiting LT shareholders, I will reap a huge financial jackpot while my Bplant is already FOC, and this is a wise investment policy I hold & advocate.


steveccwong

Hsplant's Actual Dividend Payment Record:

2021 - 17.00ct
2020 - 7.00ct
2019 - 2.50ct
2018 - 2.50ct
2017 - 11.00ct
2016 - 11.00ct
2015 - 8.00ct
2014 - 11.00ct
2013 - 10.00ct
2012 - 11.00ct
Total = 91.00ct (Over a period of 10 years & 2022 is still going to receive dividends).

So, for me, investing in Hsplant for long term dividend payment basis, will very soon ensure my hsplant's holding cost is getting lesser & lesser, because I will continue to receive dividends from Hsplant. It shall become FOC for me one day.

The above is actual record from Hsplant's website.

One day, if something excellent comes out from hsplant benefiting LT shareholders, I will reap a huge financial jackpot while my Hsplant's holding cost is already lower & lower, and this is a wise investment policy I hold & advocate.



3) TAANN

 Posted by steveccwong > 1 hour ago | Report Abuse

Taann's Actual Dividend Payment Record:

2022 - 15.00ct
2021 - 30.00ct
2020 - 15.00ct
2019 - 5.00ct
2018 - 10.00ct
2017 - 10.00ct
2016 - 10.00ct
2015 - 20.00ct
2014 - 20.00ct
2013 - 5.00ct

Total = RM1.40 (Over a period of 10 years & 2022 is still going to receive dividends).

So, for me, investing in Taaan for long term dividend payment basis, will very soon ensure my Taann's holding cost is getting lesser & lesser, because I will continue to receive dividends from Taann. It shall become FOC for me one day.

The above is actual record from Taann's website.

One day, if something excellent comes out from Taann benefiting LT shareholders, I will reap a huge financial jackpot while my Taann's holding cost is already lower & lower, and this is a wise investment policy I hold & advocate.


Please Note:


Gloves now game over due to China's Very Fierce Glove Price War. In August & Nov 2022 Gloves might report losses and its dividends from cash pool might shrink. As for Palm oil China cannot do like Glove. In fact China has gone to Sabah in search of Palm oil estate investing.


Tech Bubble busting by FED raising Interest rates due to High Inflation


High Food inflation like Cooking Oil will benefit Palm oil Co

So we can expect more dividends from Palm oil companies


Not only these above pay good dividends

With Very High Profits All Palm oil Companies will see its debts evaporate & later will also give high dividends as well


Best Regards

Calvin Tan


Please buy or sell after doing your own due diligence or consult your remisier or fund manager






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Discussions
3 people like this. Showing 50 of 55 comments

Thomas Chan Yeu Wai

Nice article on the concept of dividends leading to cheaper holding costs. Had never look at it this way before.

1 month ago

calvintaneng

Yes Thomas
this dividend concept and the long term holding to average down of investment was first told to me by Johor Sifu a decade ago

he said buy an "X" company say Rm1.00

and if this year it gives a 10 sen dividend then the holding cost will drop from Rm1.00 to 90 sen

and if the following year it receives another 15 sen dividend it will be

90 sen - 15 sen

= 75

so by receiving high dividends for few more years then the holding cost will drop

to 60 sen
50 sen
40 sen

until zero cost due to capital return from dividend, special dividend and cash payout

After many years all shares are FOC (FREE OF CHARGE)

AND HE STILL RECEIVE GOOD DIVIDENDS FOR LIFE

PLUS IF HE REINVESTED ALL HIS DIVIDENDS AND COMPOUND IT HE WILL SEE HIS WEALTH MULTIPLY

THIS IS WHAT ALBERT EINSTEIN SAID COMPOUNDING INTEREST IS THE 8TH WONDER IN THE WORLD

I heard he turned Rm2 millions into Rm20 millions by long term investing

that was one decade ago and imagine how much more his investment has snowballed

1 month ago

BLee

@Thomas Chan Yeu Wai: Nice article on the concept of dividends leading to cheaper holding costs. Had never look at it this way before.

BLee: Hi @Thomas Chan Yeu Wai, agreed on the concept, but only half the truth..
Question: Where did the dividend money come from? Usually profit making companies can afford to give dividends, that's one plus point in investing in such companies. The dividend is usually from this profit and the share price will be adjusted accordingly…
Growth companies usually don't give good dividends, reserved money for growth purposes…

Happy trading and TradeAtYourOwnRisk

1 month ago

calvintaneng

Raymond

Thank you for the kind words

Calvin never claim to be a professional financial adviser

Actually Calvin is a life long student learning from everybody

And it is my duty to tell facts and truth. Though not all turn out as i hoped but still i happy to see more that is right side than wrong side

1 month ago

BLee

@calvintaneng: Actually Calvin is a life long student learning from everybody


And it is my duty to tell facts and truth. Though not all turn out as i hoped but still i happy to see more that is right side than wrong side

BLee: Hi Uncle @calvintaneng, I am also learning from you and everybody else. Since you mentioned hope "to see more that is right side than wrong side"; very much like to highlight that biodiesel is now commercially available from recycled cooking oil of all types.

Link: https://www.wikihow.com/Prepare-Used-Cooking-Oil-for-Biodiesel

https://www.amafiltration.com/casestudies/upcycling-used-cooking-oil-i...

And only Palm oil from seedlings to fruit bearing required a long gestation period, others plants and flowers oil a very much shorter planting period. That is another half truth..

Happy trading and TradeAtYourOwnRisk

1 month ago

anthonytkh

In my limited experience, the sectors for dividends will always be finance, consumer and property (including REITs). These 3 are the building blocks of any country. Interest rate may change, consumer prices and subsequent stinginess or demand to buy may change and owning properties (for own use and recurrent income) are bedrocks

Buy what very few can create

1 month ago

calvintaneng

Blee

Palm oil takes longer to grow from planting to first drop of cooking oil is 4 to 5 years and after that it will still produce fruit

palm oil can last up to 25 years before the need for replanting

Both Sunflower, Soybean and canola are flowering shrubs or legumes and will all be cut down each and every year which need replanting

that is why their cost of fertilizer and high diesel prices will impact their cost more

1 month ago

calvintaneng

palm oil can withstand both flooding and heat

last year heat destroyed canola crops of Canada while floods in NSW Australia impacted the quality of canola there

also drought decimated the soybean crops of paraquay, Brazil parana and Argentina

this year again climate by la Nina is recurring again

1 month ago

BLee

@calvintaneng: Palm oil takes longer to grow from planting to first drop of cooking oil is 4 to 5 years and after that it will still produce fruit

BLee: Hi Uncle @calvintaneng, I am using the word "gestation" meaning "return of investment" (ROI) only after "birth" and "delicate care" after years only can see the "fruits" of labour. How much money needs to be spent? Fast rotation means fast ROI.
Which is better? I prefer the "cash crop"...

Happy trading and TradeAtYourOwnRisk

1 month ago

StartOfTheBull

Another advantages of palm oil are it needs less than half the land required by other crops (such as sunflower, soybean or rapeseed) to produce the same amount of oil. This makes palm oil the least expensive vegetable oil in the world.

https://askrspo.force.com/s/article/Why-is-palm-oil-so-popular

1 month ago

StingRay

you will need to take into consideration of increase cost for fertilizer and labour cost. currently, there are more countries planting palm tree as well. not only Indonesia but India and South Amerika.

1 month ago

StartOfTheBull

Another advantages of palm oil are it needs less than half the land required by other crops (such as sunflower, soybean or rapeseed) to produce the same amount of oil. This makes palm oil the least expensive vegetable oil in the world.

https://askrspo.force.com/s/article/Why-is-palm-oil-so-popular

1 month ago

Thomas Chan Yeu Wai

@BLee: agreed is half the truth based on adjusted share price once it goes EX. Just finding some comfort based on the recent sharp drop in KLCI. Using leverage at the moment and at times, dividends received used to cover a portion of amount owed to investment bank. I just have to cover the monthly interest payments until amount owed is fully repaid by dividends + certain amount of cash top ups.

1 month ago

BLee

@StartOfTheBull: Another advantages of palm oil are it needs less than half the land required by other crops (such as sunflower, soybean or rapeseed) to produce the same amount of oil. This makes palm oil the least expensive vegetable oil in the world.

BLee: Hi @StartOfTheBull, as mentioned earlier, I am happy Palm Oil price is very profitable now.
Countries which have plenty of cheap and idling land are suitable for agriculture planting, land in Indonesia and Malaysia should be a non-issue. (Observed South Korea and Japan making full use of idling land by the road side and under elevated highway for planting!!, hope to see that in Malaysia due to the food crisis..)
Did the calculation of Palm Oil, the least expensive vegetable oil in the world, factor in the upkeep planting from seedlings to produce the first drop of oil? I doubt it…

Happy trading and TradeAtYourOwnRisk

1 month ago

calvintaneng

these are the facts

Steve Wong has compiled a total of 77 sen for Bplant in 9 years

If you only take dividend in short term context then of course after ex dividend price will be adjusted down

Steve is talking about long term dividend trend

Steve bought bplant at 55 sen and this year so far dividend is 11.3 sen

so if Bplant gives out consistent dividend for few more years then Steve said he will get back his original 55 sen invested capital

how you guys can understand

1 month ago

looiting

Based on chart, these oil palm stocks already in topping process...so becareful guys

1 month ago

calvintaneng

Short term sentiment by human buy or sell trend shows up in chart temporary

The market is not static

What we do know deeper are the underlying fundamental of palm oil company actual status

1. Never before has Cpo prices crossed above Rm4500 to Rm7000 range before

2. with Cost of cpo production around Rm1800 to Rm2000 the gross real time profit is 100% to 200%

3. The accumulated profits will translate into high Cash inflow

Cash inflow can settle all borrowings and later palm oil will be cash rich and cash cow companies

4. Then like Bplant , hs plant and Taann all will give out high consistent dividends

5. And dividends will make the stocks defensive

6. Over a longer period if Cpo can maintain at Rm4000 to Rm5000 range alone all palm oil share prices will double and triple up

1 month ago

anthonytkh

Test

1 month ago

anthonytkh

Wow, i3 is manipulated. Omg

1 month ago

anthonytkh

I try again

1 month ago

anthonytkh

“If”

1 month ago

StartOfTheBull

Palm oil and palm oil related products exports increased by 54% YoY in May 2022. Another prosperous month for oil palm plantations companies . Congratulations!

https://www.sinchew.com.my/20220617/%e7%94%b5%e5%ad%90%e7%94%b5%e5%99%...

1 month ago

calvintaneng

Excellent !

April to June Cpo export records will be reported in Aug 2022 results

Looks like Palm oil companies will be reporting excellent results

1 month ago

ks55

Investing to beat inflation rate is to invest in something that appreciate faster than inflation.
https://www.thestar.com.my/business/business-news/2022/06/18/investing...

And this could be THE ONE.
再涨人民币7500,以经是人民币13万了。
http://checkteas.com/goods.php?id=3311&fbclid=IwAR2p5RPU81J8FlEhNd...

1 month ago

ks55

I swapped some plantation stocks into Puer tea in 2003, the returns were 50,000% on average. Share market up and down, whereas puer tea price is one way ticket to the north.

1 month ago

calvintaneng

long time no see ks55

yes in these inflationary times fixed money market funds and FD cannot survive monetary depreciation over time

Palm oil as an inflation beater is now one good option

another is to invest in landed houses in Iskandar Johor because still very cheap compared to Kl or Penang

and with Rts from Spore ready by year 2026 all landed (avoid highrise Condo due to glut) will appreciate in both prices and rental

1 month ago

ks55

Why INVEST in puer tea?

1. Diversify your portfolio. Invest some in property, some in equity market (share, REIT, ETF, Unit Trust, FD, T-bill).

2. Puer tea investment is for long term, need not spend much time to take care and no worry of wild fluctuation like share market.

3. To invest in Puer tea is aka invest in RMB. In 2003 when I first started to invest in Puer, 1 RMB was 46 sen, today is 67.3 sen. When China economy getting stronger, RMB will appreciate in tandem, more so when Malaysian economy is heading no where. Will 1 RMB can exchange into 1 RM in next 10 years? Not to forget RMB hits 70 sen not too long ago!

4. Quality of Puer improves as it ages, same goes as the price of puer. Let the tea appreciates in price and works harder for you.

5. Need not worry if you can't sell the tea this year, price will go up next year.

6. As more mainland Chinese getting richer, market created by the new found wealth will go into luxurious items like car and housing. Small amount will go into food and drink (vintage puer in one of those). Unlike Malaysian who is unlikely to spend a thousand ringgit for a piece of tea, those Chinese can spend on a 10k ringgit tea without blinking. That is the reason why so many mainlander coming to Malaysia and Taiwan to look for quality aged puer.

7. As mainland Chinese become wealthier, salary and wages increase across the board. These include all expenses associated with puer tea production from tea picker to tea merchant. As the result, new puer tea produce will cost more over the years.

8. Invest in puer can help you finance your children's university education 10 or 15 years down the road. Really it is not day dream to obtain a return of 1000% over 10 years.

9. Invest in puer help you achieve financial independence at the end of the day. You can rely on puer to retire without financial worries. 靠山山倒 靠人人跑 靠孩子吃草 还是养茶防老最好

1 month ago

calvintaneng

which listed co in Klse got Puer tea ah?

Tell you one secret

Thplant not only got palm oil it also got 3,000 acres of Teak plantation in Sabah and now more than 12 or 13 years old

another few more years will reap a Bonanza

if you can keep Puer tea until now for 50,000% gain since 2003 till now (9 years ) try buying Thplant to own those high value Teak plantation of Thplant and hold

1 month ago

ks55

Seeing is believing. I bought this tea for rm 20 per piece in 2004, now worth more than rm 1000, and still on the way up.
http://checkteas.com/goods.php?id=3311&fbclid=IwAR0bHckPje2T1GZ3gK...

Of course, I have other tea too, that may have appreciated much more.
http://checkteas.com/goods.php?id=3365

1 month ago

calvintaneng

Ok I went to take another look at Thplant Annual Report

It has 1,550 hectares of Teak Estate in Sabah

To convert Hectares to acres

1,550 x 2.471

= Rm3,830 acres

Teak is known as the "Gold" of the timber market

Very very expensive because it takes up to 20 years from planting to harvesting

And now Thplant Teak trees are already more than half way mark to harvesting

1 month ago

ks55

Posted by calvintaneng > Jun 18, 2022 11:27 AM | Report Abuse

which listed co in Klse got Puer tea ah?


Ans: Hai O

1 month ago

ks55

To invest in Teak might as well you invest in Musang King. You get good price for Musang King, 2 harvest a year, and only have to wait for 7 years to harvest your fruit. More importantly, Musang King from older tree fetch better price and is recurrent income. Teak harvest is one off.

So, based on your argument, it may be a better choice to go for Ekovest instead of Thplant.

1 month ago

calvintaneng

Is it? Has Hai O share price gone up by 1000%?

But I will still look for an undervalue overlooked stock like Thplant

I will buy something which few people are aware

Thplant (very few knows it's hidden Gold timber Teak wood treasure)

Teak is 300% more expensive than normal wood

After planting and harvesting Teak it will last up to 100 years

Teak is not afraid of the elements or termite

1 month ago

calvintaneng

No ekovest as it has got construction

Now very high cost of construction material plus high worker wages will drag it down

Thplant got very high profit from good Cpo prices

It's land banks in Peninsular mostly freehold and book value very very cheap at RM10K to Rm12k

Now worth up to Rm150k an acres and Ecrl rail will further push up it's value

It's 7 estates in Sarawak are located along Pan Borneo Highway now got development potential

1 month ago

ks55

Hai O main business in Chinese medicine, and a variety of Chinese tea. Business model mainly on MLM.

If you compare Hai O with any other counters in KLSE, you can form your own opinion as how the shre price fares.

1 month ago

calvintaneng

I just checked up Hai I

Year to date Hai O dropped from Rm1.82 to Rm1.50 (dropped 17% in value)

1 month ago

ks55

Purely based on your argument, Musang King is a better bet.
So Ekovest is better choice than Thplant.
Ekovest has Musang King, Thplant has teak. But these assets are not major income contributors.

Just like Hai O, it has others as core business, not Puer tea. Puer tea investment is one-off good for individual. Teak plantation is also one-time harvest, like agar wood.

1 month ago

calvintaneng

Look at the current overall performance of a company

The majority stake of ekovest is construction and musang king as a minor part

Construction as a whole will be impacted by high building material costs

Thplant major crop is palm oil while Teak is a passive portion

palm oil as a whole is up by more than 100% in value to Rm5000 per ton( was Rm2000 per ton in down time)

we can see cooking oil and all food prices very high prices now as palm oil is found in 50% of supermarket items

1 month ago

StartOfTheBull

Interesting discussion. Another super Saturday. Thank you.
Some how, I bought puer tea just for own consumption, never think of keeping it for years because afraid of it being eaten by cockroaches or deteriorate in quality for keeping it too long.

1 month ago

ks55

Go for puer tea, and you can sleep soundly every night.

1. World market (Led by DJ) is about to collapse.
2. Inflation in US 8.6% in May y-o-y.
3. FED is going to raise interest every month, may be up to 5.75% in next 2 years.
4. Food security is the main concern for every country.
5. Ukraine War and climate change, couple with Joe Biden's inconsistent foreign policy not helpful to maintain a peaceful world where every mankind could live and let others live.
6. When market crash, good shares bad shares all drop. No where is safe for your investment. Protecting your nest-eggs for your golden years is the most important consideration.
7. If you can keep more physical goods, that will hedge against inflation. But how much you can store? But to store up 3 to 5 tons of good quality aged puer is easy, that will see you through next 3 generation.

1 month ago

calvintaneng

Store up 3 to 5 tonnes of puer tea ?

I live in Spore now just Govt Hdb flat also worth S$1 millions or Rm3.2 Millions with size 1200 SQ ft

How to store ?

Now better buy Palm oil shares of Klse better and easier

1 month ago

investor2021trading

CPO price dropping is happening now! trade cautiously!

1 month ago

ks55

3 ton needs one 12 x 16 room, 5 tons only require 2 rooms of the same size. Go for a landed home, and I believe you can afford to store up to 10 tons, that could be good for next 5 generations.

1 month ago

ks55

When you are already very rich, money is no more considered as money (当钱不是钱的时后), you will be somebody like this.

玩普洱茶,有茶才有实力
https://www.puercn.com/puerchanews/news/43856.html?fbclid=IwAR3vLEybVX...

1 month ago

calvintaneng

landed home to store Puer tea?

why the trouble

in Taman Sri Muda Shah Alam there was a 100 year flood event that swept away everything from landed houses

Palm oil trees are up to 60 feet tall and can withstand flooding

as for Cpo dropping it will be very ok if prices maintain at Rm4500 to Rm5500 range

since production cost of cpo only Rm1800 to Rm2000 the profit margin still excellent

1 month ago

calvintaneng

Puer tea is not my cup of tea

I drink japanese green tea

1 month ago

StartOfTheBull

The appreciation of puer tea may be true but how easy can you find buyers for your skyrocketed price tea 10 or 20 years from now that will remain a question.

1 month ago

sensonic

Post removed.Why?

1 month ago

looiting

As i warned two weeks ago, based on my chart analysis, big boys already leaving the party. Retailers very obedient. Still holding strong. They continue to hold the bag. Don't kill the messenger. I only report what I see on the chart. FUNdamental can be FUN

1 month ago

gladiator

Maybe all investor guru is the same continue to promote when share price already reach rocket high from Glove, Tech stock and now plantation.

1 month ago

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