Grandma wonder if KYY did indeed buy all 34 Million shares on open market. If he did, you can calculate when exactly he started accumulating and see the price difference backwards. Grandma already know the answer, but you can check to find the margin he has done since. You should be able to tell their continuous growth with Palm Oil coming in again especially June month.
Here is a revelation
(KYY bought 34 Million Jtiasa shares. Calvin comments in brackets.)
Jenny, Grandma advice you to read first on the article and have an opinion. Your answer for this particular counter is truly an example of a TA vs a FA vs a true Investor. If you check on the PE, ROE and Net Profit, you may not be encourage. However if you read the logic of a successful investor below you may form a better opinion
Finally I am obliged to tell you that my family members and I have been buying most of shares transacted in the last 6 months and we have accumulated more than 35 million shares. I have never been surer to make money before in my life than now in buying Jaya Tiasa.
JTH needs heavy capex to improve production, its capital commitment in FYE 30/6/13 was RM220 million. It also has a bank loan of RM 455 mil need to be paid next year. Its cash in hand and unit trust investment only come to about RM 205 mil. If we take into account of its estimated RM 220 mil operating cash flow next year. It is still short of RM 250 mil, which in turn need injection of capital or restructure its loans.
Relying on borrowings will increase interest payments and increase in equity option will have dilution impact on EPS.
Unless in the coming years there is no further capex requirement, couple with productivity and cost control measures to improve profit margin. Then investing in JTiasa will be a profitable option. More so if the average CPO price can maintain at an average price of RM 2500 per ton.
Read again
Unless in the coming years there is no further capex requirement
(Calvin comments: Since 2013 Jtiasa has fully planted all its lands 171,000 acres out of 206,000 acres (rest are roads, bridges, drainages, rivers & others which cannot be planted)
couple with productivity and cost control measures to improve
(Exactly, Jtiasa has now done its cost control & to improve its productivity. Loans have been pared down to almost debt free)
Then investing in JTiasa will be a profitable option.More so if the average CPO price can maintain at an average price of RM 2500 per ton.
(Jtiasa has started giving out dividends. As for maintaining CPO price at Rm2,500
CPO PRICES NOW CURRENTLY RANGED FROM RM3600 TO RM4200!) A NEW HIGH LEVEL!!)
See
CRUDE PALM OIL FUTURES
Market closed
Continuous contract
FCPO1!
Bursa Malaysia
3848MYRD
+6+0.16%
AT RM3848 from Rm2500 CPO is Up by 53.9%
JTIASA WAS RM2.40 WHEN UNCLE FIRST PROMOTED AND CPO THEN RM2500 CONSIDERED GOOD
NOW JTIASA IS RM1.17 COMPARED TO RM2.40 THEN
PLUS CPO IS RM3848 WHILE CPO WAS RM2500 THEN
PLUS THEN JTIASA TREES WERE YOUNG AND MUCH LANDS STILL UNPLANTED
NOW JTIASA TREES ARE AT PRIME AT OF 14 (11 MORE YEARS OF GREAT HARVESTING BEFORE 25 YEAR OLD WHEN REPLANTING IS NEEDED)
If the free cash flow (net operating cash flow - capex) stay negative for too long. You can forget about dividend payment, JTiasa may have to borrow more to fund the cash deficit. Unless it can monetize some of its assets under its stable.
If JTiasa is at the tail end of capex spending i.e. most of its acreage was planted with palm trees. Then its ability to generate positive economic profit and free cash flow in future will translate into lower gearing, higher dividend payment and its MVA [Market Cap - (equity + loan capital)] will be on an upward trajectory.
(Above are futuristic forecast:
. Then its ability to generate positive economic profit and free cash flow in future will translate into lower gearing, higher dividend payment and its MVA [Market Cap - (equity + loan capital)] will be on an upward trajectory.
Now, Oil Price Should have spiked when Russia was given embargo because of Ukraine and Obama invaded Iraq. Instead World Crude Oil Prices Dropped. Why? Because of Surplus Shale Oil.
The really temporary thing is not Shale Oil but Soybean Oil. From Planting to Harvesting - It only take 3 months for soybean. A drought might hit next year & soy production could be wiped out.
So the threat to palm oil is more from Mineral Oil weakness which impacted biodiesel oil prices which lead to a drop in palm oil prices.
I wish to confirm what calvintaneng said about his advice to sell Jaya Tiasa in 2014 at Rm 2.70. In 2014 Jaya Tiasa has only about 55,000 planted hectares and currently JT has about 70,000 hectares. JT is very much undervalued. Based on the current market capitalization it is about Rm 15,000 per hectare or Rm 6,000 per acre. Where can you buy land at Rm 6,000 an acre??? All must read my last 3 articles. A few less informed investors said that whenever I post buy recommendation they should sell. In any case, these small investors cannot push up the price because the daily traded volume is tens of million shares. KYY
SO UNCLE SOLD OFF JTIASA FROM RM2.70 When Jtiasa's fundamental was poor
NOW UNCLE KOON SHOULD BUY BACK ALL HIS JTIASA AND DON'T MISS JTIASA BULL EARNINGS TIME LIKE NEVER BEFORE
Or Else Uncle will have the same Woeful Confession Missing Ijm Plant
I wish to take advantage of this opportunity to boast or to shame myself. I was a co-founder of IJM Corporation Bhd. In the early 1980s, we had a road construction contract from the Sabah government. The road went through a neglected oil palm plantation. All the palm trees were half dead. The government offered to sell us the whole estate at Rm 700 per acre with all the workers quarters free of charge. We bought the whole estate and we bought additional land at Rm 700 per acre. We employed Velayuthan Tan to take charge of the plantation. He is a younger brother of Tan Sri Krishnan Tan who is currently the Chairman Of IJM Corp.
We continued to buy more land and constructed a palm oil mill. Eventually we listed the company namely IJM Plant Bhd.
The total issued shares is 880 million shares and IJM owned 52% of the total issued shares which is about 458 million shares. A few days ago, KLK made an offer to IJM to buy up all the 52% of the total issued shares at Rm 3.10 per share. The total transaction is worth Rm 1,420,000,000. The share was selling below Rm 2.00 before KLK's offer. Unfortunately I sold all my shares long ago. Shameful
Calvin & General Raider also manage pick this GEM b4 the GO loh!
No more rm 700 per acres mah....that is 40 years old grand father Story mah! Nowadays Rm 15k per acre consider very cheap loh!
Posted by calvintaneng > Jun 12, 2021 6:57 PM | Report Abuse
Uncle Koon,
This is a noble confession
You should be proud of the origin of ijmplant just as you revealed about MbmR.
Now you mentioned Rm700 an acre for Palm oil lands only confirmed the words of my friend Mr. Liew of Helang Camar. He told us long ago he bought Palm oil lands in Sabah for only Rm500 per acre. Many do not believe. Now your revelation confirms that Palm oil lands were that cheap in those days
IjmPlant is a well managed company. Mr. Shane the Assist Manager also very professional with his PR.
Well done IjmPlant
Well done Uncle KYY
Well Done But Missed Ijm Plant
Now better not Miss Jaya Tiasa!!
Calvin warned Uncle Koon to sell Jtiasa in year 2014 as Calvin saw danger emanating from USA Shale oil which hammered Crude oil below USD50 and in turn hammer Biodisel and then hit Cpo prices. Cpo prices fell to Rm1900+ a tonne
and all Palm oil shares went down
NOW IS VERY DIFFERENT
THE RISE OF GREEN ENERGY SWITCH TO BIOFUEL IN USA, BRAZIL, INDONESIA AND IN EU WILL NOW GIVE SUPPORT TO PALM OIL
AS A REVERSAL OF FORTUNES ALL PALM OIL COMPANIES WILL SEE GREAT TIMES AHEAD
SO THE STRONG BUY CALL FOR PALM OIL STOCKS
ESPECIALLY THOSE IN PURE UPSTREAM LIKE IJMPLANT, BPLANT, JAYA TIASA, TSH RESOURCES, THPLANT, HS PLANT AND ALL OTHERS WITH UPSTREAM CROPS OF FFB
Warmest Regards to All
Calvin Tan
Please buy or sell after doing your own due diligence or consult your Remisier or Fund Manager
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More articles on THE INVESTMENT APPROACH OF CALVIN TAN
What is the value to investors in all this historical drivel? To show how clever Calvin was and is? It's a piece of tabloid trash long on self promotion and short on quality. If you want to be useful, go through JTiasa's Annual Reports for the last 10 years and critically analyze the marked changes in its business and financial performance. A hint. What has happened to its timber and plywood operations?
Schoolboy response to a seriously relevant question. And some investors follow him? For all serious investors out there, please diligently do your own homework. Buying a share is like buying a piece of someone else's business. You better know what you are getting into. I have owned JTiasa for over 10 years since 2014, lost some money then but followed them through thick and thin and now am reaping the benefits of their business recovery.
kelvin_ik4u Plam oil is always like that, start plant require cash/fund/debts to build empire. Once it empire steady and cash generated machine, it will be an auto-pilot for next 18yrs. This counter will be the next shine palm oil for this year.. it's CAGR 21% compounding for next 3 yrs, now Bumitama just sit and collect money as all it palm tree is 6-7yrs now with FFB nucleus oil >24%, 107% growth vs Q1'FY13. Strongly believe this counter will start give dividents moving forward. Since CPO price is up ard ~RM2700/tan metric, I believe will share price will skyrocket this yr. Target $2.00 before end of this year 2014. 19/05/2014 6:16 PM
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....
calvintaneng
https://koonyewyin.com/tag/jaya-tiasa/
2 months ago