Looks like Calvin is desperately trying to cash-in his chips as he now realises that he is on the wrong end of the real estate cycle. When property eventually moves up (ditto for L&G and Duta), he will say `I told you so'. Meanwhile, expect more promoting from him on L&G. Duta?
Calvin thinks you will miss the boat. GEELY JV WITH PROTON IS A FOREGONE CONCLUSION. And you should know that Sg Rengit and Bandar Penawar Property prices boomed because of PENGERANG's RAPID DRAWING IN 70,000 Strong population.
Likewise GEELY JV WITH PROTON TO INCREASE PRODUCTION OF CARS IN TG MALIM WILL DRAW IN 60,000 PROTON STAFF AND VENDORS.
POPULATION BOOM WILL LEAD TO MORE NEED FOR DWELLING PLACES AND BUSINESSES.
THUS CREATING REAL ESTATE SPILLOVER BOOM HERE. DESARU ALTHOUGH HALF HOUR FROM PENGERANG ALSO BOOMED.
SURELY, L&G'S 2,494 ACRES OF LANDS IN KERLING ONLY 15 MINUTES AWAY FROM TG MALIM WILL GO UP IN VALUE TOO.
Dear calvintaneng, Between Bpuri, Dutaland, Bjcorp, TalamT and L&G which all have deep value land assets. Please advice which one should I sell now and just concentrated on one of them that will give me the faster and biggest returned. I only have limited fund and thus cannot invest in all of them hence your advice will be much sought after and appreciated. Thank you
Bpuri and Dutaland also very good in assets. For Dutaland results in August should be positive if sale of Kenny Hill lands are reported. And for Bpuri the ongoing projects should contribute positively.
FOR L&G BY VIRTUE OF IT BEING SO GROSSLY UNVERVALUE NOW IT SHOULD ATTRACT A TAKE OVER OR PRIVATISATION LIKE TMAKMUR, KULIM, SUPER ENTERPRIZE, THESTORE OR WANGZHENG.
Dear Calvintaneng, I had be warned by many in the i3 community that some of the listed company tycoons are treating their listed company as their piggy bank and they are only interest to enrich themselves by even cheating all the minority shareholders. One on them is Vincent Tan. So of all the 5 companies which one of them have a record of more honorable owner that readily share the wealth of the company with all the shareholders. Thank you
This is what i think though others might not agree.
TalamT boss by virtue of him being a Christian should be quite trasparent and safe.
Opcom's Boss is another honest guy.
Pba should be quite safe as Elder Lim sets a good example for his son LGE.
L&G bosses at first i thought were no good due to L&G being so cash rich yet asked for more monies by Rights Issue. I was wrong. After studying their modus operandi i now believe they acted in the best interest of the company.
TSVT though thought to be questionable still has his own best interest to secure. Ultimately i think he hopes Bj Corp is doing well. That's why he has loaded up on Bj Corp shares in stead of selling.
This is Calvin's opinion. Others might differ from what i said. It does not matter.
Calvin, I see that your investment style is investing in undervalued companies with undervalued fixed assets such as land/property. They are long list of such companies around with some even hoarding more than 50% NTA as cash and with NO debts! Examples are : SPB, Keck Seng, MPHB capital and many more which you haven't touched on.
My investment style has been exactly like yours. But in the end of the day, my 10 years return holding such stocks see single digit annualised return. On the other hand, I also don't plunge into problem during crisis.
Now I give more weightage to whether the companies have a sound on-going business/venture that generate strong and sustainable profit and cashflow. I begin to emphasize on the quality of management and if the controlling shareholders has track record rewarding shareholders with dividend within the companies' financial capability.
Buying base on undervalued fixed asset proposition( esp land/property) may not guarantee anything if companies do not monetise the asset and even if companies do monetise the asset but refuse to reward shareholders. It may just be a waiting game.
Posted by chongyo > Aug 12, 2017 07:44 AM | Report Abuse
Calvin, I see that your investment style is investing in undervalued companies with undervalued fixed assets such as land/property. They are long list of such companies around with some even hoarding more than 50% NTA as cash and with NO debts! Examples are : SPB, Keck Seng, MPHB capital and many more which you haven't touched on.
My investment style has been exactly like yours. But in the end of the day, my 10 years return holding such stocks see single digit annualised return. On the other hand, I also don't plunge into problem during crisis.
Now I give more weightage to whether the companies have a sound on-going business/venture that generate strong and sustainable profit and cashflow. I begin to emphasize on the quality of management and if the controlling shareholders has track record rewarding shareholders with dividend within the companies' financial capability.
Buying base on undervalued fixed asset proposition( esp land/property) may not guarantee anything if companies do not monetise the asset and even if companies do monetise the asset but refuse to reward shareholders. It may just be a waiting game.
Just share my thought
Good morning chongyo,
Yes, you are correct to say
"Calvin, I see that your investment style is investing in undervalued companies with undervalued fixed assets such as land/property."
For 10 years I have followed this deep discount of price to asset approach since I read about Walter Schloss
These are the stocks I bought which saw success
Hignyiap, DNP, I&P, Paramount Garden, Pelangi Bhd, Johor Land, QSR, Triumphal. Harisson, Ajiya & many others
I also bought KSeng much earlier at Rm1.60, Selangor Property around Rm3.30 & Mphbcap at Rm1.38. All sold already for profits.
Of course there are those that did not perform as well.
But this has been a happy experiment. So far so good.
I found out that many of them under perform because Majority owners want to privatise it. That could be the reason why they under perform like Kulim, Tmakmur & TheStore.
In the case of Harrison selling at Rm1.40 with NTA of over Rm3.00 the Indonesia Owner wanted to take it private at Rm1.40 which was a ridiculous price. It was opposed & today Harrison is near Rm4.00
Yes, after watching all the past examples I think there are good & bad signs to watch out for
1) If a company is good Insiders will load up as share prices go down. Last time Yee Lee share price dropped from Rm2.00 to Rm1.00. I alerted my Johor Sifu & we both bought into YeeLee then. After bonus issue the average cost of YeeLee is only 35 sen. So YeeLee is an 8 baggars today. However, YeeLee is no longer cheap today & with rising commodity prices. YeeLee will also be impacted like F&N now due to high costs of operation.
2) A good company with high assets can be bad if Insiders took opportunity to dispose Assets on the cheap to 3rd party companies which they also own through proxies. This is a form of fraud.
3) And for a company of deep value to see excitement is by Disposal of Assets. Example is Lienhoe which sold a piece of Land in Bandar Sri Alam recently for 10 times its book value. At that Lienhoe price shot up.
4) I hold these ones due to these reasons
a) Mui Bhd (Divorce settlement will force Asset sale) b) Bj Corp (Insiders buying & holding firm as prices weakened) c) PBA (This utility stock has deep discount to Asset Value)
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....
John Lu
5,187 posts
Posted by John Lu > 2017-07-12 00:47 | Report Abuse
I wonder why rank 224?