Posted by Ooi Cheng Kee > 2013-09-27 16:18 | Report Abuse

Ok, U jump, I jump.

Posted by MG9231 > 2013-09-27 16:36 | Report Abuse

"Bei tahan already",since every jump in, just take sellers.

Posted by fauzan > 2013-09-27 16:41 | Report Abuse

lucky already jump at 16 cents... good stock.

Posted by calvintaneng > 2013-09-27 16:54 | Report Abuse

A Big Thank You To All At PM Corp Forum. Can we all do something together? We used to go to Jurong Point, Singapore every weekend to relax and do a little shopping.

One routine is to visit the NTUC Fair Price Supermarket and check on the Chocolate sales of TUDOR GOLD, TANGO & CRISPY. At first TUDOR GOLD moves very well. Then the CADBURY from Australia fought back by cutting prices.

When NFI came out with the new designed TANGO it beats ALL HANDS DOWN. Selling at half the price of Van Houten & only one third the price of kit kat!

Always I noticed the TANGO chocolate counter empty. Or only few bars left. So we opened new boxes of TANGO chocolates and rearrange them for display. The person in charge usually do this early every morning.

But sometimes especially weekends TANGO sales are so good that the shelves remain empty. Customers seldom open those new boxes themselves. So they pass on. And goods unseen remain unsold. Our job is to make sure that TANGO, TUDOR GOLD & CRISPY are Clearly On Display At All Times.

And so our request is. Could you please do the same in KL, Selangor, Penang, Sabah, Sarawak, Seremban, Melaka, Ipoh & wherever you are?

Thank you in advance!

Posted by Danielle > 2013-09-27 17:02 | Report Abuse

calvintaneng,im newbie here,do u think new is the right time to enter? need ur advice,thx!

Posted by snow white > 2013-09-27 17:02 | Report Abuse

ok, i will buy only TANGO chocolates from now on :)

Posted by calvintaneng > 2013-09-27 17:10 | Report Abuse

You don't just own a stock. All of you are co-owners and co-investors of A WORLD CHAMPION CHOCOLATE COMPANY! Both Nestle & Dutch Lady Milk started small. Today Nestle is over RM60.00 & Dutch Lady Milk is over RM40.00

The Collective Effort from All Of Us Might Make A Miracle to happen. Malaysia Boleh!

Posted by undervalue > 2013-09-27 17:21 | Report Abuse

Hi Calvin,
Thank you for your in-depth sharing. I would like to ask some questions.
1) what are the directors compensation(salary)? Is the range comparable to the market industry which have the same business.. (Chocolate)
2) what is the status of the new factory in shah alam which they bought in 2009? Have they started production?

The reason I asked about their compensation because they are undervalue companies out there where they pay themselves massive salaries. Ex. Hong Fok, a spore property company which has many years where the stk price is substantially lower than its NTA. Their salaries r even higher than some of the property big boys in Spore(ex Capitaland, Keppel land etc) No regular div and They don't give a damn to their shareholders.

Appreciate if you can answer the questions. Thks!

(I m vested in PM Corp not too long ago)

Posted by sense maker > 2013-09-27 17:31 | Report Abuse

The value of PM Corp hinges entirely on KKP. :D

Posted by yowtp > 2013-09-27 17:31 | Report Abuse

CT, thanks for your sharing. Hope that the PMCorp and PMI can come true.

Posted by calvintaneng > 2013-09-27 17:55 | Report Abuse

Thank you for your concern about this matter. At the last AGM held at PD, the combined Directors' Fees were RM166,168. All other years were about that range. I am not sure about other Chocolate Companies. By the way all the other chocolate co. prices have run up fiercely, only PM Corp is the laggard. Guan Chong, Cocoaland & Apollo Food have all doubled & tripled in prices.

As to the 6 acre land next to current NFI factory in Shah Alam. Due to Lehman Brothers debacle & US endless QE, Company is putting it on hold. This answer came from Director James Wong.

The 6 quarters of positive results of PM Corp could be attributed to James Wong by putting of heavy expenses in promotion. Producing chocolate products according to market demand. cutting down excess stock helped Company turnaround.

In any case, the Factory was bought in year 2,009 for RM17 Millions. Price has definitely gone up. By how much? Anyone from Shah Alam knows? With Greater KL MRT coming up the Prime Land will be even more valuable in the near future.

James Wong may be too cautious for now. But with sales moving fast there won't be enough stock someday. To increase revenue and increase profit expansion is inevitable. RM31 Millions is proposed for the building of the new factory next door.

Posted by undervalue > 2013-09-27 19:37 | Report Abuse

Thank you very much for your quick response. What is the actual address for that piece of land at Shah Alam?

Posted by calvintaneng > 2013-09-27 21:12 | Report Abuse

Sorry if you waited for reply. Just went to Jurong Pt for a quick dinner. Oh! the Big Crowd on a friday night! As usual I saw to my delight that The TANGO Chocolates being Sold Off quickly.

I shoved those at the back end of the shelves from the rear end to position them neatly as near front as possible. Think by to-night they will all be snapped up.

The 6 acre industrial land's address is lot 614 Tapak Perusahan Shah Alam, Persiaran Raja Muda, Shah Alam, Selangor. Just next door is the Network Food Factory. Last time I was there they were having day & night shifts to meet growing sales.

Posted by yowtp > 2013-09-28 00:25 | Report Abuse

CT, if capital reduction then the share will be reduce. Example as below:
Par value 50cent reduce to 25cent, then share will be 4 share to become 1 share. The share price 0.18cent * 4 = 72cent. Then if TP1.50 should be no problem for mid term.
It is right?

Posted by sense maker > 2013-09-28 00:43 | Report Abuse

Reduction in share par value is not necessarily done together with share consolidation although it is quite normal as part of a wider scheme of capital reorganisation or reduction, so that accumulated losses can be wiped off, share capital reduced, and new fund injected via issuance of new shares.

Capital reduction can be done via capital repayment by company with excess capital. Excess cash in PM Corp is mainly derived from gains on disposal, not from continuing business. As such, distribution of excess cash is best done via capital repayment, not dividend.

The pertinent question is how much is the coming capital repayment, if at all it comes. If small, say 3 to 4 sen, it will not make much of an impact to the share price, in my opinion, because minority shareholders will then ask when will be the next distribution. Not another 10 years please. That is why the share price has been rather low.

Posted by undervalue > 2013-09-28 00:59 | Report Abuse

Calvin,

I m going to give a rough valuation for that industrial land's address as I m going to make certain assumptions.

1) It is near Shah Alam Section 16 and I assume that the land next to Network Food Factory should be seating on a 99-year leasehold land as most of the factories there are seating on a 99-year leasehold, correct me if I'm wrong..

2) Base on propertyguru website, (http://www.propertyguru.com.my/commercial-property/2?listing_type=sale&region_code=MY10&property_type_code[]=FAC&property_type_code[]=WAR&property_type_code[]=ILAND&districts[]=SL066&freetext=section+16&sort=price&order=asc&submit=Search)

The cheapest factory/warehouse was valued to sell at RM194 psf (RM16 million per 82,500sqft). However, the owner is trying to sell 10% below valuation which is RM 169.70 psf. (For simplicity, I will ignore the base price of listed auction properties in that area as it may not reflect the true value when bidders start their bidding..)

Other properties listed around that area are between RM 170 to RM230 psf. I'll take RM170 psf to calculate. (conservative)

3) 6 acre land = 261,360 sqft
261,360 sqft x RM170 = RM 44,431,200

Please note that this is a conservative figure. Feel free to comment..

Posted by calvintaneng > 2013-09-28 07:42 | Report Abuse

Good Morning to All At PM Corp Forum This Fine Saturday,

Thank you, undervalue, for your valuation of the 6 acres Land in Shah Alam to be RM44,431,200. Yes, you are right, the Industrial Land is leasehold..
I am so happy we made a 40% yearly gain from the land purchase. RM44,431,200 - RM17,000,000(purchase price) = RM27,431,200
27,431,000 divided by 4 years (2009 - 20130 = 6,857,750 (yearly gain).

And 6,857,750 divided by 17,000,000 = 40.3% Profit For PM Corp Yearly For 4 Very Good Years.

In the latest Annual Report the Net Book Value the 6 acres land is valued at only Rm16,580,000.

All Properties Belonging MUI GROUP in M'sia, S,pore, HK, UK, USA Are UNDERVALUE!!!

Posted by calvintaneng > 2013-09-28 08:34 | Report Abuse

And yes, sense maker, we share the same sentiment with you. What if there is only a small pay out and the minority shareholders are subjected to lengthy wait for another 10 years for the next payment?

Wish I know the Actual Amount to Be Given. In conversation with Management lately, Mr. Ho Chun Fuat reconfirmed the Proposed Exercise:

1) IT WILL GO THROUGH. Interpreted it means the proposed Capital Reduction & Cash Distribution will go through as planned by Directors. At the AGM in PD, Mr. Ho, asked the Share Holders, "Do you want payment to be in CASH OR TREASURY SHARES?"

2) COMPANY ALSO NEED MONEY. Whether Mui Group, PM Corp or Tan Sri Datuk Khoo himself need money is not specified.

3"PRICE WILL GO UP!" The Announcement of CASH PAYMENT will Cause The Public to take notice and buy in PM Corp shares. Thus price is expected to go up.

Further Question, "How Much Is The Cash Pay Out?" This he was unable to answer. In all these, I find Management to be competent.and only disclosed what is allowed by Bursa.

So, sense maker, what do you make of the above conversation? However, since we are Very Long Term Investors, cash pay out or dividend, is not our primary concern. What we are interested in, is the Long Term Prospect and Unfolding of Value in the Company. Uppermost in our mind is the integrity of Management. Can they be trusted? Is our investment safe?.

Berkshire Hathaway doesn't give dividend to save on taxes for shareholders. A Compounded Growth rate of over 20% year after year is why shareholders flock to Omaha yearly.

Posted by izoklse > 2013-09-28 13:15 | Report Abuse

other than TMS & SILVER, my eye now focus on all PM company including PMCORP,PMHLD, PMIND & PMCAP . The buying interest keep building up and im thinking of attacking more seem some of that super duper cheap.

Posted by houseofordos > 2013-09-28 17:07 | Report Abuse

Hi Calvin, very interesting sharing you posted here http://www.jbhouseforsale.com/pan-malaysia-corporation-4081-an-overlooked-extremely-undervalued-stock-in-klse/

I would just like to clarify with in your article where you mentioned the following :-
PM CORP own MUI BERHAD Which Own these TWO JALAN AMPANG PROPERTIES. When The General Public gets to know The Value of PM CORP & MUI BERHAD through Asset Revaluation, Prices Will Come Alive!

I think its the other way round. Looking at analysis of shareholdings for PM CORP, MUI owns 20.9% of PMCORP while there is no mention of PMCORP as substantial shareholder in MUI. Please correct me if I m wrong...

Posted by undervalue > 2013-09-28 17:56 | Report Abuse

I do agree with you about that the integrity of the management is utmost important beyond just giving out dividend on a regular basis. However, I also find that it is subjective and it's very difficult to observe with their words alone. I m not so sure about Msian directors but most of the Spore directors are quite persuasive and eloquent. They may be very convincing during AGMs but actions taking place may take years to realize.. What are some of the things they mention that convince you and show their integrity?

I just came back from Vivocity.. hmm cannot find Tudor brand at Giant. Later, I will be going to NTUC to check out..

Anyway, I have vested interest not because of the business alone but it's extremely undervalue properties and it's cash rich..

Posted by calvintaneng > 2013-09-28 22:16 | Report Abuse

Yes houseofordos,you are right, MUI is the substantial shareholder of PM Corp while PM Corp has less share in MUI Bhd. PM Corp own MUI ICULS A. See MUI Annual Report of Year 2011: pp 50. Among top 30 see no. 3. PM Corp no.10. Mui Property (PM Corp own MUI Bhd indirectly through MUI PROPERTIES) no.14. United Pace & no.17 Jomuda (United Pace & Jomuda are both subsidiaries of PM Corp's Investment)

In the latest Annual Report of PM Corp, it is stated that MUI BHD owned 66.5% shares of PM Corp See pp 98. Early this year MUI Bhd bought over the remaining 4% of PNB's share through off market dealing - thus increasing MUI Bhd share in PM Corp to about 70%

Posted by calvintaneng > 2013-09-28 22:37 | Report Abuse

In December 2012 all the Iculs A, B & C of MUI Bhd were automatically converted to mother share. PM Corp's portions could be outside the Top 30.

Why MUI Bhd bought PNB shares? Management believe that PM Corp is very undervalued. PM Corp has been exercising share buyback from 47 cts to 20 cts while PNB has been selling down from 30 cts to 20 cts. After PM Corp stopped share buyback, PNB continued selling all the way down to 10 cts. As the price crashed Mr Market panicked and caused PM Corp to overshoot on the downside at its lowest at 7.5 cts.

You see Eco World want to privatise Focal Aim at RM1,40. Mr, Market's panic buying caused Focal Aim share price to overshoot on the upside from RM1.40 to over RM2.40

Posted by izoklse > 2013-09-28 22:44 | Report Abuse

calvin just wonder,do you know anything about PMI would be taking over? i just read from other forum this one guys wrote about it.

Posted by calvintaneng > 2013-09-28 23:05 | Report Abuse

Thank you, undervalue, for you interest in Tudor Gold chocolates. Giant Singapore only stocks TANGO & CRISPY Chocolates. Tudor Gold is available in NTUC Fair Price, Sheng Siong & Cold Storage & Mustafa Center.

For All Fellow Malaysians, Tudor Gold, Tango, Crispy & Kandos are available in Giant Supermarket, Tesco, AEON & Mydin Supermarkets. In ECONSAVE Supermarket (M'sia) only TANGO & CRISPY are available. Most 7 Elevens carry TUDOR GOLD & CRISPY But Not TANGO.

There Are 14,000 Outlets Selling Network Food Products in Malaysia,

And 1,500 in Singapore

Also 6,200 in Hong Kong

Exporting to over 30 Countries Worldwide

.

Posted by calvintaneng > 2013-09-28 23:08 | Report Abuse

izoklse PMI Management will never let anyone take over PMI. They themselves wanted to take it private.

Posted by izoklse > 2013-09-28 23:11 | Report Abuse

thanks for the info calvin. Appreciate it.

Posted by yowtp > 2013-09-28 23:13 | Report Abuse

Izo, can you share the forum?

Posted by izoklse > 2013-09-28 23:15 | Report Abuse

its in investlah.com

Posted by calvintaneng > 2013-09-28 23:32 | Report Abuse

In the very beginning when attending the earlier AGMs, although I spoke of the glowing prospect of PM Corp - other Share Holders were very hostile against the Directors & Officers. I spoke out openly and directly, "My greatest fear is management!" After 4 years, 4 Directors had left - 3 resigned & one deceased. Of the remaining Directors & Officers especially Mr. Ho Chun Fuat, I find them to be friendly, frank and factual.

You see, no organisation is perfect. Even among the 12 disciples is a Judas. And we pray that God will protect the Company from all Judases. As to Andrew Khoo (he has resigned to join a Company in Spore) I find him to be a humble well groomed gentleman. Lai Fah, the Assist Manager of NFI said that Andrew's wife dressed modestly. They both attend a Good Christian Church in Singapore.(The Conservative type)

As for Tan Sri Datuk Khoo's personal divorce proceedings we can only hope and pray for the best outcome. In any case, his private affair should not affect the operation of PM Corp. The Company is in the Hands of Competent Leadership.

Posted by HJey > 2013-09-29 00:13 | Report Abuse

Don't use God to prove anything. A person attends church doesn't mean that person is good.

Take City Harvest Church as example.

You're more likely an employee of NFI.

Let us talk business now. PM Corp channel strategy is less efficient than Nestle & Cadbury. The number of shelves which display your chocolate is less. I don't see any gondola end or box display from PM Corp. This shows the sales force is average.

I know Petronas didn't carry any merchandise from PM Corp. I'm not sure if Shell also the same. Petrol station shop contributes huge sales for snack & biscuit. Kit Kat, Cadbury, Mars & Kinder Bueno are available at petrol station.

PM Corp is in FMCG industry. Without doubt, product branding is very poor. Anyone notice Kit Kat, Cadbury & Kinder Bueno ads on television? PM Corp did on nothing on marketing and advertising.

I can't comment on management. This is how I value a management. Good, honest, smart and right person at the right job. A good person can be in the wrong job & industry.

Posted by calvintaneng > 2013-09-29 02:14 | Report Abuse

OK HJey, I shall desist from referring Religious upbringing as a benchmark for good or bad. I think that is my personal conviction, the majority might or might not agree.

As to City Harvest Church it is not for me to pass judgement. Let the law decide. My believe is totally different from their style of evangelism.

And as to my being an employee of NFI. You are absolutely wrong on that count. Warren Buffett said that when he buys a share. He is buying an actual Company producing Real Goods & Services. When he gave a free interview HE HOLDS UP A CAN OF CHERRY COKE IN FULL VIEW OF BILLIONS.

Let me ask you? Is Warren Buffett an employee of Coca Cola?

At one time I owned shares in more than 130 companies? Am I therefore the employee of UMW, Mamee,Bursa, Padini, KPJ, KSeng, Top Glove, Public Bank, Kumpulan Fima, Guan Chong, TN Logistic, Daiman, Crescendo, KSL, SP Setia, Kimlun, Perak Corp, Daibochi, OPCOM, MMC Corp. BJ CORP When IT Was Lowest at 12.5 cts,

Pintaras, Ajinomoto, Yee Lee, TASEK CEMENT, YTL CEMENT, LAFARGE, CMSB, Faber, Harison, ,HL Cap, HLBank, IJM, IGB, QSR, ,PLUS, LITRAK,Gamuda, MNRB, MALTON, KPS at its lowest 40 cts, RUBHD, Petaling Garden, I&P, Pelangi,( taken private)
& many many others?

Am I therefore the employee of all 130 Companies? Of course not!

And now for the most interesting part regarding NFI & other chocolate products. If you didn't ask I would have delayed mentioning. But since you brought up the subject, we already have the answers'

We shall state the facts based on research. Let the people be judges after you have all the facts. Here is something which all of you can see for yourselves & verify.

We only request anyone of you from Sabah or Sarawak to verify one important thing which only those from there can help us.

We shall speak the truth, and only THE TRUTH, without fear or favour.


To be continued...

Posted by calvintaneng > 2013-09-29 04:49 |

Post removed.Why?

Posted by calvintaneng > 2013-09-29 04:49 |

Post removed.Why?

Posted by calvintaneng > 2013-09-29 05:01 | Report Abuse

And Now It Is Up To You To Go Into Every Supermarket, Every Petrol Station shops, every 7 Eleven & Every neighbourhood provision shops and check the labels of all chocolates and verify for yourselves the listed ingredients.

And then check carefully the price difference between COCOA and ILLIPE/SHEA.

And after checking and verifying for yourselves. Please be the judge & post your comments.

Thank you ladies & gentlemen.

Posted by calvintaneng > 2013-09-29 05:36 |

Post removed.Why?

Posted by calvintaneng > 2013-09-29 06:06 | Report Abuse

And so HJey, do you know why some petrol station shops don't sell Tudor Gold? I understand this fully because I had encountered this problem before.

The middle men refuse to provide Tudor Gold chocolate because NETWORK FOOD gave them limited discount. How to sell genuine Aussie beef ball and survive. Deliver only the CHEAPEST ONES WITH THE MOST DISCOUNT, OF COURSE!

And Chocolates sold petrol station shops are marked up in price by 30% to 50%. Check it out.

LET ME TELL ALL OF YOU,


THE TANGO 40g CHOCOLATE BAR RETAILS FOR RM1.29 IN GIANT SUPERMARKET IS THE BEST OF THE BEST BUY AMONG CHOCOLATES.

IT HAS VERY HIGH COCOA CONTENT & ANTIOXIDANT. ANTI-OXIDANT? YES! READ THE FINE PRINT CAREFULLY!

VAN HOUTEN HAS NO ILLIPE OR SHEA. BUT READ THE LABEL CAREFULLY. MADE IN RP OF CHINA. MADE IN CHINA, NOT TAIWAN. CAN YOU TRUST THE ORIGIN OF CHINA MILK?

Posted by 草鞋 > 2013-09-29 08:55 | Report Abuse

http://www.maninseat12a.com/2011/03/cadburys-dairy-milk-review-of-good-not.html

Posted by undervalue > 2013-09-29 09:03 | Report Abuse

Good morning Calvin, I m amazed by the sheer amount of research that you have done. Incredible!

The mesg about The quality of their chocolate has to reach the general public otherwise people will never know how good their chocolate is. They need to spend some money to market his message. Once people know about this, their sales will explode. It's like the unstoppable train
Show- Denzel Washinton.

People wouldn't take time to compare the cocoa compound with every other chocolate brand out there.

Posted by HJey > 2013-09-29 09:15 | Report Abuse

calvintaneng, you still haven't address the issue. In FMCG, perception is reality. Do you think Coke & Mcdonald are good for health? Absolutely no.

And, how did these Coke & McD become world champion (your fav phrase) in their respective segments? Even Buffett bought lots of Coke shares. Voke & McD led to obesity and high sugar level in blood but people still buying it, day in day out.

The real issue is how PM Corp going to solve channel and marketing weaknesses? Talk is cheap.

I rest my case.

Posted by undervalue > 2013-09-29 12:08 | Report Abuse

Hey HJey, your questions are full of anger. Calvin does not owe you a living. There is no need for him to answer you. Did you pay him to do reaeach for you?? Throw your big ego away. Even if he does not answer you, there is no need to put it that way. Learn to be tactful and appreciate yo!

Posted by kcchongnz > 2013-09-29 12:14 | Report Abuse

Graham Net-Net Investment Strategy and Pan Malaysia Corporation Berhad

In 1932 at the bottom of the Great Crash, Ben Graham wrote an article on Forbes about the cheapness of the market and how companies are being quoted in the market for much less than their liquidating value, as if they were all destined to be doomed. He called these types of stocks, "net nets", companies that sell for less than its net current asset value, or net net working capital. Graham used the following formula to compute the liquidation value of a company.

Net Net Working Capital = Cash and short-term investments + (0.75 * accounts receivable) + (0.5 * inventory) – total liabilities

It's the lowest form of valuation you could possibly do because it ignores everything about the business and just focuses on tangible assets. The formula states that;

• cash and short term investments are worth 100% of its value
• accounts receivables should be taken at 75% of its stated value because some might not be collectible
• take 50% off inventories, due to discounting if close outs occur

PMCorp’s latest balance sheet as at 30 June 2013 was used to compute the net tangible asset and Graham net net values. Besides cash, the net net values of quoted and unquoted investments owned are also taken as 100% of the book value. This is a fair assessment as it is believed that these assets are likely to worth more than their book value than otherwise. Note that tax assets, property, plant and equipment, Goodwill and “other assets” are taken as worth nothing.

The appended table shows that the Graham net-net value of PMCorp is 24 sen. This is 33% above its closing price of 18 sen on 27 September 2013.

PMCorp BS Amount Weight Net-net
Cash and equivalent 93950 100% 93950
Investments 81977 100% 81977
Receivables 21475 75% 16106
Inventories 18433 50% 9217
PPE 48040 0% 0
Goodwill 63190 0% 0
Other assets 1652 0% 0
Total assets 328717 x 201250
Less total liabilities -15471 100% -15471
Equity 313246 x 185779
x
Number of shares 773356 x 773356
NAB 0.405 x 0.240
NTA 0.323 x 0.240

Posted by calvintaneng > 2013-09-29 12:20 | Report Abuse

A Very Good Morning To All At PM Corp Forum,
I slept at 6 am. Just got up at 11.30am after over 5 hours sleep. I am really excited over this Forum which I discovered last week. I feel like Warren Buffett who tap dance to work.

Yes HJey, my dear friend, I fully agree with you, neither coke nor McDonald are healthy. And since I treat all at PM Corp as Family. May I warn you. According to Dr. Ng Eng Kee from Australia, he said that the average American drinks bout 5 pounds of shoe polish by drinking coke every year

. Personally I met 2 men who had their legs amputated. Upon closer query, they told me the cause was drinking too much coca cola morning, afternoon and night, day in and day out. But the public doesn't bother. Smoking is bad for health. But look at BAT shares. The masses don't bother about cancer So buy coke shares but drinking too muck coke is a no, no..

And now, back to your question in the need for marketing strategy for our FMCG (Fast Moving Consumer Goods).. 4 years ago, one of the top employees of NFI (S'pore) went to China and made some toys for the Rebranding of Chrispy

Those Crispy Toys & the whole marketing process caused few millions in losses. Plus 2 specialised TUDOR GOLD TV Adverts (See Network Food Industries Website TV ads) caused more money to drained.

It wasn't Andrew Khoo's fault (Andrew was the person who chosed the new color packaging for the highly successful "TANGO". It was Lawrence who made the mistake. Lawrence has since resigned and left for India.

Moreover, NFI overproduced some chocolate when the New Tudor Gold Dark Chocolate.range was launched. The Malaysian public is more interested in the Sweet Milk Chocolate rather than the less sweet dark chocolate. So near expiry date (about 2 years shelf life) NFI has to sell them one for one free.

The Tiramisu Dark Chocolate 500 g jar was a real bargain.So we (Johor Investors) not only bought PM Corp shares but also PM Corp products Some consolation since nobody know about PM Corp shares prospect then.

So you see due to heavy promotion & over manufacturing PM Corp bled losses year after year until the last 6 quarters. What was the cause for the turnaround? The negative turning positive.
It was by cutting down on promotion and overproduction to prevent losses.

Posted by yowtp > 2013-09-29 12:21 | Report Abuse

CT good work.

Posted by calvintaneng > 2013-09-29 12:32 | Report Abuse

The Butterfly has three stages in its life cycle. The caterpillar stage, the pupa stage (in cocoon) & finally the fully transformed butterfly when it takes flight. What you are observing is the cocoon stage. The company is conserving energy and build up cash like the cocoon stage.

Someday when the butterfly emerges from the cocoon, it will take flight. Some time ago all these counters were trading around 50 cts to 70 cts. Guan Chong, Cocoaland, OFI (Oriental Food Industries (gone up to RM2.00 & RM3.00) and even Dutch Lady once traded ar RM4.00. It has flown so high and crossed RM40.00 today.

Posted by calvintaneng > 2013-09-29 13:01 | Report Abuse

And another answer to your question, how PM Corp going to solve channel and marketing weaknesses? The Company cannot reveal their strategy publicly. There are plans going on. That's why most of the time when I phoned Mr. Ho from Singapore - he is often in a Meeting.

Great plans are going on in MUI Group. I can feel it.

Did the Japanese tell the Americans before hand that they wanted to bomb Pearl Harbour? Of course not! It was the interception of secret coded messages that caused the Americans to win at The Battle of Midway"- the turning point of the Pacific War against the Jap.

The marketing strategy of PM Corp is a Company secret. It will be revealed when the time is right.

Posted by inwest88 > 2013-09-29 13:12 | Report Abuse

kchongnz, thanks for your analysis. As a value investor in the long term, would you consider to include PMCorp into your list of investment.

Posted by houseofordos > 2013-09-29 14:38 | Report Abuse

kcchongnz, there is some difference in my projection for PMCORP intrinsic value based on Graham net net.

1. The weighted no ordinary shares should be 708397 after taking share captial subtracting treasury shares.
2. The sale of Singapore leasehold land brought in ~RM38m, I adjusted investment and cash value to reflect that. Below is my computation.

Graham net-net BS value Wt Liq value Per share
Cash and cash equivalent 131950 100% 131950 0.19
Investment Properties 1137 100% 1137 0.00
Investments 65168 100% 65168 0.09
Inventories 18433 50% 9216.5 0.01
Trade Account Receivables 21475 75% 16106.25 0.02
Property, plant and equipment 48040 0% 0 0.00
Intangible assets/tax recoverable 58206 0% 0 0.00
Total assets 344409
Total liabilities 15471 100% 15471 0.02
Total equity 328938 0
Number of shares 708397 100000
Net tangible asset per share 0.46 0.29

So my value of RM0.29 is more optimistic from yours with target price 46% higher than closing price on Fri.

Posted by houseofordos > 2013-09-29 15:10 | Report Abuse

Posted by calvintaneng > Sep 28, 2013 10:16 PM | Report Abuse

Yes houseofordos,you are right, MUI is the substantial shareholder of PM Corp while PM Corp has less share in MUI Bhd. PM Corp own MUI ICULS A. See MUI Annual Report of Year 2011: pp 50. Among top 30 see no. 3. PM Corp no.10. Mui Property (PM Corp own MUI Bhd indirectly through MUI PROPERTIES) no.14. United Pace & no.17 Jomuda (United Pace & Jomuda are both subsidiaries of PM Corp's Investment)

In the latest Annual Report of PM Corp, it is stated that MUI BHD owned 66.5% shares of PM Corp See pp 98. Early this year MUI Bhd bought over the remaining 4% of PNB's share through off market dealing - thus increasing MUI Bhd share in PM Corp to about 70%


Calvin, if based on purely asset play, would you invest in MUI directly rather than PMCORP ? It looks like most of the valuable properties are sitting in MUI balance sheet.

Posted by kcchongnz > 2013-09-29 15:26 | Report Abuse

Posted by houseofordos > Sep 29, 2013 02:38 PM | Report Abuse
kcchongnz, there is some difference in my projection for PMCORP intrinsic value based on Graham net net.
1. The weighted no ordinary shares should be 708397 after taking share captial subtracting treasury shares.

YES, YOU ARE RIGHT PROVIDED THESE SHARES ARE CANCELLED OFF AND NOT REWARD TO MANAGEMENT.

2. The sale of Singapore leasehold land brought in ~RM38m, I adjusted investment and cash value to reflect that. Below is my computation.

YOU ARE RIGHT HERE TOO. HOWEVER THAT WAS WHAT CALVIN SAID. IS IT SHOWN SOMEWHERE FOR THE PUBLIC? ALSO IF THAT IS TRUE, THERE WILL BE SOME REDUCTION IN THAT "INVESTMENT", WON'T IT? I WAS JUST TRYING TO BE CONSERVATIVE IF CONSIDERING WHETHER WANT TO INVEST OR NOT.