Posted by Seek > 2014-07-25 23:47 | Report Abuse

Hi SamT, thanks for your guidance in Mpcorp restructuring proposals. Since you mentioned Kkp and know much about him, I am perplexed why Kkp allows his many listed co to underperform? What is you think?

Posted by samT > 2014-07-25 23:51 | Report Abuse

As I already shared the type of investors who potential selling their stock , let's look at what kind of investors will be interested with MPCORP after the corporate proposal

1) Investors believe that MPCORP corporate proposal will provide opportunity for the company to excel

They will buy now and hold their stocks all the way until completion of the corporate proposal and with high Target Price.

Most likely this group of investors already bought their stock on Monday and Tuesday and plan to hold for at least 1 year.

2) Investors believe that MPCORP corporate proposal will steer buying interest and take opportunity for short term gain ( They might or might not be positive with the prospect of the corporate proposal , they want to take short term profit from emotional play )

They will buy the stock at lowest price possible and with 5 to 10% profit in 1 to 2 months time. Some might hold all the way to entitlement date expecting another batch of event player picking up the stock for short term play.

Most likely this group of investors will be queuing at average down price ladder, continue accumulating when price in downward trend and sell once hit their target return. Example , they might buy at average RM0.475 and sell at RM0.50 ( 5% ) or RM0.525 ( 10% profit ) in 1 to 2 months time frame or RM0.62 ( 30% ) after entitlement date ( ~ 5 to 6 months time frame )

3 ) Investors who taking opportunity of the value of the warrant

The warrant is expected at RM0.25 due to the 10 years time value although mother share price at RM0.50 is out of money as compare to conversion price of RM0.75

i) Buy now , get the right , warrant , ICULS A and B . Then sell everything for profit merely from the warrant.

Example , buy 1,000 shares today at RM0.50 = RM500

entitle to 800 shares of Right ( RM400 ) , 400 warrant ( free ) and 2,000 each of ICULS A and B ( RM400 )

Total investment = RM1300. Assume selling all share at RM0.50

Total proceed = 2600 * 0.50 = RM1300

Profit = RM100/RM1300 = ~ 7.5%

Breakeven price = RM0.465 after completion of corporate proposal


ii) to enhance from i) , sell the share after ex-date and use the proceed to pay for the right , warrant , ICULS A and B

Example , buy 1,000 shares today at RM0.50 = RM500

entitle to 800 shares of Right ( RM400 ) , 400 warrant ( free ) and 2,000 each of ICULS A and B ( RM400 )

Assume sell the share at RM0.50 after ex-date

Total investment = RM800. Assume selling all share at RM0.50

Total proceed = 1600 * 0.50 = RM800

Profit = RM100/RM800 = 12.5%

Breakeven price = RM0.44 after completion of corporate proposal

will need to be very decisive as price highly fluctuate after ex-date due to heavy selling.

4) buy on entitlement date

On entitlement date , risk of implementation will be low . Investors jump in to buy the stock to entitle to Right + Warrant + ICULS A and ICULS B


The risk is that by entitlement date , if the announcement is very positive ( example , with 3rd party picking up all the ICULS A and B and new management emerge ) , the stock price might rise significantly.

4) excess application

Did not want to take the risk during approval period and taking opportunity if stock price going up after completion of proposal . Highest level of uncertainty ( real life example later - AsiaEP few years back )

This practice is for investors with spare cash for at least 1 month ( assume keeping in cash account with minimum interest return )

assume buying 1,000 shares today at RM0.50 = RM500

Entitle to 800 right + 400 warrant + 2000 each ICULS A and B ( Total RM1600 )

Spare RM10,000 to go for excess application of 10,000 shares of right + warrant ( RM5,000 ) and 25,000 each of ICULS and ICULS B ( RM5,000 )

If received 1,000 right + 500 warrant + 2500 ICULS A and 2500 ICULS B

Total investment = RM2,300

2,800 * 0.50 + 900 * 0.25 + 9,000 * 0.1 = RM2,525


profit = RM225 / RM2300 = ~ 9.8% profit

If received 10,000 rights + 5000 warrants + 25000 ICULS A and 25000 ICULS B ( RM10,000 )

Total investment = RM11,300

11,300 * 0.50 + 5400 * 0.25 + 54,000 * 0.1 = RM12,400

profit = RM1,100 / RM11,300 = ~9.8%

This is taking the opportunity of some investors did not subscribe to their right + warrant + ICULS A and B

5) LR and CR

Some will only invest in LR ( The right to subscribe The Right ) and CR ( The right to subscribe the ICULS and ICULS B )

Investors that expected to buy the LR and CR at discount price and to gain from the differences

Example , after ex-date , the stock price at RM0.50. As the LR + RM0.50 = 1 share + 1 warrant = RM0.50 + RM0.25 = RM0.75 , the investors might try to purchase the LR at low price , trying to take advantage of investors who did not plan to subscribe to the right and warrant while did not know the price of the warrant.

If can purchase the LR below RM0.18 , the profit will be more than 10%

LR + Right = 0.18 + 0.50 = 0.68

Right + warrant = RM0.50 + RM0.25 = 0.75

Profit = RM0.07 / RM0.68 = ~ 10.29%

Posted by samT > 2014-07-25 23:58 | Report Abuse

Seek , I did try to invest in KKP stock such as MUICORP about 6 or 7 years ago as the asset is quite valuable ( such as the hotel in London etc ) but didn't proceed due to reason below

1. The company debt is high.
2. Lack of action by KKP. My personnel view is that he is quite slow in action and the restructuring was very time consuming.
3. The old style cross holding of stocks between all his companies such as MUICORP , MUIPROP , PMCORP , PMHLDG etc seem very complicated and confusion and can't really figure out how he can restructure the stocks and unlock the value.

Due to the uncertainty above , didn't proceed with the investment .

Posted by samT > 2014-07-26 00:03 | Report Abuse

Investors who are familiar with the activities above will look for opportunity during the 6 months of proposal approval period and react accordingly when opportunity arise. Some can even combine all the strategy above to enhance return. This can be achieve through practices ( like Lee Chong Wei playing badminton , he will react instantly when the shuttlecock get close to him..same go to well practice investors ..will able to capture the opportunity easily- the key word is sharp and decisive ) This explain why we can see investors buying and selling along the proposal approval period.

Posted by Seek > 2014-07-26 00:13 | Report Abuse

Wow so many angles for possible profit. Thanks.

Posted by samT > 2014-07-26 00:17 | Report Abuse

Hi Seek , one point to add. After that , I didn't track KKP stocks but most was doing well . I think is due to # 2 that cause him to miss the pocket of opportunity. From my memory , I think the most valuable asset of MUICORP is the hotel in London. If he sold away the asset before European economy crisis , he might able to restructure his group of companies well as the proceed might be enough to pay off all the bills. With pound dropping , property price dropping during the crisis period , he miss the opportunity to dispose the asset and need to drag on..

Posted by samT > 2014-07-26 00:21 | Report Abuse

In art of war, Xun Chi said - Zhen and Chi when view separately are 2 methods only..when combine together can create unlimited combination. Same go to investment..investment strategy can be combine to create unlimited strategy.. this is most accurate in derivative..by using call and/or put , can combine a lot of strategies like cradle , butterfly etc.

Posted by samT > 2014-07-26 00:53 | Report Abuse

I didn't manage to find the full details of excess application .. below is some partial information


1) AsiaEP - profit RM8,334 ( 2009 )

for every 1 share held , entitled to 1 right + 1 free warrant + 1 bonus share

cost per right share : RM0.06

applied for 1,000,000 excess shares at RM60,000

Acceptance = 94.27% ( 13,858,772 shares )
excess application = 152.07% ( 367,856,540 shares )

2) GPacket - profit RM19,046 ( 2009 )

for every 2 share held , entitled to 1 right + 1 free warrant

cost per right share : RM0.50

applied for 200,000 excess shares at RM100,000

Acceptance = 97.96% ( 4,036,533 shares )
excess application = 128.83% ( 254,577,692 shares )


3) GPacket - profit RM19,046 ( 2009 )

for every 2 share held , entitled to 1 right + 1 free warrant

cost per right share : RM0.50

applied for 200,000 excess shares at RM100,000

Acceptance = 97.96% ( 4,036,533 shares )
excess application = 128.83% ( 254,577,692 shares )

Others :

Ralco ( 2009 ) - profit : RM525 , application - RM10,000
Scomi ( 2010 ) - profit : RM5047 , application - RM20,000
Century ( 2010 ) - profit : RM3694 , application - RM100,000
Mtouche ( 2010 ) - profit : RM2571 , application - RM50,000
Redtone ( 2010 ) - profit : RM4664 , application - RM100,000
GBH ( 2010 ) - profit : RM1495 , application - RM12,000
Encorp ( 2010 ) - profit : RM1993 , application - RM8,000
Mlab ( 2010 ) - profit : RM1931 , application - RM8,000
ESCERAM ( 2011 ) - profit : RM12570 , application - RM50,000

Posted by samT > 2014-07-26 00:55 | Report Abuse

The same amount of $$ can roll over every month and if every successful application can make 10% , this will be more than 120% per year of return. The downside is timing and success rate

Posted by samT > 2014-07-26 01:04 | Report Abuse

speculation : How it get started...

A story from my friend - his father worked in overseas bank branches in Malaysia in the 90s

One day , one guy came to the bank to bank in a cheque , amount to RM10,000,000. At the back of the cheque stated a name of a stock counter.

This guy told the front desk teller , he need to bank in this cheque sooner possible to settle stock payment.

The front desk teller saw the name of the stock written at the back of the bank..like found a gold mine...spread across the bank , to their friends , relatives etc ...the stock price soar , everyone believe the speculation is true..continue to spread ..continue to buy..but they never realized that the price up due to the demand created by them...

Finally came the day where the stock fell all the way down and everyone got burn badly...

Did the guy bought the stock with the RM10,000,000 and sold during speculation and he not even using the money to buy the stock , just for show only to create the demand and his syndicates did it ?

The moral of the story is , be skeptical with speculation. If want to involve , plan your exit strategy and cash out sooner possible with targeted profit. Do not be greedy..

Posted by Steven Yong > 2014-07-26 01:25 | Report Abuse

Buy latest focus malaysia. And you will know mpcorp totally no hope.

Posted by samT > 2014-07-26 09:56 | Report Abuse

HI Steven Yong , is it possible to share a brief view about what was mentioned in the report by focus Malaysia ? This might help to enlighten our view from the perspective of the writer for the article of focus Malaysia.

Posted by calvintaneng > 2014-07-26 09:58 | Report Abuse

GOOD MORNING TO ALL AT MP CORP,

At the mention by Steven Yong I went to check up on FOCUS MY Online. Since I am now in Spore I am unable to get a physical copy of FOCUS Magazine. But what I read about their latest article on MP Corp again showed very mediocre arm chair journalism.

They should be an independent body set up to Do Research about Research Houses & Comment on the comments of Focus Magazine write ups. Only then will they be more responsible with their investigative journalism.

The people of FOCUS Mag are Arm Chair Analysts cocooned in their Air Cond office. I want to highlight one very ill informed and very irresponsible statement, "nobody is going to buy Wisma MPL or its land in Johor".

Wisma MPL sits in the Golden Triangle. It is not nobody going to buy. It really depend on the asking price. If the price of Wisma MPL is attractive enough there are many interested buyers out there.

"Or its land in Johor?" Who say so? Did they check with MP Corp Management? They are 100% Totally Wrong here. Let me tell you what I know.

1) The Boss who developed Adda Heights have made offers to buy Nusa Damai Lands. They already bought one very big piece facing Masai Old Road. But MP Corp turned him down due to unattractive offers. This is a fact.

2) Right Now The 6 Lanes Highway from Bandar Sri Alam to NUSA DAMAI are in FULL PROGRESS. The nearest 2 storey houses by UM Land is Maya Heights which was sold around RM300K one year or more ago. Today owners are asking RM500,000 in the open market. A jump of RM200K (Rm500K "Now" - RM300 "Original Price") or 66% price rise in less than 2 years.

NUSA DAMAI Is Only 1.8 KM Away! Land is Now Moving Upward at RM500 a minute or RM262 Millions a year - more than enough to wipe off all debts!

3) Half of NUSA DAMAI Lands Are Designated As Commercial - APTEC & LAKE HILL. As such they command premium prices. If they have not seen the Beautiful Picturesque Lake Hill 25 Acres Lake as yet - fit for Millionaires or even Billionaires!

4) On the ground, Mr. Fahmi, the Boss At Nusa Damai, has indicated that there are Few pieces of Main Road Frontage Lands For Rental Only. And opposite the ECONSAVE Super Market of Scientex MP Corp has a Big Piece of Land Reserved for TESCO Hyper Market.

5) One Day When The 6 Lanes Connecting Highway is Completed - All Cars, Jeeps, Vans, Buses & Lorries Will Have To Pass Through NUSA DAMAI. The Centrality of NUSA DAMAI will be so prime and so important to the people of UM Land, Kota Masai (Ecoworld), Scientex, Bandar Sri Bestari (Mah Sing), Kong Kong (KSeng), Tg Langsat (Sime Darby) Desaru & Pengerang's RAPID

6) How Important is NUSA DAMAI (MP CORP'S LANDS) IN RELATION TO OTHERS?

You Can Think of The Suez Canal or the Panama Canal. Think of the PLUS NORTH - SOUTH HIGHWAY FOR WEST MALAYSIA. Suppose there is no Suez Canal? Suppose There Is No PLUS NORTH - SOUTH HIGHWAY - From Johore Down South All The Way To Thai Border Up North?

Now Think of FOCUS Mag's words, "Nobody going to buy Nusa Damai lands?"

Posted by samT > 2014-07-26 10:05 | Report Abuse

in stock market , it fill with different views point shared by different writers..the key is to understand his facts and how accurate it will be ? Then , factor in this into your risk and return profile and determine how to adjust your strategy.
Like the example I showed before, when I asked my friend to buy BJLand in 2005 at RM0.60 , the broker advise him not to buy. Reason is that management name very bad ( weak management ) and he get nervous. I explained to him the overall view of the company , the return and risk profile and finally he insisted to the broker that he would like to proceed and finally more than 10X return in 2 years get him off his housing mortgage loan.
Therefore , the market is full of positive and negative news , this is common and represent the view point from various parties. We can be excited when reading positive news and get nervous when reading the negative news..but what really will be our action ? Don't proceed or proceed ?? Therefore , good to understand the facts table by the writer and determine how far is accurate and jive with your expectation. If is a valid facts , how to adjust the strategy to minimize the risk ? Reduce holding , change from long term investment to short term investment , reduce TP etc ??
Never panic , be rational..this is very important in stock investment !!!

Posted by samT > 2014-07-26 10:11 | Report Abuse

Just found it from Internet search ..thanks Steven Yong for the highlight.

Malaysia Pacific Corp Bhd (MPCB) has found itself in a tight spot. Its latest proposals for a par value reduction and rights issue to raise funds may not be sufficient to keep the company afloat, and could see it plunging into PN17 status in the future.

According to industry observers, the amount raised from the rights issue, following the repayment of outstanding debts, is simply too small to sustain any income-generating business.

On July 18, the company -- currently rated PN1 for defaulting on its debts -- announced the proposed par value reduction and rights issue. It is within a whisker of slipping into PN17, or financial distress, and the par value reduction is meant to help it ward off the unwanted status, says an industry observer.

One of the criteria for PN17 status is when a company has insignificant business or its revenue for the financial year falls below 5% of its paid-up capital. Another criterion is when its shareholders’ fund is equal to or less than 25% of its paid-up capital.

“By reducing paid-up capital, you bring the benchmark amount for PN17 lower, making it easier for the company to stay above PN17,” the observer tells FocusM.

MPCB has proposed to halve the par value of each existing share of RM1 to 50 sen. As of the date of the proposal, MPCB’s paid-up capital was RM287.66 mil. Following the par value reduction, the amount will be halved to RM143.83 mil. To keep it from falling into PN17 status, MPCB in theory will need to make only 5% of that, or RM7.19 mil for the current financial year.

“The minimum amount is small; but how will MPCB come up with it in the first place? It is making losses, and nobody is going to buy Wisma MPL or its land in Johor Bahru.”

Posted by calvintaneng > 2014-07-26 10:33 | Report Abuse

Good morning SamT,

Very good. About the same time in 2005 when B Land was 60 cents, BJ Corp was only 12.5 cents.

I understand the mood then completely as I also experience it First Hand. I bought BJ Corp through my broker in KL. If I had asked my Johor Remisier Friend First He would have dissuaded me.

When I told my Johor Remisier Friend That I Bought BJ Corp at 12.5 cents, his face turned green and he was totally speechless. I found out the same response going from OSK, KN Kenanga, Inter Pacific, AA Anthony & Hwang. All were In Total Condemnation of VT Conman counter.

BJ Corp Later Shot Up From 12.5 cents to cross RM1.80!

When Mr. Market & Focus Totally reject MP Corp - We Must Go Against the Crowd & Just Buy!

Posted by Steven Yong > 2014-07-26 11:38 | Report Abuse

Yup, their wording if no one want to buy nusa damai land is totally wrong as all tycoon eyeing there. But anyway their view saying mpcorp heading no where after right issues partly truthful.

Posted by samT > 2014-07-26 11:51 | Report Abuse

Let's look at it from point to point

1) Might plunge into PN17 in the future

A contradicting statement observed - might plunge into PN17 in the future ( bad ) . By reducing paid up capital , bring down the benchmark amount for PN17 lower , making it easier to stay above PN17.

So , which is which ..good or bad ???

i) revenue to go below 5% of paid up capital ( required RM7.19MM )

Wisma MPL revenue for Q3' FY2014 ( ended 31st March 2014 ) at RM2,912,000. If annualize , will be RM11,648,000 , which is 62% above RM7.19MM or 38% above RM11,648,000. Assume rental remain the same , occupancy rate need to fall to 37% for this to happen ( currently at ~ 60% level )

What is the probability for this scenario to happen ? I believe is quite minimum at least for the near future.

Even if fall into PN17 , there are no different than the company situation today...need to restructure the company to back to healthy financial situation and PN17 might only make the management more desperate. Stock price might fall but might be be an opportunity to accumulate pending completion of restructuring ?

ii) In term of capital reduction, a company cannot proceed with any right issue lower than par value. Therefore , the right issue need to happen at RM1 based on current par value.

Will any investors willing to invest at RM1 ? I don't think so , most will give up their right and warrant.

Reducing the PAR value by RM0.50 will make the right + warrant more possible and close to market stock price and the warrant will increase the take up rate. This increase the success rate for the fund raising.

My understanding is that by Set 2014 , Malaysia will join other countries with no par value for stock. Right can be raise at any price.

Why the proposal happen now and not 2 to 3 months later ??? Management is desperate , sincere to solve the problem or trying to buy time with ADSB deal before 21st Sept ?

Anyway , this is not an issue as the day will come soon with no par value.

iii) It is making losses , no body going to buy Wisma MPL and its land in Johor.

I assume this is a continuous statement ..what is the relationship between a company making losses and no body going to buy the property ?

This should be deal with separately .

When the company making loss , more investors will approach the company to buy their asset as highly possible to receive a good discount price for the asset.

The correct statement should be no one will buy Wisma MPL at RM320,000,000. What if management decide to sell at 10% discount or 20% discount at 288,000,000 or 256,000,000 or even as low as RM200,000,000 just to cash out to focus on Johor land development and to achieve revenue of RM7.19M , sales of 20 double storey terrace per year will do.

iv ) the amount raise after repay debt is too small to sustain income generated business.

This will depends on how much the fund raising by end of the corporate proposal. As I share in my previous write up , some event driven investors might increase the take up rate through their short term investment strategy. [ from the list of stocks that I shared for excess application , some of the companies are not really good stocks but all the stocks are oversubscribe due to excess application . Therefore , if the corporate proposal approved , the fund raise should be close to the max base on my experience above.

How much fund will be raise under different scenario :

1) min - RM141,706,848

This fund will pay off the debt with ADSB and not extra cash to get the business going. Only buying time for management to perform the next action . This should represent the worst case scenario beside the corporate proposal didn't proceed

2) Max scenario - RM230,127,824

This fund will be sufficient to repay ADSB, restructuring debt facilities and keep RM58MM as working capital which is sufficient to kick start Lakehill project and generate income.

3) What if by entitlement date , all current WB can be exercise at RM0.50 and entitle to right , WC , ICULS A and ICULS B ?

The total fund raise will be ~RM377,000,000

this fund will be enough to repay all debts and with more than RM100MM to kick start Lakehill project

4) what will be the cash generated if all WC exercise as well ?

about RM500,000,000..more than enough to move forward smoothly...

in summary , few scenarios that can be good or bad to the companies but will not be worst than today..

Overall , from my point of view , this report represent the extreme worst case scenario....

What we can do to factor in this extreme worst case scenario

1) what is the probability of this situation to happen - high , moderate or low ? low or moderate?
2) what will be the stock price by then ? RM0.40 ?
30 What is the strategy - sell now or don't buy ? sideline while observing the situation ? Sideline , while observing the situation and accumulate more if price dropped below certain level ?

An investors should decide the strategy to deal with it.

Posted by calvintaneng > 2014-07-26 11:56 | Report Abuse

MP Corp is not heading no where BUT SHOOTING UPWARD! Why?

There is a phrase in hokkien, "Cui boh lai chun bei kia". Translated it means, "If no water come how can boat move?"

For MP Corp's Big Ship Waters Are Flowing In From All Directions!

1) See Pengerang RAPID Lifting up MPHB Cap Shares to RM2.60 now!

2) Ecoworld is Doing Wonders in Kota Masai. Everyone Is Going GaGa Over Kota Masai now!

3) The 6 Lanes Connecting Road Bringing A Flood of Wealth in The Direction of MP Corp.

ALL WATERS FINALLY CONVERGE AT NUSA DAMAI TO LIFT UP MP CORP'S MOTHERSHIP!

BETTER GET ON BOARD NOW!

BEFORE SHIP (SHARE PRICE) SAIL AWAY!

Posted by samT > 2014-07-26 12:02 | Report Abuse

From my view point above , I will said MPCORP after restructuring will be uncertain at this point of time rather than they go nowhere...

Reason is that we yet to know how much fund hey can raise. If the proposal didn't proceed as per plan or only minimum fund raise , yes , they go no where in short term but still need to work on it.

If the right issue generate cash above RM230,000,000 . It go no where if stay at current management without any action..sitting there ' bitting the reserve'..but if the action trigger as $$ is sufficient and even a new management emerge , what will be the situation ? Sailing forward smoothly ?

Therefore , uncertainty should describe MPCORP situation now rather than go no where.

Posted by samT > 2014-07-26 12:04 | Report Abuse

Hi Calvintaneng ah..we are promoting MPCORP now.....just joking ...hopefully everyone view our sharing in rational way...

Posted by samT > 2014-07-26 12:06 | Report Abuse

I used to read analysis report from Yahoo Finance for certain US counters as need to understand the business forecast moving forward so that we can position ourselves for the future. Some analysis report really terrible , some very good with good data , facts etc ..American always said : " I rubbished this report "

Posted by samT > 2014-07-26 12:08 | Report Abuse

The 2 that I always refer to ..Mootly Fool and Seeking Alpha..one really fool , one really good...I read both as I want to see the viewpoint from both side.

Posted by samT > 2014-07-26 12:14 | Report Abuse

Hi Clavintaneng , I did agree with you. Current management hold tight on the pricing and this might be the cause of not deal ca get through.

I always joke with others in my group of investment..may be Ecoworld management approach MPCORP management 1st but can't get into the deal due to pricing and willingness to let go the control..else , I will add more than RM5,000,000 to my pocket when the stock price up to RM5 for Ecoworld...

NO choice ..as we are giving away our authority to the management for discretion action..this is the life of minor shareholder investing in public listing company...

Posted by samT > 2014-07-26 12:25 | Report Abuse

HI Calvintaneng , A bit about MPHBCAP. [disclaimer : Surin Upatkhoon didn't pay me to write this ]

The current upside supported by possible valuation upside

1) Disposal of 49% of Insurance business
2) Disposal of Flamingo Ampang including 13 acres of land at RM500 per ft2 while book value below RM100,000,000.
3) Pengerang RAPID - MPHBCAP land right at the strategic location.

All this 3 under the radar screen of the analysis to happen in next 1 year. Should expect the 3 item above to drive the stock price to RM3.

4) lawsuit with Johor government on low land price when take over by Johor government for Rapid project ?

Will settlement happen ? Analysis didn't factor this in as expected will take time to go through legal proceeding but will both parties agree to a settlement price ? If yes , this might add another RM1 to the stock price due to the huge cash amount inflow.

If a surprise announcement for settlement , raise target price to RM4 per share.

Posted by samT > 2014-07-26 12:32 | Report Abuse

Reported Sept 2013..what happen if connect to Pasir Gudang and MPCORP land is less than 5km from there....

Anyway , I position myself on both MPCORP and MPHBCAP, Pasir Gudang , MPCORP will benefits..Pengerang - MPHBCAP.

by Danny Chua
The construction cost of the proposed third link that will connect Singapore and Johor could stand at around RM20 billion, depending on the bridge’s starting points in both countries as well as the project structure, according to media reports.

Malaysia is looking at constructing the bridge in Pengerang or Pasir Gudang, and have Singapore link it to either Tampines, Changi or Punggol, according to people with first-hand knowledge on the matter.

Notably, the distance between Changi and Pengerang is longer compared to that from Changi to Pasir Gudang, which is around 2km.

If the line is built from Changi to Pasir Gudang via a bridge over water, the construction cost would stand at between RM3 billion and RM4 billion.

“If the government decides to build a tunnel between the two points, the cost will increase by threefold to around RM12 billion,” said the source at a recent highway conference.

The third bridge will have a construction cost of around RM20 billion if Malaysia opts to build a tunnel from Changi to Pengerang, noted the source.

“A tunnel will cost three times more than a suspension bridge. The government will do a feasibility study on the project. It will be good for both Malaysia and Singapore as traffic at the Causeway and the Tanjung Kupang-Tuas Second Link is getting heavy,” added the source.

Posted by calvintaneng > 2014-07-26 12:33 | Report Abuse

SamT,

MP Corp Mr. Fahmi told me they expect Nusa Damai Land prices to go up because of connecting highway. Since Management if fully aware of its intrinsic and potential value they are definitely holding tight their precious shares.

After all they have waited so long - letting go now is totally out of the question. Not unless someone is willing to pay a premium for their shares.

In open market it is another story. At the news of TPY there is confusion and uncertainty due to different interpretation. As the market panicked and Mr. Market swoon - I see it as great opportunity to buy cheap from Mr. Market in a time of fainting fits.

Posted by samT > 2014-07-26 12:36 | Report Abuse

Reported Jan 2013. But latest reported in May 2014 is that the highway will link to Pasir Ris through 3rd link , either from Pasir Gudang or Pengerang.

If this new highway proceeds we can foresee that tourism along this entire eastern coastline of peninsula Malaysia will benefit. By comparison the eastern coastline has far better beaches along the entire stretch while the western coastline tends to be mangrove and mud flats.

See also: Malaysia: Desaru Coast an international tourist destination?

Plans are in the pipeline to construct a new coastal highway along the east coast from Kota Baru, Kelantan to Pengerang, Johor.

Malaysian Highway Authority (LLM) director-general Datuk Ismail Md Salleh said the Government would look at the project’s viability before embarking on it.

He said that with most parts of the west-coast areas in the peninsula being well-linked, served and connected with road and highway networking systems, there was a need to improve connectivity and accessibility in the east coast.

“Although it is still in a preliminary stage, we will look into the project, as it would create economic spillover effects and open new growth centres in the east-coast areas,” Ismail told a press conference yesterday on the Association of Highway Concessionaires Malaysia (PSKLM) International Expressway Conference & Exhibition (PIECE 2013).

Ismail said with Pengerang becoming a new regional oil and gas (O&G) hub in the region, the new coastal highway was “deemed necessary”.

He said plans to transform the Desaru area, also in the Kota Tinggi district, into a leading leisure and hospitality spot in the region would require better connectivity and accessibility

Posted by samT > 2014-07-26 12:39 | Report Abuse

HI Calvintaneng , with all the activities coming forward for Eastern IDR , the land will be valuable moving forward and the only hope is that management will able to execute it well to unlock the value. Hopefully coming soon...

Posted by calvintaneng > 2014-07-26 12:46 | Report Abuse

Yes! See beyond that into the future. Why PM Najib chose 3rd Bridge in Eastern Iskandar?

Najib's Stronghold is in Pahang. Someday there might even be a Bullet Train Linking Pahang State Trough Eastern Iskandar to Changi World No. 1 International Airport.

If So The Equation Will Tip in Favour for Eastern Iskandar.

It Will Be Nearer To Travel To Changi International Airport From Eastern Iskandar than by JB CBD always clogged up Causeway.

Housing Estates Near Tahpanes in Singapore Boomed Due To Its Proximity to Changi Airport.

NUSA DAMAI Has The Brigtest Future Here Due To Its Central Location As The HEART.

Posted by samT > 2014-07-26 13:01 | Report Abuse

[for sharing purposes] there are 2 types of analysts in the market , ' buy side ' analysts who look for stock for BUY recommendation and ' sell side ' analysts who look for stock for SELL recommendation.
This structure is no common in Malaysia as we are more on the taking long position and short selling is quite limited as compare to buying stock.
Therefore , is quite common for some countries that investors receiving ' SELL' call for their stock..Therefore , do not feel bad about it..just understand why a ' SELL ' call is made and what is the rational behind it..agree or disagree and why ?

Stock investment is about emotional control , you get excited sometime that make you greedy to earn more or pessimistic that make you worry either to keep on holding..

Don't let the emotion control your investment decision..look at it rationally , if you believe a stock is good , buy and keep it , plan an exit strategy. If the stock is not good , don't buy it or if holding the stock , plan an exit strategy..

The stock is not your lover that you need o commit to it for life...

Posted by samT > 2014-07-26 13:08 | Report Abuse

The East Coast HSR is very likely . China government already propose to the world that they will build HSR coverage for the whole world ( from China to Africa , South and North America , Europe and Asia all the way down to Singapore ) through barter system [ China will fund and build the projects while the country will repay the cost through barter system ( Thailand- rice , Russia - Oil etc ). The plan was publish in local newspaper about 2 months ago. Highly likely the HSR will follow the highway above , from Thailand through East Coast to Singapore , with the facts that China with an industrial zone at Kuantan , Pahang. All this should happen after 2020. Few days back , China announced extension of HSR from Tibet to India and Nepal . To be completed by 2020.

Posted by calvintaneng > 2014-07-26 13:10 | Report Abuse

SamT,

I think someone wisely said, "Buy A Business Even A Fool Can Run It."

Someday When NUSA DAMAI Lands Skyrocket like The Lands in Manhatten, The Hampton, Bukit Bintang or Penang Road Someone Might Even Offer RM2.00 a share To Take MP Corp Private -

Just TO GET HOLD Its 2 Gold Mines' Lands of LAKE HILL & APTEC.- THE VERY BEST OF THE BEST IN EASTERN ISKANDAR -


NOTE: ONLY MULPHA'S LEISURE FARM CAN RIVAL IT.

Posted by samT > 2014-07-26 13:11 | Report Abuse

I will be in Singapore and Johor next week , meeting up with customers but not at Pasir Gudang area. If time permit , I will work with the driver to come over to Lakehill to look at the land.

Posted by calvintaneng > 2014-07-26 13:16 | Report Abuse

Very Good,

Remember to Drop By Encik Fahmi's Office. It Is A Nice Stand Alone Glass Building Along The Main Road To Kota Masai Town. Outside Are The Words:-

...........LAKEHILL RESORT CITY..........

Posted by HOSEILIAU > 2014-07-26 13:17 | Report Abuse

SORRY FOR MY LATE REPLY, MR CALVIN TAN.
'CHOU LANG HAM HAM' IS A PHRASE IN HOKKIEN MEANS 'AS HUMAN BEINGS, WE DO NOT KNOW WHAT WILL HAPPEN TOMORROW'.

Posted by calvintaneng > 2014-07-26 13:18 | Report Abuse

Thank You. And HOSEILIAU means "Everything Is Fine?"

Posted by Steven Yong > 2014-07-26 14:30 | Report Abuse

Focus Malaysia's report might has a bit funny, but I think they have valid points. I would rather see Bill loss his control in MPCorp, why we want to help him by buying more of his shares? See him sell his assets and pay those creditors, also see him loss his control of MPCorp and take over by Tey better.

Posted by calvintaneng > 2014-07-26 14:47 | Report Abuse

In spite of his reputation I personally think Bill Ch'ng has the Best laid out plan for NUSA DAMAI Lands. Most of the lands are already fully developed into Matured Housing For Low, Low Medium Cost, single & semi detached cluster houses.

The Remaining 630 Acres Consist of The CREAM OF THE BEST.

1) APTEC LANDS ARE LOCATED RIGHT BESIDE THE MAIN ROAD (Near The Proposed Big Roundabout) THROUGH WHICH 6 LANES HIGHWAY WILL PASS.

2) IT WAS BILL WHO DECIDED TO KEEP THE NATURAL PRISTINE CONDITION OF LAKEHILL.
There was a proposal to cut the hill and fill the lake. So Credit Must Go To Bill For His Vision!

Posted by samT > 2014-07-26 18:04 | Report Abuse

Hi Steven , you bring up a very good point that why we should support BC ? Why want to buy his share ?? I would like to share my point ..I used the phase ' cold eye' , when we buy the stock of the company , we invest in the company and we are the co-owner of the company. MPCORP is a public company that own by everyone and not BC. When an investors subscribe to the right , the investors are getting his ' right' in the company and not buying from BC unless is BC who sold his portion to others ( like 15,000,000 shares to TPY)

Therefore , no one is really helping BC , everyone is working towards self best interest..if management change happen , everyone will thumb up , I will celebrate throughout the night...

Lets look at it rationally..will we achieve our objective by not buying the right and warrants and the ICULS A and ICULS B ?

If the corporate proposal go down to drain , it back to square one ..he will still has about 56.4% of holding. He is still the major shareholder and he still in control if the company. Our hope go to drain and I will cry throughout the night....TPY might just walk away and we loss the opportunity for a management change , as I always believe , the situation will not be worst than today with some independent party join the management.

We are the loser if the corporate proposal failed.

Next , we hope that he sell his asset ( I think is not his asset , is MPCORP asset that belong to all shareholders , although some might only own 1ft2 of the land )..If the decision is to sell all the asset and liquidate the company , I will support with my 2 legs , 2 hands , 20 fingers and SB. This is what I really want to see , sell all the assets sell at market value and distribute the cash back to shareholder. Immediately I will make all my gain and walk away. How much this will be : assuming the land worth RM30 per ft2 .

after repaying debt , will equal to RM3 per share. My vested interest is 1,500,000 shares ..I will make almost RM4,000,000 profit from it..really HOSEILIAU..

But will he disposed the asset ? the answer most likely is no. in 2013 AGM , as understand from the media , there was heated exchange between BC and one or two minor shareholder who ask him to liquidate the assets. Nothing happen.

If we hope that BC ( now should be CC ) will disposed the asset , most likely will not happen and will drag on as long as he can..who want to wait some more ??? Company continue taking advance at 13% interest to serve RHB and as working capital ? Continue paying 8% interest to ADSB until ADSB take away the land ..I think investors see enough of litigation in MPCORP , hope is gone rather than drag on.

Will selling away the asset cause him to loss control ? He will only loss control if he sell his shares and not the company assets. He will still at 56.4% holding as long as the outstanding share stay at 288,700,000 and he didn't see any away..

To make him loss control is either he sell away his holding or the share get diluted and his holding diluted to below 50%. The corporate proposal might be the opportunity that this will happen.

Assume WB didn't get converted..his holding now at ~ 163,000,000 shares ( 56.39%)

I use simple calculation here : 1 share get 0.8 right + 0.4 WC + 2ICULS A and 2 ICULS B

assume all WC converted , the # of outstanding share increase by 3X = 866,100,000

his holding get diluted to 163,000,000 = 866,100,000 = 18.82%

If he wanted to increase it back to 50% , he need to buy 270,050,000 shares..assume at RM0.50 per share , he need to inject another RM135,000,000 to the company ..

I will be happy to see him getting more money out from his pocket so he can feel the pain and expedite the recovery of the company..

If he didn't plan to inject more fund , after the corporate proposal , he will loss his control. As I shared previously , assuming WB converted , a new investors pick up all their ICULS A and ICULS B , BC holding will down to 28% , TPY 14% and 3rd holder 19%.

This is really what investors like me and almost all other like to see..something that we can at least celebrate for the night...

Therefore , the corporate proposal will be at the best interest of the major shareholder if happen. Company financial situation will get better , weak management might go away.

I foresee that once investors see the sign that the corporate proposal proceed as per plan , they will flood the bid and stock price will soar and either will continue , will depends on the confident level after the corporate proposal.

For minor shareholder , what we can do ( I assume you hold some shares but I believe you yet to do so ) . The 3 options I share before

1. inject new fund to take up all the rights + warrant + ICULS A and ICULS B
2. sell some to pay for the right + warrant + ICULS A + ICULS B ( without injecting any cash )
3. Stay with your holding without subscribing to the right + warrant + ICULS A + ICULS B.

Posted by samT > 2014-07-26 18:10 | Report Abuse

For the report , the content not even close to what you expected..' Rubbished the Report "

Posted by Angiepretty > 2014-07-26 21:49 | Report Abuse

This one is 20 bagger!

Posted by Steven Yong > 2014-07-26 22:03 | Report Abuse

I totally disagree Sam view. Yes, you are helping the old and Damon ego Bill chng by buying all these rights and throwing your money to sea. Why? He controls the money and manage the money. And more damn is his son is CEO. Buying shares is doing business with other ppl, I personally dunlike him, and will avoid him, that is the only way to avoid losing. And you all keep promoting its johor land. Yes, it is valuable, but do he has the capability to do it? Nope, this is why right issue and tey por yee come to picture.

Posted by Steven Yong > 2014-07-26 22:04 | Report Abuse

There are so many good company out there, why risk ur money in this old ego man? And the useless 富二代。

Posted by leno > 2014-07-26 22:09 |

Post removed.Why?

Posted by Steven Yong > 2014-07-26 22:17 | Report Abuse

For me, ranking on all these under valued stocks as below
1.lionfib
2.mulpha.
3.muiind

Posted by calvintaneng > 2014-07-26 22:23 | Report Abuse

Calm down, calm down Steven. This is a nice Saturday evening. Keep cool. We are here to look for bargains. Warren Buffet used to say, "If I am out looking for a seven footer; any 5 feet 5 " man won't do."

UM land has taken Bandar Sri Alam private, Scientex (Nusa Damai neighbour) almost RM7.00 (Was RM1.60) & Ecoworld Over RM5.00 (Was 11 cents in 2009).

So Only MP Corp Is The Laggard. There must be a reason for MP Corp's lackluster performance. Problem lies with Bill Ch'ng? Well, Bill is also a human being like all of us. Try to think from Bill's shoes.

You think Bill wants to con shareholders some money. Why so doing he harms his own 61% Investment in MP Corp shares.It will not be in the Overall Best Interest For him. Of course the Best Course of Action Is To Let MP Corp Share Excel!

He is already past 70 years old. You think he wants to leave this world with his reputation in tatters! Of Course Not! He wants to redeem himself and come out to face the world again.

So give Bill the benefit of the doubt.

Same goes for BJ Corp which My Johor Sifu, Maybank Iskandar Boss & Myself bought at 12.5 cents. VT was even condemned universally worse than Bill many times over. Yet BJ Corp made the most money for those of us who dare to buy. Buy against the 95% Out There Who Were Totally Against Our Buying then.

Posted by CCSiow1981 > 2014-07-26 22:27 |

Post removed.Why?

Posted by calvintaneng > 2014-07-26 22:47 | Report Abuse

CCSiow1981,

I bought Weida at 35 cents in year 2009. Now at Over RM1.90 up over 500% already. So please don't follow these so called experts to chase high flying shares.

Where were they when Weida was 35 cents? Why don't they call for a buy on Weida then?

The Time To Buy A Share Is When It Is Still Cheap And Few People Wants It. When A Share Becomes Highly Popular It Is No Longer Cheap Any More.

Posted by Dahson_Chu > 2014-07-26 22:50 |

Post removed.Why?