Vietnam Riot Blessing in Disguise for Latitude

- Riots in Vietnam arising from Vietnam and China dispute over Paracel Islands in South China Sea

Further to our announcement dated 14 May 2014, we wish to inform that the manufacturing facilities of the Company’s subsidiary, Latitude Tree Vietnam Joint Stock Company (“LTV’) has resumed operation today, 22 May 2014.

The shut-down arising from the riot has resulted in a loss of 8 production days. The customers have been informed of the delays in delivery and rescheduling of delivery has been made.   

Asset losses arising from the incident were limited to office equipment and computers, glass doors and windows of the main office building and a small portion of the packing section. The insurance adjusters are in the process of assessing the losses arising from the damages. Claims will be made against loss of business interruption and other damages. The losses are not expected to have any material impact to the financial earnings for the financial year ending 30 June 2014.

This announcement is dated 22 May 2014. (Filing of Lat. with Bursa)

Last Friday, Latitude (Lat) closed at RM3.24 for a gain of 19 sen. In the last 3 candles, there are 2 gaps. These gaps are a reflection of eager buyers. 

The chart clearly shows that the stock has been in an uptrend.  As a trend in motion is likely to continue, Lat in now in a good position to move higher. 

The recent riot in Vietnam is no longer a concern. The above announcement says it all. The Vietnamese government has also assured that all companies affected by the riot will be compensated by way of a tax cut.

Lat is actually a Malaysian-based company. It has three factories in Malaysia, two in Vietnam and 1 in Thailand. The major share owners are Taiwanese, not Chinese from mainland China. 

From an optimist point of view, the souring of relationship between Vietnam and China may turn out to be a blessing in disguise for Lat simply because it does not belonged to the Chinese but to some Taiwanese. 

Lat will announce its third quarterly result, latest by end of this month. If showings in its chart is anything to go by, the result is mostly likely to be good. 

The chart below gives you an idea as to how Lat has been faring when compared to some of its peers in the last one year. Have a good look, it easy to see the trend.

The red line is Lat. The others are: Lii Hen, Poh Huat and Homeriz.

I am long on Lat. I believe the stock deserves a better rating. 

Latitude, What's On My Mind

In the daily chart shown above, I  see higher highs and higher lows. This means an uptrend is in progress. My focus now is in the last two candles where there is a gap between them. 

This gap signified eagerness to buy at the opening bell. As the day progressed, demand continued  to come in culminating the stock to a high of RM3.08 for a gain of 33 sen at the close of trading. This the best one-day performance of the stock so far. 

Daily skillful traders should have jumped in to buy soon after the opening bell and made a good profit by cashing out at the end of the day. Day traders do not hold position over night. 

The last candle is a bullish Marubozu. The validity of this candle is confirmed by the high volume traded. 

I always sell some of my shares whenever I get that feeling of elation. In fact I sold 5400 shares in Latitude at RM3.08 per share towards the close of trading on Friday. Please do not be misled by this action. These shares were bought in early December 2013 at RM1.60 CD per share. They represent only a tiny fraction of my total holdings of the stock. At RM3.08, the price has gone up by 92.5% in 5 months. I sold simply because I wanted to lock in some of my profit. In the stock market, we can't be sure of what is going to happen next. 

Now, let us have a good look at the chart again. The price shot past the overhead resistance at RM2.85 in style with high volume. As such, RM2.85 has now become the support level of the stock. Because the stock has risen too much too soon, profit taking is bound to set in, come Monday morning. So It will be interesting to see how the bulls react. I think the stock will hold up well because its fundamentals is extremely strong. (Please refer to my post on March 04,2014 under the heading, "Latitude (LT) Too Good To Ignore" on why the stock is worth RM4.83 per share.)

The stochastic indicator is close to its overbought level. Another few percent rise in the price will sent this indicator into the overbought region. This does not mean it will quickly reverse direction, but it does mean that you have to be on the alert for any bearish signal to emerge. 

If you are ignorant about charts then you have to depend on your feel. Intuition, that's what they call it. 

A correction to around the RM2.85 level is an opportunity to buy. 

Whatever action you take is your full responsibility. 

You buy, sell or hold at your risk. 

What Remains At Hwang-DBS After The Special Dividend

 Hwang-DBS (HDBS) is now known as Hwang Capital (HC). On Monday, 21.4.14, the stock will be traded ex-special dividend of RM2.50. Lets take a look at what remains at HC presently. 

The company has two subsidiaries, namely: 

HDM Capital Sdn Bhd & HDM Properties Sdn Bhd.

These two subsidiaries contributed to the revenue HDBS for the year ended 31.7.13, 11.1% and 28.3% respectively. Whether they contributed to profits or not, I do not know.

Cash in hand is estimated to be about RM775.8 million. 

Total number of shares issued is 255,158,900 after cancellation of 10,686,100 shares on 14.04.14. This works out to cash per share of RM3.04!!!

HC has 2 years to look for a core business from Jan 22, 2014, the date HDBS signed the SPA with Affin, to remain as a public listed company. If it fails to do this, it has to fold, and whatever remains in the company will be disposed off and distributed to the shareholders. 

The company said that it had allocated RM250 million to look for new businesses. I believe it is likely to be successful in this respect and retain its listing status.

In the meantime, HC will probably remain as a quiet stock until Management has something to announce, such as the acquiring of a new business or a reverse takeover or maybe another special dividend. 

For those who have deep pockets, the stock is a value buy at below RM2 per share. Remember its net cash position per share is RM3.04.

I do not vouch that the above figures are 100% correct. Please do your own research before taking any action.

 You always buy at your own risk.

It's easy to plan a trade, but it's hard to trade the plan. Here's why.

Consider this scenario:

You buy 1000 lots (1 lot = 100 units) of a stock at  Rm1 per share. You place a stop-loss at 95 sen. You say to yourself, " I am only prepared to lose only 5% in this trade if it turns sour. So my loss is limited to RM500. "  

Immediately after you have bought, the price starts to drop. The screen shows: Buy 95sen 100 lots; Sell: 96 sen 500 lots; Last done 96 sen.

Now, are you going to trigger your stop-loss and sell 100 lots to the buyer? Bear in mind that you have 1000 lots to sell at 95 sen.

While you are undecided, the buyer suddenly pulls out. The screen shows: Buy 94 sen 200 lots; Sell 500 lots 94.5 sen. In such a circumstance, what are you going to do? Sell everything at below 95 sen or wait until there's a pullback to 95 sen, then sell. What if there is no pullback, and the price keeps dropping? 

So, you see, you can plan your trade, but you may not be able to trade your plan. 

Here's another possible scenario: Stock AQ has been in an uptrend for sometime and in the last few days, the stock has been hitting new highs everyday. Your remiser whispers to you, " Buy this stock, I have insider news that it will hit RM10 in the next few days. The stock is now selling at RM6." 

Wow! You said to yourself, " Here's my chance to make a lot of money. I shall take the tip and place a stop-loss at RM5.50. My risk is only 50 sen. So there is not much danger." Now what may happen is this:

After you have bought at RM6, the stock really moves up. Higher and higher it goes,

RM6.30,  6.40,  6.50 and still going strong. You become greedy and buy more. The stocks hits limit-up sending you to cloud 7. 

Suddenly, Bursa makes an announcement, AQ is suspended pending an enquiry. After a few days of investigation, Bursa classifies  the stock as a designated security. This means that if you want to buy the stock, you have to put money upfront.

This has a big impact on the stock immediately. When suspension of the stock is lifted the following day, it gaps down at the opening bell. Fear sets in. There is a rush for the exit but only a few can get out before it goes limit-down. 

Before long it was trading at a much lower price than your initial purchases. You are trapped. 

From the above two scenarios, you can see that it's actually not easy to trade according to what you have planned.

Tips from remisers are actually the most unreliable. When a big boy wants to unload,  whom do you think they will entrust the job to. Remisers of course.

Want to trade? Think again. Do you have the capability to cope with ablest money getters in the world? 

Why I like ECS

The reasons are as follows:

It is a small-cap stock; its paid-up capital is only RM90 million.

It has a strong balance sheet with over RM80 million in cash as at 31.12.13

It has no borrowings 

Its current ratio is over 2 as at 31.12.13

Its par value is 50 sen

It has a dividend policy of giving out 30% of its earnings as dividends

It distributes a comprehensive range of ICT products comprising of notebooks, personal computers, printers, software, network and communication infrastructure, servers, and enterprise software from more than 30 leading principals such as HP, IBM, Cisco, Asus, Microsoft, Apple, Dell, Oracle, Epson, Samsung, Buffalo, Adobe, Juniper, Blue Coat, VMware and Lenovo.

It has more than 3000 outlets to sell its more than 3000 products.

In our modem world of ICT, computers, PC tablets and smart phones are no longer luxury items, they are necessities of life. Mobile devices, especially smart phones and PC tablets are increasingly in demands. This trend is sure to continue as new technology comes into play.

High Speed Broad Band 2 (HSBB2) and Budget 2014 will boost the demand for ICT products. 

The company is also involved in cloud computing and enterprise systems which every business needs. Cloud computing is popular in Japan and Hong Kong. Malaysia will be next.

The founders of ECS are still managing the company.

The company is expected is do well this year. Growth will come from its business in smart phones and other mobile devices. 

Keep a close watch on this counter. Presently at around RM1.28, it is a laggard, cheap and lowly priced. 

When it finally moves, drive into the market and load up your truck.

Buy at our own risk. 

ECS On Verge of Moving Higher

This daily chart of ECS shows that the stock has strong underlining support since early this year. Today a strong bullish candle is sure to be formed by the end of the day. This is a good sign that the stock is on its way to a higher level.

ECS has a strong balance sheet with RM83.7 million in cash as at 31.12.2013. Its paid-up capital is only RM90 million. The company is predicted to do much better this year than last year. Its new business in mobile devices such as PC tablets and smart phones is bearing fruits. This I think will be reflected in the 1Q2014 earnings which may be reported in the first or second week of next month.

The stock was last traded at RM1.23, but it won't be there for long. I think it will move up pretty fast going forward.

Investing/trading in the stock market is risky, and there is no such thing as a certainty. So please remember this: You always buy at your own risk.

A Trader is not a Gambler

View InTheMoneyStocks.com's Instablogs on:

• Five Reasons Why A Real Trader Is Not A Gambler How often have you heard someone say that they just bought a stock because they have a feeling that it is going to move higher? Personally, I hear someone tell me that every single trading day. When I ask them how they know the stock is going to move higher they answer by saying it's a hunch or they heard someone talk about it. Well, in the trading world it is not prudent to take tips or trade on a hunch. There needs to be a sound methodology for taking a trade, otherwise it is just gambling. It is important to note, a good trader has the odds in his favor while a gambler does not. Just think about it, how can a Las Vegas casino stay in business if they do not have the odds in their favor? The answer is they can't. A casino knows that the odds are always in their favor and the longer a gambler plays in the casino the more likely the casino will take their money. As a trader you want to be Steve Wynn, not the guy at the roulette wheel placing bets.
  Here are five reasons why a good trader is not a gambler, but more like a Las Vegas casino owner:
  1. A good trader takes a position when the odds are in his favor, not when the odds are against him. An educated trader will accomplish this task by using charts and understanding the human emotion that is being displayed on a chart. That is why certain breakout and breakdown patterns continue to reoccur throughout history. The chart pattern is simply recording the human emotion that is taking place in that particular equity.
  2. A good trader will know when to cut his loss when he is wrong. The legendary trader Jesse Livermore used to say that a trader should never take more than a 10 percent loss on any position. Even a Las Vegas casino will cut off a hot gambler if they win too much money. When a trader can admit they are wrong on a trade and limit the loss it is much easier to come back from that error. Traders must always use a stop loss.
  3. A good trader does not need constant action in the market. A trader only enters a trade when the chart setup favors that he will make money. If the chart setup does not overwhelmingly support a pattern then the trader does not want to be in the position. A gambler constantly needs action; they continuously need to have some type of bet in place at all times. This gambler mentality is one of the reasons why so many people over-trade and lose money. A good trader patiently stalks out a stock or equity waiting for the right chart setup to appear. One thing I have learned over the years is that the worst thing you can do as a trader or investor is to force your will on the market. Chart patterns make money and you must patiently seek the good charts out.
  4. A good trader does not trade will with capital they cannot afford to lose. It is so important to be calm and keep all of your senses when trading. I have seen traders enter a position hoping that it is going to work out and their heart rate jumps up like they are running a marathon, this is usually a sign that they are trading too much money. A trader should not use capital that makes them feel uncomfortable. A gambler will usually bet the farm on a single bet, a good trader will not. Gamblers are always doubling down after they lose; this is a recipe for disaster, especially if you are a trader. I have seen traders blow up their entire accounts by doubling down and averaging in.
  5. A good trader does not take tips from others, but looks at the chart and decides whether the pattern is bullish or bearish. Have you ever been to a horse track? Half of the bets in a horse race are because someone has given someone else a tip. Good traders do their own due diligence and never listen to the public. Remember, when everyone is looking at the same thing it will rarely happen. Never take tips. Even the legendary Jesse Livermore admitted this to be one of his biggest mistakes as it was usually one of the main reasons for his trading losses.
• 
  Nicholas Santiago
  InTheMoneyStocks.com

Latitude Back On Track

Latitude went up to an intraday high of RM2.82 on Feb 20, 14. A mild correction because of profit-taking brought the stock down to RM2.35 where it found strong support. 

The stock is now back to its uptrend track. Strong resistance is seen at around the RM2.80 area. If RM2.82 is decisively breached, the stock is likely to trend up higher. At the time of writing this post, the stock was lasted traded at RM2.69.

Buy at your own risk. 

CBIP wins RM46 million contract

This daily chart of CBIP is a beauty to behold. The stock has been having a gradual uptrend. Of late, this uptrend is becoming steeper. The company has just announced that it has been awarded a contract to build a palm oil mill for RM46 million in Papua New Guinea. Click here for the article.
The stock is likely to trend higher.

Latitude Trees (LT) Too Good To Ignore

LT is in the business of wooden furnitures. Its main raw material is rubber wood which is plentiful in Malaysia and Vietnam. It has 6 factories covering 7.8 million sq feet. That is  about 179 acres. Three of its factories are in Malaysia, two in Vietnam and one in Thailand. Below is a brief history of the company, sourced from its website:

"Latitude Tree Holdings Berhad was incorporated in Malaysia as an investment holding company. Through its subsidiary companies, the Group specialises in the manufacturing and sale of wooden furniture and components particularly rubber-wood furniture for both the domestic and export markets.

The Group has carved out a strong niche in the household furniture segment, specifically dining and bedroom sets. From its humble beginnings as a manufacturer of chairs for dining sets in 1988, the Group has grown into a complete high- and-medium-end dining and bedroom sets manufacturer. About 60% of its raw materials are rubber-wood-based with the remaining being oak, pine wood and other wood-based materials.

The Group has made great advances to position itself as one of the largest rubber-wood furniture manufacturers and exporters in Malaysia and Vietnam. Approximately 99% of the Group's products are exported overseas to the United States of America, Canada, Europe, South Africa, Australia and the Middle East countries. 

Manufacturing / Operating Activities

The Group's manufacturing activities are operated from its three factories in Malaysia, two factories in Vietnam and one factory in Thailand. The total floor area of the six manufacturing plants is approximately 7.8 million square feet. The total current workforce is about 7,500 workers."

The EPS of the company in the last 6 months ending 30.12.13 are just too good to ignore. The latest quarter is 19.52 sen per share, and the preceding quarter is 15.02 sen per share. Assuming that these kind of earnings are sustainable in the next 6 months, the full-year result will be 69 sen per share. 

 In view of its strong showings, especially in the latest 2 quarters, a PE ratio of 7 accorded to the stock is not illogical. This means the stock is worth RM 4.83 per share.

The company has a strong balance sheet with a current ratio of 1.598 and cash in the banks at RM154 million. Its paid-up capital is only RM97.208 million. Borrowings stand at below RM100 million.

At the present price of below RM2.60 per share, there is lots of value for money in the stock. 

As usual, you buy at your own risk.

One Hundred and Eighteen Percent In Less Than 2 Weeks

" Western Lithium is pursuing the opportunity to be a supplier of specialty drilling additive, HECTATONE™ and potentially other organoclays for the oil and gas industry, and in particular, to support the growth of high pressure high temperature, deep directional drilling applications. The Company is also developing its Kings Valley, Nevada lithium deposit into a strategic, scalable and reliable source of high quality lithium carbonate. The Company is positioning itself as a major U.S.-based supplier to support the rising global demand for lithium carbonate that is expected from the increased use of hybrid/plug-in and electric vehicles."

Western Lithium (WLC.TO) was highlighted in my blog on 14.2.14. The stock had shot up 118% in less than 2 weeks!!! I had bought 30,000 shares at C$0.33 per share. When trading closed early this morning at the TSE, the share closed at C$0.72. Let the good time continue. 

MNRB Highest In The Last 15 Years

The above chart shows that MNRB has been trending up.In the last few trading days, the trend has become more apparent. At RM4.15, the stock is at its highest in the last 15 years. It is now in uncharted territory.

Going by the chart, the stock is poised to go higher. Attractive but dangerous as well. If you can't stand the heat, don't go near the fire.

The Five Biggest Stock Market Myths

When fiascos like the Libor scandal, London Whale scandal, and analysts' conflict of interest occur, investor confidence can be at an all-time low. Many investors wonder whether or not investing in stocks is worth all the hassle. At the same time, however, it's important to keep a realistic view of the stock market. Regardless of the real problems, common myths about the stock market often arise. Here are five of those myths.

1. Investing in Stocks Is Just Like Gambling.
This reasoning causes many people to shy away from the stock market. To understand why investing in stocks is inherently different from gambling, we need to review what it means to buy stocks. A share of common stock is ownership in a company. It entitles the holder to a claim on assets as well as a fraction of the profits that the company generates. Too often, investors think of shares as simply a trading vehicle, and they forget that stock represents the ownership of a company.

In the stock market, investors are constantly trying to assess the profit that will be left over for shareholders. This is why stock prices fluctuate. The outlook for business conditions is always changing, and so are the future earnings of a company.

Assessing the value of a company isn't an easy practice. There are so many variables involved that the short-term price movements appear to be random (academics call this the Random Walk Theory); however, over the long term, a company is supposed to worth the present value of the profits it will make. In the short term, a company can survive without profits because of the expectations of future earnings, but no company can fool investors forever - eventually a company's stock price can be expected to show the true value of the firm.

Gambling, on the contrary, is a zero-sum game. It merely takes money from a loser and gives it to a winner. No value is ever created. By investing, we increase the overall wealth of an economy. As companies compete, they increase productivity and develop products that can make our lives better. Don't confuse investing and creating wealth with gambling's zero-sum game.

2. The Stock Market Is an Exclusive Club For Brokers and Rich People.
Many market advisors claim to be able to call the markets' every turn. The fact is that almost every study done on this topic has proven that these claims are false. Most market prognosticators are notoriously inaccurate; furthermore, the advent of the internet has made the market much more open to the public than ever before. All the data and research tools previously available only to brokerages are now there for individuals to use.

3. Fallen Angels Will Go Back up, Eventually.
Whatever the reason for this myth's appeal, nothing is more destructive to amateur investors than thinking that a stock trading near a 52-week low is a good buy. Think of this in terms of the old Wall Street adage, "Those who try to catch a falling knife only get hurt."
Suppose you are looking at two stocks:

• X made an all-time high last year around $50 but has since fallen to $10 per share.
• Y is a smaller company but has recently gone from $5 to $10 per share.

Which stock would you buy? Believe it or not, all things being equal, a majority of investors choose the stock that has fallen from $50 because they believe that it will eventually make it back up to those levels again. Thinking this way is a cardinal sin in investing! Price is only one part of the investing equation (which is different from trading, which usestechnical analysis). The goal is to buy good companies at a reasonable price. Buying companies solely because their market price has fallen will get you nowhere. Make sure you don't confuse this practice with value investing, which is buying high-quality companies that are undervalued by the market.

4. Stocks That Go up Must Come Down.
The laws of physics do not apply in the stock market. There's no gravitational force to pull stocks back to even. Over 20 years ago, Berkshire Hathaway's stock price went from $7,455 to $17,250 per share in a little more than five year. Had you thought that this stock was going to return to its lower initial position, you would have missed out on the subsequent rise to $170,000 per share over the years.

We're not trying to tell you that stocks never undergo a correction. The point is that the stock price is a reflection of the company. If you find a great firm run by excellent managers, there is no reason the stock won't keep on going up.

5. A Little Knowledge Is Better Than None
Knowing something is generally better than nothing, but it is crucial in the stock market that individual investors have a clear understanding of what they are doing with their money. Investors who really do their homework are the ones that succeed.

Don't fret, if you don't have the time to fully understand what to do with your money, thenhaving an advisor is not a bad thing. The cost of investing in something that you do not fully understand far outweighs the cost of using an investment advisor.

The Bottom Line
Forgive us for ending with more investing clichés, but there's another old adage worth repeating: "What's obvious is obviously wrong." This means that knowing a little bit will only have you following the crowd like a lemming. Like anything worth anything, successfulinvesting takes hard work and effort. Think of a partially informed investor as a partially informed surgeon; the mistakes could be severely injurious to your financial health.

Source: investopedia.com

Silver Wheaton Corp Best Of The Pick

Over the last 12 months, silver has dropped from a high of $30.45 to a low of $18.50. This is a drop of 39% which is considered severe. Lately, the price of silver has picked up in tandem with the rising price of gold. Presently gold is at $1318.70 and silver is at $21.40. This means that gold price is 61.62 times higher than that of silver. 

In August 2011, gold reached a high of $1,889.60 and silver was at $50. Thus at that time gold was 37.79 times higher than silver. Many people thought at that time the ratio of 37.79 between gold and silver was too wide and would surely narrow. Obviously, they were wrong. What about now? Will the price of gold and the price of silver drifted more apart.  

Gold experts say that the logical ratio is 16. But the market, more often than not, does not follow logic. Therefore, there is no certainty of what's going to happen next. At best we can only guess. With a chart, this is made easier and more intelligent  than just mere guessing.

The above chart SLW shows that the stock has formed a round bottom. It is now poised for a good run-up. With silver price improving, silver mining companies are the ones that will benefit most.

In Bursa Malaysia, there is not even a single silver stock.  So, if you want to invest in silver, what are the options available to you. You can buy physical silver, open a silver account, or buy silver stocks overseas.

Among the many silver stocks that are listed in the NYSE, I like Silver Wheaton Corporation (SLW) which is the largest silver streaming company in the world. 

A silver streaming company is one that makes payment upfront to mining companies for the right to purchase all or some of the silver produced in the mines at a very low price. Lately SLW has also ventured into gold streaming. I feel this counter has the potential to move up fast. I like the business model of the stock.

There are many articles about SLW at Seeking Alpha. Please do your own research before buying the stock. The last traded price was U$25.38 per share. This is a good entry point, in my opinion.

You buy at your own risk.

Western Lithium A Potential 10-bagger

Western Lithium (WLC.TO) is a potential 10-bagger. This means it has the potential to move up 1000% in the next 5 to 10 years. 

The above chart shows that the stock has completed a round bottom. It is now poised to go higher. In the last trading session, the stock jumped 9.52% It closed at C$0.345 in the Toronto Stock Exchange. 

The company is in the business of producing Organoclay and Lithium. Organoclay is an important drilling additive in the oil and gas industry. Lithium is for the purpose of producing lithium-ion batteries. 

The importance of the oil and gas sector needs no introduction. As for electric vehicles, they are becoming increasingly popular as more and more countries are concerned about environmental protection and the need to lessen carbon dioxide.

If you are a high-risk-high-reward investor, and wish to be adventurous, WLC is definitely a stock you should look into. I bought 30,000 shares a day ago at C$0.33 per share.

For a comprehensive understanding of the stock, click here. 

The stock is also listed in America in the OTC counter. 

As usual, you buy at your own risk.

Go Xi Fa Da Cai

Which Way The Market Now

Last Friday, the KLCI closed at 1,802.5 with a small doji. The low of the day was 1,798.57. If the opening price is lower than 1,798.57 which is likely, come Monday morning, the signal is one of extreme bearishness. 

The MACD is looming to go lower as displayed in the chart.  Sentiment in America, notably the Dow index, is extremely  bearish with the latest drop of 318 points placing it at below the psychology level of 16,000. 

For the KLCI index, some support is likely to come in at the 1,792 and at 1780. I believe that they will be breached within the next 30 days. This is just a forecast based on the bearish display of the chart. 

You listen to me at your own risk. 

TDM to set up 60-tonne palm oil mill

TDM Expects Indon Ops To Contribute 40-50 Per Cent To Group's Earnings

KUALA LUMPUR, Jan 21 (Bernama) -- TDM Plantation Sdn Bhd expects its Indonesian operations to contribute between 40 and 45 per cent to the group's earnings over the next five years.

Chief Executive Officer, Badrul Hisham Mahari, said the company has invested between RM250 million and RM300 million over seven years on its 40,000 ha plantation in Indonesia.

He said 12,000 ha had been planted with oil palm trees while 500 ha had matured.

Badrul said TDM, capitalising on the maturation of these oil palm trees, the group would set up a 60-tonne palm oil mill costing RM80 million to correspond with the first harvest which was expected by 2015.

"The group is the first plantation company in the East Coast to achieve 100 percent RSPO-certified for its mills and estates," he said after the Roundtable on Sustainable Palm Oil (RSPO) certificate presentation.

The group's plantation arm received the RSPO certification in November 2013.

TDM also has two oil palm mills in Sungai Tong and Kemaman, Terengganu.

Badrul said the plantation division has been the major contributor to the group's revenue of about 90 per cent compared with its healthcare unit.

-- BERNAMA

Is it a good thing if the proposal to take PRK private is blocked?

PKNP, the investment arm of the Perak Government and 3 others have proposed to  privatize PRK under section 64 of the security act by selective capital reduction and repayment to the minority shareholders. 

The price they offered is RM3.90 per share. This price is way below the NTA value of RM5.05 per share of PRK as at 30.9.2014. 

The intrinsic value of PRK is much higher, considering that PRK has cash and bank balances in excess of RM187 million and a piece of land next to the Proton City which has improved very much in value. 

PRK's township, known as Bandar Meru Raya (BMR)  is doing well. A JV theme park with the Sanderson group in ongoing in BMR. Its investment in Integrax has also improved in value. 

Since PKNP already had the intention to privatize the company, it will not easily give up. I believe that if the present proposal is successfully blocked, it will try again by offering a higher price. For those who have the holding power to hold on, the reward should turn out to be much better when it comes.

Look at MBF, the first offer was only at 60 sen per share, but eventually it was done at RM1.80 per share.

Whatever action you take as a result of this post, you do so at your own risk. I am long on PRK and intend to join the minority shareholders who object to the proposed repayment of RM3.90 per share. 

CBIP To Trend Higher

This daily chart of CBIP looks positive. The candlesticks and stochastic are in accord. Once the overhead resistance level at RM3.28 is crossed, the stock should be on track to trend higher. Keep a close watch. Believe what I say at your own risk.