by Calvin Tan
Comments Off on L&G (Stock quote 3174) LAND & GENERAL or LAND & GOLD (Top Reasons for buying (Calvin Tan Research)
Dear Friends, Fellow Investors who visit here,
My next stock pick is LAND & GENERAL or LAND & GOLD.
These are the Top Reasons why Calvin Tan Research has turned bullish on L&G
At 21.5 sen with NTA of 58 sen L&G is selling at 63% Discount to NTA. This gives us a Big Margin of Safety
2.High Dividend of 9%
At 2 sen dividend yearly for the last 5 years L&G gives the 2nd highest dividend yield after Tasek Cement. So it beats Classic Scenic, Apollo Food, Alaqar Reit (beating all other reits) and all other dividend paying shares of KLSE. Since L&G is in Net Cash Surplus it is able to continue its dividend payout.
3. A GROWING ENTERPRISE
Its recent Rights Issue to raise Capital was to purchase 4 Prime Assets. This is also done by Mah Sing, Scientex & SP Setia. Growth by expansion.
4. HIGHLY UNDERVALUE ASSETS
A look at the Book Value of L&G Land banks showed that L&G owns about 2,500 acres of Prime Freehold lands in Kerling. The book value is only 44 sen psf.
Current Bank Value for lands in Kerling & Kuala Kubu Baru is Rm3.00 psf. So if revalued L&G lands in Kerling should go up by 500%. And among its 4 Assets recently acquired is the 160 acres of freehold lands in Serendah. This is a timely acquisition as GEELY is going to invest BIG TIME into Proton City of Tg Malim
5) L&G Land Banks in Kerling & Serendah will go up in Value when 60,000 Proton Staff relocate to Tg Malim. Just like the towns of Rengit & Desaru jumped in value by 300% to 500% due to Petronas RAPID that caused an influx of 70,000 workers into this booming region. So the expansion of Proton City due to GEELY Jv with Proton in Tg Malim will create multi year boom for all Real Estates here.
From L&G 2016 Annual Report:
Scroll down to Properties owned by L&G
2 Ladang Kerling Mukim Kerling District of Ulu Selangor
Rubber and oil palm estate. Freehold.
1,009.71 hectares. Book Value Rm48,146,000
So LG has 1,009.71 hectares of Freehold Lands in Kerling (15 minutes from Proton City of Tg Malim)
To convert hectares to acres
1,009.71 x 2.471 = 2,494.99 acres. That’s almost 2,500 acres.
How many sq ft
So 2,494.99 x 43,560 = 108,681,764.4 sq ft
Its total book value is Rm48,146,000
And how much per sq ft?
So Rm48,146,000 divides by 108,681,764.4
= 44.29 sen per sq ft.
The current land prices according to lands in Perling & Kuala Kubu Baru starts from Rm3.00 to Rm10.00 psf. Bank valuation is about Rm3.00
So if L&G wants to it can follow HapSeng, Eg, Seacera or Fiamma’s examples & just revalue its lands and assets & book them as profit.
So from 44.30 sen to Rm3.00 psf L&G will see a jump of 677%! WHOPPEE!
And Rm3.00 psf at 43,560 sq ft (per acre) would mean that each acre is worth Rm130.680K
For 2,494.99 acres?
So 2,494.99 x Rm130,680
= Rm326 Millions
Ha! If L&G wanted to it could just sell off these lands for its recent Asset Acquisitions in stead of raising CASH by Rights Issue. Never mind. If sold L&G will be able to give out 5 or 6 yearly dividends of 2 sen from this Asset Disposal alone. So 9% dividend is assured for the next 6 years for all happy holders of L&G shares? (Note further: L&G already in NET CASH Position even without Assets disaposal. So if more CASH comes in L&G might even raise dividend to 3 or 4 sen?)
6) Top Holders of L&G are Mayland, savvy investors like Lim Pei Tiam & Tan Chong Koay of PHEIM Funds
The recently concluded RI saw Mayland increased its position. So is Lim Pei Tiam. Lim is a banker for 20 years. Other shares of great success by Lim was Super Enterprize (Up 200% & taken private), Kheesan & Pohuat (also up 200%) Lim is 2nd Top holder of Pohuat.
Tan Chong Koay has 3 separate Pheim Funds in Top 30 shareholders of L&G. Pheim recently made 200% from Penta from its price surge.
Coming in at
Top 12. Citigroup Nominees (Asing) Sdn Bhd CEP for PHEIM SICAV-SIF
7,512,400 (PHEIM has 7.5 million L&G shares)
Coming in at Top 22. HSBC Nominees (Asing) Sdn Bhd And Co Boston for PHEIM Asean Equity Fund (TCSB)
3,379,000 (PHEIM Fund at Top 22 with 3.379 million shares)
Coming in at Top 30 CIMB Group Nominees (Tempatan) Sdn Bhd PHEIM Asset Management Sdn Bhd for Progressive Insurance Berhad (A/C231)
2,521,000 (Again at Top 30 PHEIM chose to invest 2.5 million L&G shares for Progressive Insurance
Why is Tan Chong Koay so bullish on L&G? Tan Chong Koay made a chun chun call in Pentamaster from Rm1.20 to over Rm3.70 (up 200%)
Can we expect L&G to go up 100% or 200%?
7) L&G share price has fallen to multi year low of 21.5 sen – Its downside is well cushioned by 9% dividend yield & high NTA. And with coming good prospects of Tg Malim BOOM Due to GEELY manufacturing its World Champion SUV called LYNK 01 for export to ASEAN 10 nations of 620 millions & over 100 countries worldwide there will be a spillover boom for L&G’s over 2,600 acres prime lands here.
Please invest your hard earned monies after due diligence
Best regards & cheers
L&G is now controlled by Mayland. Mayland is a very successful developer of STRATEGIC PROPERTIES IN STRATEGIC LOCATIONS.
Mayland did very well even in recession years due to its
1) Strategically located Condos in Prime Locations
2) Excellent & Unique Design & Features with a touch of Class
3) Priced very competitively to sell fast!
See this Condo called PRIMA REGENCY in Masai, Johor completed in Year 2002 (during bad times) & yet ALL SOLD OUT
SUCCESS BEGETS SUCCESS
ALL SOLD OUT DUE TO LOCATION, DESIGN & ATTRACTIVE & UNBEATABLE PRICES!
by Calvin Tan
Comments Off on WISHING ALL JOHOREANS & ISKANDARIANS A PROSPEROUS NEW YEAR OF 2017
Another year has passed. Thus we have witnessed a spectacular decade of amazing progress in Iskandar. 2017 begins today for the next decade 2017 – 2027.
By then will house prices in Iskandar overtake that of Affluent Singapore? It remains to be seen. But the gap will definitely narrow year after progressive year from here!
Now for the latest updates for Iskandar’s Growth Momentum
HSR STATION IN GERBANG NUSAJAYA
All the Lands Around Iskandar Puteri (formerly called Nusajaya) & Medini will continue to appreciate due to its proximity to Growth here! And tens of thousands commute to Singapore for work daily. As of now prices of real estate are still 10% of that in expensive Singapore. (Note: From Japan’s experience. All real estates surrounding Shinkansen HSR Station will rise up by 64% in value when Bullet Train Stations are in place.)
2. MRT FROM THOMPSON, SINGAPORE TO BUKIT CHAGAR
This will be connected by a 25 meter high bridge across the sea. Will the old causeway bridge be finally removed one day? So that small ships, ferries & recreational crafts could sail pass this waterway.
If so then Singapore can plan for Round Island Cruise as an added Tourist Itinerary Attraction. And fishes will thrive here leading to Fishing competition in the far future? All things are possible. Singapore might even get an opportunity to start a Sea World Resort here like that of San Diego with “Killer Whale Shows” to attract tourists from all of Asia!!
3. OPENING OF IKEA IN TEBRAU CITY
By End 2017 Malaysia’s Biggest IKEA at over 1.8 MILLION Sq Ft of Shopping space will be open for business. This will be the BIGGEST IKEA STORE in Malaysia. Expect many Singaporeans bypassing Queenstown & Tampanies Ikea store for a beeline to IKEA TEBRAU CITY Every Weekend from then on.
Now is the best time to buy up single storey, double storey, cluster houses, semi dees and bungalows in Tebrau Austin area all the way to Ulu Tiram. Just like houses in Bandar Utama, KL house prices Shot Up after IKEA Damansara was opened. (Before One Utama & Ikea opened in Damansara area prices of Bandar Utama 2 storey houses were priced at only Rm160,000 a unit. After IKEA Damansara was opened Prices of Bandar Utama 2 storey houses Shot Past Rm1 Million Mark!
And for IKEA Queenstown, Singapore’s opening the 5 room HDB Flats in Singapore’s Queenstown were among the first ones to cross the S$1 million mark (That’ s Rm3.1 Millions for a HDB Flat! One without 24 hour security or swimming pool!!)
(Again please remember to avoid buying any high rise condos in Iskandar as the glut is getting from bad to worst)
4. PASIR GUDANG HIGHWAY (2ND PHASE COMMENCED IN EARNEST)
Unlike First Phase with much delay the progress of 2nd Phase is truly impressive. Soon the PASIR GUDANG HIGHWAY Upgrade from 4 to 6 lanes will be completed – bringing access to Bandar Sri Alam, Taman Megah Ria, Masai, Taman Kota Masai, Taman Nusa Damai, Taman Scientex, Taman Kota Masai, Taman Pasir Putih & Taman Air Biru. All the landed properties here expected to appreciate by another 20% to 30%
5. FOUR MEGA SHOPPING COMPLEX TAKING SHAPE
SOUTH KEY MEGAMALL
CAPITAL CITY 21
IKEA TEBRAU CITY
These will draw in more shoppers from Singapore and other parts of Johor
6. LANDED PROPERTY PRICES HOLDING FIRM WHILE HIGH RISE CONDOS FACE HEADWINDS
Since all are building high rise condos to the neglect of landed houses there is now a glut of condos resulting in weaker sale prices or rental prices for this class of building. As lower end landed properties are in short supply (especially single/double storey houses below Rm500,000) prices are holding firm and still moving upward.
7. FOREST CITY IN FULL BOOM
Thousands of China Nationals were among the first to snap up condos here in an exclusive Free Trade Zone. The reason was due to local banks were not yet ready to provide loans. So these China nationals have bought up block after block of these Highrise condos by the million, few millions and even ten million IN CASH! Truly amazing purchasing power!
For example the hotel service suites were totally SOLD OUT DUE TO OVERWHELMING DEMAND.
This exceptional tropical paradise called FOREST CITY is now the hottest spot in Malaysia – all due to China’s hot monies!!
8. PENGERANG RAPID COMMAND THE HIGHEST PRICES & RENTAL
Due to the ongoing boom in Pengerang’s Oil & Gas venture there are not enough rental properties here. So the cost of rental for a house is 4 times more than other places in Iskandar. So great is the demand that investors have rented raw lands. Built multiple dwellings and tenanted them out for 2 to 3 years duration. Will their gamble pay off? It remains to be seen. But this is for sure. Pengerang’s RAPID will add manifold to Iskandar’s economic boom for years to come.
9. AMAZING DISCREPANCY IN ISKANDAR’S HOUSE PRICES COMPARED TO THOSE OF KL, SELANGOR AND PENANG
Very amazing indeed! In spite of these few years’ of ever increasing price rises for landed houses in Iskandar the prices compared to KL & Penang are still at 30% to 40% of KL/Penang. Why is it so?
It’s like this:
During the GoGo years before the Asia Financial Crisis house prices in Johor, KL & Penang went up in tandem.
But because people in Johor over leveraged on the boom by over investment & over expansion by over powering optimism & greed when Crisis hit house prices of KL & Penang fell down from the coconut tree top to the ground. For Johor things were exacerbated by its intensity of collapse! So Johor fell from coconut tree top to the ground and from the ground it fell all the way to the bottom of the well. It was a double whammy for Johor!
So after KL & Penang prices recovered from the crisis they have climbed back up the coconut tree top from the ground level.
As for Johor/Iskandar prices have recovered from the bottom of the well to ground level only. So there is STILL VAST ROOM FOR PRICES TO RISE FROM GROUND LEVEL TO THE TREE TOP (While KL & Penang are now toppish with little more upside)
A single storey house in Penang Island now is worth Rm1 million while a similar house in KL is worth Rm700,000 (In Bangsar Pary a single storey house is noe priced at Rm1 million)
By comparison a single storey house in Iskandar can still be found for only Rm300,000
See this single storey house below just sold for Rm255,000 only.
3-room, 2-bath, 1540 sq ft. 22 feet wide frontage.
Close to amenities. KIP Mart. Today Mart. KFC & McDonald. Public Bank & MayBank.
Located within 3 minutes walk to MASAI BUS INTERCHANGE & TAXI STAND. Buses going to all parts on Malaysia including JB CBD, Plentong Giant & All the way to KL, Ipoh, Penang & the border of Thailand.
Whole house Terrazo & The Hall is Marble.
Great Bargain Value: Price was Rm268,000 (Finally sold for Rm255,000)
So this is the Best of Times to Sell Those Single Storey Houses in Penang & Move to Iskandar. You can buy 3 similar houses (3 x Rm300k) plus extra Rm100k surplus cash to buy a spare car. You can opt to stay in one house and rent out 2
For the next decade prices of houses in Johor will rise up to match those of KL & Penang just like Shenzhen in China.
10. FOR ALL SINGAPOREANS WITH JUST ANY HDB FLATS
IF YOU MAKE THIS DRASTIC MOVE YOU CAN ALREADY RETIRE COMFORTABLY FOR THE REST OF YOUR LIFE!
One Sing Dollar is now worth Rm3.10
So an HDB flat if sold is worth S350,000
Now convert to ringgit
S$350,000 x 3.10 = Rm1.08 MILLION!
WHOA! EVERY SINGAPOREAN WHO OWNS A HDB FLAT INTENDING TO RETIRE IN WORLD CLASS MEDINI HAS HIT MILLION RINGGIT JACKPOT IF THEY SELL NOW AND MOVE TO ISKANDAR!!
With the very low cost of rental among Highrise condos now (these are far better than any old HDB flats) and many food items being under price control anyone can retire with a VERY COMFORTABLE LIFESTYLE IN ISKANDAR.
For your information
One elderly Malay Singaporean couple just retired here in Taman Perling. They paid 18 months Cash rental upfront for a corner single storey house for Rm1.1k monthly rental ( About S$350 rental). The house has 2 new aircond & new water heater. Near walking distance to CW6 Bus which will go to Jurong Point, Singapore direct.
THIS IS THEIR HAPPIEST MOVE.
MALAYSIA IS THE NO. 1 TOP RETIREMENT BUDGET DESTINATION IN ASIA.
JOHOR BARU: The year may just be turning, but for some families the focus is already on the traditional reunion dinner on the eve of Chinese New Year, which falls on Jan 27.
Many families have made restaurant bookings for that day, with many outlets reporting a huge number of customers coming from China.
Despite the economic slowdown, checks at popular seafood restaurants here showed that most of their slots for reunion meals had been filled, with some already reporting a full house.
Kong Inn Seafood Restaurant owner Aun Chin Poh said its slots were already 70% booked, adding that its set menu ranged from RM988 to more than RM2,000.
“I also noticed a huge increase in customers from China, perhaps by more than half. They are probably brought in by Chinese developers who have ongoing projects in Johor,” he said in an interview.
Grand Straits Garden executive director John Ang also found that its reunion meals had been booked by Chinese nationals who had settled in Johor Baru after purchasing properties here.
“We will be hosting a number of Chinese tour groups for the reunion dinner too as they wanted to take the opportunity while on holiday to see how the Lunar New Year is celebrated in Malaysia,” said Ang, who is also the Johor Chefs Association chairman.
He said the Grand Straits Garden seafood restaurant was already fully booked while his other outlet, Grand Bayview, was about 80% full, with both places having a total of more than 200 tables.
He said that as with previous years, the popular dishes were abalone, fresh prawns and fish since families were generally willing to spend on food for the occasion. The set menus are priced from RM1,000.
The proprietor of Mei Du Seafood Restaurant in Taman Ungku Tun Aminah, Tan Chiak Moh, said his two branches were offering the reunion dinner at 5pm, 6.30pm and 7pm slots, with more than 260 tables in total.
All slots had already been snapped up since last week, he said.
“Some of our customers said they had estimated the expenses of cooking at home and found that they prefer to spend a little more to eat at restaurants to save the time and hassle of preparing the dishes themselves and washing up afterwards,” he said.
Tan said despite the economic slowdown, his business was not affected because Chinese New Year is a time when families usually go all out to celebrate the important annual occasion.
Additional 2 More Good News! Uploaded on Chinese New Year Day 28 January 2017
Good news No 1
Due to the Super Boom in Pengerang’s RAPID the houses in Sungai Rengit now rent for Rm4,000 a month.
It was going for only a few hundred ringgit before RAPID was launched. With the unexpected windfall fortunes in this once sleepy fishing village happy owners are renting out their houses at Rm4,000 a month & moving to Johor City and rent similar houses at only Rm1,000
With the extra Rm3,000 suplus every month they are able to retire comfortably if they opt for a simple quiet lifestyle.
Good news No. 2
With One Mighty Sing Dollar now equals to Rm3.10 many Singaporeans who own HDB Flats can just retire immediately. How?
They could rent out their HDB Flats between S$2,000 to S$2,500 a month (about Rm6,000 to Rm7,500) and rent a landed house or similar Apartment in JB for Rm1,000. And with the Rm5,000 to Rm6,500 surplus they could retire instantly in Johor!!
So with retirees coming in from Singapore & people moving in for cheaper lodging from expensive Pengerang there is a huge surge of people & cars in Johor City!
Many Johoreans are now complaining about traffic jams everywhere!! Clear signs of boom & demand!!
This same scenario is a repetition of the Shenzhen Boom when 11 million people migrated from Yunnan & all other parts of China in the 1980s & 1990s – causing real estate prices to skyrocket in Shenzhen and overtaking those of Beijing & Shanghai today!
by Calvin Tan
Comments Off on THE UNBELIEVABLE HAS HAPPENED!! SHENZHEN HOUSE PRICES SURGED PAST HONG KONG!! AMAZING INDEED!!
China ‘Tulip Fever’ sees house prices skyrocket 76% to close in on San Jose
Matt Clinch | @mattclinch81
4 Hours Ago
COMMENTSStart the Discussion
A woman holding an umbrella walks on an overpass in front of residential buildings in Shenzhen, China, on August 23, 2016.
Qilai Shen | Bloomberg | Getty Images
A woman holding an umbrella walks on an overpass in front of residential buildings in Shenzhen, China, on August 23, 2016.
Housing in major cities in China has seen price hikes over the last year that resemble the famous Dutch “Tulip Fever” bubble of 1637, according to new research by economic consultancy firm Longview Economics.
“I think what’s going on in China is troubling … some of the valuations there are really quite extraordinary,” Chris Watling, the CEO of Longview Economics, told CNBC Thursday. “We’ve double checked these numbers about seven times, because I found them quite hard to believe.”
The firm’s research found that only San Jose in the Silicon Valley is more expensive than Shenzhen. The Chinese city has seen prices rise 76 percent since the start of 2015, with the acceleration beginning in April 2015 as the country’s stock market was nearing its peak. The situation in Beijing and Shanghai is similar, albeit less extreme, the company states.
“Housing in some of the tier 1 cities is more expensive than it is in London, which I think itself is on a bubble, Watling added. “The (stock) market exploded to the upside and then crashed dramatically. That money had to go somewhere, so it washed around the system … so a lot of it has gone into housing.”
The analysis suggests that the typical home in Shenzhen costs approximately $800,000. Watling said that the house-income ratio in Shenzhen is now running at 70 times, compared to around 16 times in somewhere like London.
Tulip fever gripped Holland in the 17th century, when speculation over prized and rare tulip bulbs hiked their prices to astronomical levels, bankrupting families and bringing the country’s economy to its knees.
China, the biggest economic story of the last 30 years, has soured in the eyes of many analysts. A stock market crash that began in the country last summer has highlighted the vast difficulties Chinese lawmakers are now facing. Watling said Chinese housing was a story built on credit, lots of liquidity and lots of debt. He added that all bubbles, though, once established, will eventually burst and deflate.
Where are the biggest threats to the economy? Where are the biggest threats to the economy?
9 Hours Ago | 03:47
“It’s simply a question of when,” Watling said in a research note earlier this week, adding that the removal of cheap money would be the likely scenario that would lead to the beginning of the tightening and subsequent prices falls.
CBS News’ “60 Minutes” show in 2013 first put the spotlight on China and a property sector that was seen as being in a bubble state. Meanwhile, billionaire financier George Soros has warned several times on the country, stating that China’s debt-fueled growth is bearing an “eerie resemblance” to the conditions leading up to the 2008 financial crash.