Dear friends who visit here,
It’s been some time since I posted on Dutaland. And by now all who bought Dutaland at 40 sen have made a nice 50% gain at over 60 sen. Congratulations!
Now Calvin thinks Bj Corp at 34 sen is a Great Value Buy
These are the reasons for buying Bj Corp:
1) Tan Sri Vincent Tan (TSVT) stated buying Bj Corp in earnest from 90 sen in year 2012 to last year when Bj Corp was 50 sen. Bursa filing showed TSVT owned 45% of Bj Corp shares. And TSVT is holding Bj Corp Iculs D & also lots of Bj Corp warrant. The average cost of TSVT for Bj Corp is as high as 70 sen
So at 34 sen we are buying at a nice 50% to TSVT buying price.
2) Bj Corp at 34 sen with NTA of Rm1.40 is selling at a Huge Discount of 76% Discount to NTA – giving a Huge Margin of safety. This is more than twice the 30% Discount that Ben Graham required as a Margin of safety.
3) And Company Share Buybacks was from 72 sen to 36 sen. The average price of SBB (Share buy back) was 54 sen. A Again at 34 sen we are getting Bj Corp shares at below Company treasury share cost.
4) Last year Bj Corp Iculs C expired at 20 sen. 2 Iculs were converted into One Bj Corp share. So TSVT Bj Corp Iculs C were converted into Bj Corp mother share at 40 sen each. Again at 34 sen we are getting it at a nice 28% discount.
So there are now 4 levels of defense buying into Bj Corp at 34 sen
i) 50% discount to TSVT open market purchase
ii) A 76% Whopping Discount to NTA
iii) Cheaper by 38% than SBB
iv) And a nice 28% Discount to Conversion of Bj Corp Iculs C to Bj Corp mother share.
5) CASHING OUT HIGH PROFIT COMPANIES
Bj Corp has already disposed Magni Tech, Bj Auto & Atlan shares for huge profits. Latest disposal is wastewater pant in China for Rm50.3 millions Cash
So Bj Corp is now Cashing Out its Investments. Bj Corp bought Bj Land on the downtrend. And sold Bj Assets into strength. This is an excellent strategy of buying Low & Selling High. It is the good fortune that Bj Corp owns the Inter Pacific Security Firm which help to pick out good investments for TSVT & Bj Corp
6) Bj Corp Invests in HIGH VALUE REAL ESTATE ASSETS
People have questioned why Bj Corp generates so little profits while incurring such high debt
This is Calvin Tan Research’s findings
Bj Corp borrows money to invest in Appreciating Assets like Lands, Properties & Hotel. The latest being Four Season Hotel in Kyoto, Japan.
And if price is right Bj Corp will sell off any shares or Assets. Just like the disposal of the Great Mall of China for over RMB2 Billions
7)COMING CASH WINDFALL OF OVER RM540 MILLIONS (Balance Payment from Great Mall of China Sale)
This November BJ CORP will stand to receive the balance payment of Great Mall sale at more than RMB900 Millions or another Rm540 MILLIONS CASH Coming it. Latest report for Dutaland sale of Kenny Hill Assets turned Dutaland Price into the positive And Dutaland prices jumped from 42.5 sen to a high of 66 sen. So expect Bj Corp share price to go up likewise. (So this is the time to buy as Mr. Market still unaware)