Random Trading
BJ Corp - Value Trap!
Random Trading
Publish date: Tue, 12 Aug 2014, 01:45 PM
Random Trading
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Too dumb to be an expert, too green to called a veteran and certainly not an insider. what's left..... RANDOM!
Disclaimer - I'm too dumb to be an expert thus all the contents of this blog are just my random thoughts and may be incomplete or contain any informational errors. It is certainly not recommendation to buy or sell. You'll be responsible for your own decision. Please consult your investment consultants before making any investment decision.
Disclaimer - I'm too dumb to be an expert thus all the contents of this blog are just my random thoughts and may be incomplete or contain any informational errors. It is certainly not recommendation to buy or sell. You'll be responsible for your own decision. Please consult your investment consultants before making any investment decision.
Berjaya Corp is a conglomerate that needs no further introduction. I'm just simply going to list down some of the estimated value of its subsidiaries base on 2013 annual report to demonstrate how undervalue is the stock.
Listed Companies (% hold by BJCorp) (Market Cap in million as of Aug 11 2014)
Berjaya Toto (48.64%) - 2,498.35
Berjaya Philippines (88.26%) - 1474.56 (currency conversion rate of RM 1 to 13.72 peso)
Taiga Building Product, Canada (39%) - 31 (currency conversion rate of 1 CAD to RM 2.92)
Berjaya Media (13.39%) - 15.74
Silver Bird (14.35%) - Neglect-able
Informatics Education Ltd, Singapore (28.38%) - 78.7 (currency conversion rate of 1 SGD to RM 2.56)
Magni Tech (23.32%) - 77.92
TMC Life (27.36%) - 105.37
Atlan Holdings (26.30%) - 306.86
Berjaya Food (64.87%) - 510.39
Berjaya Land (54.67%) - 2312.46
Berjaya Assets (16.38%) - 150.41
Berjaya Auto (50.48%) - 1036
Total - RM 8,597.76 Million. May be we take a 30% discount due to holding company, it is still RM 6,018.43. Divide with the total outstanding BJCorp shares of 4,151.61 mil, net value per share will be RM 1.45
Honestly, to get the exact enterprise value of BJCorp is seriously out of my knowledge due to complexity of the structure of the company. But after looking at these numbers, I suddenly have this wild thinking. If some one is to spare me a RM 3 Billion, I would like to privatize the whole company at RM 0.70 per share for total RM 2.91 Bullion. After that I find buyers for shares of BJToto, BJ Philippines and TMC Life (receive general offer anyway) for around RM 4 Billion to return the borrowed money with interest then I should get the rest of the conglomerate for free. Nice....
Here are some of the notable subsidiaries that are not listed:
Cosway (HK, Malaysia and other countries), Berjaya Books (Borders) , Inter-Pacific Securities, Berjaya Capital, 30% of Berjaya Sompo Insurance, Kenny Rogers, Jollibean Food, Wendy's restaurant, Papa John's Pizza, Berjaya Air and whole bunch of properties, resorts, golf courses and hotels and much much more subsidiaries. These are the assets that I have no clue how to value but I'm certain it worth a lot of money.
So with all these assets, why BJCorp only trade at around RM 0.50 which is substantial discount to their value? Honestly I really don't know. In fact I hope that some one can enlighten me on that.
Chart : BJCorp daily chart as of Aug 11 2014 (source: ChartNexus)
In addition, BJCorp has been aggressively buy back their own shares which to date amount to some 150 million shares or some 3.6% of total outstanding shares. Which means another 3.6% discount if the treasury shares were to cancel.
Under value? I don't know, but to me it seems like a Banyak Jus Corporation.
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Discussions
2 people like this. Showing 13 of 13 comments
Nothing wrong with your perception except you did not mention any outstanding loan to be settled. Can your RM3/= billion allow you full ownership to let you do as you wish????
2014-08-12 16:01
@nskepong I agree with you. Things are certainly not as simple as I put it. As I mentioned, I do not have enough knowledge to ascertain the exact value of the company which comes with some RM 4 billions short and long terms loan. Also the RM 6 billion intangible assets which is almost one third of the total assets is scaring me because we can never know the exact value of it. Do you mind to enlighten me on that? I act hope that some one can shows me the right way to look at the company. Appreciate that if you can help.
2014-08-12 17:18
VT is a great crook,,maybe taking out money from this BJ CORP counter and feeding other counters of his listed companies... a real crook
2014-08-12 20:43
Somehow I don't know why I always make good money from VT counters. Maybe I know how to read VT's Strategy or I am just lucky. Happen to buy at the wrong time (When Mr. Market totally hate VT as Conman) & sold at the wrong time (When Every One Turned Greedy & Became Bullish.) Ha! In Maths when you multiply two negatives - it turns into a positive!
Since I am so out of tune and out of touch with Mr. Market - I bought from Mr. Market when he condemned VT at its worst and I sold all away when Mr. Market gone GaGa over VT Counters.
To do this IS EXTREMELY DIFFICULT. One man Against The Whole World - And Surprise of Surprises! I won - YES WON BY A BIG MARGIN!
I bought BJ CORP at 12.5 Cents in year 2006. Sold BJ Corp after it had gone up 10 fold or 1000% to over RM1.50
LISTEN! CALVIN CALL FOR A STRONG BUY ON BJ CORP NOW!
SOMETHING IS DEFINITELY BREWING!
2014-08-14 23:44
Haha. is good that your strategy work well for you Calvin. Personally I do feels that something probably brewing due the fact that the trading volume for the past 5 months had surge abnormally. My thinking is that this is the watershed period for the stock, after this there could be fundamental change to the share price. Upwards or downwards I don't dare to say but downside risk to me is actually quite minimum since it only trade at 50 sen now.
2014-08-15 22:09
BJ Corp is already on ground floor. The likelihood of it going to basement is actually minimal since most of the companies under its stable are making money and market is bullish. Buying at current level is quite safe and should make you money provided you have the patience.
2014-08-15 23:28
Value Trap? Not for TSVT. He is moving, wheeling and dealing freely. In total freedom creating value for Bj Corp
2014-09-03 09:29
Some time ago, Tropicana [TROP] -VT brother & relatives counter was full of grandma/grandpa giving advice everyday on how this counter[Tropicana]was so, so and so undervalued, but when the share price dropped tremendously, all these consultants -grandmalah grandpalah all VANISHED INTO THIN AIR, DISAPPEARED! MOTIVE ACHIEVED! THEY THREW AT HIGH PRICE AND SMALL-TIME INVESTORS GRABBED....
2014-09-03 09:39
Calvin bought Tropicana before.
Its former name was Di jacor. My remisier called it Di jatuh!
It was a penny stock before. So those who bought Cheap years back still doing OK.
Same for Calvin when he called for a Buy on BJ Corp in year 2006 when it was 12.5 cents. Calvin never tell people to buy after BJ Corp trade at RM1.50 to RM1.80. But they never listen and bought as high as RM1.80.
The Market is Perverse!
When I called for a Buy on PM Corp at 15 cents Others HIGHLY RECOMMENDED PATIMAS! WHY?
WHY THEY LIKE PATIMAS SO MUCH?
Reason:
1) Cannot trust KKP Counter like PM Corp but can goreng Patimas
2) PM Corp not popular. Might get trapped. Trapped? They said Calvin was trapped in PM Corp. For Patimas there is activity every day. Very exciting mah. So can play play lor?
In the end of the end game, what happened? All were Trapped For Forever in Patimas Prison (Ha! Should change name to Prisonmas - Or Prison for Masses! Since So Many People Rushed Into This Prison.)
For PM Corp? It went on To Double in Price!
Or 15 cents to 30 cents (Yesterday closing price.) UP 100% !!!
LISTEN! LISTEN!
Calvin also EXPECT BJ CORP TO DOUBLE IN PRICE FROM 50 CENTS to RM1.00
UP 100% By This Time Next Year!
Ha! Who want to Listen to Calvin Tan?
They say VT employ him to trap people.
So they play Sumatech - the hot stock of the day.
Ha! Play play Tiger? Sumatran techno tiger? OK it's fine if you can ride safely. Only be careful. Don't get eaten by tiger.
2014-09-03 10:02
Raider has this to say loh ;
U cannot be wrong following calvin buying Bjcorp Rm 0.510.
This is one of the most undervalue & underperform counter in klse mah...!!
There is a lot of undervalue....here !!
GO GO GO.....!!
2014-09-03 11:09
Random Trading forgot to mention Redtone. VT owns a sizable amount of Redtone through Berjaya Corp
2014-09-19 15:13
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
8illionaire
great write up.
price is suppressed and manipulated by you-know-who.
That is why old timers do not touch this counter. You-know-who likes to drink from young blood.
Don't say I never warn you.
2014-08-12 14:44