Koon Yew Yin's Blog
Latitude Tree expansion strategy - Koon Yew Yin
Koon Yew Yin
Publish date: Sat, 28 Feb 2015, 10:29 PM
Koon Yew Yin
0 1,424
An official blog in i3investor to publish sharing by Mr. Koon Yew Yin.
All materials published here are prepared by Mr. Koon Yew Yin
All materials published here are prepared by Mr. Koon Yew Yin
First I must congratulate all the members of your management for producing such good profit. As a result, your share price has gone up from Rm 1 to above Rm 6 within a period of about 18 months.
I am aware that your share or any other share cannot continue to go up or go down indefinitely for whatever reason. As a substantial shareholder, I should sell some shares to lock in profit at some point in time. I find great difficulty in selling because the daily trading volume is very thin, no trading on some days.
I would like the board of directors to consider my suggestion for the benefit of all the shareholders.
How to improve the daily trading volume?
The current trading volume is extremely thin. As a result, no serious long term investors are interested to own the shares. The following ways will help to improve the situation:
1. 50% of profit retain by the company.
2. 30% of profit to be paid out as dividend.
3. 1 : 10 (10%) Bonus issue on yearly basis
4. 20% of profit to be used as share buyback to support the share price when market sentiment is bearish.
5. Place out not more than 10% of the total issued shares every year to EPF or other fund managers, according to regulations. You can use the additional funds for expansion. These long term investors will help to support the share price in case there are desperate sellers.
6. Issue shares to acquire assets of similar nature or different so as to create new profit centers.
7. Split the shares from one Ringgit to 50 sen par value.
Investors Relation
The daily trading volume and the share price of your company depend on so many factors such as management, product quality, assets, liabilities, dividend yield, cash flow etc.
It is also largely depend on the market perception of the company. Selling your products is as important as marketing your shares.
I strongly suggest you engage an Investment Relation Professional to help you promote your company.
The main objectives of an Investors Relation company are as follows:
An Initial Public Offer (IPO) is not merely a massive publicity initiative, but more so an exercise to convince potential investors on the company’s investment merits.
The success of any publicity initiative is essentially depends on how well the investing community understands the company’s business model, financial stability and growth prospects.
The Investors Relation professional’s responsibilities include:
Strategizing with management on the unique investment proposition
Organizing and facilitating media features and interviews
Developing investor-focused materials such as presentation slides and factsheet
Preparing management for media and investors’ meetings
Facilitating share placement with institutional investors and high net worth investors.
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Discussions
1 person likes this. Showing 7 of 7 comments
Dear Koon Yew Yin,
Very well written, Uncle KYY.
There r lots of simple strategies, a smart mgmt team can do to create value n vibrancy of their plc co.
I am so glad. For once there is true meaning of activist investing in KLSE. Please continue to do so. Do encourage n empower your rich social circle of friends to do so.
We truly need many rich investors with deep pockets n knowledge of running biz to be active in our stock mkt.
All these great ideas originated by your beloved Warren B., a graduate of top biz school of ivy league Uni.
Warren B 's successes in M&A n activist investing has created 3 great biz in USA today:
i. Hedge Fund Industry
All hedge funders r motivated by Warren B's original structure of fantastic reward scheme to himself i.e. 20 n 5
20% sharing of profits n 5% mgmt fee every year for the fund he managed.
It was too good that Warren even gave it away. Instead he bought a plc, BRK to continue his good job. Though buying BRK was his single biggest regret. The premium he paid for BRK could easily be used to directly make him twice richer, so he said.
ii. Private Equity Fund Industry
As a young graduate in his 20s , Warren visited 3 factories on the way back from New York City to his small hometown. He gave advice to the 3 owners of the factories on how best to grow their biz. Now U know why fund managers want to do factory visits.
Warren bought many unlisted co. Put in his ideas n grow the co instantly.
His great success attracted so many smart pple to quickly set up Private Equity Funds in US n now all over the world.
iii. Activist Investing Fund Industry
Many graduates of top biz school later will follow n copy Warren's way of making easy n fast money. They know all about biz n mgmt. So they will buy the co, make some noises to force thru the M&A or change the CEO n team. True to form, many become billionaires by being activist investors. The big names u know r B Ackman, Carl I, D Loeb, D Einhorn, J Paulson, S Cohen, D Tepper, S Klarmen n so on ...
They r all of the same tribe except 1 who is 1/2.
Uncle KYY, once again, WELL DONE ........
Wish to hear more from KYY.
2015-03-01 04:53
I agree with (1) and (2). As shareholder I want to know the the arrangement for excess cash.
(3) to (6) will not benefit the company in long term.
(6) may casue the company to grow without making profit, which is extremely dangerous.
It looks to me mr Koon put too much attention on stock price.
2015-03-01 10:37
KYY taking credit from Oooi Teik Beng hard work again. Want to ask KYY, why so silent on Mudajaya and Jtiasa? Not taking credit for your fail buy calls?
2015-03-01 10:43
kikiki, dont talk the sad point. charity man will help yours gain back in lat and vs. kikikik, but the rule is: yours must help him gain first.
2015-03-01 11:00
Praising trickster old man won't get you anything. KYY taking credit for Ooi buy calls. Only after VS and Latitud gain 70% the old man start to brag and dupe newbies to be his victims
2015-03-01 13:16
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Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
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....
lmenwe
To me the suggestions seem focus on how to help big owners to dispose the shares they own rather than creating long term value. Spliting shares, bonus issue will never change the counters' business and fundamentals.
2015-03-01 00:01