Dear Investors & Traders of i3 Forum (Pease read to the very end as we are typing now from Singapore)

Many have wondered why we are bullish on Tsh Resources after IjmPlant was taken over by KLK at Rm3.10

Many do superficial reading on TSH NAV to be only Rm1.06 and price now at Rm1.04 to be not worth much

See what people see below

A careless perusal will show only Rm1.06 NAV

But Dig Deeper

How?

You must compare Apple with Apple & Orange with Orange

Now See IJM PLANT NAV Below

As you can see above IJMPLANT NAV IS ONLY RM1.63

THEN WHY SHOULD IJMPLANT BE WORTH RM3.20 (RM3.10 Plus 10 Sen Dividen) WHEN KLK OFFERED

RM1.63 NAV & TAKEOVER OFFER IS RM3.20 (Or 96% Above Net Asset Value??)

Now we think TSH & IJMPLANT Are Very Similar in their Assets & Earnings

Both TSH & IJMPLANT Estates are Located in Sabah, Kalimantan & Sumatra

Since they go over to Indonesia they stay close to each other. Just as in early times from China Coastal Cities arrived early Immigrants to Malaya & stayed in coastal Towns like Penang, Kelang & Johor (Just check: these speak the Hokkien Dialects)

Later in year 1848 Long Jaffar founded Tin in Larut & also the Sungai Besi Tin Mines in KL. These drew in Chinese from Guandong who are more business minded. Today the Chinese of Klang Valley (KL) & Kinta Valley (Ipoh) Speak the Cantonese Dialect

The Indians also congregated in Brickfields, Sentul & the Little India of Singapore.

The British?

They liked cooler mountain airs so they named Cameron Highland, Maxwell Hill, Fraser Hill & others.

Port & States  were called Port Swettenham (today Port Klang), Province Wellesley (Now Prai)

And so are TSH & IJMPLANT & KLK & WILMAR (They cluster around)

So if IJMPLANT is worth 96% more then can we value TSH Rm1.04 X 96% more

or Rm2.03

Is the Intrinsic Value of TSH Rm2.03 then?

Ok we dig deeper and further

2) When TSH Disposes Assets only then We see its Real Value Surface

Recently TSH sold 2 Palm Oil Estates

Let's go check them up

1. and 
2. Sale and Purchase Agreement between TSH Plantation Sdn. Bhd. and SKSB for the proposed disposal of 1 palm oil mill equipped with plant and machinery, together with furniture, vehicle and heavy machinery known as Lahad Datu Palm Oil Mill for a cash consideration of RM20 million. 

As you can see both in Years 2008 & 2014 IjMPLANT CROSSED THE RM4.00 MARK

NOW JUST AS IJMPLANT CROSSED RM4.00 IN GOOD YEARS TSH RESOURCES SHARE PRICE ALSO CROSSED RM4.00 JUST LIKE IJMPLANT DID THEN

See

TSH RESOURCES PRICE HISTORY

YEAR....LOWEST PRICE...HIGHEST PRICE

2004.....0.45.................1.01

2005....0.63..................1.05

2006....0.60..................1.05

2007....0.77..................1.65

2008....0.55..................1.94

2009....0.66...................1.00

2010....0.84...................1.46

2011....1.33...................2.04

2012....1.87...................2.87

2013....2.05...................3.13

2014....2.72...................4.00

So in year 2014 when IJMPLANT was Rm4.03 TSH RESOURCES SHARE PRICE ALSO REACHED RM4.00

THAT IS WHY THERE IS A HIGH POSSIBILITY TSH RESOURCES SHOULD REACH RM2.00 IN THIS COMING PALM OIL BULL RUN & CAN ALSO GO UP HIGHER

KLK HAS TAKEN OVER IJMPLANT AT RM3.20 (ITS PEAK CYCLE REACHED RM4.00)

TSH ALSO REACHED RM4.00 AT PEAK CYCLE

BUT WHY DO WE NOT ASSIGN TSH AS SAME WITH WITH IJMPLANT AT RM3.20 INTRINSIC VALUE

WHY ONLY RM2.00?

ANSWER:

BECAUSE TSH GAVE ONE FREE BONUS FOR TWO SHARES HELD WHILE IJMPLANT DID NOT

SO WE THINK RM2.00 IS A VERY FAIR INTRINSIC VALUE FOR TSH AT THE VERY LEAST

Best Regards

Calvin

Please buy or Sell After doing your own due diligence. Or consult your Remisier/Fund Manager