kcchongnz,I realise my mistake. The title should be "Minimum Risk" for the long term.I will post another piece on Public Bank in due course.

I am glad my article I posted less than 12 hours ago, has generated so many commentaries. I cannot say that all those who do not agree with me are wrong because they have their way of making money from the stock market. As I often say I also like to buy undervalued stocks like TH Plantation, Sarawak Plantation, MFCB, Success Transformers and others.

Yes, I must admit that KLK and Batu Kawan are selling at their record high. You could have made the same remark a few years ago. But both of them kept going higher and higher.

I will soon post another article about Public Bank which has been selling at its record high for decades. Yet EPF and many other big funds are not afraid to buy. The price may fluctuates like all other shares, but over a long period it will keep going up because PBB can continuously make increasing profit every year.

kcchongnz is talking about buying Jaya Tiasa at the wrong time. I am talking about buying KLK or Batu Kawan for long term investment. Of course all share including KLK and Batu Kawan fluctuate in price and investors should buy low and sell high to make profit.

In this case I would buy Butu Kawan with my own money and use margin finance to buy more and sell some when the price goes up to make more profit.

I need a lesson from stockoperator. How do you calculate EV? Why do you say that plantation company is hoarding cash?

What do you think of TH Plantation, Kulim and Sarawak Plantation?

The British Experience
Consider the case of British Leyland a vehicle-manufacturing company formed in the United Kingdom in 1968. It was partly nationalised in 1975 with the government creating a new holding company. The company incorporated much of the British owned motor vehicle industry, and held 40% of the UK car market.
Despite containing profitable marques such as Jaguar, Rover and Land Rover, as well as the best-selling Mini, British Leyland had a troubled history. In 1986 it was renamed as the Rover Group, later to become MG Rover Group, which went into administration in 2005. This ended mass car production by British-owned manufacturers.

Today, many British car marques have become owned by foreign companies. For example MG and the Austin, Morris and Wolseley marques have all become part of China’s SAIC Motor Corporation Limited.

We should have avoided this expensive mistake
Why did Dr. Mahathir not learn anything from the disastrous British car industry experience is something that completely escapes many Malaysians? Surely any good leader would have got his officers to do due diligence. If they had done so, they would have found that the industry even with year on year rises in sales is not guaranteed to generate good returns to shareholders, even in a highly developed economy with a long tradition of successful car manufacture such as Britain?

This is because one of the forces that limit profitability is the intensity of rivalry between car companies from around the world. This leads to oversupply and pressure on prices. This is exacerbated by a high degree of freedom for new competitors to enter the industry.

Unless there is an enormous internal market such as China’s or the United States and we can take advantage of the economies of scale, small producers such as Malaysia are forever doomed to a minor placing or bankruptcy in the market place.

I am very sorry that I made reference to the mysterious disappearance of MH370 because when I was completing the writing of the article, I just wanted to fire my last shot at Dr Mahathir.

I now realise that it can hurt the feeling of some sensitive readers, especially those related to the innocent victims.

My humble apologies!

solvent, the highest price was Rm 5.40 about 18 months ago before payment of the 90 sen special dividend.

The current price of Kulim is lower than the average price for the last 3 years and basin on this I have been accumulating it in the last few months. Although its 1st Q EPS is not so good, I believe it is very much undervalued. During the last 3 years they must have made some money and planted more area and also increase FFB production. I am looking forward when the management start develop their plantation land in Johore which must have appreciated a lot. I am sure one day they will develop properties for sale like KLK and IOI.

I hope some smart accountant or readers will tell me that Kulim is not a good investment for the long term.

The following is an extract from Kulim's 1st Q result: Revenue, FFB production and selling CPO price are all improved. But I cannot understand why the EPS is so poor. Perhaps one of the readers who is an accountant can explain to us.

Review of the Performance of the Company and Its Principal Subsidiaries

Group Results and update

The Group recorded revenue of RM830 million for the quarter under review compared to the corresponding period 2013 with revenue of RM715 million, an increase of 16.06%.

The Group recorded a PBT of RM91 million for the first quarter 2014 compared to PBT of RM33 million for the corresponding period in 2013, an increase of 178%.

Plantation Operation - Malaysia

The Group’s FFB production for the first quarter 2014 was at 177,399mt compared to the corresponding period in 2013 at 159,059mt an increase of 11.53%

The Group’s cumulative CPO production for the first quarter 2014 was at 59,964mt. This was 16.33% higher compared to the CPO production for the corresponding period in 2013 of 51,545mt.

Total FFB processed by the Group mills for the first quarter 2014 was at 287,569mt which was 13.62% higher compared to the corresponding period 2013 of 253,091mt. Total FFB processed was inclusive of crops purchased from outside the Group.

The Group’s OER for the first quarter 2014 was marginally higher at 20.85% compared to 20.37% for the corresponding period 2013.

Malaysian plantation operation achieved average CPO price of RM2,585 and PK at RM1,756 per mt respectively for the first quarter 2014 compared to RM2,475 and RM1,184 per mt for CPO and PK respectively for the corresponding period in 2013.

Plantation Operation – Papua New Guinea & Solomon Island

NBPOL Group produced 455,988mt FFB in the first quarter 2014 which was 12.54% higher compared to the corresponding period in 2013. Together with crops purchased from outside the Group, NBPOL Group processed 618,880mt FFB for the first quarter which was 10.3% higher compared to the corresponding period in 2013.

NBPOL Group’s cumulative CPO production for the first quarter 2014 was at 137,031mt.
This was 12.5% higher compared to the CPO production for the corresponding period in 2013 of 121,758mt.
NBPOL Group’s cumulative CPO production for the first quarter 2014 was at 137,031mt.
This was 12.5% higher compared to the CPO production for the corresponding period in
2013 of 121,758mt.

NBPOL Group’s OER for the first quarter 2014 is at 22.14% compared to the
corresponding period in 2013 of 21.7%.

NBPOL Group’s achieved CPO price averages of USD907 per mt for the first quarter 2014 compared to USD878 per mt achieved for the corresponding period in 2013.

Jacky Ching, What do you mean when you say any registration request? If you are talking about my investment seminar on 1st June, please read the announcement carefully and you will know what to do.

Where did you see that I supported KIDEX? Although I was one of the founders of Mudajaya, I sold most of my holding long ago and currently I have less than 1%. You must remember that as opposition party,PR must oppose BN projects irrespective of its benefit to the rakyat.

Please note that I am not a politician and I am not a DAP member so that I can comment freely as a NGO.

I have just posted an announcement of my investment seminar on 1st June in KL. Please come so that I can meet and answer all your questions

I have just posted an announcement of my investment seminar on 1st June in KL. Please come so that I can meet and answer all your questions

I have just posted an announcement of my investment seminar on 1st June in KL. Please come so that I can meet and answer all your questions

Please ask the poor student to write to my wife who is charge of my charity. Her email address is kitpheng@gmail.com. If you look back, you can see my article about my scholarship offer to help poor students and you will know how to apply. I have also advertised on lim kit siang blog and also on Malaysia Finance blogspot where you can see how to apply for my scholarship.

sunsun2012, please read Venue on 2nd line

There are good and bad reasons for top managers to be substantial shareholders. As you said they would naturally work harder to make more profit for the company and for themselves. Some times, they will sell their shares earlier before the company's announcement of bad news.

I believe in TH Plantation, the top people are professional managers and they are salaried workers. Almost all the IJM directors including Tan Seri Tan Boon Seng, are professional managers.

WAH! sunztzhe really knows what he is talking. He is telling you that TH Plant is still very much undervalued. It is safe to buy as the potential profit growth is tremendous- how high, I cannot tell.

You must see my article 'Plantation is due for re-rating' which I posted recently, where I said that I can see the bull charging from the PLANTATION.

ramkarpalsingh, Malaysiakini also published my article today on Money Politics and Mr Loh their editor assured me that my article on Telok Intan by election will be published.

My articles also appeared in other media. If you want to read more just google koonyewyin.com

You can ask Ahmad Said to sue me. You must remember that he and 2 other resigned and as a result the BN would have lost control of Terengganu State if the 3 frogs did not jumped back. I can imagine some big money must have change hands.

ramkarpalsingh, politics, economics and investment are all inter-connected. The politicians you elect will make all the rules and regulations that will affect you and your children.

If you complain you are showing your ignorance and I am 100% sure the editor of this forum will ignore you and readers will laugh at you. If you don't believe me, you can complain.

If you do not like politics so much why do you use the great hero politician's name Karpal Singh?

Have you read my book? It is called Malaysia: Road Map for Achieving Vision 2020. It has taken me many years to do it. It cost a lot of money and frustration.

jimstock, I am so sorry that I have not answered your question about TSH and you are annoyed. As you know, I receive so many questions and it is impossible to please every reader. Moreover, I am old and usually old people are impatient because they do not have much time left.

500plus, what you said is right about the property market. You just have to use your common sense to see that there are so much of vacant and unsold properties. If you want to buy or rent a house or flat, you have so much of choices. When supply exceeds demand, the price must come down.

Just like making money from the stock market, you must buy before the price goes up. If you have bought properties a few years ago, you should sell before the price comes down.

To be able to make big profit you must be able to see the bull charging from the plantation. After my posting of my article, many of the readers still cannot see the bull. They don't seem to understand English. They still ask me about properties, TSH and Innoprise??

You should sell your house and rent one so that you have money to buy the shares I listed above.

I am sure all plantation companies will report better profit before the end of the month and automatically their shares will go up. Don't miss this chance to make easy tax free money.

klphoon55, Now you must decide to sell or not. Unless you are sure the company can make increasing profit the share will not go up further since it has gone up 30%.

I do not buy IPO because the most of the promoters cannot achieve their projection.

I looked at TSH before and I did not buy it.

klphoon, congratulation if you have bought KM Loong Resource because it has gone up from Rm 2.20 in May 2013 to close at Rm 2.90.

I cannot see that it is giving 12% dividend as you said. Where can I find it? How can the dividend be 12% which is 12% of Rm 2.90 = 35sen. Its EPS for year ending Jan 2014 is only 19.88 sen.

knchan2001, if you have read my article carefully, you would not ask such a question. If you take debt into consideration, you must also consider the age profile of the palms, FFB production per ha, production cost per ton of FFB, the number of mills etc etc. Remember, I am not an accountant!

Most Malaysian companies are young and they do not give out reasonably good dividend. All the above plantations I owned are relatively young but they all have tremendous profit growth prospect which is the most import consideration.

Even UP and KLK do not give out 5% dividend yield. How many companies in Malaysia give out more than 5% dividend yield?

It is easier for share prices of small young companies to double than old KLK or UP.

If you have been looking for dividend or you have been interested in some other type of shares, you must check to find out how well have you done. If you cannot get an average return of 15% pa, you must change your method of share selection.

stockoperator, thank you saying those kind encouraging words. Please make your comment on 'Plantation is due for re-rating' which I just posted.

I do not agree with sop's reasons for worrying about the market crash. The market is not so fragile that will crash for such small incident. In any case, fear is always the biggest obstacle to success. To make money, you must take some calculated risk.

I recommend him to read "CRASH PROFIT" by Martin D. Weiss. It gives you the proven methods to profit from market crash and seven practical strategies for building wealth in any environment.

It will take too long to fully explain my way to make profit during crash. In fact, the Hong Kong market crash in 1984 aroused my interest in share investment. I have never seen such an profit making opportunity before in doing business when every share was on closing down cheap sale. Eventually, I bought 46% of the stock broking company that gave margin finance.

To be sure of making money during any serious market correction is to open a margin account and use it effectively. Buy more when there is cheap sale.

The trouble is that during the crash, many investors dare not buy and some investors do not have ready financing facility to buy. You cannot expect to open a margin account during the crash.

sosfinance's statement is most reassuring. That is why I always have some plantation shares in my investment portfolio. If you examine KLK carefully. You will notice that its share price moves up and down. All share prices move up and down. I sell them when they are high and buy back when they come down. No share can continuously goes up or down for whatever reason. To make money, you must know when to buy and when to sell.

Now is the best time to buy undervalued plantation shares. KLK, IOI, Genting and UP are famous and they are already fully valued. It is safe to buy them but you cannot expect to make exceptional profit.

I am making some research to tell you what are the best plantation shares to buy now.

I know a few multi millionaire Malays who have benefited from the NEP, sent their children to English boarding schools early so that they could secure better university places. After gaining university admission, they then ask the Government or Mara for their scholarships.

I do not use charts to trade. I only look at the long term chart to see that the price I pay is the average or below average price in the last one, two or three years. For example, I am accumulating Kulim and TH Plantation.

hub4port, Between one blue noon and another blue noon, the price of your holding would have moved up and down a few times. You could make more money if you sold some of your holding when it was high and bought back when it was down. All investors must take advantage of this phenomenon that share price always fluctuates up and down. No share can go up or come down continuously for whatever reason.

Chartists look at charts to time their buying and selling.

I am a serious long term investor and I only look at charts to confirm that I am buying at a reasonable price.

unclejoe, The controlling shareholder and the directors decide how to do the business. If they think that it is more profitable to buy public listed shares, you must believe they know what they are doing because they have more money involved.

Whenever, I do not like to buy shares with lots of cash in fix deposit. This can only show that the management cannot find business that gives better return than the fix deposit rate of about 4%.

I know many Hong Kong Listed companies invest in pubic listed shares which is another profit centre. I know the CEO Goh Nan Kioh more than 30 years ago when he worked for IGB, In fact he negotiated to buy Mudajaya and Jurutama and eventually listed IJM which I for IGB, J for Jurutama and M for Mudajaya.

I am happy to know that Goh Nan Kioh invest in public listed shares. If I am in control of a public listed company, I would also invest in public listed shares. It is like doing business.

Why do I need to diversify if I am 100% sure that the plantation shares I buy will show increasing profit in the next few quarters. When the EPS increases the share price will also increase.

In view of the higher palm oil price, all plantation companies will make additional money for this year. Investors must know how to take advantage of this situation. You must sell those shares that you are not 100% of making money.

Sure you can say that I consider you an extraordinary investor and your intention in teaching people is noble.

You will recall when I posted my article "Jaya Tiasa is my best bet" in January, many people said that I was promoting it. A few ridiculed me with abusive language. I had to tell them that I have bought more than 40 million shares and I did not their support. Please it if you have not read it before.

The truth will set me free. JT went up about 30% and it will continue to climb when its quarterly result shows increasing profit.

I would like your opinion of Jaya Tiasa. RHB research has published, a few days ago, a buy recommendation on JT

kcchongnz, wah! you have already posted your analysis in last August. I also see that you have posted several impressive articles. Why do you have Tan KW as the author? It look like you are a fund manager.

I like to meet you for mutual interest. Perhaps you can manage some of my money.

As you know PIE or any share must have moved up and down several times in one year. You could have sold when it was up and buy back when it was down.

All investors must take advantage of the frequent price fluctuation of share price to make more money.

I am collecting SOP, Kulim, TH Plantation.

Bear in mind that RHB Research has a sell call on TH Plantation, but I believe it is very much undervalued basing on its market cap divided by total planted area. 887 million shares X Rm 2.05 divided by 68,000 ha = Rm 26,700 per ha.

I wish the banks will lean me more money to buy up all the shares.
Recently FGV and Boustead bought plantations at Rm 70,000 cash per ha. IOI also wanted to buy at the same price but not successful. Moreover it has 6 mills and other infrastructures.

werrenbuffet, I am not a professional analyst. I cannot give you the information you require. God only can foresee the future of 10 years.

kcchongnz, your analysis of MFCB is most encouraging. Do you have some? If you do not have it, would you buy some now?

stub 10, If you buy Oriental Holdings, you may have to wait forever.

The glove industry is over capacity and it is very competitive. Every glove company has expended their production facilities. Do not buy Top Glove.

To make money from turn around companies, you must buy before it become public know about it.

In view of the increase in palm oil price, all plantation companies will make additional profit for no extra effort. By the end of the month all companies will have to announce their 1st quarter result. You will have a wider choice.

Why are you all discussing about MFCB which is not mentioned in my original article? Just because someone said that he saw my name on the 30 largest shareholders list, you all are interested in MFCB. I have my reasons for buying it and I am not asking you to buy it.

kcchongnz, you may be surprised to know that the general investors do not think like you. Recently Symphony Life gave 1 free warrant for every 4 shares held with a conversion price of Rm 1.10. When the warrants were issued, they were traded between 25-30 sen and the mother shares were traded around Rm 1.10.

I know many serious investors sold one mother share to buy 4 warrants and now they are only holding warrants. I can appreciate their logic for doing so especially the company has good profitable businesses.

yktay1, I must say you that you have all the required Qs to succeed. Your comment on MFCB shows that you have done your homework and you have a very good analytical mine. The reasons for my buying and owning MFCB are:

1. It is very well managed with 4 main profit centres. It has a very good cash flow and cash rich. It has profit growth prospect which is the strongest catalyst for moving share price.

2. I have written to the CEO for their Board to consider giving out free convertible warrants to improve its share price and benefit all shareholders. I strongly believe my suggestion will be approved in due course because it is selling below its NTA and at single digit P/E ratio for so long.

3. I also believe that the CEO and other directors know their duty. The most important is to make profit to benefit the shareholders who are actually the owners who pay their salary and directs fees. When investors buy a share, they will benefit from the dividend and the share price appreciation. Of course, giving out free warrants is like putting cash into the shareholders' pockets. because the warrants are marketable.

4 Remember the CEO will benefit the most because he is the largest shareholder.

Henry123, you think I do not have any Q to say that I sold all my Mudajaya. I think that guy who told you that I sold all my Mudajaya does not have IQ, EQ, MQ or BQ.

I will wait for Mudajaya's completion of their Indian Power project because it will give additional profit for 25 years. The share price is being supported by many serious investors.

My wife is out of our home now and I will ask her about your case. To save time, you can write to me directly koonyewyin@gmail.com. Remember, you must have a minimum of 5A in SPM and your family income is less than Rm 3,000 per month.

CheongKOK, I cannot find BDB, is it a listed company? If I cannot find it easily, how do you expect investors to buy it? I am not interested any more. I do not wish to waste my time

SOP and others, studies have shown that if you are not a professional chartist, you should not trade frequently because of the high trading cost such as the commission, stamp duty etc for buying is about 1% and for selling is another 1% totalling 2%. If you buy and sell once a week the total cost would be 52 weeks X 2% = 104%. Are you so clever to pick stocks to recover the trading cost before you can make profit?

It is better to buy undervalued shares with good profit growth prospect and keep the shares for long term. You will made more money for just waiting and doing nothing