Chess is right, as buying into share not just for short term or speculation but instead holding it as a business owner. I like buying share as investment, because i can test my endurance towards the share price fluctuation...
From start to harvest mushroom it takes 4-6 months. So the same spot of space can yield 2-3 harvests. Invested RM 10.5 millions is not a small amount. It's considered a medium-term duration crop but its target market is considered niche thus can command higher profit margins whereas mass market crops could not have such high margins.
Specter,u r wrong, I am not a bogus ID, I very seldom comment on forum. have hold this share from lowest to now.See lot of good dividend share going down. Since price is right, might as well unloaded.I see U holding a lots, so advertise n jack up the prices.
Since both RTA and particleboards contribute 60% and 40% of revenues respectively, if the new gourmet mushroom could contribute 10% as a start would be great though it takes time to pick-up. I believe MD Yoong envisioned that the company to diversify its earnings base by spreading out the risks profiling. Ideally would be 20/30/50 on mushroom/particleboard/RTA. You see, without making particleboards it's unable to make RTA furnitures, and without the residues or excess by-products of organic materials from the 2 initial core products there won't be the basic materials used to cultivate the mushrooms.
It would be great to know how many acres of that newly purchased land are actually used for the gourmet mushroom cultivation purposes. MD mentioned the built facility cann "triple" the production capacity when needed to boost up production so it means quite a hefty spaces allocated to it. Need to know the spaces so we can estimate the future production capacity.
On paper higher margin...but u deal with perishable item and toxic material...not good fit for hevea loh....cannot handle mah...it is just a distraction for hevea loh...!!
No problem and thanks for restarting a debate. U mentioned perishable and toxic? Mushrooms can be made into health supplements be it into dried health foods, tablet capsules, etc. too many to name it. Using organic materials as the base medium to cultivate the mushrooms is not toxic.
If u said toxic, do u understand well the palm oil business? The technical part of it. Do u know how much highly-toxic chemical-based pesticides, herbicides, fungicides, inducing-hormones, fertilizers and some unrelated chemicals such as rat poison tablets are spread and released all around the oil palm plantations? Have u walked into oil palm plantations, stockraider? Hevea's mushroom cultivation uses "organic compounds" so it's totally a none issue.
The reason I replied u on this is because your baseless accusation is really stupid only and no one will expect such attacks to come from a grown up person like yourself. Now please....I'm dying for a really good argument from you and please find a profound base argument.
Maybe I include some own words from MD Yoong himself than u will accuse me to have made it up. These are the few sentences and quotes of MD Yoong from the recent FocusM interview (pls enjoy it):
He says HeveaBoard produces up to 100 tonnes per day of low-quality raw materials, which are organic compounds that are usually sold to boiler users at a discount.
“We have been thinking what to do with this low-quality raw material. Actually, there are a few uses for it, one of which is to cultivate the mushroom,” Yoong says.
Just look at Musa king durian...very expensive and thus margin veli veli good loh...!!
Then why big big plantation like Sime, KLK, IOI don go into durian king planting leh ? Why they have so much monies and land...they don think viable leh ??
The answer is same as Hevea going to Mushroom farming loh...!!
Good to go toward TP 2.19. with such a good high margin approaches:
HeveaBoard Bhd is able to replace 10% of its rubberwood requirements with leftover logging materials (such as stumps and branches) via the investment into mobile chipper (used to process leftover materials from logging), which are more readily available and at least 30% cheaper relative to rubber log wood.
Having seen positive results from its investment, we understand that HeveaBoard has plans to increase the usage of leftover logging materials further (to 30% of its total rubberwood requirements in the medium term) via investment into more mobile chippers.
As part of its ongoing efforts to stay head and shoulders above the other industry players, HeveaBoard has recently added no added-formaldehyde board (which has higher quality and an average selling price relative to Super E0 board) into its particle board product lines.
Sime, KLK, IOI,... they are not the experts in planting Musa King lah. Perhaps they must start thinking of your idea, stockraider, to make more money for shareholders like Hevea. ha! ha!
Hevea serves the niche markets and in segments that it usually is the first one to start in the local market. It's the first to start "low-formaldehyde" kids furniture where it exports most of it to the Japanese markets. Now the company also found out no one in the country is cultivating the King Oyster Mushroom and it will be the first to cultivate it.
The strategy of the company is one of its kind. Hevea always find the niche markets and be the "first" one to do it. Why does this strategy has performed so well? It is because there is no competitor if u are the first one to do it and succeed.
U didn't know some China companies purchase bulks of Musa King plantation lands in Selangor and to expand it so that they can mass exporting it back to China? If no one do it yet, it doesn't mean it won't grow big.
Investing in hevea is really a happy thing for me nowaday as i see Hevea only think business of improving profit margin further and making more money for shareholders.
Posted by Beza > Jul 21, 2017 11:30 AM | Report Abuse
Sime, KLK, IOI,... they are not the experts in planting Musa King lah. Perhaps they must start thinking of your idea, stockraider, to make more money for shareholders like Hevea. ha! ha
Same mah Hevea is not expert in mushroom farming mah...!! But then Hevea will tell u that expertise can be acquire loh...!!
Then why KLK, Sime and IOI don go n acquire expertise into durian king farming since they have so much monies and land and durian king margin is so good leh ?
THE ANSWER IS ALREADY HIGHLIGHTED BY RAIDER WHY HEVEA...SHOULD NOT GO MUSHROOM FARMING LOH....!!
aduhai....durian 1 year harvest 1 time only la macha....the most harvest will last for 45 days. You ask Sime , KLK , IOI go plant durians??? their staffs eat grass for the rest of 10 months?
comparison getting more brilliant as the day pass.....from alleged toxic mushroom to durian....
totally beyond reach.....communication frequency from Mars....
Posted by katappa > Jul 21, 2017 11:44 AM | Report Abuse
aduhai....durian 1 year harvest 1 time only la macha....the most harvest will last for 45 days. You ask Sime , KLK , IOI go plant durians??? their staffs eat grass for the rest of 10 months?
comparison getting more brilliant as the day pass.....from alleged toxic mushroom to durian....
totally beyond reach.....communication frequency from Mars....
VERY STUPID COMMAND LOH....!!
SIME AND IOI SO RICH CANNOT AFFORD TO WAIT FOR DURIAN HARVEST MEH...MUST DEPEND ON DURIAN HARVEST EVERYDAY TO FEED ITS STAFF MEH ?
Yea very busy until once a year then come out and feeling provoked by obvious logic. We're busy in Hevea also so don't provoke real shareholders. Thanks you!
HEVEA has formed a breakout-pullback-continuation pattern above the EMA9 level accompanied by high volumes. The MACD Histogram has turned green, but the RSI is overbought. Monitor for a breakout above the RM1.53 level, targeting the RM1.66 and RM1.79 levels. Support will be anchored around the RM1.44 level.
Hello,since the share was at RM1.05, have been on Hevea till now, who say not real shareholder. Now since price is right n KLSE retracing, better offload. Sorry, no time for u. Off to other counter.
Clown makes announcement to sell and throwing tantrum. An effect of being envious. I told u I'm not interested so plz move on and stop returning for good. Thank u!
Stockraider, no more valid argument? I suggest you tackle from effects from eating toxic mushroom..... hopefully it will help you to scare people from buying this counter...lol
Recently too many rabies cases happened so we just have to usher those infected out of Hevea or else we would have to risk it containing them here. Today already have 2 infected casualties.
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....
SC
741 posts
Posted by SC > 2017-07-21 10:37 | Report Abuse
Chess is right, as buying into share not just for short term or speculation but instead holding it as a business owner. I like buying share as investment, because i can test my endurance towards the share price fluctuation...