Hi guys,
As a natural progression after Govt coffer is replenished by Petronas Revenue – Next month in April would most probably be the Revival of ECRL
Calvin has already picked 5 stocks, namely AZRB, T7 Global, Prestar,
Masteel & Lafarge Cement to be among the beneficiaries of the ECRL – 688 Kilometer long
Today I shall add one more – TalamT (2259)
TALAM’S PRIME LANDS
IN SERENDAH & GOMBAK SIT RIGHT AT THE CROSS JUNCTION BETWEEN NORTH
AND SOUTH ALIGNMENT OF KUALA LUMPUR – TANJONG MALIM PROTON CITY &
THE PORT KLANG ON THE WEST TO TOK BALI PORT OF THE NORTH EAST OF WEST
MALAYSIA
IF ECRL IS RESTORED SERENDAH WILL BE THE PIVOTAL NEW HEART & CENTER OF ALL TRAFFIC- BE THEY HUMANS, GOODS OR RAW MATERIALS
SINGAPORE THRIVES BECAUSE OF ITS VERY CENTRIC LOCATION
IN THE FAR EAST. SIR STAMFORD RAFFLES CHOSE SINGAPORE OVER MALACCA OR
PENANG DUE TO ITS SUPREME LOCATION WHERE EAST MEETS WEST IN THE PASSING
SEA. UP NORTH IS THE MALAYA HINTERLAND & DOWN SOUTH IS THE SPRAWLING
INDONESIAN ARCHIPELAGO
SINCE THEN SINGAPORE HAS PROSPERED AND PROSPERED
NOW WE EXPECT SERENDAH TO RISE UP IN PROMINENCE
HOW WILL ECRL PROPEL TALAM’S ASSETS
LET’S TAKE A LOOK AT THE ECRL PLAN AGAIN
ECRL STARTS FROM PORT KLANG TO KOTA BAHRU. THERE ARE 3 MAIN PORTS:
1) PORT KLANG
2) KEMAMAN PORT
3) TOK BALI PORT
AND THESE ARE THE PRIME REASONS WHY TALAM LANDS IN SERENDAH WILL RISE UP IN THE VALUE CHAIN
RAILROADS BRING HUGE PROSPERITY TO ALL THE CITIES & PORTS ALONG ITS ROUTES
NO WONDER THAT WARREN BUFFET LIKES TO INVEST IN RAILROAD LIKE “UNION PACIFIC”
SEE
Warren Buffett Loves Railroads, and Union Pacific Fits the Bill
The railroad industry is extremely durable, and Union Pacific (NYSE:UNP) has proven to be no exception since its founding in the 1860s.
Railcars are a critical mode of transportation and move about 40% of U.S. freight as
measured in ton-miles (the length freight travels). Without companies
like Union Pacific, the country’s supply chain could not operate.
Perhaps it is no surprise why Warren Buffett (Trades, Portfolio) acquired leading railroad company Burlington Northern Santa Fe (BNSF) in 2010 for $34 billion, adding the company to Berkshire Hathaway’s (NYSE:BRK.A)(NYSE:BRK.B) portfolio of high quality dividend stocks.
Its railways connect
with all of the major ports on the West Coast and Gulf Coast and serve
many of the fastest-growing cities in the country. Union Pacific’s rail network also connects with some of Canada’s railways and all of Mexico’s major gateways.
Union Pacific has the best access to Gulf and West Coast ports and is
the only railroad that serves all six major rail gateways between the
U.S. and Mexico. Through rail industry partnerships, the company can
also access roughly 90% of the population in North America.
Finally, it’s worth acknowledging the long-term durability of the railroad industry. Freight volumes generally follow population growth over long periods of time.
There will always be a need to connect consumers with agricultural, industrial, manufacturing, and logistics centers across the country. As a best-in-class operator with hard-to-replicate assets, Union Pacific will be there to meet this major need.
Trucks, barges, ships, planes and pipelines all compete with railroads to efficiently and reliably transport goods.
Rail transportation has been, and will likely continue to be, the best
option for shipping bulk commodities such as grain, construction
materials and energy products.
These materials have a high weight-to-price ratio and generally do not require time-sensitive deliveries.
Railroads can transport these bulk materials using less fuel than
trucks over long distances and are usually faster than using waterways,
which face physical limitations. I expect rail’s market share of
ton-miles to remain stable around 40% just like it has for a couple of
decades.
Calvin comments:
OF THE TOP MOST IMPORTANCE IS THE ARRIVAL OF GOODS FROM CHINA THEN
UNLOADED AT THE WEST COASTAL PORTS OF USA & THEN TRANSPORTED ALL
THE WAY ACROSS THE US CONTINENT ALL THE WAY TO THE EASTERN STATES
NOW ECRL IS PART OF CHINA’S ONE BELT ONE ROAD PLAN
FROM CHINA, TAIWAN, KOREA , JAPAN, HONG KONG & THAILAND WILL COME GOODS THAT ARRIVE AT THE NEW TOK BALI PORT OF AZRB (TOK BALI PORT WILL RIVAL BINTULU PORT ONE DAY & T7 GLOBAL NOW GOING INTO MARINE BUSINESS AS WELL
) .. FROM THERE GOODS WILL BE TRANSPORTED BY ECRL RAIL TO THE PORT
KLANG IN THE WEST AND CONTINUE ITS JOURNEY TO INDIA, MIDDLE EAST &
THEN TO EUROPE. AND VICE VERSA.
ALL ALONG THIS NEW SILK ROUTE TOWNS & CITIES WILL PROSPER
AND TALAM HAVING MOST OF ITS PRIME ASSETS IN SERENDAH & GOMBAK WILL BOOM & BOOM IN VALUE
TAN SRI DATUK CHAN HAS BOUGHT TALAM SHARES AT 11 SEN
HIS SON CHAN TET EU HAS BOUGHT HUGE CHUNK OF TALAM SHARES AT 8.5 SEN
WHY ARE THEY PAYING FROM 8.5 SEN TO 11 SEN & STILL HOLDING UNLESS THEY SEE MUCH MUCH HIGHER VALUE IN TALAM
CALVIN HAS DONE AN INVESTIGATION & CONFIRMED WITH FACTS & FIGURES
DON’T MISS MY NEXT POST ON TALAM THE HIDDEN GEM
Director’s Particular:
| Name | MR CHAN TET EU |
Details of Changes:
| Currency | Malaysian Ringgit (MYR) |
| Date of Change | Type | Number of Shares | Price | |
|---|---|---|---|---|
| 18-Apr-2016 | Acquired | 500,000,000 | 0.085 | |
| Nature of Interest | Deemed interest in the acquisition of 500,000,000 TTB Shares by TSDCAC pursuant to Section 6A of the Companies Act, 1965 |
| Shares | Ordinary Shares of RM0.20 each |
| Reason | Deemed interest in the acquisition of 500,000,000 ordinary shares of RM0.20 each in Talam Transform Berhad (“TTB Shares”) by Tan Sri Dato (Dr) Ir Chan Ah Chye @ Chan Chong Yoon (“TSDCAC”) via direct business transaction following the completion of the First Tranche Sale Shares pursuant to the Share Sale Agreement dated 17 October 2014 between TSDCAC and Kumpulan Europlus Berhad (“SSA”) and Supplemental Agreement to SSA dated 28 August 2015. |
| Consideration |
Total no of securities after change
| Direct (units) | 0 |
| Direct (%) | 0.00 |
| Indirect (units) | 866,471,466 |
| Indirect (%) | 20.54 |
| Total (units) | 866,471,466 |
| Total (%) | 20.54 |
| Date of Notice | 19-Apr-2016 |
[TALAMT] Change In Director’s Shareholding – TAN SRI DATO’ (DR) IR CHAN AH CHYE @ CHAN CHONG YOON on 21-Oct-2014
| Stock | [TALAMT]: TALAM TRANSFORM BHD |
| Announcement Date | 21-Oct-2014 |
Director’s Particular:
| Name | TAN SRI DATO’ (DR) IR CHAN AH CHYE @ CHAN CHONG YOON |
Details of Changes:
| Currency | Malaysian Ringgit (MYR) |
| Date of Change | Type | Number of Shares | Price | |
|---|---|---|---|---|
| 17-Oct-2014 | Acquired | 900,000,000 | 0.110 | |
| Nature of Interest | Deemed interest in 900,000,000 TTB Shares held by KEB by virtue of Section 6A of the Companies Act, 1965. |
| Shares | Ordinary Shares of RM0.20 each |
| Reason | Deemed interest in the acquisition of 900,000,000 ordinary shares of RM0.20 each of Talam Transform Berhad (“TTB Shares”) pursuant to the conditional share sale agreement dated 17 October 2014 (“SSA”) entered into between Tan Sri Dato’ (Dr) Ir Chan Ah Chye @ Chan Chong Yoon and Kumpulan Europlus Berhad (“KEB”). The conditions precedent of the SSA include inter-alia, the approval from the shareholders of KEB. |
| Consideration |
Total no of securities after change
| Direct (units) | 107,710,694 |
| Direct (%) | 2.55 |
| Indirect (units) | 1,158,760,772 |
| Indirect (%) | 27.47 |
| Total (units) | 1,266,471,466 |
| Total (%) | 30.02 |
| Date of Notice | 21-Oct-2014 |
2) Some Doubters have Posted in Talam Forum and mentioned that Talam
has Rm300 Mil Debt or liability. Others still have questioned why Talam
NTA is only 8.5 sen and Why Should Tan Sri Datuk Chan and His Son bought
Talam shares as high as 8.5 sen to 11 sen?
Others still think that Talam might go into default
SO CALVIN WENT TO DO A MORE THOROUGH RESEARCH ON TALAM HISTORY
AND I GOT A WONDERFUL SURPRISING DISCOVERY!!
Let's go to ANNUAL REPORT OF TALAM
Scroll down to Properties owned by Talam
See
# Mukim Serendah Daerah Ulu Selangor Bandar Bukit Beruntung Negeri Selangor
178.41 Town ship Development Bukit Beruntung
Freehold Rm41,934,000
So TALAM Has 178.41 ACRES OF FREEHOLD LANDS IN SERENDAH VALUED AT RM41.934 MILLIONS
LET US NOW CALCULATE ITS VALUE PER SQ FT
First 178.41 x 43560 to get the per sq ft = 7,771,539.6
so land area is 7,771,539.6 million sq ft
Now divides 41,934,000 by 7771539.6 = Rm5.40 PSF
SO NOW WE KNOW TALAM LAND IS WORTH RM5.40 per sq ft
NOW WHAT IS THE CURRENT LAND VALUE OF SERENDAH
NOW WE CAN LOOK UP SUPERMAX THE GLOVE MAKER
SUPERMAX ALSO HAS A PIEC OF LAND IN SERENDAH
LET'S GO TO SUPERMAX ANNUAL REPORT
26. Geran No. 28698 Lot No. 1858, Mukim Serendah, Daerah Ulu Selangor,Negeri Selangor.
Land 404,685sq m Freehold 80,809,480
Property No. 26 of Supermax shows a freehold land in Serendah size is
404,685 sq meter with book value of Rm80,809,480 Over Rm80 Millions
Now convert Meter to sq ft by 404,685 x 10.764 = 4,356,029 SQ FT
now divides RM80,809480 by 4,356,029 = RM18.55 PSF
FROM HERE WE CAN CLEARLY SEE THAT TALAM LAND (TOWNSHIP LAND -
ALREADY CONVERTED AND SUBDIVIDED HAS A BOOK VALUE OF ONLY RM5.40 PSF)
SUPERMAX lands are valued at Rm18.55 psf or 3.43 times more expensive
(also more inferior in status) to Talam
We have not even determined the current market value as yet
BIG BIG QUESTION NOW IS THIS
WHAT IS THE ASKING PRICE FOR COMMERCIAL/INDUSTRIAL LANDS IN SERENDAH TODAY?
A CONSERVATIVE VALUE WOULD BE ABOUT RM45 PER SQ FT
SO Divides 45.00 by 5.40 = 8.33 x more
Now let's multiple TALAM NTA Of 8.5 sen by 8.33
= 70.80 NET NET VALUE
YESSSS!!!
TALAM IS NOW 4 SEN & SELLING AT 70 SEN NET ASSETS BACKING
THAT MEANS THAT TALAM IS SELLING AT MORE THAN 90& DISCOUNT TO NET BOOK VALUE
AND THAT HAS NOT INCLUDED THE POTENTIAL APPRECIATION YET FROM ECRL PASSING THROUGH SERENDAH
TALAM ALSO HAS A CHUN CHUN 100 ACRES OF LAND IN GOMBAK (ECRL RAIL INTERCHANGE)
NOW WHAT IS THE FAIR VALUE OF TALAM THE HIDDEN GEM?
NOT LESS THAN 50 SEN IF PRIVATISED
SO BUYING TALAM AT 4 SEN & HOLDING TIGHT TIGHT MIGHT ONE DAY GIVE A WHOPPING 1,000% UPSIDE
BEST REGARDS
Calvin Tan Research
Singapore
Please buy or sell after doing your own due diligence
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