Eagle Vision Invesment

Hello Men/Women, Boys/Girls & All Fellow Investors in i3 Forum,

If good stocks are not recommended bad stocks will be. The danger of buying land mine stocks like Patimas, Transmile, Megan Media, Saag, Maemode & others are very real and dangerous to our stock performance. Same for those trapped in hot air balloon stocks like ifca, thheavy, sumatech (sudatrap), sersol, xinquan,  pdz & vsolar with no way out AFTER sydicates have PUMPED & DUMPED them to all unsuspecting naive newbies,  gamblers & punters of the day.

Benjamin Graham advocates the Buying of Stocks with High MARGIN OF SAFETY.

Now what is the Margin of Safety?

For cars we install  ABS Brake & airbags. For military planes we have parachutes, and for ships & ferry with have life jackets. What for? To prevent the losses of precious lives and limbs, of course!

So is our investments!! We need to invest in Stocks or Companies that have MARGIN OF SAFETY. Why is it so?

To prevent losses and bankruptcies of Companies exposed to the vicissitudes of life, the uncertainty of the market – to face financial storms & crisis that occur from time to time. How many businesses & business men were wiped off during the Asian Financial Crisis of 1997/8? How many more suffered from the Lehman Brothers’ Debacle in 2007/8? Lehman Brothers with over 100 years history gone bankrupt! So is Bear Sterns, Washington Mutual & Merill Lynch which was rescued by Bank of America.

What, then, constitute The Margin of Safety?

Benjamin Graham wants a share selling at least 30% discount from NTA (Net Tangible Asset). Like making a Bridge to withstand a 10  ton lorry for the requirement at only 5 tons. Suppose you build a bridge with specification for only 5 ton lorries to pass. But someone foolishly drives an 8 ton lorry across. The Bridge will collapse! So by building a Bridge with ability to stand the weight of up to a 10 ton lorry – THERE IS A BUILT IN MARGIN OF SAFETY – IN CASE SOME ONE MAKES A MISTAKE & ERRED!!

This is summarized by Ben Graham’s Famous Disciple – Warren Buffet, who made these 2 Rules of Investments.

1) Never to Lose Money

2) Rule No. 2 is to remember Rule No. 1 – Never to lose money.

Calvin Tan Research has identified these 7 “MARGIN OF SAFETY” Pointers in Bina Puri

They are:

1) Selling at Huge 56% Discount to NTA

At 41 cts closing price today with High NTA of 93 cents – Bina Puri qualifies as a Net Net Stock for Ben Graham & Walter Schloss.

This 56% Discount To NTA provides a Huge Margin of Safety.

What are the NTA (Net Tangible Asset) of BPuri? Just take a look at one example:

Please refer to 2015 Buri Puri Annual Report – scroll down to Properties owned by the Company

3 level shopping Mall Shopping Mall. Main Place Mall Lot 49113, SUBANG JAYA

Bought in 20 Mar 14

Freehold – 645,834 sq ft

Net Book Value Rm 205,000,000

BPuri has other valuable Lands & Assets just like this which could be sold for Cash. These Assets also appreciate on its own over the years. See Crescendo results today. Crescendo has revalued their assets & booked them as profit. Last time I bought OKA at 35 cts. Oka gives a yearly dividend from its earnings without fail.  Oka was only 35 cts (dirt cheap) with NTA over Rm1.20. And in lean years I thought I won’t be getting any dividend for that year. But to my big surprise OKA Bosses revalued OKA assets, booked them as profits – then gave me the usual dividend!!

2)  BINA PURI GIVES A DIVIDEND BETTER THAN BANK FD RATE:

Like OKA (Oka no longer cheap now – already up 700% after bonus issue!) Bina Puri is also giving a yearly dividend without fail

Extracted from STOCK PERFORMANCE GUIDE By DYNAQUEST

Dividends for BPuri

Year………..Dividend

2006 ………2.9 sen

2007……….3.7 sen

2008……….4.5 sen

2009……….3.0 sen

2010………..3.0 sen

2011………..3.0 sen

2012………..1.5 sen

2013…………1.5 sen

2014…………1.5 sen

2015………..2.0 sen

2016………… ??  Only 3 more months left to declare dividend for this year.

3) GOVT LINKED PROJECTS ASSURE SAFETY OF PAYMENTS

These are difficult times. Swiber being hit by bad debts, flounder in Singapore. Hanjing Shipping of South Korea in trouble due to shipping downturn. Even TekSeng just retrenched staff in Penang due to surplus merchandise in a saturated market with dwindling sales.

BPURI has secured payments from Projects Awarded by Malaysian Govts & Malaysian Companies.

See (Refer to Annual Report Under Chairman Statement)

BUSINESS OVERVIEW ACROSS ALL SEGMENTS

As in previous years, the Group’s earnings are derived from its businesses in construction, property development, quarry and ready mix concrete and power generation. 2015 was a strong year for the Malaysian construction industry; it registered a 11.2% growth. Many infrastructural projects were announced in Budget 2016 and this will ensure a constant stream of revenue for the construction sector. The Construction Division has remained the main core business of Bina Puri Group.

The Group managed to secure new projects worth RM1.2 billion in 2015. The new projects include additional work and interior design work for Sabah State Administration Building, Bunus Regional Sewage Treatment Plant, Movenpick Spa Resort Kuala Terengganu, Medini Twin Tower at Iskandar Malaysia in Johor, Island Resort Pulau Poh Lake Kenyir and Civil Work at RAPID Steam Cracker Complex in Pengerang Johor.

BPuri also secured the Malaysian Embassy Building Job in Russia from the Malaysian Govt.

And lately these were the Project Awards

a) Rm80 Millions for 440 Units of Flats in Sabah

The Board is pleased to announce that Bina Puri Sdn. Bhd., a wholly owned subsidiary of Bina Puri Holdings Bhd. had accepted the award for the role of project management consultant for the project known as “Mereka Bentuk, Membina dan Menyiapkan 440 unit rumah pangsa 5 tingkat (walkup flats) serta kerja-kerja berkaitan dengannya untuk Program Perumahan Rakyat (PPR) di Pitas, Sabah from Arus Sutera Sdn. Bhd. at contract sum of RM80 million. The works mentioned above shall be completed within 42 months.

The said project is expected to contribute positively to the net assets and earnings of Bina Puri Group for the financial year ending 31 December 2016.

b) Portion of Rm1.35 Billions  Pan Borneo Highway Project Award from Malaysian Government.

LETTER OF AWARD FOR THE DEVELOPMENT AND UPGRADING OF THE PROPOSED PAN BORNEO HIGHWAY IN THE STATE OF SARAWAK, MALAYSIA - PHASE 1: WPC06 - SG. AWIK BRIDGE TO BINTANGOR JUNCTION

EXECUTION OF PIPE SLEEPER AND UNDERGROUND SERVICES PACKAGE FOR PACKAGE-22 RAPID PROJECT

THE CONSTRUCTION OF 994 UNITS OF PR1MA HOMES COMPRISING OF APARTMENTS AND 20 UNITS OF SHOPS SITUATED ON 18.23 ACRES OF FREEHOLD LAND HELD UNDER GRN 293554; LOT NO. 96790, MUKIM PLENTONG, JOHOR BAHRU, JOHOR

Last time Insiders Bought Tomypak at 40 cts very quietly. One day Tomypak Jumped 1,000% & split!

Same goes for TN Logis. I Saw Insiders Buying TN Logis at Rm1.50 to Rm1.70. So I followed them. As it turned out TN Logis gave Bonus & warrant issue later & price spiked to Rm7.00 & split (TN Logis up 500%)

Later Kimhin followed the same pattern – Insiders & Directors were buying and buying up Kimhin at Rm1.30 before Price Crossed Rm2.00

When Jaks was 40 cents I saw Jaks received millions and millions of Job Award. So I bought it at 39.5 cts.

I saw Directors & Insiders buying Jaks later & I highlighted it to all

Posted by calvintaneng > Dec 16, 2014 03:00 PM | Report Abuse X

Whoa!

Top boss bought at 44 cents and above, millions of them. Anything below 40 cents is a bargain!

So don’t wait or else Jaks jump Jump JUMP Up And Away!

And Jaks later JUMPED OVER RM1.20 (UP 200%!!)

5) ESOS AT 50 CENTS to 54 CENTS ALL TAKEN UP BY INSIDERS AND DIRECTORS

Not only Insiders are buying & buying BPuri shares from the open market. They even pay much higher price quietly through ESOS. 

The Amazing Discovery is: Directors willing to exercise ESOS at 50 cents when they can get it cheaper from open market at only 36 cents

See CAREFULLY

OFFER OF OPTIONS UNDER THE EXECUTIVES' SHARE OPTION SCHEME (ESOS)

We refer to the ESOS of Bina Puri Holdings Bhd. (BPHB) which was established on 7 June 2011 and extended for another 5 years from 7 June 2016 to 6 June 2021 in accordance with the ESOS By-Laws . Pursuant ot paragraph 9.19(51) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, BPHB would like to announce the grant of options under the ESOS as stated below:- (a) Date of offer 30 June 2016 (b) Exercise price of options offered RM0.50 (c) Number of options offered 3,250,000 (d) Market price of BPHB shares on the date of the offer RM0.3681 (e) Number of options offered to each director     (i)  Tan Sri Datuk Tee Hock Seng, JP 1,690,000   (ii)  Matthew Tee Kai Woon 1,560,000 (f) Vesting period of the options offered Immediate  Question is? Why Are Directors Paying Much Higher Prices for BPuri Shares at 50 cents through ESOS rather than buying them from Bursa at only 36 cents? A VERY BIG QUESTION MARK & YOU MUST SEE BEYOND THE OBVIOUS!!! Last time my Johor Sifu (MG9231) Alerted me to Buy Pintaras Jaya at Rm1.40. He told me at Rm1.40 we are buying cheaper than Company ESOS at Rm1.90. And he observed that the Doctor Boss of Ptaras Jaya even quietly bought PTaras Jaya from the open market together with the ESOS at Rm1.90. As it proved out – PTaras Jaya garnered a nice 31% CAGR for a 10 Year Period from 2006 to 2016! See Sifu KcChong Price Chart HighlightsPerform research on stocks before trading. Check out the Price Target page. 54 kcchongnz blog Author: kcchongnz   |   Latest post: Tue, 27 Sep 2016, 10:13 PM This a kcchongnz blog Blog Headlines (by Date) Blog Index   “I Always Knew I Was Going to be Rich” kcchongnz Author: kcchongnz   |  Publish date: Tue, 27 Sep 2016, 10:13 PM    First a clarification. The saying above, “I Always Knew I was Going to be Rich” is from Warren Buffett, not me. I did not say I am rich. How lucky the children above are! I wish my parents had done that for me when I was at that age. Then I am pretty sure I could say what Warren had said. Yes, I really believe so. It is not because one will automatically become very rich in a year, 10 years or even 20 years, following some investing methods, any method for that matter. But, imagine with scores of years for the children to build up their long term wealth, with the eighth wonder of the world, the power of compounding, and a proven and plausible way of investing with higher probability of success, the sky is the limit. “Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.” Albert Einstein   Power of compounding Professor Jeremy Siegel, in his article, “Stocks for the long run”, made a study of the long-term returns of stocks at various periods from 1871 to 2012 in the United States. For a 141-year period from 1871-2012 in the USA, stocks’ total real annual return including dividend yield and after adjusting for inflation of 3% is 6.6%, or a gross return of 9.6%.  The return in most of the developed and developing countries in the world do not differ much, including that of KLSE. A young person starting work at the age of 23 who saves and invests $1000 a month, slowly increasing according to the increase of salary of 4%, in the stock market for a long term horizon yielding 9.6% a year will accumulate a total of $5.5m by the time he retires at the age of 60. What if he can compound it at a higher rate of return? How to get a higher return with little risk?   The Super Investors of Graham and Doddsville In a paper titled “The Super Investors of Graham and Doddsville”, Warren Buffet showed the track records of each of nine disciples of Benjamin Graham showing that they all generated annual compounded returns of between 18% and 29% over track records lasting between 13 to 28 years investing in the equity markets over a long period of time, out-performing the broad market by wide margins. Let’s have a look at their profit history as shown in Table 1 below. Table 1: Returns of the Super Investors of Graham and Dodd Investor No. of Yrs Annualised     Return S&P / Dow     Return Buffett Partnership      13      29.5%   7.4 % (Dow) Walter Schloss      28       21.3%    8.4% Tweedy Browne      16       20%    7% Bill Ruane      14       18.2%    10% Charlie Munger      14       19.8%     5.0% (Dow) Pacific Partners      18       32.9%     7.8% Perlmeter Investments      18       23%     7.0 % (Dow) All the above investors came from just one school of thought in investing, the principles and methodologies of fundamental value investing (FVI). Their performances were well documented. Take for example of the investing experience of Walter Schloss who had made a CAR of 21.3% over a 28 years investing period. The young person above who can save and invest following Schloss’s simple investing methodology for 28 years would have accumulated a whopping sum of $71m by the time he reaches 60 years old! More recently, more super investors such as Joel Greenblatt, Seth Klarmen, Howard Marks, Mohnish Pabrai, Peter Lynch and many other fundamental value investing fund managers have all generated high return of over 20% CAR over an extended period of time, making billions for themselves and their investors. http://klse.i3investor.com/blogs/kcchongnz/88007.jsp   What about long-term investing in Bursa? Why are there so many investors, some seemingly very experienced investors say it is not advisable to invest in individual stocks listed in Bursa for more than three years? Do they have statistical significant results to prove that? I really don’t know about this too as there is no academic research carried out on this, unlike in the US and other more developed markets. What I can do is to do a simplistic back testing on some stocks listed in Bursa. I would use those stocks I have had in the two established portfolios of mine in i3investor about three years ago, and back test them for a longer period of 10 years, and see if holding them for 10 years can provide a good compounded return.   Ten-year compounded return of some stocks in Bursa Table 2 in the Appendix shows the returns of the individual stocks in the combined portfolio of 19 stocks invested from 1st March 2006 to 29th February 2016. The 10-year period of study is reasonable representative as it has included a complete cycle of boom and bust in 2009. A few stocks have shorter listing history and the actual shorter periods of listing are used. Some, for example Jobstreet, has no complete records and partial and shorter records were used. The share price data were obtained from the adjusted prices given by Yahoo Finance. It is assumed that a total of RM100000 was invested in equal amount for each of the 19 stocks in the portfolio. In this 10-year period, KLCI has increased by 80%, or a compounded growth rate, CAR, of 6%, an underperformance compared to the historical long-term return of about CAR of 10%. However, the portfolio of the 19 stocks has returned 470%, or a CAR of 24.4% over the 10-year period. Seventeen out of the nineteen stocks made positive returns, ranging from a low of 49% for Plenitude to a high of 1843% for SKP Resources. Four of them are 10-baggers; SKP Resources (+1843%), Datasonic (+1675%), Pintaras Jaya (+1424%), and CBIP (+1005%). The CAR of these 10-baggers range from 27.2% to 34.5% for those stocks which have more than 10 years’ records.  “value investing is either…. You either get it or you don’t.” Seth Karmen   Table 2: 10 years return of some stocks in Bursa from 1st March 2006 to 29th February 2016

After 10 Years All The Value of PTaras has finally emerged & MG 9231 made his Millions (many millions)

Coming back to the Question Now:

Why Insiders/Directors are exercising their ESOS at 50 cents? The only answer I can think of are 2

1) With 3.25 Millions ESOS offered you can Whack A Whole Lot of It Because you don’t find many sellers below 50 cents. On some days only a miserable 30 lots of BPuri Shares were traded. And if they really Whack BPuri shares from the open market prices will definitely spike up.

Except for one Director who is nibbling and nibbling from the Open Market at around 40 cts, I don’t know whether other Diectors or Insiders are buying through proxy. This is yet unknown. Maybe we will know it in the far future.

6) PRIVATE PLACEMENT ALL TAKEN UP AT AROUND 50 CENTS, TOO. AT A PREMIUM & NOT A DISCOUNT! AMAZING!

Like Masteel, BPuri has taken the less costly was to raise Capital by private placement. This is much cheaper than borrowing funds from the banks.

While Masteel placed out its shares at a discount BPuri placed out its shares at a premium. Amazing. People are willing to pay more for BPuri Private Placement Shares at 50 cts rather than buying them from the open market at 39 cents?

See

BINA PURI HOLDINGS BHD ("BINA PURI" OR THE "COMPANY")

PRIVATE PLACEMENT

BINA PURI HOLDINGS BHD ("BINA PURI" OR THE "COMPANY")

PRIVATE PLACEMENT

OFFER OF OPTIONS UNDER THE EXECUTIVES' SHARE OPTION SCHEME (ESOS)

So let’s Sum it up:

Bpuri at 56% discount to NTA has Big Margin of safety.

A 4.8% dividend better than Bank FD.

Govt linked projects ensure secured payment.

Share price weakness is opportunity to “buy low”. Insiders Gobbling up undervalue  shares!

Buying at 41 cts now is 21% than Company Esos price.

Also 21% cheaper than private placement of 50 cts

.And with all clarity before us we can invest safely and sleep soundly.

And with downside So Well Protected With Look for A Multi Year Upside!

So Will BPuri Going To Hold A Capital Exercise soon?

It remains to be seen. Are you going to hold long term to SEE all its Deep Value Unfold One by One?

Have A Profitable Day, Week, Month & Years ahead.

Another Great Stock Brought to You

By Calvin Tan Research

Warmest regards,

Calvin Tan,

Jurong West, Singapore

Good night everybody

ZZZZZZZzzzzzzz,,,,,…….