Eagle Vision Invesment

Dear Happy   Investors of TA ENTERPRIZE,

 

I posted the article on 28 April 2018

4.1 Sen (Almost 8%) Dividend for TA ENTERPRIZE is the Crowning Confirmation of A Potential Super Stock, Calvin Tan Research

Author: calvintaneng   |    Publish date: 

 

Sat, 28 Apr 2018, 01:08 PM 

 

Now I want to summarize the TOP 10 REASONS WHY TA ENTERPRIZE SHOULD GO ABOVE RM1.00

 

And These Are The Reasons:

 

1) TA ENTERPRIZE Has NTA/NAP of Rm1.45.

If we measure the Investment Approach of Ben Graham or Walter Schloss TA is worth investing up to a Discount of 30% from Rm1.45 which is Rm1.45 x.7 = Rm1.01 (Of course there are many stocks in KLSE also selling at 30% or more Discount to NTA.

But 30% Discount Qualifies Ben Graham’s Margin of Safety Principle.

 

2) DIVIDEND YIELD AS MEASRUED BY BANK FD AT 4% SHOWS TA ENTERPRIZE’S FAIR VALUE IS RM1.00

Since TA Enterprize has declared a 4.1% dividend it is now reasonable to say that Fair Dividend As a Measurement shows TA to be worth Rm1.00. Of course to be fair Dividend should be consistent & incremental like Dutch Lady. {Note: It was dividends that propelled Dutch Lady from Rm4.00 to Rm40.00 & even higher.)

 

3) LAST 4 QUARTERS SHOWED A PROFIT OF 14.15 SEN. 

IF We Measure TA P/E at 10 Price should be Rm1.41. Since Earnings was boosted by Assets Sale we discount it by 70% from Rm1.41 which is 98.7 Sen. But the Question is. Is TA able to match current  Earnings? The answer is in no. 4

 

4) THIS MONTH OF MAY 2018 EXPECT AN EPS OF 10 SEN from 3 Sources

i) Disposal of Little Bay will garner a 6.34 Profit

ii) Another Rm54 Millions Profits from TA HK sale of 2 Offices

iii) Other Incomes from Trading & Hotel Operations. So just One Quarter Alone of 10 Sen EPS will be 70% of Whole 4 Qr Profits of 14.15. Will August, November 2018 & February 2019 Quarterly Reports Garner another 4.15 Sen Profit? 

S(O WILL TA’s Next 4 Quarters Combined Profits beat the current 14.15 Sen EPS?

 

5) TA ENTERPRIZE PROFITS FROM NOW WILL BE GREATLY BOOSTED BY HOTEL/RESORTS/ SHOPHOUSE RENTAL OPERATIONS.

In i3 Forum Write Up On TA,

I quote

Business Background (Extracted from i3 Investors’ Forum) on TA

TA Enterprise Bhd is a Malaysia based investment holding company. It is engaged in the engaged in hotel operations and financial services activities. The operating segments of the group are Broking and financial services, Investment holding, Credit and lending, Property investment, Property development and Hotel operations. It generates the majority of the revenue from the Hotel operations which includes the operation of hotels and related services. The business activities of the organization are carried out in Malaysia and internationally, of which key revenue is derived from the operations in Australia.

 

i3 Investors Forum Team has stated

It generates the majority of the revenue from the Hotel operations which includes the operation of hotels and related services

 

LOOK AGAIN WHAT i3 FORUM TEAM POINTED OUT

“IT GENERATES THE MAJORITY OF THE REVENUE FROM THE HOTE OPERATIONS….”

Yes, with the Completion of Trump International Hotel & Sale of Little Bay & 2  Hong Kong Offices to pare down borrowings TA’s Balance Sheet should now be Very Healthy Going Forward

 

6) MAY 1St 2018 TA ENTERPRIZE’S BUSINESS WILL BE FURTHER BOOSTED BY 

i) Scrapping of Fees for 2nd & 3rd Liners

ii)  Easing of Margin Accounts

Note: TA being very conservative always ask for Huge Deposit Backup to ensure no losses from Customers/remisiers’ default. TA has 2 layers of safety. One. Client’s Acc must have sufficient liquidity. Remisiers’ bear first responsibility for Clients’ purchases.. Go read up TA AR

iii) Short Selling of 280 counters now permitted.

When Value Investors buy A share he might not sell it immediately. Some like Warren Buffet he keeps it for forever.

However, for those who short sell in KLSE he/she must cover the share or buy back within the same day. So TA stands to make fees from both shorting and covering.

So many thinkj\ of buying Gaming Stocks for their dividends. And TA now by Virtue of Short Selling Being Permitted Is now a mini casino

See this for example

 

What is this? A Mahjong Table? What is Calvin driving at?

Let me illustrate by telling you a personal story about my father.

Long ago in the 1960s my father owned a shop in KL. He has a spare room at the back which is not being used.

So he bought a Mahjong Table and rented it by the hour to Mahjong Players. For every game they played he charged 20 sen.

20 Sen? Yes, 20 sen in 1960s was Big Money then. You can eat a meal with drink for 20 Sen in those days.

And my father was making good money in those days.

Then one day there were only 3 mahjong kaki. So to play the game they invited my father to go and join them to make it 4.

Alas! My father being inexperienced and got hooked eventually lost a lot of monies. He lost much more than the rental fees he collected. So he gave it all up and smashed the Mahjong table. So that was the end of the Mahjong story for him.

Now TA Bosses Tony & Alicia are both fervent  Christians. So they avoid gambling themselves.

That is why in the Last Quarter Report TA has “No derivatives“.

 

7) TA IS NOW A ROCK SOLID COMPANY WITH INVESTMENTS IN TAGB, HOTELS, ASSETS & OTHER INVESTMENTS

Other Investments?

Yes. Look up TA last Quarter Report

Listed Under Investments

Proceeds from disposal/redemption of investment securities 1,828,049,000

Yes, TA invests and also redeem INVESTMENT SECURITIES: Here A RM1.828 BILLIONS are mentioned (Refer AR)

 

This was what happened to Chin Teck current Fantastic Result. It was the Cashing out in Investment Securities

See

Chin Teck Plantations’ earnings more than double to RM22.66m

 

KUALA LUMPUR, April 30 (Bernama) – Chin Teck Plantations Bhd’s earnings more than doubled to RM22.66 million in the second quarter ended Feb 28, 2018, from RM8.11 million a year ago, thanks mainly to a net fair value gain of RM14.11 million on the sale of investment securities.

Revenue, meanwhile, grew 12.3 per cent ,year-on-year, to RM42.19 million on higher sales volumes of fresh fruit bunches, crude palm oil and palm kernel, the company said in a filing with Bursa Malaysia today.

It recorded the improvement in revenue despite the lower average prices of the said products.

On its prospects, Chin Teck said the average selling price of crude palm oil was expected to be lower this year compared with last year.

– BERNAMA

 

Just think how Much TA will make from its Investment Securities?

 

 

8) ALL THE BORROWINGS OF TA ARE WELL BACKED BY HIGH VALUE PRIME PRIME ASSETS STILL UNDER OLD BOOK VALUE

 

Let me quote the post of one fellow i3 Forumer

 

 

 

 

 

 

9) TA  HAS MULTIPLE STREAMS OF INCOME GOING FORWARD

a) From Revenue of 7  Hotels/Resorts Oversea

b) Housing Development in Australia

c) 50 Over Acres of ATIVO in Bandar Sri Damansara. More than 50% of Condos sold. The rest are profits. And with New Up Coming MRT nearby from Sg Buloh to Bandar Malaysia expect Land & Asset Value to continue going up.

d) INVESTMENT IN SECURITIES

e) Stock Brokering Business

f) Lending out Monies

g) Lots of Investment Assets like Lands, Shop Houses Offices & etc. All sitting on Gold mines

h) Assisting Corporate  Exercise for over 1,000 KLSE Companies.  Like helping to offer Rights & Bonus Issues or Mergers.

i) By January 2019 Bursa shall JV with Singapore SGX for Cross Trading

j) Undertaking New IPOs

 

10) WITH SO MUCH VALUE LOCKED UP IN NET TANGIBLE ASSET (NTA) & SO BRIGHT FUTURE PROSPECT AHEAD TA ENTERPRIZE IS ANOTHER CANDIDATE FOR PRIVATISATION

 

See these ones With High NTAs Taken Private

 

 

And How Bj Corp Took Bj Capital private at Rm3.00. Hong Leong Group took HL Capital private at over Rm10.00

RHB took OSK Securities private, AA Anthony taken private by UOB Kayhian, Hwangs took private by Affin & KAF also taken private http://www.theedgemarkets.com/article/kaf-seagroatt-campbell-may-be-taken-private-source

 

SO ITA ENTERPRIZE IS ANOTHER CANDIDATE FOR PRIVATISATION

 

HOW MUCH IS TA WORTH?

Anything from Rm1.00 to Rm1.80

 

Will Tony & Datin Alicia be willling to sell TA at Rm1.80?

 

Or is TA worth more than that?

 

It remains to be seen

 

Warm Regards

Calvin Tan,

Republic of Singapore

 

Further Note

Calvin eschew buying drinking, smoking or pure gambling stocks