Why Bj Corp at 34 sen is now a Real Bargain (Calvin Tan Research)
Dear friends who visit here,
It’s been some time since I posted on Dutaland. And by now all who bought Dutaland at 40 sen have made a nice 50% gain at over 60 sen. Congratulations!
Now Calvin thinks Bj Corp at 34 sen is a Great Value Buy
These are the reasons for buying Bj Corp:
1) Tan Sri Vincent Tan (TSVT) stated buying Bj Corp in earnest from 90 sen in year 2012 to last year when Bj Corp was 50 sen. Bursa filing showed TSVT owned 45% of Bj Corp shares. And TSVT is holding Bj Corp Iculs D & also lots of Bj Corp warrant. The average cost of TSVT for Bj Corp is as high as 70 sen
So at 34 sen we are buying at a nice 50% to TSVT buying price.
2) Bj Corp at 34 sen with NTA of Rm1.40 is selling at a Huge Discount of 76% Discount to NTA – giving a Huge Margin of safety. This is more than twice the 30% Discount that Ben Graham required as a Margin of safety.
3) And Company Share Buybacks was from 72 sen to 36 sen. The average price of SBB (Share buy back) was 54 sen. A Again at 34 sen we are getting Bj Corp shares at below Company treasury share cost.
4) Last year Bj Corp Iculs C expired at 20 sen. 2 Iculs were converted into One Bj Corp share. So TSVT Bj Corp Iculs C were converted into Bj Corp mother share at 40 sen each. Again at 34 sen we are getting it at a nice 28% discount.
So there are now 4 levels of defense buying into Bj Corp at 34 sen
i) 50% discount to TSVT open market purchase
ii) A 76% Whopping Discount to NTA
iii) Cheaper by 38% than SBB
iv) And a nice 28% Discount to Conversion of Bj Corp Iculs C to Bj Corp mother share.
5) CASHING OUT HIGH PROFIT COMPANIES
Bj Corp has already disposed Magni Tech, Bj Auto & Atlan shares for huge profits. Latest disposal is wastewater pant in China for Rm50.3 millions Cash
So Bj Corp is now Cashing Out its Investments. Bj Corp bought Bj Land on the downtrend. And sold Bj Assets into strength. This is an excellent strategy of buying Low & Selling High. It is the good fortune that Bj Corp owns the Inter Pacific Security Firm which help to pick out good investments for TSVT & Bj Corp
6) Bj Corp Invests in HIGH VALUE REAL ESTATE ASSETS
People have questioned why Bj Corp generates so little profits while incurring such high debt
This is Calvin Tan Research’s findings
Bj Corp borrows money to invest in Appreciating Assets like Lands, Properties & Hotel. The latest being Four Season Hotel in Kyoto, Japan.
And if price is right Bj Corp will sell off any shares or Assets. Just like the disposal of the Great Mall of China for over RMB2 Billions
7)COMING CASH WINDFALL OF OVER RM540 MILLIONS (Balance Payment from Great Mall of China Sale)
This November BJ CORP will stand to receive the balance payment of Great Mall sale at more than RMB900 Millions or another Rm540 MILLIONS CASH Coming it. Latest report for Dutaland sale of Kenny Hill Assets turned Dutaland Price into the positive And Dutaland prices jumped from 42.5 sen to a high of 66 sen. So expect Bj Corp share price to go up likewise. (So this is the time to buy as Mr. Market still unaware)
What are the objections?
1)OBJECTION DUE TO HIGH DEBT OF RM6 BILLIONS
- Bj Corp has huge debt of over Rm6 Billions.
The debts are mostly in Assets purchase. Borrowings by Bj Lands. If the Assets of Bj Corp are sold there will be more than Rm10 Billions to as high as Rm20 Billions. More than enough to cover all outstanding debts
From the Annual Report. The balance proceeds for Great Mall of China Sale (Total over RMB2 Billions) The balance sum should be in by November 2017
(17) On 16 December 2016, BLand announced the completion of the disposal by Berjaya (China) Great
Mall Co Ltd (“GMOC”), a 51.00% owned subsidiary company of the BLand group, of the Berjaya
(China) Great Mall Recreation Centre located in Sanhe City, Hebei Province, the People’s
Republic of China for a cash consideration of RMB2.08 billion (or about RM1.39 billion) to Beijing
Upon signing of the construction project transfer agreement (“CPTA”), Beijing SkyOcean paid
RMB50.00 million to GMOC. GMOC further received RMB1,015 million following the fulfilment of
all the conditions precedent of the CPTA. The balance of the purchase consideration of RMB1,015
million (or about RM711.32 million) (“Balance Proceeds”) will be received by November 2017.
On 28 April 2017, BLand announced that GMOC has entered into a supplementary agreement with
Beijing SkyOcean to adjust the total cash consideration from RMB2.08 billion (or about RM1.31
billion) to about RMB2.04 billion (or about RM1.28 billion) (“Consideration Adjustment”).
Accordingly, the Balance Proceeds is revised to RMB974.07 million (or about RM613.70 million).
The Consideration Adjustment was due to part of the land was regained by Sanhe Land and
Resource Bureau, reimbursement of theme park equipment and shared expenses relating to
certain electrical works
This RM613.70 CASH INFUSION INTO BJ LAND Balance sheet should boost Bj Corp’s overall performance.
2) Bj Corp also loan out monies to subsidiaries with interest
(3) an amount receivable of RM598,884,000 being the balance of the consideration for the
disposal of the Great Mall Project (Note 46(17)).
The amounts due from subsidiary companies are unsecured and repayable on demand. Amounts
totalling RM1,346,739,000 (2016: RM564,766,000) bear interest, while the rest are non-interest
This Rm1.34 Billions are Cash loaned out. Bj Corp like Pm Corp are Corporations.
3) BJ CORP ALSO HAS LOANS TO ASSOCIATES’ COMPANIES
The amounts owing by associated companies of the Group are unsecured, repayable on demand
and non-interest bearing except for a gross amount totalling RM77,513,000 (2016: RM8,297,000)
which are interest bearing.
Here’s another Rm77.5 Billions
OBJECTIONS DUE TO LOW RETURN OF ASSETS OR LITTLE PROFIT?
- Why Bj Corp earns so little money in spite of its Huge Holdings of Investments & Assets?
The answer could be found in the these 2TSVT constantly redeploy Cash into other Investments & other Assets of Value with Future Potential
- Constant reinvest Cash into shares of Redtone, Bj Land, Bj Food, Bj Assets & Other promising Investments that will generate even more profits for Bj Corp
2. Buying into Assets like Lands in Kyoto, Japan to build an Iconic Hotel. Buying Lands (under the seafront) in Berjaya Water Front City to construct Buildings of High Value.
OBJECTIONS DUE TO WHY BJ CORP SHARE PRICE PERFORMS SO BADLY IN BULL RUN YEARS OF 2012 to 2017?
Going down from Rm1.00 in year 2012 to 2017 now at only 34 sen?
The answer is in the game play of TSVT. TSVT bought & bought lots of Bj Corp from 10 sen to 50 sen in year 2005 to 2006. After Goldman Sachs joined in at 50 sen Bj Corp powered to cross Rm1.00. And it reached the high price of Rm1.50. for over 1,000% upside.
Both Goldman Sachs & TSVT later cashed out at peak prices. Then when Bj Corp retraced to Rm1.00 TSVT started accumulating again. By year end 2012 TSVT already bought about 40% of Bj Corp at above 90 sen. He addedd another 5% when Bj Corp weakened from 90 sen to a low of 50 sen.
Although TSVT does not hold more than 50% of Bj Corp he holds Bj Corp by proxy through Bj Iculs D, Bj Corp wb & Bj Corp wc. So he is still in full control together with his son Robin.
Bj Corp is a cyclical stock. If you bought it at 10 sen in year 2006 & sold it at peak like my Johor Sifu you would have made more than a 1,000%
But if you chased over Rm1.80 & held until now you would have suffered immense losses. So now Bj Corp has almost hit rock bottom.
Do people think Bj Corp can fall back to the 10 sen low?
Calvin thinks this is quite impossible as the Assets of Bj Corp in year 2006 & 2017 (after 11 years) would have appreciated far far more.
To be continued….\
THE IMMENSE HIGH VALUE ASSETS OF BJ CORP
ALL BOUGHT WHEN CHEAP. STILL AT OLD BOOK VALUE.
Calvin will go through them one by one later
Please stay tuned….
By your own experience & from where you are now : Melaka, KL, Perak, Penang, Pahang or East Malaysia or anywhere else
What was the price of your house/land/shop/factory in year 2006?
In year 2006 cement was about Rm10 to Rm13 a bag. Now Rm18 to Rm20 a bag
Construction daily wage for Indonesian was Rm50 to Rm60 a day. Now Rm100 to Rm120 a day.
Red bricks was 28 sen. Today red bricks around 45 sen.
So there is high inflation.
What is the current prices of your house/shop/factory or land?
For houses in Iskandar they have appreciated by 100%, 200% or even 300%.
Please visit www.johorinvestment.com
So think of the Myriad & Immense Assets of Bj Corp still sitting & listed at book value of past 10, 20 or more years ago?
If revalued & sold?
The Value of Berjaya Hill Resort in Bukit Tinggi
To be continued…..
A true story first
Some time in year 1992, I think. One of my Used Car Dealer Friend bought a 5 Acres Land in his hometown.
The land has a mainroad frontage and cost Rm150,000 an acre. So 5 Acres cost Rm750,000 then
He has been buying & selling Used Cars as a Business on his lands. Finance Companies also store their repossessed cars in his store yard.
So it was an ongoing business. And my Friend did very well.
Now today I just phoned him to check on his lands. (I own many houses but not lands)
He told me current value of his lands are worth Rm2 millions an acre or Rm10 millions for 5 acres in total. And he has happily converted some of his lands into Housing Development to extract even more value.
So let calculate
Original purchase price
Rm150,000 per acre =
150,000 divides by 43,560 (acre to feet) = Rm3.44 sen
Today at Rm2,000,000 divides by 43,560 = Rm45.90 psf
So price has gone up from Rm3.44 to Rm45.90
or up a Whopping 1,334%
So which is the better investment
My Friend’s Car Business or His Land Purchase as Showroom to store his Used Cars?
If he did nothing after buying those lands and just sitting idle he would have made more than Rm9 millions (just by Land Banking)
And so this is why Calvin is BULLISH ON BJ CORP
ITS BUKIT TINGGI LANDS ARE LESS THAN RM2.00 BOOK VALUE.
HOW MUCH TODAY?
HOW MUCH HIDDEN WEALTH IS LATENT IN BJ CORP?
To be continued…
Going to Booming Iskandar soon
Please view my Iskandar activities at www.johorinvestment.com
- TSH (9059) TSH now stands for “TELLING SECRET HAPPPILY” What Secrets? Lots of hidden potential, Calvin Tan Research May 21, 2021
- THPLANT (5112) A Look at its Grossly Undervalue Assets & Increasingly Bright Prospects, Calvin Tan Research April 21, 2021
- GREAT SUCESSFUL INVESTMENTS YEAR 2019: OGSE BULL RUN THEME; 2020 MEDICAL GLOVE SUPERBULL THEME: 2021 IS PALM OIL CPO BULL RUN THEME December 31, 2020
- LOOKS LIKE PALM OIL GOING INTO A BULL TREND DUE TO LA LINA AGAIN IN 2020/21 November 24, 2020
- AFTER MEDICAL GLOVE BULL RUN THE NEXT UPCOMING BULL THEME IS PALM OIL November 1, 2020
- 1993 WAS ASIAN TIGER BULLRUN, 2020 IS HEALTH CARE BULL RUN BY COVID 19, GLOVE, FACEMASK & NOW SANITIZER IN NYLEX & ANCOM, Calvin Tan Research May 14, 2020
- PROLEXUS (8966) ProXmask: The ProActive High Quality FACE MASK product of Prolexus that excels , Calvin Tan Research May 6, 2020
- MTAG (0213) MTAG (0231) ANOTHER GLOVES, FACE MASKS & RESPIRATORS DISTRIBUTORS, Calvin Tan Research April 27, 2020
- QUESTION & ANSWERS FOR LUXCHEM April 17, 2020
- PM’s speech on Prihatin Economic Stimulus Package (NFCP FIBERISATION IS ON!!) Calvin Tan Research March 29, 2020
- NETX (0020) INSATIABLE BUYING BY NETX STAFF SHOWS IMMENSE POTENTIAL February 14, 2020
- T7 GLOBAL VERSUS CARIMIN, , UZMA, PENERGY, & DAYANG (Compare & Contrast) Calvin Tan Research January 17, 2020
- TELEKOM TENDERS: SOME POSSIBLE WINNERS, Calvin Tan Research December 29, 2019
- BUY NETX, OPCOM, REDTONE & CMSB (SACOFA) FOR MULTI YEARS BULL RUN IN NFCP STOCKS SOON, Calvin Tan Research November 27, 2019
- T7 WINNING SUBSEA JOBS WILL BE ANOTHER PENERGY FOR TOPSIDE November 22, 2019
- NAIM FIRED UP ON ALL 4 ENGINES BUT CMSB(2852) HAS 7 SEVEN ENGINES OF GROWTH, Calvin Tan Research 22 Nov November 22, 2019
- TOP 10 REASONS WHY NETX IS NOW THE BEST BUY FOR NFCP JUST AS VELESTO WAS FOR OGSE November 17, 2019
- TOP UNDERVALUE SHARES TO BUY NOW FOR 2020 BULL RUN TIME November 16, 2019
- CMSB (2852) OWNER OF KENANGA INVESTMENT BANK , CEMENT MONOPOLY, FIBER OPTIC TOWER MONOPOLY IN SARAWAK November 12, 2019
- THIS IS NOW THE BEST TIME TO DEPLOY MONEY FULLY INTO THE COMING BULL YEAR OF 2020, Calvin Tan Research November 11, 2019
- PLEASE WHATASPP CALVIN TAN AT 019-3384010 Or 014-6101668 FOR NEXT POST November 9, 2019
- NETX MISSION STATEMENT November 9, 2019
- NETX IN CHUN CHUN INTO e-KYC October 30, 2019
- SELL UZMA. SELL CARIMIN. BUY OPCOM, REDTONE, NETX & OTHERS October 28, 2019
- 9th M’sia Plan Top Budget Allocation For Infrar Powered Up Cement So 12 MP For NFCP Powers up Opcom, Redtone & Netx, Calvin Tan October 27, 2019
- WHY IS ASIABIO BUYING ONLY NETX AND NOT DGB, MLAB, XOX, VSOLAR FINTEC & OTHERS? Calvin Tan Research October 26, 2019
- ASIAOBIO BOSS BUYING SO MUCH NETX OVER ALL OTHERS SHOW GREAT POTENTIAL, Calvin Tan Research October 26, 2019
- DIRECTORS/INSIDERS STRONG BUYING SHOWS NFCP BULL RUN VERY SOON, Calvin Tan Research October 21, 2019
- MUI PROPERTY (3913) HIGH VALUE STOCK WITH POWERFUL GROWTH CATALYST, Calvin Tan Research October 18, 2019
- TOP 10 REASONS TO BUY REDTONE (0032) BENEFICIARY OF NFCP OR NATIONWIDE FIBERISATION, Calvin Tan Research October 2, 2019
- NETX HAS A 70/30 FIGHTING CHANCE TO SURVIVE AND DO WELL IN THE DIGITAL ECONOMY, Calvin Tan Research September 25, 2019
- SCOMIES, OPCOM & NETX September 23, 2019
- SCOMI ENERGY (7045) THE HIDDEN GEM IN O&G BULL RUN September 19, 2019
- OPCOM (0035) OPTIMAL OPTIC COMPANY : THE SUPER-STOCK OF THE DIGITAL ECONOMY, Calvin Tan Research September 16, 2019
- BUY UZMA (7250) AT 62 SEN. TARGET PRICE RM1.20 August 12, 2019
- BUY TA ENTERPRIZE FOR ITS 4.1 SEN DIVIDEND (ABOUT 6% YIELD WHICH IS TWICE THAT OF BANK FD RATE) June 15, 2019
- LAFARGE CEMENT UP 100% FROM RM2.25 TO RM4.50 TODAY. TIME TO BUY MASTEEL (5098) AS IT IS A LAGGARD June 14, 2019
- TESTIMONY OF YTL TO THE POWER OF PROVIDENCE June 8, 2019
- DOLOMITE(5835) UP 143% DUE TO ASSET SALE WILL ASB(1481) GO UP LIKEWISE BY ASSET SALE? June 7, 2019
- INVESTMENT NEWS FOR JUNE 2019 BY EAGLE VISION June 6, 2019
- A LOOK AT PETRONAS LATEST GOOD QUARTER RESULT OF 9% EARNINGS GROWTH, Calvin Tan Research June 1, 2019
- OIL & GAS BULL PAUSE. AFTER THIS POOR QUARTER RESULT DUE TO MONSOON O&G BULL RUN WILL RESUME, Calvin Tan Research May 26, 2019
- UZMA (7250) UTTERLY ZEALOUS MASTERING ALL. THE OnG LAGGARD WITH BEST POTENTIAL, Calvin Tan Research May 10, 2019
- (PART ONE) KUMPULAN PERANGSANG SELANGOR (5843) KUMPULAN PROACTIVELY SUPERCHARGED, Calvin Tan Research April 25, 2019
- THESE FIVE STOCKS MIGHT BENEFIT FROM ECRL SOUTH: Mui Prop, AsiaPac, MKH, L&G & Olympia, Calvin Tan Research April 17, 2019
- MKH (6114) METRO KAJANG WILL BENEFIT FROM ECRL REROUTE TO BANGI/KAJANG, Calvin Tan Research April 15, 2019
- IMAGO MALL OF ASIAPAC (4057) ECRL SIGNING WILL BRING BACK CHINA TOURISTS, Calvin Tan April 15, 2019
- ASIAPAC (4057) THREE CHUN CHUN BULL TARGETS FOR A 200% UPSIDE (ECRL, VMY 2020 & HSR April 11, 2019
- JTIASA (Fong Siling – Cold Eye & Pheim Fund Tan Chong Koay) Versus TDM (Dr. Neoh Soon Kean of Dynaquest) Calvin Tan Research April 5, 2019
- MAJU PERAK (8141) MAJULAH PERAK BY GEELY – PROTON PARTNERSHIP IN EXPANSION & GROWTH, Calvin Tan April 5, 2019
- May 2021
- April 2021
- December 2020
- November 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- August 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015