Dear Friends ,

 

Today wiith News of Trump raising Tariff against China USD50 Billions Furniture Exports – Stocks like Latitute, Lihen Hevea & Pohuat have surged.

One stock did not but dropped in stead. That stock is WTK

SO CALVIN IS VERY INTERESTED

Why should Calvin be interested in a Stock that dropped and not chase those that have surged?

Good question

The answers now many

 

1) At 60 sen with NTA  of Rm2.15 WTK is selling at a Huge Discount of 73% Discount to NTA.

This is more than twice the Margin of Safety required by Ben Graham (Note: Calvin follows the Columbia School of Thoughts in Investment. SAFETY FIRST. Then only expect a profit. In other words, “Not to lose money” as propounded by Ben’s Best Student called Warren Buffet

See chart

Currency: Malaysian Ringgit (MYR)

SUMMARY OF KEY FINANCIAL INFORMATION 31 Mar 2018

		INDIVIDUAL PERIOD		CUMULATIVE PERIOD
		CURRENT YEAR QUARTER	PRECEDING YEAR CORRESPONDING QUARTER	CURRENT YEAR TO DATE	PRECEDING YEAR CORRESPONDING PERIOD
		31 Mar 2018	31 Mar 2017	31 Mar 2018	31 Mar 2017
		$$’000	$$’000	$$’000	$$’000
		1	Revenue	183,229	209,516	183,229	209,516
2	Profit/(loss) before tax	64,348	7,534	64,348	7,534
3	Profit/(loss) for the period	63,180	-4,276	63,180	-4,276
4	Profit/(loss) attributable to ordinary equity holders of the parent	63,935	-3,580	63,935	-3,580
5	Basic earnings/(loss) per share (Subunit)	13.39	-0.75	13.39	-0.75
6	Proposed/Declared dividend per share (Subunit)	0.00	0.00	0.00	0.00
		AS AT END OF CURRENT QUARTER		AS AT PRECEDING FINANCIAL YEAR END
7	Net assets per share attributable to ordinary equity holders of the parent ($$)	2.1500		2.0200

 

 

2) ASSETS OF WTK ARE OF REAL VALUE. SOME OF IMMENSE VALUE

 

WTK Assets are Rock Solid.

 

2 ASSETS IN SINGAPORE PIQUED MY INTEREST ESPECIALLY AS I LIVE IN SINGAPORE

No. 86 * Tagore Lane Industrial Estate 11,354 sq.ft. Freehold

Land with office & warehouse 30 September 1983 ( 34 years)  Rm4,080,000

 

A search in Singapore Propertyguru reveals 9 factories for sale in Tagore Lane

Of the 9 this is the biggest in land scarce Singapore

See

 

It is 4,176 sq ft with asking price of S$2,980,000 or S$713.60

Current Conversion Rate from Sg to Rm is S$1.00 to Rm2.97

 

So S$2,980,000 x 2.97 = That’s Rm8,850,600

 

Now Look At WTK assets again

It is 11,354 sq ft Book Value is only Rm4,080,000

 

Now this was 34 year ago prices when WTK bought this factory?

What is the exact Value Now

So

11,354 x 713.60 x 2.97 =  Rm24,063,576

 

So WTK Assets in Singapore Current Value is 6 X more

 

That is the IMMENSE HIDDEN VALUE OF WTK ASSETS

What about Its Business?

 

3) WTK IS MORE TIMBER THAN PALM OIL

SO THE CURRENT FURNITURE CRAZE WILL ALSIO LIFT UP WTK IN A MATTER OF TIME

FURNITURE COMES FROM TIMBER OR LOGS. OF WHICH WTK HAS MANY MANY & MANY MORE

ONE OF THE LARGEST TIMBER PLAYER IN SARAWAK

 

4) ANOTHER GOOD NEWS IS SARAWAK GOVT FOLLOWS SABAH TO BAN NEW LOGGING LICENSES FOR LOG EXTRACTS

THIS IS VERY GOOD FOR WTK PLYWOOD INDUSTRY JUST LIKE WHAT SABAH DID FOR EKSONS

 

 

S’wak govt to stop issuing new timber licenses – CM

 

The Sarawak government will continue to stop the issuance of new timber licences in all out efforts to protect and retain the remaining indigenous virgin jungle in the state.

Chief Minister Datuk Patinggi Abang Johari Tun Openg stressed that the vast tracts of the forest have already been logged and it was very difficult to restore them.

“Worse still is the stripping of the forests of all their vegetation by plywood factories operating deep in the forests, ostensibly to clear the land for the planting of oil palm,” he told the august House in his winding up speech at the State Assembly Sitting today

“As such, therefore, there will be no more new palm oil plantation licences except for NCR (Native Customary Rights) land,” he pointed out.

The state government, he added, will continue to fight illegal logging.

“Not only are they just stealing timber in areas which are not licensed to them, but they are also intruding into forest reserve areas,” he said.

“If unchecked, we may have no more forest reserves of any kind, fully protected or otherwise. We must protect our protected forests if we want to retain any of our indigenous virgin jungle,” he added

 

WTK HAS BEEN GIVEN SOLE RIGHTS FOR MANY TIMBER CONCESSIONS. IT IS ALMOST A MONOPOLY WITH TAANN & IN SMALL MEASURE JTIASA

 

CALVIN FIRST CALLED FOR A BUY ON WTK (WAH TELAH KAYA) AT ABOVE RM1.10

 

PRICE HAS NOW FALLEN BY A HUGE 45% DISCOUNT

ITS LOSSES FROM OIL & GAS MISADVENTURE NOW OVER

JUST LIKE CALVIN ISSUED BUY CALL ON MEDIA AT RM1.00

THEN CALVIN ISSUED EVEN STRONGER BUY CALL ON MEDIA AT 28 SEN (NOW ALMOST REBOUNDED TO 60 SEN UP BY MORE THAN 100% FRIOM ITS LOWS)

 

NOW CALVIN ISSUES A SCREAMING BUY FOR WTK

 

 

Please buy/sell after doing your own due diligence

 

WARM REGARDS

 

Calvin Tan Research

Singapore