Invest in the potential FANG of KLSE !!!

To all legendary investor and trader of KLSE

This message is crafted to you in order to let you know what are the instrument that billionaire and multi millionaire used to bring in huge wealth in a decade.

In the past, massive wealth is created through brick and mortar business. For example, real estate is one of the instrument that a lot of people used during those days to attain massive wealth. Yes, I do not disagree with this, but it takes quite some time. Other businesses such as oil and gas, manufacturing business are also good as well, but to date, the largest corporation in terms of market capitalization are mostly made out from IT / Technology company.

The latest line up are Facebook, Amazon, Apple, Netflix, Google.

It used to be a fight between Warren Buffet and Bill Gates in the top 2 position, but to date, this had changed. Now it is Mark Zuckerberg of Facebook, and Jeff Bezos of Amazon (before divorce settlement) that rise up so quickly to dethrone the legendary.

Technology is the key forward, and this is just a start, especially for Malaysia. There are a lot of things that can be improved with application of technology, or being replaced by them as well. The application is technically have a wide scope.

Now Cuscapi is one of the potential target that legendary investor should take note. This company is not just another Tom Dick and Harry, but it is backed with track record management that brought up MyEG from a mere RM 200 million company to a RM 5.5 billion company to date.

The Cuscapi that we know is of the yesteryear story. Please delete away your mindset that Cuscapi is the company producing those Rev Tablet for food ordering system.

Now Cuscapi is moving way faster than you think.

Cuscapi is still involved in Food & Beverage POS system, and additionally, they are developing a system for automotive segment.

If you see, Cuscapi got this EDMS system that links some of the process that is previously done manually into a systematic manner that will ease the process and also reduce fraud.


Bonus info

Previously, I got mentioned about Cuscapi being linked with Grabfood expansion. While some see a potential on it, some also doubted it.

If you looked carefully, 1 of the executive director of Cuscapi is Mr Toe Teow Teck. He is a Singaporean and formerly worked in a private equity NTU Venture in Singapore and also an angel investor himself. To link this up, Grab is actually a Malaysian startup that went to Singapore to get funded and become to the Grab that we are seeing to day.

Since the private equity / incubator / startup funding is a niche market, there is high chance that Mr Toe also have network that is related to the funding of Grab at the initial stage.

The latest move on Cuscapi acquiring a Singapore based food ordering POS system (Amplify Me Pte Ltd) continue to underline the prospect of Cuscapi having more corporate exercise related to Singapore based company.


Let you put this to thought

1. Grab is dealing with Car / Transport + Food, while Cuscapi is dealing with Food Ordering System and Automotive related registration with government.
2. Executive director is Singaporean, and involved in startup funding, angel investor, private equity funding
3. Both Grab and Cuscapi having the same geographical growth - South East Asia market

So now, do you see a definite link between the 2 company ?

What should you do to a share that is potentially RM 1.00 but now below 20 cents?

Dear Investor and Trader alike,

Sometimes, when things appear to be too good to be true, most of the people will tend to take a conservative approach, but there are still people that are willing to take the front risk and plunge their money and invest into it.

There are no right and wrong in such situation, because investment comes along with risk. But a lot of time, the too good to be true investment done with the right study and right research will bear good return when things start to get inline and things develop accordingly.

Let's say, now I am telling you EDEN is too good to be true, will you want to believe?

A share trading below RM 0.20 now, but with NTA at RM 0.77, but in fact the land asset can be holding up to more than RM 1.00 per share at the current market price.

So actually, what is there to consider more?

I had been talking and promoting on EDEN since it is 14 cents.

Now it is 17 cents, which I think there is still plenty of room since we are talking about RM 1.00 here backed with land asset that is of strategic location, near to Kuantan Port, and also upcoming ECRL.

This is a no play play issue because Land is a commodity, and it is strategic because the location is there, and this cannot be moved as you like because other infrastructure already in place, and that is the reason making the specific land to be strategic.

Look again, 450 acre of land at Gebeng Industrial area, which is near to Kuantan Port.

The recent transaction involving a 1.7 acre land is sold at RM 22 per square feet.

If put into EDEN land, at RM 22 per square feet is equal to RM 432 million
(calculation is 450.74 acre x 43560 x RM 22 psf)


This Kuantan Port will not be an ordinary port, because this port will be a very important port that will replace a lot of shipping activities that will be going pass Singapore. Technically, this area will be very sought after by international player, eyeing to have a piece of profit in this area.

Many ship will stop at Kuantan Port, unload the container, and load into ECRL cargo train, go to Port Klang, and continue their journey. This will save cost, save time and also make Malaysia have more revenue.

Now Alliance Steel already invested in Gebeng area. The MCKIP already attracted multi billion investment. All these investment will require huge factory to be set up, and that will involved purchasing of land and such.

Since EDEN have 450 acre of land, some land will be acquire by ECRL, some land will be sold to 3rd parties foreign investor, or local business that are going to set up factory near to Kuantan Port.

EDEN now is RM 0.17
Potential is RM 1.00

If you give 50% discount on RM 1.00, there is still RM 0.50. But the NTA is RM 0.77, so that is no kidding issue also.

Eden land absurdly undervalued at RM 165million

Today need to continue to talk deeper about Eden Inc Berhad.

Since we know that Eden only biggest trophy is about the strategic big piece of land near Kuantan Port, which is very crucial and good for port storage usage, and also very critical for ECRL, that is the main point about it all.

Today, I will only talk about the land, the 450 acre of land at Gebeng Industrial Land that Eden is holding on.

As you can see, according to the annual report, the land is 450.74 acre in size, and carrying a book value of RM 165 million (RM 164.9 million if you want to be exact)


Yes, this is a big plot of land acquire some time ago, and the main question here is - Is the land value at RM 165 million reflecting the market value as of today condition ? Taking into consideration the place will get better with port development (Kuantan Port to be more busy + ECRL development), making the place more in demand in the future.


So, let us do some research on the public.

So, Malaysia 1st popular real estate website - iProperty.com.my reveal that there is only 1 piece of land for sale at Gebeng
RM 18 million for 10 acre, but this is just the asking price. Of course, owner have the right to ask any price they want.

Is based on RM 18 million for 10 acre, then Eden 450 acre will be worth

RM 18 million x 45 = RM 810 million

Wow!!! Very huge amount there compared to the annual report of RM 165 million. Big difference of RM 654 million. But again, RM 18 million is the asking price.

Now, we need to go to some transacted price to determine the clearer price that is in demand.

So, we will go to brickz.my to see the transacted price that is recorded in the land office.

According to Brickz.my , the price of the land is around RM 22 per square feet. This is much reasonable price and also transacted price that reflect the demand can reach RM 22 per square feet.

So now we put into calculation at RM 22 psf, what is the 450.74 acre worth.

450.74 acre x 43560 = 19,634,234 sf

19,634,234 sf x RM 22 = RM 432 million (431,953,156.8)

So, it is RM 432 million, which is a very handsome price tag. Approximately 50% down from the asking price in iProperty.com.my

Now, looking back at annual report, the land is RM 165 million, which based on market value is RM 432 million. This is a difference of RM 267 million.

If RM 432 million / 392 million share
Eden share price will be worth RM 1.10 if all land sold

Now Eden share price only RM 0.17

So if you are looking at the prize land which can bring Eden to RM 1.10, and current price RM 0.17, this is a very valuable investment considering the land is
1. Near Kuantan Port
2. Near ECRL
3. ECRL will be buying some land from Eden

Steel On Fire - What do you think?

Steel on fire. Good or bad - It depends on how you are looking on it. Every coin got 2 side of face.

But 1 rocking truth that led my attention to iron/steel company is due to a major global event that is sparking steel prices upwards. The untoward disaster at Minas Gerais at 25th January 2019, send iron ore future leaping 20% upwards due to cut of supply in iron ore. The company involved in the disaster, Vale, which accounted for the largest iron ore output in the world had to shut down a further 10 iron mine that will estimate to pull out 40 million tonnes of iron ore supply in the market.

Analyst are continue to be bullish on iron ore, and is certain that iron ore will be hitting 3 figure next week when Chinese restart iron ore purchasing after Chinese New Year celebration.

Currently, Iron Ore Futures are at 3 years high.

So is this actually good or bad for iron/steel manufacturer in Malaysia?

Technically, when the price of iron ore is higher, it is not good for manufacturer as raw material prices will be higher, that will erode margin. But if demand continue to outstrip supply, then iron/steel product will eventually have a better margin.

China play an important role as it is the biggest consumer for steel, and any increase of steel demand will pull a great demand in influencing global steel prices.

The latest expert view is China's steel sector to remain resilient in 2019, boosted by infrastructure investment. This can translate that China will most probably be able to absorb most of the steel products manufactured for their own consumption.

http://www.chinadaily.com.cn/a/201901/15/WS5c3d4301a3106c65c34e4839.html

Analyst believe that steel rebar price had hit bottom up. And demand will be picking up soon. However, this disaster in Brazil could be pushing purchaser to buy more with anticipation that steel price will be going higher.

The disaster at Brazil is not going to resolve so soon, and global supply of iron ore will continue to see a vacuum which could potentially take up 6 months to 1 year.

This will in turn push purchaser to purchase more in order to lock in cheaper prices before prices become higher in the next coming few months.

The push effect will then create better margin for steel manufacturer.

As such, local steel manufacturer should be able to see a better margin in the coming days.

So for local pick, I will choose Masteel.

Masteel had fallen from a high of RM 1.80 before bonus issue.

Now at RM 0.51, Masteel is trading at huge discount to NTA of RM 1.60, and 3 cumulative quarter earning of 7.44 cents. Coming quarter if can hit 3 cents will make 10 cents, which means Masteel is trading at PER x 5 only.

Now with better margin coming, and customer likely to buy in more to lock in prices, that will give Masteel a good boost in profit for next 6 to 9 months.

Other steel counter include Lionind and Annjoo.

So I am not asking you to buy or sell. Just writing this to inform you that steel industry is taking a better turn. If you don't like Masteel, you can look for Lionind, Annjoo, Lsteel, CSCSteel, SSteel. Any investment decision, please do your own due diligence and study.

Eden can be riding high with ECRL back on track

Dear investor trader and reader,

Now the ECRL theme is very strong because Tun Mahathir is going to visit China this month April. One of the thing is to discuss about ECRL which many would say will continue at a correct price tag after negotiation. For me, I think the negotiation already done, and Tun Mahathir could be going there to do signing of papers only.

That is one reason why ECRL contractor like GBGAQRS share's keep going up.

Now many don't know about a hidden beneficiaries for the ECRL development. This beneficiaries is actually EDEN.

Many thing EDEN is actually food operator in Langkawi, and also owned some diesel energy generator at Kelantan, but actually the main prize asset of EDEN is a big plot of land as big as Bandar Malaysia size near Kuantan Port.

As you can see, 450 acres, worth RM 165 million in value of land at Gebeng, Sungai Karang.

So i do a google map checking where is Sungai Karang area. The red color line highlighted by Google Map is Mukim Sungai Karang

So where is Gebeng ?

So these area the area label as Gebeng. And according to the land plot of industrial land, I think the industrial land is along the coast line.


As you know, ECRL is divided into 2 phase

• Phase 1: Kota Bharu – Kuala Terengganu – Kuantan – Bentong – ITT Gombak

• Phase 2: Gombak North – Serendah – Port Klang and Kota Bharu – Pengkalan Kubor

Although Eden now is losing money, but the NTA is RM 0.77.

If the land is sold, acquire for rail construction or international party buy for development of Port for storage, that will be a good windfall for Eden.

How good is the windfall

RM 165 million / 393 million shares = RM 0.42 per share in land sell gain

So now Eden is only 14.5 cents.

Very good chance to buy and accumulate for low, since Eden is also government friendly, so good chance to see this company having a revival.