Monday, 3 September 2012

Mr Fong Siling- Why BREM?

冷眼- BREM 

Reasons for BREM
  1. NTA RM 2.71  , in fact with the land in KL bought at RM 3000, the NTA is more than RM 2.71
  2. Coming dividend to be announced in September, 6 cents . ( as in the Q1 result)
  3. RM 1.18-1.19 consolidate for sometimes, with stable volume. ( downside really Minimum) 

Why did Fong Siling choose BREM holding? This company bought 4.70 acres of land in 1994, 17 years ago, to 3,000 ringgit per acre of 638 ringgit, but also an incredible thing.There are even more incredible is that the company in 1994, to 7,000 ringgit, or 572 ringgit per acre, buy in Klang Po, another period of 12.23 acres of permanent right to land, the report said that this section of land development . 
Corporations are building shares Bainian, but focus on the industrial development in Kedah, Petaling Jaya, Klang Po and Wu Gila mess, and Kuala Lumpur Batu Si rock Mo has a lot of land, and development activities are concentrated in the Si Rock Mo, 412 condominium units Orchid Garden (Villa Orkid) Sale. According to the annual report, the company has in Batu 9 above land, 30.50 acres, in 1995 and 2005 to buy, only 17.49 ringgit per square foot value in the accounts.
Brem nearly 70 million ringgit to buy the 33.28 acres of development land in Kuala Lumpur Tamkang, on the 48 million ringgit to buy Petaling 7.577 acres plant for commercial development, these two sites a total cost of $ 100 million 18 million ringgit , almost equal to the paid-up capital of the company, the company said the move was "trying to use a reasonable purchase price of land to supplement the basement. Land rose faster than house prices. 
Let me give Brem, for example, is to illustrate a fact: Most of the listed companies, especially industrial stocks and focus on industrial development, construction shares owned land, the value is underestimated. Especially in the last two years, the industry rose, land value or more than the house rapidly.
Real estate owned by the listed companies, the value of I do not know doubled the number of fan to the market price of the re-valuation of the real estate owned by the listed companies, net tangible assets per share must be greatly increased.
Some valuable land, the company that is secret, thinly traded, their stock is not favored by investors, stock prices lagged behind the general trend provides a good opportunity to buy undervalued shares only at a reasonable price, for serious investors .How can the value of the mining industry shares?
The first step, please remember the following several mathematical per hectare (ha) equal to 2.4711 acres (acre); equal to 43,560 cubic feet per acre (sf); per square meter (sq.m.) is equal to 10.7309 cubic feet (sf).
The annual reports of the listed companies in the industry table "sometimes ha, sometimes acres, sometimes square meters, sometimes Youyi feet calculating land area, you must understand the metric and imperial conversion, in order to calculate the value of each feet.
The second step to identify the land price, compared with the book value in the Annual Report, you can find out whether the land value of the listed company is undervalued.Buy land undervalued stock, equal to cheap to buy the land, did not buy the land red tape troubles, easy against as cash.

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