The many benefits to using soybean oil in the production of biodiesel include, soybeans are widely grown, the infrastructure and equipment to grow, transport and process them already exists, and the left over soybean meal is important for animal feed. Read more about the advantages and drawbacks of soybeans as a biofuel energy crop.
Listen! from Marc Warning from Marc Faber: A Lot of People will be losing Lots of Money in Stock Market & OthersAuthor: calvintaneng
PALM OIL (KLSE) SOLID EARNINGS & DIVIDENDS WILL SEE US THROUGH UNCERTAIN YEAR OF 2023, Calvin TanAuthor: calvintaneng Dear friends of i3 Forum, As the Title Implies: Palm Oil Solid Earnings and dividends will see us through a very uncertain year of 2023 due to FED raisng Interest rates to Fight Inflation
Let's Take a Look at What Dr Neoh said about Dividends First
WHY IS DIVIDEND IMPORTANT? From Dr Neoh Soon Kean's STOCK MARKET INVESTMENT (Reposted by Calvin Tan)calvintaneng
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Hi Guys,
" data-bs-html="true" data-bs-original-title="" data-bs-toggle="popover" data-bs-trigger="focus" style="box-sizing: border-box; color: rgb(13, 110, 253);" tabindex="0" title="">I have An Investment Approach I which I would like to all. ![]() calvintaneng
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Hi Guys,
I have An Investment Approach I which I would like to all. " data-bs-html="true" data-bs-original-title="" data-bs-toggle="popover" data-bs-trigger="focus" style="box-sizing: border-box; color: rgb(13, 110, 253);" tabindex="0" title="">calvintaneng Publish date: Mon, 07 Mar 2022, 07:58 PMWHY IS DIVIDEND IMPORTANT? Dividend is important for many reasons. The most important reason has been explained a chapter earlier on, that is, dividend is the only benefit which a shareholder can obtain from a company under the normal circumstances. Profit, per se, is hardly of any use to him directly and the assets are only of value if the company is liquidated which is unlikely in a great majority of cases. Apart from this reason, dividend is important for the following reasons: 1) Dividend is a sure thing. All too often, investors and speculators pay too much attention to profit forecast. It is amazing that so many malaysian companies have the courage to make profit forecast for many years into the future. What is even more amazing is that so many of the investors seem to believe these forecasts absolutely. It is difficult to make a profit forecast a year ahead, let alone five years or even ten years. Such profit forecasts can only be regarded as extremely shaky. Let us take a recent example. During 1981, when the "property injection game" was at its height, many of the companies which were first getting into property development business gave very rosy forecasts of future earnings potential, as a result the price of these shares naturally went up to tremendous heights. Since then, the housing market softened considerably and the office rental market has declined 40-50 per cent. In just three years, the profit picture of just about all land development companies has changed considerably. I wonder how many of those forecasts made in 1981 can still stand up to scrutiny today. Dividend is real and it is something which the shareholders can put to some use. Most companies keep dividend at a level they can afford to pay out irrespective of whether it is a good or bad year and is hence a great deal more certain than profit forecast.
2) Dividend provides a link with reality. When the market is truly 'hot', few of us can keep truly rational and we tend to be swept along in the general atmosphere of optimism. But the dividend yield of a share keeps us in close touch with the real world. As in the earlier example of OCBC, anyone who keeps his eye on the dividend yield of that share would have realised that the price level was totally unreal. Most people would agree that at a dividend yield of 0.4 per cent it would be better to sell a share and invest the proceed in houses or leave the money in fixed deposit. In the established stock markets of the world, the dividend yield (ie dividend per share/price per share) usually has a steady relationship with the fixed deposit and its interest rate. It is normal for dividend yield to fluctuate at around 1/3 to 1/2 of the long-term deposit interest rate. This means that when fixed deposit interest is around 10 per cent per annum, stock should sell at a price to provide a yield of 3 per cent to 5 per cent. Taking a look at the yield provided by local shares during bull markets, the dividend yield is usually so low as to be meaningless. Futhermore, one should not forget that fixed deposit of 15 months or longer and fixed deposits in National Savings Bank are interest free in Malaysia while dividend has a witholding tax of 40 per cent applied at source.
3) Dividend provides a 'floor' for shares during bear markets. Stock markets of the world, especially the Malaysian/Singaporean market is not readily predictable. They can collapse so easily into a 'bear pit' with little warning. If we wished to protect our hard earned capital, we must be defensive in our investment approach. One of the best defense is to buy shares with reasonable dividend yield (i.e. a yield of between 1/2 of deposit interest rate). If we buy a share because it pays a reasonable dividend, our loss is likely to be small even during periods of sharp market decline. For example, we can buy a share which pays 30 cents dividend at Rm5.00 a share and this gives us a dividend yield of 6 per cent. If the share market goes into a sharp decline, the amount this share can fall to is limited by the fact that it pays a 30 cents dividend. If the price is to fall to as low as Rm3.00, it will be giving a dividend yield of 10 per cent which is about as good as what one can get from fixed deposit but with the additional opportunity to capital gain thrown in. Most people can see that at that price, the share is probably a good bargain and it is therefore unlikely to fall any lower. It has been my experience that with the exception of mining counters, a dividend yield of 12 per cent seems to be the floor below which most stocks will not drop. In sharp contrast, shares which pay low or no dividend at all do not seem to have any bottom and price decline can hit 90 per cent or more.
4) Dividend yield prevents investors from being side-tracked by irrelevant events. The Malaysian/Singaporean stock market can be characterised by a large number of events which are of little real benefit to the existing shareholders and yet which excite them greatly. I am referring to the large number of bonus announcements, rights issues, property injections, take-overs, and mergers which have made their appearance in recent years. Most of these events are of little, if any, real economic benefit to the existing shareholders of the companies involved. Despite this, the price of the shares of a company involved in an event of this nature tends to rise sharply. Later chapters will explain in detail why these events are, in the main, irrelevant and some of them may even be damaging. For the moment, let us consider the following. According to the dividend yield approach to share valuation, a share can have increased value only if there is a likelihood that its dividend will rise faster than originally expected. We ask ourselves in what way events like bonuses, rights, mergers and re-organisations in themselves can improve the future dividend picture of a company. If these events cannot lead to such an increase, the share surely does not deserve a higher valuation. It is hoped that readers are, by now, at least partially convinced of the wisdom of buying a share for its dividend. In later chapters, the range of dividend yields which is reasonable for different categories of shares will be examined. In the meantime, I leave you with a short ditty that has been popular for years in the US and is still often quoted as advice to first time share buyers.
A cow for its milk, Bees for their honey, And shares, by golly, For their dividend.
The above passage is taken from the book "STOCK MARKET INVESTMENT" in Malaysia And Singapore By Dr . Neoh Soon Kean of Dynaquest Sdn Bhd (pp 148 to 150) Published in year 1985.
Calvin comments: According to Dr. Neoh, "A dividend yield of 12 per cent seems to be the floor below which most stocks will not drop". In the Deepest Depth of the Lehman Brothers' Crisis after Bear Sterns & Lehman Brothers both gone bankrupt Warren Buffet bought into the safety of Goldman Sachs' Preference shares with guaranteed 10% yield. Now take heed to Dr. Neoh's warning, "In sharp contrast, shares which pay low or no dividend at all do not seem to have any bottom and price decline can hit 90 per cent or more". The characteristic of past bear markets like the Tulip Mania, The South Sea Bubble, The Great Depression of 1930s in USA, the Stock Market Rout of Asian Finacial Crisis in 1997/8 and The Lehman Brothers' Debacle of 2007/8 have witnessed many stocks & index crashing up to 90% or more.
In Bursa today Palm Oil Stocks are increasing its dividends pay out like TAANN, HS PLANT, BPLANT AND OTHERS HS PLANT WILL PAY OUT 15.5 SEN IF YOU BUY BY TOMORROW THE LAST DAY TO QUALIFY. And expect more and more Dividends from all Palm Oil Stocks as their Gross earnings now up 200% to 300% due to very high CPO Prices over Rm7,1000 per ton (Was below Rm2,000 per ton last year)
A STOCK FOR ITS DIVIDENDS
A COW FOR ITS MILK
A hen for her eggs
Note: Abpove Article was Reposted on March 7 2022 9 months have passed and we now take a more careful look at their dividends
1) BPLANT
Bplant total dividend for year 2022 1.1 sen + 2.75 sen + 7.3 sen +4 sen = 26.5 sen at 64.5 sen today Dividend yoeld is 23.4%
Dividend yield was amplified by asset disposal
2) HS Plant
15.5 sen + 5 sen = 20.5 sen dividend At Rm1.90 Dividend yield is 10.7%
3) TSH RESOURCES
8 sen +3 sen = 11 sen dividend At Rm1.07 Dovidend yield is 10.2%
4) TAANN
TAANN total dividend is 40 sen
At Rm3.89 Taann dividend yield is 10.2%
5( FGV (5222)
FGV Dividend 12 sen At Rm1.32 Dividend yield is 9%
THE BIG QUESTION NOW IS HOW COULD THEY GIVE DOUBLE DIGIT DIVIDENDS SO SUDDENLY AFTER SUCH A LONG TIME?
The Answer is this
In year 2019 CPO prices were Rm2,200 per ton while Cost of Cpo prodution was Rm1,400 Leaving a profit of only Rm800 per ton This could barely cover Bank Loans, Overhead up keep & Wages Leaving little dividends for Shareholders if any
Yoday CPO has reached Rm4000 per ton while Cost of Production also go up to Rm2,200 per tone So while cost has increased Profit has Amplified to Rm1,800 per toon
That is an Extra of Rm1,000 Profit per ton Don't even need to do any expansion but SOLELY THROUGH PRICE SURGE OF CPO
SO THERE IS LOTS OF LEFT OVER CASH TO PAY GOOD DIVIDENDS
CAN WE SEE AN EXAMPLE OF HIGH PROFIT INCREASE?
YES OF COURSE
TAKE A LOOK AT JAYA TIASA
PAT (Profit after Tax is Rm33.985 Millions
Profit after Tax is Rm42.195 Millions
PAX is Rm17.902 Millions
Profit Rm51.074 Millions
TOTAL PROFIT FOR 4 QTRS
Rm33.985 Millions Rm42.195 Millions Rm17.902 Millions Rm51.074 Millions
= RM145.156 MILLIONS or about 15 sen a share At 64 sen the gtoss yield is 23% or P/E 4.26 With this new found profit growth Jtiasa has declared a 2.8 sen dividend
For many years Jtiasa could hardly make even half of that Out of 206,000 Acres of Palm Oil lands about 175,000 Acres are now matured 175,000 land size with Palm oil is How Big? Imagine the Total Land Mass of Singapore at 180,000 Acres Driving from Tuas West to Changi East takes slightly more than One hour From Woodlands North to Sentosa Island South another 40 minutes That is a Lot No wonder they call Jaya Tiasa as Giant Treasure
With Kind Regards Calvin
Please buy or sell after doing your own due diligence or consult your Remisier or Fund Manager
In the Deepest Depth of the Lehman Brothers' Crisis after Bear Sterns & Lehman Brothers both gone bankrupt Warren Buffet bought into the safety of Goldman Sachs' Preference shares with guaranteed 10% yield.
27/12/2022 10:56 PM
X
calvintaneng Now take heed to Dr. Neoh's warning, "In sharp contrast, shares which pay low or no dividend at all do not seem to have any bottom and price decline can hit 90 per cent or more".
The characteristic of past bear markets like the Tulip Mania, The South Sea Bubble, The Great Depression of 1930s in USA, the Stock Market Rout of Asian Finacial Crisis in 1997/8 and The Lehman Brothers' Debacle of 2007/8 have witnessed many stocks & index crashing up to 90% or more.
TAANN (5012) KLSE PALM OIL JEWEL, High EPS, Grossly Undervalue Assets; & Increasing Dividends, Calvin TanAuthor: calvintaneng Dear Investors TAANN is a Hidden Jewel of Great Value TAANN Means "GREAT PEACE" in Chinese or "TAHAN" Will Last Long time in Malay
And these are the Salient factors
1) TAANN HAS HIGH EPS (EARNINGS PER SHARE)
See
Latest Qtr shows TAANN earned 23.75 sen Annualised 23.75 x 4 = 95 sen At Rm3.94
Let's get P/E by Dividing Rm3.94 by 95 sen = 4.15 Or Yield 24.1% 24.1% is what Berkshire earned at 25% in good times
Now This Month TAANN should report an even better qtr due to these reasons i) Taann owns 30% of SwkPlant and in Top Holder. Swkplant FFB (fresh fruit bunches) up 26.9% compared to last qtr. Plus April to June 2022 also saw CPO average at World Record Qtr of Rm6,552
ii) TAANN FFB Also Up by 20% iii) AND TAANN VENEER PLYWOOD EXPORT TO JAPAN UP IN PRICES BY 60% DUE TO JAPAN BANNING RUSSIAN IMPORT See
Historical DataClick on MAX Button to See JAPAN PLYWOOD Full Chart History
Note: Plywood Prices in Japan up 60% (Wood prices in USA dropped by 50%). Don't get confused TAANN is enjoying a Windfall Boom unknown to many
See further Japan will ban the import of some Russian timber! On the morning of April 12, Japanese Minister of economy and industry Guangyi Yoshida said that he would stop importing some timber and other commodities from Russia from the 19th. In fact, affected by the situation in Russia and Ukraine, Japan’s timber prices have risen sharply recently. Will the new import ban exacerbate the situation of low domestic timber volume and high prices in Japan? Japanese Prime Minister Fumio Kishida recently announced that he would stop importing some Russian timber from this week. However, according to the latest news, the embargo measures will be implemented from the 19th. On the morning of April 12, the competent forestry department of Japan was contacted by telephone. The relevant person in charge said that the scope of the embargo includes three types of processed wood such as veneer. Single family houses in Japan are generally of wood structure, while Russian wood is commonly used for ceilings, beams and columns. According to statistics, Japan imported about 850000 cubic meters of Russian processed wood last year, accounting for nearly 20% of Japan’s total imported processed wood. After the conflict between Russia and Ukraine, there was widespread concern in the Japanese timber market that Russian timber might be embargoed, and some Japanese businesses snapped up Russian timber. Japanese industry insiders predict that if the import of Russian timber is stopped, an average of 17000 new houses will be affected every month. In fact, before Japan announced the ban on imports, Russia had first proposed to ban some timber from Japan, which pushed up the price of timber in the Japanese market. The situation in Russia and Ukraine, coupled with the tight supply chain caused by the epidemic, the increase of wood prices has generally more than doubled that of last year. According to Japanese media reports, the rise in timber prices has forced some Japanese people to revise their housing construction plans. When it is difficult to increase the budget, they can only reduce the construction area. We can EXPECT TAANN To Out Perform this coming month soon
2) TAANN NAV is Rm3.82. Is It? NO! Why Not? ANSWER:
BECAUSE TAANN NET ASSETS ARE STILL LISTED AT ANCIENT PRICES MANY DECADES AGO
Let us Go See TAANN Assets (Refer TAANN Annual Report: Scroll Down to Properties Owned by TAANN
See this Palm Oil Estate in Sarawak
Lot 101, Block 1, Jemoreng Land District Oil Palm Plantation 1,621 acres - 31.12.2020 Leasehold 60 years, expiring in 2079 Land Rm965,673
Ok from above we see TAANN has 1,621 Acres Oil Palm Plantation in Jemoreng, Sarawak Leasehold until 2079. Book Value Rm965,673 To get its cost per acre Divides Rm965,673 by 1,621 acres = Rm595 per acre AMAZING. These prices were long ago more than 40 to 50 years ago This year 1 Ton FFB (fresh fruit bunch) even crossed Rm1,000 per ton to as high as Rm1,500 per ton. Currently FFB is around Rm700 to Rm800 per ton That means that just One Ton FFB could cover 1 acre of Land Purchase Price
SO BY RIGHT TAANN LANDS SHOULD ALSO APPRECITE IN VALUE CAN WE STILL TAKE TAANN NAV AT RM3.82? Of course not! There is no such low cost of Palm oil Lands anywhere in Malaysia oe Indonesia
Now look at another Estate in Sarawak
Lot 19, Block 2, Stungkor Land District Oil palm plantation 3,306.8 acres - 10.03.2017 Leasehold 60 years, expiring in 2071 Land Rm893,518
This is 3,306.8 acres & Book Value is Rm893,518 To get Cost per acre Divides Rm893,518 by 3,306.8 acres = Rm270 per acre Amazing indeed! Where in the world got Palm oil Land sold at Rm270 an acre? SO CAN WE SAY RM3.82 NAV FOR TAANN IS JUST GROSSLY UNDERVALUE? IF NOT HOW MUCH SHOULD BE TAANN NET ASSETS WORTH?
We come to the 3rd Which is Most Important
3) DIVIDENDS! The Ditto A cow for its Milk Hen for their eggs And a share by golly! For its Dividends
See TAANN DIVIDEND HISTORY
Except for year 2019 when Cpo crashed below Rm2200 (Now CPO is Rm3,878) TAANN Has been paying good dividends every single year Last year TAANN announced a 30 sen dividend for the first time in one year. At Rm3.94 with 30 sen dividend the Yield is 7.6% more than 3X (times Bank FD at 2.25%) And with Sustained Earnings we can expect TAANN to give "Handsome" Dividends for years to come Share holders of TAANN can retire in Peace with Such Solid Assets, Good Growth & High Dividends
TAANN Now Rm3.94 Our One Year Target price is Rm6.89 (the highest price achieved in year 2008) That is about 75% upside
Best & Warmest regards
Calvin Tan
Please buy or sell after doing your own due diligence or consult your remisier/fund manager
Note TAANN INSIDER DIRECTOR BEEN BUYING
His highest purchase was Rm4.90 on 9th June recently And lowest was Rm3.449 on 19th July Average is Rm4.90 + Rm3.449 = Rm83.49 Then divides by 2 = Rm4.17 (average of high & low) So can we say for TAANN anything below Rm4.10 is a Real Bargain not to be Missed?
Don't forget that during past Palm oil bull run years TAANN also rewarded shareholders with "FREE BONUS"
See
![]() ![]() ![]() calvintaneng https://ycharts.com/indicators/japan_import_price_index_wood_lumber_and_related_products Click on MAXIMUM To see Japan Lumber Price Surged! 08/08/2022 11:51 AM calvintaneng another 10 sen dividend from Taann made it 40 sen 10% duvidend a year Tsh also giving 8 sen dividend Exdate 7 Dec 2022 30/11/2022 11:48 AM calvintaneng Latest update on Palm Oil 1) Indonesia now turned B30 into B35 This will take up 13 million tonnes Cpo as biofuel from 11 million tonnes 13 million tonnes out of 48 million tonnes produced by Indonesia yearly is 27% When B100 is implemented then Biofuel will take up 37 Million tonnes of Cpo or about 77% will be converted to Green Biofuel Leaving only 23% as Cooking oil & others This will keep Cpo prices elevated above Rm4000 a ton In year 2019 Cpo was Rm2200 per ton & cost of Cpo production was Rm1400 a ton Rm800 profit per ton only enough to cover Bank loans Little left for dividends Now Cpo is Rm3900 per ton And Cost of production Rm1800 to Rm2000 per ton There is huge Profit Margin of Rm1900 per ton That is why Palm oil companies will be able to pay very good dividends 13/02/2023 11:49 PM ![]() ![]() TOP 10 POWERFUL REASONS WHY PALM OIL BULL RUN WILL RESUME THIS AUGUST 2022, Calvin TanAuthor: calvintaneng Dear Investors of Palm, oil Shares
I bring all Good Reasons why Palm Oil Bull Run will Resume Very Soon
1) FCPO HAS REBOUNDED TO RM4,289
CRUDE PALM OIL FUTURESFCPO1!FCPO1!
VERY EXCELLENT11 AS COST OF CPO PRODUCTION RM1,800 there is more than 100% gross profit
2) BRENT OIL UP AT USD110 AGAIN
See
3) HIGH BRENT OIL WILL SPUR BIOFUEL REFINERY IN USA TO USE MORE SOYOIL AND IF SOYOIL GOES UP BY PROXY PALM OIL WILL GO UP
Soybeans for Biodiesel Production
4) INDONESIA TESTING B40 TO SOAK UP EXCESS PALM OIL
Indonesia begins on-road evaluation of B40 biodiesel – tests using 12 vehicles to be conducted until end-2022
5) WAR IN UKRAINE IMPACTED 3 YEARS OF SUNFLOWER OIL SUPPLY LAST YEAR: SUNFLOWER OIL STILL STUCK IN STORAGE NOW NO MORE ROOM FOR STORING ALREADY DEPLETED HARVEST NEXT YEAR: FARMERS TOO IMPOVERISHED TO PLANT AS THEY GO BANKRUPT
6) JULY HEATWAVE IN EUROPE WIPED OUT SEED OIL BY 9%
Falls in Europe’s crop yields due to heatwaves could worsen price risesFrom Spain to Hungary, output of staples such as corn forecast to fall by up to 9%, adding to impact of Ukraine war on food security ![]()
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