I think all people from Penang should know this man or company - Oriental Holdings Berhad owned by the late Loh Boon Siew.
But it's hardly heard of in other region.

Why Hidden GEM??
1)Most land bank valued during 1976 and 1978. and BSG Property have the LARGEST lank bank in Penang, current NTA RM6.98.
(Imagine what would the NTA be when those land are revalued. Yes, possibly another KEK SENG)
2)BSG Property, a reputable developer.
3)Cash (RM2.8billion) more than market cap.
4)At 52 weeks low due to disposal of EPF lately.
5)Dividend 2 times per year (although amount not high compared to the amount paid as dividend vs cash and net profit)
6)Palm Oil Plantation sector is going very well, lank of plantation is larger than IJM plantation.

Only for long term investment!!

"A holding of 1,000 stocks in Oriental when it was listed in 1964 would translate into 48,306 Oriental stocks
worth RM270,030, based on the share price of RM5.59 at the end of 2010. In addition, the stocks would have
earned a total gross dividend of RM152,478. The gross dividends received and the appreciation in value is
equivalent to a remarkable average rate of return of 13.73% for each of the 47 years.“

and ALL Honda cars in Singapore and Brunei are distributed by them.
And they distribute ALL Honda motorcycles for sale in Malaysia to 50% owned JV with Honda Japan.

why they are off the radar is because before that they distribute all Honda cars in Malaysia but after that Hicom grab that distributorship from them.
hence making them no longer in the radar of automotive sector.


Again!
NOT FOR PUNTERS, SUITABLE FOR LONG TERM PLAY.

but they did expand their business, here in Penang...
for example their property division is building a few new condominiums and launching of a lot of new residential projects, and building hospital in Melaka as well as expanding their oil palm plantation in Indonesia...
however, undeniably these are kind of growth are conservative act and they are really resilient in using their cash pile...

what i hoped for investing in company like this is that they will eventually unlock their company's full value by listing their division 1 by 1, just like what Vincent Tan did...
if you check back the history, in the 90's, when the founder dead and his daughter take over the company, the share price did soared, as investors anticipate unlocking of company's value, but unfortunately, she did not do so.
now she is almost at her age of retirement and there will be the 3rd generation taking over this company...
and history might repeat itself...

Anyhow, the ultimate reason i love this company is because i like to buy a hidden gem at a bargain!!
rather than a shiny gem at a sky rocketed price...
as of now the cash pile is almost RM2.8 billion...and the market cap is just less than the cash pile..
i believe that buy and hold strategy will reward me greatly in this company...

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Added on December 1, 2011, 10:50 pmthose rumors are true...
sometime ago some chinese newspaper did mention Loh buy lots of Langkawi's land before Langkawi was declared as duty free island and hence had made a lot of fortune from it ...
their flagship hotel chain Bayview Hotel is in Penang, Melaka and Langkawi.
and from the annual report, you can see that they held large pile of land all around the area where there is a Bayview Hotel.
so the rumor are true...

the only problem is that whether those land are placed under Oriental of their majority shareholder Boon Siew Group?

This post has been edited by sjz: Dec 1 2011, 10:51 PM

some movement noticed...
very bullish technically speaking....
end of down trend as a very wonderful hammer had formed
yesterday.
Today gap up...so should be the end of downtrend...

But keeping for long term so don't really care much about any recent price movement...

"The reliability of Bullish Hammer Pattern is low. It requires confirmation of the implied trend reversal by a white candlestick, a large gap up or a higher close on the next trading day."

i think it won't stay hidden for long...
because some of my instinct tell me they are going to hand over the company to their third generation (their son and daughter) since they already in the 60's and some in 70's...by seeing the recent acquisition from Mitsubishi USJ Financial group and their associates Abardeen Assets Management...But EPF is disposing instead...


so they would probably list the company's subsidiary to unlock the value.

This is what happened before:
"News of Loh’s demise lifted the share price of Oriental Holdings to limit-up. The stock shot up to RM14.90 from RM3.40 as speculation was rife that Oriental Holdings would be a takeover target after the death of its founder and that would help unlock the value of the group’s assets.

It is said Loh had put in place an intricate cross shareholding structure in his business empire to prevent a possible split by his heirs. "

http://www.theedgemalaysia.com/in-the-fina...-honda-cub.html

This post has been edited by sjz: Dec 6 2011, 03:20 PM

no announcement at all...
don't know what's up...
maybe Japanese is acquiring..
as we can see Japanese Mitsubishi and Abardeen is keeping acquiring their shares lately...
but EPF disposing instead
but yesterday formed a shooting star..
just now in the morning price dropped to 4.78 low and then shoot back to 4.89...

"According to Bharat Joshi, assistant investment manager at Aberdeen, as the group’s biggest value lies in its huge cash pile, Oriental’s assets are also undervalued.

He said some of these assets have not been revalued since the 1970s. "

Seems like Aberdeen is thinking the same way as i think...
before the surge of price, total market cap is just around RM2.4 billion...
even lesser than the total cash & bank balances and a little premium over net cash..
did not even include their land banks and assets.

in the 90s their share price did shot up to 14.90 after the founder death...
but now they lost the Honda franchise to Hicom so they might be off the radar of many analyst...
and hugely undervalued...

well, that's a different case..
HSBC did have a lot of properties..
and what they are going to do with it??
their major business is in banking sector.

while for this company, they have a property arm which build houses and condominium here in Penang.
so they can utilize the land and those land can be sold to lock for profit too (depends on those directors willingness).
2 of the largest residential area in Butterworth Taman Bagan and Taman Bagan Lallang is built by them.

those holding this company following my call now had been greatly rewarded..... ....
almost 80% profit now....

This post has been edited by sjz: Aug 7 2012, 01:06 PM