Price is dropping?

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Added on January 30, 2009, 1:15 pmSo in the event that BHLB Trustee goes under?


This post has been edited by wodenus: Jan 30 2009, 01:15 PM

CPO price dropping, so ROI drops as well

BHLB will not go under as they are just the trustee ie. holding the units in trust on behalf of investors. However, how much can be gotten back in the event the scheme fail will depends on the liquidation value of the estate then

I am offerred a similar investment scheme. However, the plot is RM15000 per acre instead of 0.25 acre. while return is nett income after deducting operation cost, fertilizer cost, harvesting cost and 5% commission of the operator. The contract is 50 years basis and the plant is 70% rubber/ 30% palm oil.
Do you think this is worth invested?

Does anybody know should I file my tax return for the CHGS income return? How?

Hi people, I have a few units of CHGS. Anybody interested?

ROI is fixed for 2009 at 8% guaranteed income. It does not matter whether CPO price goes up or down. However, current support for CPO price is at the 2500 level, if this maintains or goes up for 2010, you are expecting 12-17% ROI based on the guaranteed contractual return.

BHLB does not hold any units. They are holding the Master Title for safekeeping for the duration of the investment so that the company cannot use it to recharge or apply for other loans. Besides that, BHLB Trustee also holds 30% of the invesment funds as security and monitors CHGS management to make sure all duties are complied according to the trust deed.

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Added on May 24, 2009, 10:29 amCHGS income is considered as your passive personal income, same way as filing for rental income for your properties.

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Added on May 24, 2009, 10:35 ampost it under a new thread, this is for CHGS discussion only.

This post has been edited by DannyOP: May 24 2009, 10:36 AM

I won't put my money in CHGS because of the following doubts:

1) The CPO operation cost is about RM 1200/ tonnes at this moment, up from about RM 800/ tonnes less than 5 years ago. Assume CPO price is RM 1200 a tonne, the company is paying 2% return. (let's ignore FFB production bonus) The operation cost is expected to increase and maybe 10 years down the road, it will go up to RM 2100/ tonne. Assume the CPO price is RM 2100/ tonne, is the company able to pay 12% return to investors when the cost alone is RM 2100/ tonne? Where the money comes from?

What I am trying to tell here is that the CPO payment chart doesn't work because it does not factor in inflation.

2) Did the prospectus spell out how the land to be sold after 23 years? If the real estate market is not doing well that time, are they going to hold? How long it takes to sell the land? And more important how soon can the investors get back their money!

3) The company said the return is guaranteed. Is it back by assets? If not, it is merely verbal guarantee. And mine you it is a private limited company

4) The boss is a very prominent businessman in Malaysia. If the plan is so good, do you think the public has the chance to invest in? Why not keep to himself or sell to his rich friends. It is easier to sell to his friends who can invest hige amount rather than having to manage so many retail investors.

5) If the plan is so profitable and safe, why not CHGS raise capital through debt which has lower cost of capital?

6) CPO has gone beyond RM 4700/ tonne and yet the plots were not fully suscribed yet. The total investment available for sale is less than RM 400 millions. It is coming to 3 years and the plots are still not fully suscribed. Few billion units of ASM and ASW 2020 which seems to have lower return were snatched up by Chinese investors within hours! Investors lack confidence is the scheme.

7) Since the company thinks the scheme is so profitable/ certain (the slogan is Invest in Certainty), why not the company offers guaranteed buy-back after the trees start to yield?

8) There were 18,000 oil palms damaged by wild elephants at Gua Musang in April 2009, causing massive loss to a company. Have sufficient measures being taken to mitigate this risk?

9) Track record of the boss Lee and Country Height Group is not so convincing. Look at the winding up of Min Hotel, Lake Front Business Centre owning local authorities up to million of assessment fee (it was reported in year 2006), check with the buyers of college height, Pajam and see whether they are happy with the company, if you happened to visit Mines Wonderland, you will be appalled how the ice sculpture look like, poor customer service, delay in payment etc...

10) The investment is very illiquid. Once the company cannot fulfill his payment, investors will rush to sell the plots... Do you think you can sell then?

Few financial advisors said they won't invest in this scheme such as KCLAU, DAVID LEE and the boss of ISI Business Network

This post has been edited by hpcp: Jul 20 2009, 11:25 AM

a lot of issues...need DannyOP to explain..

As mentioned by hpcp, unless there's an FD/BG held in trust already to guaranteed the fixed return, its just lip service. Do bear in mind that anything is possible in the future, so what goes up can also come down as currently being experienced

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Added on July 22, 2009, 9:51 amNow this sounds extremely tempting but somehow I am sceptical

This post has been edited by tgeoklin: Aug 24 2009, 08:02 AM

After more than 1 year, I finally managed to sell my plots.

Not easy to sell even though I purchased the plots at lowest price of RM 5000/plot...

Mind to share the process of selling and whether you made profit from this scheme

you can go to their website www.chgs.com.my and list your plot at e-trading platform.

They will impose 5%+RM 100 of fees (admin fee and transfer fee if I am not mistaken)

Takes 30 working days to get you money once transaction done.

"The CPO operation cost is about RM 1200/ tonnes at this moment, up from about RM 800/ tonnes less than 5 years ago. Assume CPO price is RM 1200 a tonne, the company is paying 2% return. (let's ignore FFB production bonus) The operation cost is expected to increase and maybe 10 years down the road, it will go up to RM 2100/ tonne. Assume the CPO price is RM 2100/ tonne, is the company able to pay 12% return to investors when the cost alone is RM 2100/ tonne? Where the money comes from?"

There are members in this forum PM me about this, challenging that there is a floor to CPO price and it won't fall below the cost of production.

Yes. I quite agree. But if the cost escalated to RM 2100/tonne and CPO price is only RM 2400, are they making enough to give 12% return?

What is the CPO payment chart for if it is not practical?

Congratulate to you if the CPO price is way above the production cost. The company will be able to meet its obligation.

More importantly, any investment plan MUST be feasible in order for the scheme to survive, and so is your investment capital.

Will you invest in something that sound too good to be true?

saw a seller listing his/her plot (plot no. 30745 dated 18 Aug 2009) with initial price of RM 8,000 but selling at RM 7,000.

If they are able to sell a plot at current price of RM 10,000, they can buy back and easily resell at least RM 8,000 a plot.

Actually i would like to invest in palm oil but i have no basic knowledge on it..Anyone here owning a palm oil plantation can share the details and experience with me?

Considering no basic knowledge, experience and the risks involve, you may want to consider investing in plantation stock as an alternative.

For example, if you are buying Cepat at RM 1.00 per share, you are considered investing in oil palm plantation at RM 10,000/ acre on fertile soil.

CHGS? They are selling at RM 40,000/ acre currently. At Kelantan. There soil may not be so fertile and it is leasehold land. I can't exacly recall how many years left before the leasehold expires. Maybe just 50-60 years to go.

If you are investor, would you pay so much premium to invest in CHGS? (RM10k vs RM 40k per acre)

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Added on October 28, 2009, 7:59 pmIf you go to CHGS website, you can see holder of certificate 0001-0004 is selling the plots. (Posted date 23 Oct 2009)

Usually the holder with 0001 reference number could be the staff or someone who is close with the company. If this assumption is true, why is the holder selling?



This post has been edited by hpcp: Oct 28 2009, 07:59 PM

Anyone know when CHGS going to send out 8 % dividen of last year? Anyone already receive the dividen?

the cheque will be sent from 1 Feb onwards

I have received the 8% cheque from Plentiful Gold-Class Bhd

CNY angpow

Me too 8% cheque. This year a bit late. Previous years on 10+th January.