kudos to all growers to make tan sri panic hahah nice one.

AAS i i have mentioned before

LKY's objective to to kick out the growers as he wants the plantation.

His objective is to pay them their investment back and div 2012.

He starts low......by proposing payabck over 2 years...no divs

Now he says 6 months and divs?

He is slowly getting to his target fo getting the plantation for a song since the yeilds will rocket up and operation costs reducing due to the maturityof the trees....

The SUIYEE growers will say YESSSSS to VT because they got their $$$ back..........very happry.

LKY is happier.....he gotta plantation for a song

Thanks very much all the SUIYEE growers........thanks for the startup cap.....now i am going to chase the elephants away and reap my yields!   

As the dust settled, let us look at whole scenario and see who is the eventual winner. We growers came up with RM215.5M as "working capital" for Tan Sri Lee to start this scheme. Terminating the scheme now costs Tan Sri Lee 48% of return he has paid to growers plus the goodwill package of RM25M. This money (RM103.5M) spent means he gets back 12,000 acres of the Gua Musang and Lahat Datu estates which works out to be RM8,625/= per acre, not bad by any standard. Saying that he will call for open tender to sell the estates or even if he privately buys them make no difference to us one way or the other. Tan Sri Lee came in the last minute to offer his RM25M goodwill package plus the return of capital within 6 months has projected him as a "responsible and good" corporate citizen.
To us growers, count our blessings. Full return of capital plus 60% over 5 years still works out better than FD rates in bank. Console yourself 那只是一場遊戲一場夢！
To MSWG and fellow growers, many thanks for all your efforts.

Yes it is reality that we are the multitude common people and the big player movers are the few.
We can only look out for the best income source and where to grow the wealth we already have.

Hence we have achieved for the short ride our objectives.  Are you big plantation owner who is willing to share ?  You will know where to find suiyee.

I got a phone call back in 2007 inviting me for the scheme, but when I asked further question, I found out that I have not much right to do anything except receive dividen only. Then I think better do stocks or precious metal.

Overall, I think Mr Lee will pay back all the investor. nobody come up with personal guarantee in Genneva, for him he did come up with guarantee.  Whether there are delay in the payment. We don;t know yet, time will tell. Hopefully, there is no big event happen within this 6 months, like stock market crash, property crash etc (self-imagination). Then I think payment will be done.

Now I got a question.
1. Where the $ going to come from? The 10% from where, 90% from where, 12% from where.
2. What is the current net worth of the remaining assets in the scheme?

even if it is fully paid back I don;t think its a favorable deal for investor cause i think the land is worth much2 more than that. But at the 1st investor has no other favorable deal to do with their $ .

Credit to DannyOP
* News update, as of 23rd Sept, all of our RM8000 phase plots have been sold out. I would like to thank everyone who have supported CHGS and will continue to update for future releases. The 2nd year of dividends will be released by 14th Feb 2009 at 8% p.a.

wat is this means??????????

Based on agreement during EGM, the payment should be before 8 aug..no more no less!!

from one to another  

Fool me once, shame on you; fool me twice, shame on me

also, our "price per acre", to use your metrics, is inflated largely because of how our product is structured.

Investing in this share farming scheme does not give your ownership rights, you don't even OWN the land & the trees on your plot. Investing in a listed company you have rights and protection as shareholder. Here you only have promises.
So now you AGREE that you are selling over priced land to investor. Plantation land (cleared & planted) in Miri Sarawak generally goes for 30k-35k per hectare. Yet you are selling to investor at 8k per 1/4 acre or 32k per acre or 79k per hectare. Wow at this prices, why bother to buy at Sarawak? You can get same fully planted matured palm oil at Perak alluvial soil....

ARe you sure in the end your dividends are not robbing perter to pay paul with the massive overpricing? 

But before they reap the money from selling the overpriced rights to the investors...

But before they reap the money from selling the overpriced rights to the investors...

If it is sooooooooooo good, why dont the seller take loan and wallap all the shares. 

If it is sooooooooooo good, why don't big financial companies or other big plantation come jump into bandwagon? 

In before they say wanna share the cake cause do charity... 

The reason that interest scheme products are pricier / makes you think that it is inflated is because of how it is structured. The price of the product includes the fixed returns of the first few years. Eg: for our product, whenever an investor invests in a plot (RM 8000), our 7% guaranteed returns for the first 5 years is actually derived from the initial investment. So, out of this RM 8000, our trustee actually keeps (7x5=)35% + 10% (contingency) = 45% of the money with them. The company receives the remaining 55% to be used as capital for the business.


OER - if anything, the company will of courses try to achieve a comparable OER with well managed plantations. You speak as though the company doesnt want to succeed or something.

the company also plans to have a mill, and will begin building one next year.

"Currently, the cost of production (COP) among well managed oil palm plantation companies in Peninsular Malaysia would be about RM1,300 to RM1,400 per tonne of CPO."
http://www.thestar.com.my/story.aspx?file=...43&sec=business



we are also optimistic of palm oil prices rebounding in the future when we reach our harvesting stage, and there are good reasons to believe that it will. your calculation is based on today's weak prices.
le

United Plantations executive director (communications) Datuk Carl Bek-Nielsen concurred that the margins among local plantation companies would still be there but cautioned that production costs were escalating in the sector.

“With these cost escalations, we will probably see many palm oil producers producing at a cost of about RM1,400 to RM1,600 per tonne in certain estates with poorer yields,” he said. In fact, the COP could even touch RM1,800 per tonne, added Bek-Nielsen.

the word we used is 7% guaranteed returns. once again, you are not referring to any of our materials / prospectus, but talking from your own misconceptions / prejudice.

re: investing in shares, again, i have pointed out, that 1- share prices are volatile, and dividends are lower.  the investment profile is complete separate, as these are separate type of products.

the projected earnings is based on CPO prices being RM 2500 - RM 4000. This again, along with a projected earning chart, is clearly stated in our marketing materials. if prices go below that, then we can only pay lower dividends. Once again, you are just talking without referring to our actual materials.

again and again, i have pointed out articles, research reports, papers, etc to refute your words. we cannot please everyone. there will always be people who believe in a product, as well as naysayers.

re: future palm oil prices, i of course cannot make any predictions. what i can say though, is that we are optimistic about the potential of palm oil, based on the supply and demand of palm oil. palm oil is widely used in everything, and is cheaper than other vegetable oil. fast developing countries are increasing their per capita consumption of palm oil as they become more prosperous.

palm oil however, cannot be planted everywhere in the world. cultivatable palm oil land in this region is dwindling, forcing companies to go to foreign countries (png, liberia, colombia, etc) where they do not have local knowledge (political, labour issues, etc) to palm. initiatives like biodiesel (b10 in malaysia, indonesia) will also help to support prices. other initiatives like the POIC are also allowing plantations to get revenue from palm oil waste like empty fruit brunches (EFB) for the biomass industry. also, in the country, organizations like MPOB and Pemandu are also working to improve yields and OER - see the ETP report.  therefore, we are optimistic about the palm oil industry.

Starting with RM 8,000, members of public can invest in Grower’s Plot(s) and be entitled to receive a fixed 7% per annum return during the 5 year Planting Phase. Thereafter, during the 15 year Harvest Period, Growers will receive the Net Profit of the plantation, proportional to their plot(s). Upon reaching the 20th year, the scheme shall expire, and the plantation will be sold. Growers will receive capital returns and appreciation from the sale of the plantation.

The USDA currently forecasts 2013/14 palm oil production in Indonesia at a record 31.0 million tons, up 2.5 million or 9 percent from last year. Total area devoted to oil palm plantings is estimated at a record 10.8 million hectares, with mature “harvested” area at 8.1 million hectares. Mature area is forecast to increase roughly 6 percent compared to last year, or 430,000 hectares. This follows a long historical trend as seen in the graph below.

In fact, it is estimated that the Indonesian palm oil industry collectively possess approximately 6-7 million hectares of undeveloped acreage in its existing land bank and theoretically has the ability to maintain current rates of plantation expansion for at least the next decade. Meanwhile, the Indonesian government recently decided to extend the forest moratorium for an additional 2 years, maintaining a protective status to over 43 million hectares of primary and protected forest and peat lands until mid-2015. In the short-term this implies that the palm oil industry, if it intends to grow, will need to continue to focus its efforts on developing available lands in its land bank and in enhancing average yields through better plantation management and varietal improvement.

So in grand conclusion... for all potential buyers out there.

1. The 7% guaranteed returns in paid for by your own pocket, which is not an actual RETURN, from the sale of overpriced land. In this case the buyers actually LOSE income ability (lets say if the 45% can put into FD) and provide interest free loan to the scheme.

2. This scheme with the projected return of 7%-23% ONLY APPLICABLE IF the CPO price goes up, if it goes down or stay flat, well tough luck. This makes the return somewhat very volatile instead of the wording used in the brochure to imply consistent income.

I am still in the opinion (my view only of course) that if one is to invest in a LISTED palm oil plantation you can get better value for your money, capital gain and more investor protection together more accountability. It is a safer and cheaper alternative per ha compared to share farming scheme.

And oh, if suewong85 predict the palm oil prices can go to RM4k/ton with her optimistic view on future returns, you can make a huge killing by investing in a listed palm oil plantation, as their profit would easily triple. (If profit triple, wonder what will happen to their share price)

Anyway nice exchanging ideas with you, and let the buyers makes the best decision, since it's their money anyway. They have every right to lose it.