What I was trying to express was that we can compare whether Golden Palm has the same difficulty as with Country Heights. We can look at their yield etc. If not, Country Heights may have bullshit us to sell it cheap to them

What is our strength? Are we hopeless? > NO, WE'RE NOT! SPAAARTA!

JOKES ASIDE THOUGH, THIS IS A MATTER TO BE SOLVED BY COOL HEADS BACKED BY STRONG, IRREFUTABLE HARD FACTS TO BE DELIVERED IN A PROFESSIONAL BUT FIRM MANNER IN THE MEETING/OTHER AVENUES.

CHGS BROKE FAITH WITH THEIR BLATANT ATTEMPT TO BLINDSIDE/PANIC US WITH THE INTENT OF FORCING COMPLIANCE/GETTING KNEEJERK REACTION FROM US - SO, WE'LL RESPOND IN A COOL, COLLECTED MANNER TO SHOW THEM WE'RE FULLY AWARE OF THEIR UNDERHANDED TACTICS AND CALL THEM ON IT. MAYBE EVEN MAKE IT PUBLIC.

POTENTIAL PUBLIC EMBARRASSMENT & HARD FACTS = GREAT LEVERAGE FOR NEGOTIATING BETTER TERMS.

IF ANYTHING, GP WUD BE FIRST IN LINE WAITING TO OVERSEE / BUY OVER / MANAGE CHGS CURRENT PLOTS.

ITS A DOUBLE EDGED SWORD FOR US - CAN BE BENEFICIAL OR DETRIMENTAL TO US.

that proposal is to calm ourselves only (fake hope)...I doubt GP will ever take over CHGS...
will you as a company buy another company's asset which are projecting negative returns in the near future??? NO dude...
time to bail out...

Guys we need to take some action. This is a Big blow for all of us.

Hold your horses....CHGS is only profit sharing agreement, no rights to PGCB properties. Growers or Trustee cannot replace them.

The Gua Musang plantation is still young and can give only small profit now, hence PGCB cannot share its profit with us.

Update:
If PGCB winds-up then Trustee can appoint another Management Company and CHGS will continue as normal.
CHGS and Gua Musang estate are NOT making losses. Revenue is not enough now for PGCB to pay 12% yield if CPO price remained high.

This post has been edited by mkhor7: Jan 31 2013, 09:45 PM

The management is really good businessman ! They let the public to bear the risk of initial years. Pay them slightly extra return to rope in the capital

When the project can't sustain, then dissolve it. No harm done.

If the project is viable, the management even have to option to kick them out just before the trees are in the prime production period

Have to learn from them !

kena con by them.

Most PLC except those under PN17 status, could source loan or bond to finance plantation project at competitive interest rate. Unless the company intend this scheme as a charity, it defy convention to offer high yield

http://www.nanyang.com/node/506493?tid=643

seriously, I find this nonsensical.

Good day to all

Here is what the Companies Act law on the winding up of schemes applicable to CHGS.
The last two lines subsections (4) and (5) is what the Court can do.

http://www.ssm.com.my/acts/fscommand/act125s0095.htm

Section 95. Winding up of schemes, etc.

(1) Where the management company under a deed is in liquidation or where, in the opinion of the trustee or representative, the management company has ceased to carry on business or has, to the prejudice of holders of interests to which the deed relates, failed to comply with the deed, the trustee or representative shall summon a meeting of the holders.

(2) A meeting under subsection (1) shall be summoned—

(a) by sending by post notice of the proposed meeting at least twenty-one days before the proposed meeting, to each holder at his last known address, or, in the case of joint holders, to the joint holder whose name stands first in the company's records; and

(b) by publishing, at least twenty-one days before the proposed meeting, an advertisement giving notice of the meeting in a newspaper circulating generally throughout Malaysia.


(3) Subsection 88(2) shall apply to such a meeting as if the meeting were a meeting referred to in that section.

(4) If at any such meeting a resolution is passed by a majority in number representing three-fourths in value of the holders of the interests present and voting either in person or by proxy at the meeting that the undertaking, scheme, enterprise, contract or arrangement to which the deed relates be wound up, the trustee or representative shall apply to the Court for an order confirming the resolution.

(5) On an application by the trustee or representative the Court may, if it is satisfied that it is in the interest of the holders of the interests, confirm the resolution and may make such orders at it thinks necessary or expedient for the effective winding up of the undertaking, scheme, enterprise, contract or arrangement.

I DEF WUD BUY - ESPECIALLY IF ITS PALM OIL INDUSTRY WHICH HAS GREAT GROWTH POTENTIAL.

BUY WHEN CHEAP - NUTURE TILL PROFITABLE.

My BIG question when i looked at this investment was

a) IF the returns are SO GOOD, why bother to share with others?
He (a BIG Bizman) could have EASILY gotten loans from banks

b) How does the shareholders have any control over the socalled expert management? They could
be screwing you for all you care aka MAS....... related companies screwing the investment company



This post has been edited by prophetjul: Jan 25 2013, 09:53 AM

Big Fish always win. This story tells us in all investment, no matter how good it looks like, there is always risk. High risk high return. Low risk low return.

On the hindsight, how much is the return to the investor ? Let's do a simple calculation

Buy on 1/1/2007 RM5000
Get 1st dividend 1/1/2008 8%
Get back RM500 in 2013
No dividend for 2013, 2014 and 2015
Get back RM4500 in 2015

Returns
2007 0%
2008 8%
2009 8%
2010 8%
2011 8%
2012 12%
2013 0%
2014 0%
2015 0%

Simple interest calculation (not NPV), the average return over the 9 years is 4.89% pa.

Actually not too bad (based on the above dividend rate) compare to FD which is risk free. Provided the growers will get all the capital back (RM500 + RM4500) by 2015

But of course, the promoter gain the most as it got cheap funding for a high risk business

The growers should just accept the proposal and forget about the whole thing. Go enjoy the CNY holidays instead of attending the meeting. The most you can do is don't get involve in the future with investment which got anything to do with the promoters of CHGS.

The growers are 100% better than those Genneva investor. Consider yourself lucky because at least the promoters promised to pay you back the capital, although it is 2 years from now. I think the rich bosses will be happy to "honour" his promise and pay you back the money in 2015 and say "thanks for the cheap funding, anyway.... "

Methinks the 12% for 2012 is not avail now?

Not too bad? It is lucky that the scheme sail through its initial stage without any problem or else growers would be screw even worse than what happened now.

Let me recap, growers provide cheap fund and they shared the risk of the oil palm planting. Now it's time to ripe off after 5 years and growers are being kicked out from the scheme. If compare to FD may be the above return you mentioned may perform better than FD, but remember this scheme is risky and its risk adjusted return is pretty bad. If no full refund, the YTM for the whole scheme would be even lower.

Look at the way how the rich boss treat the growers now by telling BS in the circular (of which they should evaluate, and if the scheme is not workable then it should not be launched to begin with) and not adhering to their promise as stated in the prospectus, I do not think growers will confidence that LKY will keep his promise of full repayment in 2015.

This post has been edited by kinwing: Jan 25 2013, 12:15 PM

Yea, the 2012 dividend is payable in 2013. So 2013 is nil dividend payment. I look at cash inflow and outflow point of view (my chinaman business approach )

I understand where you come from.

It actually depends on how you look at the whole investment from day 1 to 2015. No right or wrong. It will be a "decision" to be made by individual grower.

Genneva investors were promised 24%, and many lost 100% of the investment. CHGS investors were promised 12% (or was it 6% + bonus which depends on CPO price), and got 4.89% and 100% of the investment back.

Depends on how you look at the investment with 1/2 glass of water in it. Whether it is half empty, or half full.

This post has been edited by EddyLB: Jan 25 2013, 01:37 PM

dear investors,
CHGS has causes unwanted issues and concerned for us as an investor.
if you know anyone who is affected by this and from Penang, there will be a meeting held to discuss further on this.
the meeting is organized by the marketing advisors and investors themselves....it is totally unrelated to PGCB folks.
pls make urself available and try to attend to find out further before you submit your proxy voted.
pls pass this urgent message:

time and location as follows:
location: YMCA (opposite island hospital), maclister road
date: 30-Jan-2013
time: 8pm - 11pm