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

"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?

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)

---

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

Heard that DannyOP who had contributed a lot in clarifying doubts related to CHGS had quitted from being an agent of CHGS

Why wanna sell?

I think investors should look into the concerns before investing in CHGS

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?

So regretful to have bought this scheme. So difficult to sell... Pary it is not a scam

They are calling a general meeting. Investors of the scheme can attend

A scheme endorsed by Ng Yen Yen... specially for the women...

NAH.... If the soil and terrain has problem, you think the company so sor hai to buy back?

DON"T BE SO NAIVE PLEASE!

This post has been edited by hpcp: Jan 21 2013, 11:32 PM

Can anyone scan and upload the document please?

Thank you

My friend sold the scheme earlier and the company is suppose to pay my friend within stipulated time, 1month if I still remember correctly.

When my friend went to the office to collect cheque 1 month later, he was told the cheque was not ready because the person authorised to sign the cheque was overseas.

HALLO, that's 1 month time and cheque not yet ready? Customers don't care your internal problem. Terms and conditions have to be honoured.

Lost my trust on the boss since then...

bring more rotten eggs into the general meeting

Complain to Bank Negara. Is this another scam?

I heard they are launching another scheme in Sarawak

Can log complaint to Bank Negara

http://www.bnm.gov.my/index.php?ch=feedbac...out_all&lang=en

I think more complaints will expedite the investigation

CHGS was launched March 2007 initially for MCA Wanita by our Datuk Ng Yen Yen who made a personal site visit with MCA Wanita. With a 8% guaranteed yearly return, and 12-17% average during harvest years, it was used to encourage women to make better use of their hard earned income and to encourage savings. After the initial launch, CHGS was then made open for public investment. CHGS palm oil land is located at Gua Musang, Kelantan.

During the first launch, each 1/4 acre plot was sold at RM5,000 then went up to RM8,000 currently. With 36,000 plots for sale, it was quickly taken up by Malaysian public as well as foreign investors. Currently its 8th phase has less than 1000 plots left & 2000 plots have already started harvesting ahead of schedule.

The mantra of the scheme is "invest in CERTAINTY"

This post has been edited by hpcp: Jan 22 2013, 05:44 PM

KUALA LUMPUR: Women should be more actively involved in investment especially those with minimum risk, said Deputy Finance Minister Datuk Dr Ng Yen Yen.

“Women should be given a chance to have a better understanding of how to invest within their financial means,” Dr Ng said at the launch of the World First Oil Palm Grower Invest-ment Scheme for Women Pre-view at the Palace of Golden Horses here on Tuesday night.

Dr Ng, who is Wanita MCA chief, said the investment was offered at an affordable price with RM5,000 per plot with 23 years of annual dividends.

“An 8% rate of return is guaranteed for the first three years while returns for the remaining 20 years are to be based on the price of crude palm oil,” she said.

She urged women to take up the opportunity to invest in the scheme during this exclusive period for them.

She also said the men should buy the investment as a gift for their wives, daughters or mothers in conjunction with International Women’s Day today.

A press statement said there would be a return on capital outlay from net proceeds of sale of the oil palm estate at the end of the 23rd year.

For details, contact Mines Marketing Sdn Bhd at 03-89411888 or Women’s Wealth Creation (M) Sdn Bhd at 03-80683993.

http://thestar.com.my/news/story.asp?file=...t/17087990&sec=

See thread #287 posted way back in 2009. Most of the points kena

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: Jan 22 2013, 05:56 PM