Investing

Koon’s response to kelvin 61’s comment on JAKS

I refer to kelvin61’s comment which I copied and paste below:

kelvin61 The trouble with self-proclaimed super investors is one day they tell you their secret winning strategy is to buy shares which make more money this year than last year to justify their buying, now the same super investor will tell you he will also buy even if the company make losses last year to justify his buying because he knows the business better than the founders. Because before he bought the share, the price didn’t move, but once he is in, everything changes. That is what he wants you to believe so you will help him to push the price up. Cheers.

21/04/2017 10:46

Here is my answer to kelvin61’s comment:

Point 1: An exception to my share selection golden rule.

An old English saying “Exception proves the rule”. If there is no exception there is no rule.

My selection golden rule which is “I will buy when I can see that the company has been making increasing profit for 1 or 2 quarters. It is most likely will report higher profit for the next quarter and when people see it is making money continuously, they will rush to buy to push up the share price.”

I have been using my golden rule successfully in buying Latitude Tree and Lii Hen. Each of them has gone up more that 800% within 3 years. I also bought VS Industry which went up more 550% and it is still going up. I have been one of the top 5 shareholders of each of these companies.

In the case of JAKS, I understand its Independent Power Producer (IPP) business very well because I have more than 50 years of experience being a co- founder of Mudajaya, Gamuda and IJM Corporation Bhd. Unlike other novice investors, I am willing to buy it show losses last year. I know that when JAKS starts to show profit all investors will rush to buy it to help me make more money.

Last year JAKS lost money because of interest charges for its bank loan but to be successful you must be able to see beyond your nose.

JAKS Resources Bhd was awarded the contract to construct two units of 600 megawatts (MW) coal-fired power plant to sell electricity to the Vietnamese Government for a 25-year period in August 2011.

Since the total cost of US$1.87 bil (RM7.76 bil) (based on US$1=RM4.15) is so huge that JAKS could not find any bank to finance the project, the construction of the power plant was postponed several times until JAKS found China Power Engineering Consulting Group Co Ltd (CPECC) to be its joint venture partner in March 2016.

The construction is scheduled to complete in 2020. CPECC is very experienced in conducting survey and designing of power generation and transmission plants. Moreover, CPECC has been playing a leading role in China’s power survey and design industry with about 90% of such work in the country undertaken and completed by the group.

After careful study of the viability of the concession, a consortium of three banks, namely Industrial and Commercial Bank of China, China Construction Bank Corporation and Export-Import Bank of China have expressed preparedness to finance US$1.4 bil (RM5.81 bil) for the entire scheme.

I dare to buy JAKS even though it lost money last year. It is an exception to my share selection golden rule.

Point 2: I post article on JAKS to encourage people to buy to push up the price so that I can sell to make profit.

This is not true because you can see JAKS’s announcement that my wife Tan Kit Pheng and I have been buying almost every day. We have about 120 million shares and we are more shares than the CEO Mr. Ang Lam Paoh.

Kelvin61’s comment reminds me of all the senseless comments from losers who always doubted my sincerity when I recommended Latitude, Lii Hen and VS Industry, each of which has gone up several hundred percent. If you look back you would see that I recommended those shares when they were just starting to go up. After 3 years of my recommendation VS is still going up. Can you imagine kelvin61 sold VS 3 years ago?

In the same way, when I wrote and posted my article “Why I bought into JAKS” the price was lower and it was beginning to go higher. If you look at JAKS’ announcement in Bursa for the whole Malaysia to see that I bought 6.9 million shares at Rm 1.06 on 28th February 2017 when it announced its losses for last year. There must be several million stupid losers including kelvin61 selling to me.

I strongly believe JAKS will go up a few hundred percent and you must buy and keep it for your grand children because it will receive about Rm 400 million in the coming 3 years during construction of the 1,200 MW coal fired power plant and 40% of the profit every year for 25 years from selling electricity to the Vietnamese government. Moreover, the selling price has a price variation clause in the contract to cover coal cost, foreign exchange, inflation etc.

I am very rich and my wife and I are the controlling shareholders of JAKS. I do not need to encourage people to buy JAKS so that I can sell to make more money. If I sell I will have to report and JAKS will have to make the necessary announcement for you to see.

Conclusion: kelvin61 has to show his track record for readers to see how good he is to make such a stupid comment to disgrace me.

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Most Popular

To Top