You can see from the price chart; its share price has been climbing up in the last few months from Rm 1.28 to peak at Rm 1.84. It started to plunge a few days ago to close at Rm 1.69. What is the reason?
All my relatives, friends and followers asked me why. I was so ashamed to admit that even as a controlling shareholder, I also did not know why it should plunge so rapidly until I saw The Edge yesterday on page 26 with a head line “JAKS’ property ambition takes another hit”. That means all the sellers who sold knew this story ahead of its publication.
I have asked for board representation a couple of times before but the CEO Andy said that the board of directors rejected my request which made me more suspicious. They must have some things to hide from me? It is Andy who is making all the decisions because all the other directors were appointed by him. Moreover, each of them has less shares than Andy. They just act like rubber stamps. That is why he does not want me.
As I know the board of directors will be meeting on this Wednesday, 28th Feb 2018 to approve the 4th quarter 2017 results, I have written once again to be appointed as an executive director. I had also attached my CV. I stated that I am willing to work free of charge and all the salary and allowance due to me, to be given to James Ong and Allan Gan who will be doing all my leg work.
From the records, JAKS has not been making profit from its traditional steel pipe manufacturing, its construction contracting and property development businesses. It is only good in securing the 1,200 MW coal fired power plant in Vietnam with a very good power purchase agreement (PPA). It will have very good profit every year for 25 years. I understand in the first few years, its annual profit will be Rm 200 to 300 million before interest charges, depreciation etc. Moreover, I understand all the profit from the sale of electricity is tax free.
That is why I have bought so much of JAKS.
My strategy for the company
If I have my say, I will stop the company from submitting tender for more contract works and make them clean up the mess in the property development business. Just concentrate on the completion of the power plant in Vietnam.
Since the power plant will be completed in about 2 years, with my reputation, I am confident to secure a Bank loan to start property development business in Hanoi.
From my experience, location is the utmost important if you want to sell any property. I will look for a piece of land to build the biggest shopping mall, like the KL Mega Mall which I was involved many years ago.
I will look for toll road and water supply concessions which will provide steady profit every year.
About 30 years ago, when I was a director of IJM Corporation Bhd, IJM secured a water supply concession in Saigon for 20 years.
In case my request for board representation is rejected again this time, I will ask the company secretary to arrange an EGM and my proposed resolutions will be as follows:
1 To appoint Koon Yew Yin as an executive director
2 to appoint James Ong as an executive director
3 to appoint Allan Gan as an executive director.
4 to remove a few of the useless directors.
My intention is to protect the interest of all the shareholders. I also wish to implement my strategy so that the company can make more money for all the shareholders.
After the power plant completion, the company will have more than Rm 100 million net profit every year for 25 years. With this fantastic advantage I believe I can build up the company to become the next IJM Corporation Bhd which has a market capitalisation of about Rm 12 billion.
I trust most for the shareholders will support my proposed resolutions in case an EGM is called.