NYLEX – THE HIDDEN GEM OF DEEP VALUE PLUS COMING EXPONENTIAL GROWTH!

Today when almost 800 counters crashed early in the morning NYLEX Stood Firm & Unwavering. Why?

NYLEX IS A STOCK OF ROCK SOLID VALUE. AND IT HAS GREAT GROWTH HIDDEN FROM VIEW.

Rock Solid Value? Great Growth Hidden From View? A Hiddem Gem? Are You Serious?

Yes! Why Not?

NYLEX – ROCK SOLID VALUE.

In The Book called “THE INTELLIGENT INVESTOR” By Benjamin Graham. The Most Important headline of Chapter 20 states,

“Margin of Safety as the Central Concept of Investment

NYLEX is selling at 64.5 cents with High NTA of Rm1.65. A Huge Discount of 61% or over Rm1.00 (It Has Great Margin of Safety)

Why the Need for Safety in Investment? In real life we demand safety for many things.

Example: Driving up Genting Highlands. We make sure the brake is working properly. We are very concerned for the safety of our life and our loved ones. From time to time we hear of buses, cars, jeeps with faulty brakes making their descent from Genting. Then their brake failure! And the crash and lost of lives. All because they neglected the aspect of safety.

We also make sure our house has locks, safety alarm, remote camera. fierce dogs & even guards for our exclusive gated and guarded housing estates. Why? For safety of course.

We also make sure our money and valuables are kept safely in “Safe Deposit Boxes” both at home and in the Bank.

Then why are many so reckless when they come to share investment. The idea of being “safe” first is thrown to the wind. Thousands, tens of thousands, hundreds of thousands, even millions of dollars are invested in stocks without any thought of safety.

Not for Ben Graham – The Father of Value Investing.

The Central Concept of Investment is First & Foremost based on Safety or “Margin of Safety”, to be more accurate.

What then do you liken with “Margin of Safety”?

Think of crossing a desert, a journey of 7 days. What animal except the camel could carry your loads across such dry and deserted lands?  Ha! The camel has 2 humps which it store fat and water. So unlike other animals it can withstand drinking for 2 or 3 days without water. His 2 humps are the margin of safety that kept him alive while all the other animals perish with thirst.

So is a Company With Huge ASSETS BACK UP. THEY ARE “THE MARGIN OF SAFETY”.

In emergencies these ASSETS COULD BE LIQUIDATED TO FEND OFF CREDITORS & PREVENT BANKRUPTCY.

Will NYLEX PASS THIS CRUCIAL TEST?

Let’s SEE:

NYLEX Is 64.5 cents with NTA of Rm1.65. Selling at a discount of 61%.

Cent for cent, dollar for dollar in equal term would mean that

we should pay 64.5 cents Cash  for 64.5 cents Assets. Ha! There is a Huge Surplus of Rm1.05 Spare Worth.

So We Are Paying 64.5 cents for Rm1.65 worth of shares!

And the EXTRA Rm1.05 “IS OUR MARGIN OF SAFETY” – The More The Merrier.

But go deeper and SEE clearer:

What are some of these Assets.

For brevity we look at just one Asset (please refer to 2015 Annual Report)

ASSET NO. 1

Factory

Nylex (M) Sdn Bhd…………………………30,224 sq meter……..Off & Factory…………….

Pesiaran Selangor…………………………12,140 sq meter……..Warehouse & vacant land…………….Total price: Rm18.961 millions

Section 15,

40200 Shah Alam, Selangor

Now let’s calculate its worth.

30,224 sq meter + 12,140 sq meter = 42,364 sq meter.

Let’s convert sq meter to sq ft = 42,364 x 10.763 = 455,963 sq ft

Now we get its cost per sq ft = Rm18.961 millions divided by 455,963 = Rm41.58

Here we are = The Land Cost of Nylex Factory is Rm41.58 per sq ft.

Now if you check the industrial leasehold land in Section 15 Shah Alam It is Rm250 per sq ft

WOW! Book Value Only Rm41.58 (Current Market Value Rm250 per sq ft)

So if Revalued NYLEX’s Lands Will Go Up 600%

And that’s land cost only. How Much are the Buildings Worth?

SEE if NYLEX’s 20  over years old Assets are Revalued NTA Should Easily Cross Rm2.00? Rm2.50? or Rm3.00?

Any Real Estate Valuer in Shah Alam can help?

In any case THERE IS DEEP VALUE IN NYLEX’s ASSETS!

Now Nylex has Assets!

Has Nylex Growth? Why earnings are miserable?

YES! OF COURSE NYLEX HAS GROWTH IF YOU KNOW HOW TO FIND IT?

Take a look at the latest quarterly report

From quarter to quarter

Total Net Net as Improved From Rm626.347 millions to Rm654.170 millions (Up Rm28 millions)

NTA has gone up from Rm1.56 to Rm1.65: An increase of 9 cents. Plus 2 cents dividend that means a 11 cents growth

11 cents growth for a share worth 64.5 cents.

It’s a nice 17% Growth or P/E 5.86

Do you SEE what I SEE?

Never mind if we don’t SEE Eye To Eye.

At Least DYNAQUEST CAN REALLY SEE! AND SO THEY LOADED UP.

What are you waiting for?

 

Regards,

Calvin

Good night

 

ZZZZzzzz….

 

 

GOOD MORNING,

It’s almost 7am, Iskandar’s Time

And Thought For The Day Regarding Nylex

On surface Nylex looks like a slow moving Plastic Stock. Not any more. Why?

Let me illustrate:

In Year 1992 I bought my First New Car. It was a Proton Saga 1.3 (12 Valve)

I drove up to Genting Highland with my family. Along the way I gave a ride to some friends. Ha! the car was packed with 7 people. Up up the car struggled up the mountain slope. It was a slow climb. The engine was under power.

I sold my Proton and bought a 2nd Hand Volvo 940 Turbo. Wow! Now got Turbo Power! Driving up Genting Highland was a breeze! What a change!

Yes! NYLEX was a slow boat. Not any more. Now NYLEX HAS TURBO POWER! 

WHAT? What kind of power?

Power No 1

Falling Crude Oil prices. This Is The First Booster! All NYLEX Feed Stocks will cost less & less as Crude Oil Prices Fall lower and lower!

 

Power No 2

Fallen Ringgit. Nylex exports in US$. The Stronger the US$ the better the margin for NYLEX. See how furniture and glove stocks benefitted from strong US $

 

Power No 3

Ringgit weakened Greatly against the Chinese Yuan

Ha! Malaysian Products Now More Competitive than China made products?

NYLEX Will Make Inroads into many more countries. Now 25 nations & still growing!

 

Power No 4

Transpacific Partnership (TPP)

This one will add one more Turbo- Charged Power  to Nylex. With tax reduced to zero NYLEX Can Beat Other Exporters  to Canada, Vietnam, USA, Japan, Australia, New Zealand, as far as Mexico and Others

So here you go!

Like a Volvo with Turbo charged engine powering up Genting NYLEX NOW HAS 4 POWER TURBO.

NYLEX – GO GO POWER RANGER!

 

Further note

I have stayed in Genting Highlands more than 200 times. Never once I went inside the casino. I don’t believe in gambling. So don’t think wrong thoughts. Ok? 

Have a nice and productive day.

 

NYLEX – THE PLASTIC AND POLYMER STOCK THAT WILL BENEFIT THE MOST FROM FALLING CRUDE OIL PRICE.

In Year 2014 when Crude Oil fell from US$120 a barrel to US$60 a barrel (drop 50%) I called for a buy on all plastic and rubber stocks, logistic stocks and all companies that will benefit from cheap crude oil.

I called for a buy on Super Enterprize at Rm1.25 as it will benefit because it manufacture plastic related material like stickers and plastic sign boards. Super turned supersonic and was later taken private at Rm3.80 (Up 200%)

Other plastic related stocks that did well are

BP Plastics     Its lowest and highest prices in 52 weeks are 82.5 cents & Rm1,96 (Up 137%)

Thong Guan.     Lowest & highest prices in 52 weeks ……..Rm1.65  & Rm3.32  (Up 100%)

SKPRES.      Lowest  & highest prices in 52 weeks…………71 cents   &   Rm1.58  (Up 122%)

VS INDUSTRY.  Lowest & highest prices in 52 wks…. Rm2.40    & Rm6.50  (Up 170%) Then split.

Most Plastic Related Stocks Have gone up 100%, 122%, 137%, 170% & even 200% due to the Crash of Crude Oil.

NYLEX Is The Only Laggard.  Lowest & highest prices in 52 weeks are  47 cents  &  63.5 cents.  Up a mere 35% only.

Last Friday Crude Oil has crashed below US$30 (Down another 50% from US$60)

So our focus is now on NYLEX – The Laggard Plastic Stock That Has The Greatest Potential for Upside!

These Are The Positive Factors for NYLEX

  1. Selling at 63.5 cents with NTA of Rm1.65 (A Whopping 62% Discount to NTA) Huge Margin of Safety. If Benjamin Graham & Walter Schloss are alive they both will load up on Nylex! Nylex qualifies as a Graham  Net Net VALUE Stock

2.  Forward P/E is  12.7 only. And Falling Crude Oil Will Spur Profits. So P/E should go to single digit.

3. Nylex also pay a consistent dividend yearly.

4. NYLEX EXPORTS 70% OF ITS PRODUCTS TO OVER 25 COUNTRIES WORLD WIDE

And With Cheaper Crude Oil & Weakened Ringgit Nylex is now very competitive. Nylex’s Exports Will Accelerate Further With The Signing of TPP.

5. IMPENDING RELEASE OF OIL SUPPLY FROM IRAN WILL FURTHER DEPRESS OIL PRICES – ANOTHER POWERFUL BOOSTER FOR NYLEX’S PROFITS!

6. Dr NEOH SOON KEAN, The Benjamin Graham of Malaysia Has Loaded Up 1.1 Million Nylex Shares!

In the Latest Annual Report of NYLEX A New Investment Firm Has Appeared Among Nylex Top 30 Substantial Share Holders – The Well Known Name in Malaysian  Investment Circles – DYNAQUEST SDN BHD

Coming in at 11th Place with 1.1  MILLION Shares is DYNAQUEST SDN BHD.

7. Who Is Dr Neoh Soon Kean and What are His Successes In Investments?

In Years 1983 to 1984 Dr Neoh wrote an Investment Column for the Sunday Mail. Every time his Stock Write up recommendations appeared on Sunday Malaysia, the next day when trading started on monday  Investors snapped up his recommended shares with great delight. Subsequent years proved the uncanny accuracy of his stock picks. Some of his stock picks have garnered 5 baggars, 10 baggars, 20 baggars or more. Many early investors have turned into  millionaires, and not a few into multi millionaires!

Years later I started subscribing his Monthly Digest (now discontinued). I have selected 6 Recommended Stocks by Dr. Neoh  from the January 2009 Edition (Exactly 7 years ago) to SEE how they performed:

PREVIOUSLY SELECTED STOCKS

STOCK…….NAME………PRICE at Jan. 9th, 09……………………………….REMARKS…………………………………………………..

CODE

7171 ..……CENBOND….……0.40 cents…..……………Attractive valuations from the two commonly used fundamental yardsticks P/E multiple of <5x and a DY of 10% (I followed Dr Neoh and bought Cenbond at 45 cents)

8125….….DAIBOCHI.……….0.495 cents…………….A recovery stock EPS bottomed out in 1H05 and continued to improve in the subsequest quarters. Currently, trading at a prospective P/E multiple of <5x and a very high DY of 14%

3883,,,,,,,,,MUDA………………0.60..………………………..Turned around in 1Q07. Currently, trading at a prospective P/E multiple of 3x and a DY of 5% nett and has a very high operating cash flow/price. (I picked up Muda from 60 cts to 35 cts)

7095……….PIE……………………Rm3.70.…………………………Record earnings and sales for FY07. On an average compounded basis, its EPS grew at 35% and 12% over the last 5 & 10 years, respectively. It gives a relatively high DY of 7% nett and has a strong balance sheet with not only zero borrowings but also cash in hand of Rm1.33 per share as at 30.9.08

Note: PIE gives excellent dividends yearly and in PIE Latest Annual Report Dr Neoh is in Top 30 Shareholders of PIE.Coming in at No. 19 with 415,800 shares is Neoh Choo Ee & Company. PIE is now Blue Chip at Rm10.36

7155……...SKPRES……………0.095.…….(Amazing! only 9.5 cts)   Trading at a forward P/E of <4x  multiple and a DY of >5% nett. These may be regarded as undemanding valuation.

Note: I bought SKPRES between 12 cents to 14 cents. You see, I can’t get SKPRES at 9.5 cents as Dr Neoh has thousands of other subscribers who received his Monthly Digest earlier than me. And I lived in Singapore. So I always pay a slightly higher price. I know of One Investor whom I called my Johor Sifu. His remisier told me the way my Johor Sifu bought shares is like fighting for “family inheritance”. He really wallop & wallop Dr Neoh’s recommended shares.

His favourite phrase is, “If you find a really good share; don’t just nibble. YOU MUST HAMMER IT!!”

At current closing price of Rm1.39 SKPRES is up over 1,300% or a 13 BAGGARS!!

This year at least 5 Malaysian Research Houses included SKPRES as their Top 10 Picks for Year 2016.

 

7034……....TGUAN…………..0.72…………..A stretch film producer with EPS growing at an average compounded rate of 5.2% per annum  for the last 10 years. A beneficiary of the current bearish crude oil prices as its main raw material (resin) is a product of crude oil.

Note: In Thong Guan 2013 Annual Report Dr Neoh is in Top 5, 16, & 25 with a total of 2.51 Million Thong Guan Shares.

However, in 2014 Annual Report he has pared down his shares to only 1.26 million shares. That means that Dr Neoh has sold 50% Thong Guan Shares into strength. And bought into the laggard NYLEX!

In Year 1985 Dr. Neoh wrote a Book called STOCK MARKET INVESTMENT IN MALAYSIA AND SINGAPORE

It begins with these words,

“This book is dedicated to the memory of Benjamin Graham”

By inculcating the spirit and wisdom of Benjamin Graham over 30 years DR NEOH SOON KEAN HIMSELF IS TODAY THE VERY EMBODIMENT AND SPIRIT OF BENJAMIN GRAHAM

YES! DR NEOH SOON KEAN IS THE BENJAMIN GRAHAM OF MALAYSIA!

LONG LIVE VALUE INVESTING! LONG LIVE BENJAMIN GRAHAM!