PARKSON (5657) - PARKSON - The Bombed Out Stock by ECommerce WITH HIGH NET ASSETS. Now Unlocking Value (Calvin)
Hi Guys,
Calvin called for a strong sell on Parkson when it was over Rm2.00. The reason was due to the Rise of ECommerce which devastated conventional type of departmental store in USA. And it spread to all nations where internet access and ECommerce Shopping is possible.
Why buy from conventional means when the same product could be purchased directly by online shopping with 30% to 40% Savings?
And so Parkson share price crashed below Rm2.00. It collapsed below Rm1.00 to a low of only 60 cts!!
Aha! Is Parkson a gone case now?
Calvin thinks there is VALUE. Yes, Calvin thinks Parkson price has crashed below Intrinsic Value Now.
Why so?
Let me explain by way of illustration.
My Friend Mr. Tan Pao the Johor Property SIFU told me this true story:
There was a guy who invest only in BIRD NESTS Production.
During the hard times BEFORE Pm Badawi announced Iskandar Transformation Plan he bought and bought many abandoned shop houses & Converted them to BIRD NEST HOUSES.
He collected a Total of 40 Shophouses in Iskandar. Spent good sums of monies & renovated these SHOPHOUSES Into Suitable Nesting Places for Swallows which produce the Valuable Bird Nests destined for the Booming Demand from China!
To attract the BIRDS to his shops he even played recordings of BIRD Making Noise All the Day and even into the night to the annoyance of his neighbours. But it was a very locrative venture if BIRDS come and roost by the thousands.
Alas! China suddenly banned or restricted BIRD Nests import from Malaysia due to its questionable adulteration. It was lifted later. But prices of BIRD Nests crashed by 30%.
This BIRD NEST Specialist was impacted by the drop in prices. Coupled with some less successful ones he sees his profit turns into losses. At least 75% are not making money.
Of the 40 shophouses converted to BIRD NEST only 10 were profitable.
So how?
DELIVERANCE CAME FROM PROPERTY BOOM IN ISKANDAR!!!
Although his Bird Nest Shops failed the SHOP HOUSES Which he owned APPRECIATED IN VALUE!!
Those old abandoned shophouses which he bought from high court auction have appreciated in VALUE. Prices have doubled, tripled, quartroupled and even gone up as high as 10 Times?!!
WOW! HE WAS SITTING ON GOLD MINES UNDISCOVERED!!!
So he is making MORE MONIES FROM THESE SHOPHOUSES WHICH HAVE GONE UP IN PRICES - Far more than he could have expected to make from BIRD NESTS!!
So he is happily selling off 30 units of these SHOPS (Some with a hundred to few hundred BIRD NESTS). He is only selling for the VALUE OF THE SHOPS ONLY (The BIRD NESTS INCLUDED ARE FREE)
What has this story got to do with PARKSON?
This is THE ANSWER
Although PARKSON is suffering losses from Sales Operation PARKSON HAS 11 ASSETS WHICH WERE BOUGHT YEARS AGO!
NOW THESE COMMERCIAL SHOPHOUSES & PRIME PRIME LANDS PARKSON HAS BOUGHT AT DIRT CHEAP PRICES HAVE APPRECIATED IN VALUE BY THE BILLIONS!!! WOW!!
Just look at this one (Total 11 Pieces!!)
37, Financial Street Leasehold 60,888.6 sq meters Commercial Shopping 437.1 July 2006 Xicheng District , building complex and Beijing, China
10 year ago Parkson bought this 60,888 sq meter PRIME PRIME COMMERCIAL ASSETS in BEIJING
The Road is called "FINANCIAL STREET:. Book value is Rm437 millions only
Now let's SEE
60,888 sq meter converted to sq ft 60,888 x 10.764 = That's 655,398 sf
or how many acres?
655,398 divides by 43560 = THAT'S 15.04 ACRES OF PRIME LANDS IN BEIJING
Just think? People of MphbCapital are going GaGa over the small plot of land near Bukit Bintang, KL
PARKSON HAS 11 PRIME PRIME LANDS (MANY IN CHINA.S BOOMING CITIES!!)
15.04 ACRES OF PRIME LANDS IN FINANCIAL STREET, BEIJING WORTH HOW MUCH TODAY
Hmmm?
Really MIND BLOWING!!
Must relax now.
Going for a Star Buck Coffee
See you guys later
Bye for now
Calvin in Boomin Iskandar
http://klse.i3investor.com/blogs/www.eaglevisioninvest.com/115901.jsp
