Kuchai-前人种树，后人乘凉 (A no brainer business)

Author: GemDigger   |   Publish date: Sun, 21 Sep 10:41

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Kuchai, the one and only catergorized in mining on bursa but has no mining business.
Referring to the post below:http://klse.i3investor.com/blogs/kianweiaritcles/50822.jsp

[转帖] 金（4）；古仔【KUCHAI】，万『古』流芳 - 扬帆启航

There are 3 core business:
1) Long term portforlio in securities
2)Fixed deposits
3) Rental income

Basically the businesses are waiting for dividend income, waiting for rental income and reevaluate fair value of securities and properties held. Sounds so easy that anyone on earth could run the business?
Basically at RM1.44, you are buying into a business which increases in value and generates income without much effort. This matches the phrase 前人种树，后人乘凉 as what the shareholders do now is just wait for money to flow in because the business has been established well.
WHY IS IT A GEM?

Looking at the latest balance sheet, the cash alone is 50 times total liability!
Similar to Insas, Kuchai is a typical Graham Net Net candidate too.
Links for Insas: http://klse.i3investor.com/blogs/intelligent_investor_notes/53755.jsp
NNWC = Cash and short-term investments + (0.75 x accounts receivable) + (0.5 x inventory) - total liabilities
Total investments = 22966 +130955 + 189549=343470
Cash = 37555
total liability= 752
Outstanding shares : 122733
NNWC per share= RM3.09
Note that investments might fluctuate all the time, even if someday market crashes and the value of Kuchai investments crashed 50%, NNWC per share still stands at RM1.50, but is it possible?
At RM1.44, is it an expensive price to pay to be part of a waiting and reevaluating businesss? Somemore the business has no debt but cash and investments only @.@
Catalyst:
1) Take over offer by other institution or privatisation by major shareholder near the value of the assets.
2) Increase in dividend (6 sen last year announced in October)
3) Acquisition of new business using the cash available.
Risk:
1) The associate company making loss (SGBAGAN)
2) Stock market crash
3) Property market crash