Since the 4th quarter of last year, Borneo Oil Berhad (“BornOil”) has been embarking on share buy-backs.
As disclosed in a filing to Bursa Malaysia this evening, the latest buy-back involved some 1,120,000 shares which were bought between 23 January and 5 February giving rise to some 124,396,000 purchased being retained in treasury.
At times, companies embark on share buy-back exercises when they feel that their stock is undervalued on the open market.
BizVantage360 had previously reported as to how BornOil is known within elite circles as a visionary group, focused primarily on “four real values that matter universally” according to its executive director Raymond Teo (pic).
“Our commitment to these four core real values is why BornOil has been working tirelessly to move ahead with the times,” Teo told us.
“Today, BornOil’s philosophy is that if you are in business and are part of the business and economic community, only these four real values matter universally,” he added.
- Real Property
The British coined the word “Real Property” to refer to land and land based property. It is Real, does not disappear into thin air, is a hedge against inflation and in the olden days, produced crops and food for humans. Today, it still holds true, in many forms, rental or crop yields, capital gains from sale and transactions and as a resource rich or development stock. Thus Real Property is a part of the Group’s long term investment principle.
- Gold Mining and Investments
Apart from Real Property, the Group also holds the principle that gold is a wealth that has a perpetual value and form. An ounce of gold in Babylonian times (2,000 years BC) could purchase 360 loaves of bread and today an ounce of gold will still buy 360 loaves of bread in New York, the new Babylon (World Financial Centre).
From Bretton Woods to the 1973 Middle Eastern War (Yom Kippur War), currencies, in particular United States Dollar (USD) are no longer pegged to gold. Since 1974, USD were printed against every drop of oil produced and that brought in the great inflation of the 70s and 80s and since then, Governments have been managing the economies by fiscal policies and stimulus. Through all that, the United States have ballooned its debts from a mere USD500 billion to USD19 trillion, together with the mountain of debts issued by the EU and Japan, the amount is a staggering figure of almost USD40 trillion (USD9.3 trillion EU) (USD10.06 trillion Japan). All the debts are not backed up by anything except words of confidence, Hollywood and war.
Since the beginning of human civilization, only approximately 170,000 tons of gold had been produced and not more than an average of 3,700 tons (including recycled gold) of gold is produced annually.
Gold is an element that will not disappear into thin air, nor will it change its structure through changes in the environment or temperature. It is, really the alpha and the omega of everything that is perpetual. Thus, gold will eventually be treated with great respect once the economic world begins to search for an alternative to justify the huge mountain of debts that it has to deal with.
Venturing into gold mining and the accumulation of gold is one of the Group’s main emphasis for now, say Teo.
The next principle of value, is production value. If you have to produce anything, energy is the main source of power, so investment in Sustainable and Renewable Energy will be an essential part of the long-term strategy of the Group. Energy and power comprise between 10% to 30% of production cost. Having a technology to produce energy cheaply and perpetually will be the quest of the Group.
- Franchise & Food Processing
Even if you have or owned Real Property, Gold or Energy, the human race will forever require Food, and this is present in BornOil’s Food Franchise operations, spearheaded by Sugarbun.
All in all, the BornOil Group is in all the 4 values which are represented by its business activities in: –
(A) Properties and property management and holding of resource based properties.
(B) Gold mining, trading and accumulation.
(C) Renewable and sustainable energy through the processing of renewable biomass from the palm oil industries in Malaysia and Indonesia which produces 85% of edible palm oil of the world.
(D) Food franchise operations.