CAPITAL.MY

Alternative Funding Sources for Businesses

Looking for investor to trade on soft commodity sector.

Looking for investor to trade on soft commodity sector.

Project Cost: RM 500k

Amount Invested : RM 100k.

Amount Required : RM 400k

Knowledge / Experience Required: other (Not Required.)

Proposed Investor’s Role: others (Not Required.)

Industry: trade

Project Stage: ongoing

EXECUTIVE SUMMARY:

Company History:

We are a team of full time traders (All Malaysian).
We specialized in various product ranging from equity, forex and futures.

Product / Service Description:

We trade futures contract of a physical product and have the option of taking physical delivery on the particular product we trade.
For example: crude palm oil.

However due to commodity price are fructured on a daily basis. We took advantage of the low hanging fruit (low risk trade) of that particular product at a specific particular of time. As agriculture product is seasonal too.

Business Opportunity:

Palm oil

1 Contract have about 25 tans.
for example: it’s priced around RM 2150 x 25 tans = RM 53,750.
But with a future contract with only a margin of RM 4000. We could control a 25 tans virtual contract from the Bursa Exchange.

Somewhere around last year 2014. We discovered a particular strategy that can make us a consistent return over the years. However, we are full time trader managing our own fund and this particular strategy is longer term and lower risk with lesser return. We would like to open to our investor.

Revenue Model:

Our revenue model is very simple:
1. As we are trade thru Exchange.
2. All are daily cash settlement.
3. We simply ask our investor to lock up their capital on a 6 month basis.
4. Profit sharing. Negotiable on an individual basis on a gentleman agreement.
5. We are trading thru banks, so your platform risk is taken care of.

Management Team:

Mike Ooi – 6 years experience in investing equity and full time trading futures.

Current Status:

On going, Funds collected are deposited on client own account, we just trade based on their own account.

2013 – 40% based on the capital provide.
2013 – 250% baed on the capital provide.

Funding Milestone:

Funds are on client individual account. So it’s on going process.

Business Valuation:

Equity wise, investor will owned 100% of the money on their account as we simply execute the action using your account.
Amount of the equity will be based on client comfortability. Suggestion amount min. RM 30k for starting.

Expected Return On Investment:

2013 – 40% Gross Return of Investment on a yearly basis.
2014 – 250% Gross Return of Investment on a yearly basis. However 2014 was an exceptional years which every decade it only happen around 3-4 times.

On average we can safely estimate at around potential of 40%-100% ROI a year based on past charts.

Investment Risk and Mitigation:

Risk:
1. Leverage risk. Example: Over leverage.
2. Platform Risk. Example: Banks server downtime.
3. Execution Risk. Example: Wrong button press.
4. Directional Risk. Example: while we are shorting the palm oil but the palm oil increase in price.
5. Timing Risk.
6. Weather Risk. for Agriculture product.

Exit Strategies:

You are welcome to exit anytime you want.
However, we would hope the investor are long term, that have the patience of more than a year to stay with us for us to show the result as soft commodity are highly dependent on cycles.