Liquidating distribution—cash or securities distributed to shareholders by a company in the process of liquidation

Liquidating trust—an entity established to complete a corporate liquidation

Liquidation value—the expected proceeds if the assets of a company were sold off, but not as part of an ongoing enterprise

Leveraged buyout (LBO)—acquisition of a business by an investor group relying heavily on debt financing

Investment grade—fixed income security rated BBB or higher

Junk bond - fixed-income security rated below investment grade

Net-net working capital—net working capital less all long-term liabilities

Principal— the face amount or par value of a debt security

Coupon—the specified interest payment on a bond expressed as a percentage

Private-market value—the price that a sophisticated businessperson would be likely to pay for a business based on the valuation multiples paid on similar transactions

Proxy contest—a fight for corporate control through the solicitation of proxies or the election of directors

Friendly takeover—corporate acquisition in which the buyer and seller both support the transaction enthusiastically

Pro forma financial information —earnings and book value adjusted to reflect a recent or proposed merger, recapitalization, tender offer, or other extraordinary transaction

Interest-only mortgage security (IO)—interest payments stripped from a pool of mortgages which, for a given change in interest rates, fluctuates in value inversely to conventional mortgages (see principal-only mortgage security)

Principal-only mortgage security (PO)—principal payments stripped from a pool of mortgages which, in response to changes in interest rates, fluctuate in value in the same direction as conventional mortgages but with greater volatility

Investment banking—profession involving raising capital for companies as well as underwriting and trading securities, arranging for the purchase and sale of entire companies, providing financial advice, and opining on the fairness of specific transactions

Merchant banking—an activity whereby Wall Street firms commit their own capital while acting as principal in investment banking transactions

Short-term relative-performance derby—manifestation of the tendency by institutional investors to measure investment results, not against an absolute standard, but against broad stock market indices resulting in an often speculative orientation.

Absolute-performance orientation—the tendency to evaluate investment results by measuring one’s investment performance against an absolute standard such as the risk-free rate of return

Relative-performance orientation—the tendency to evaluate investment results by comparing one’s investment performance with that of the market as a whole

Spinoff—the distribution of the shares of a subsidiary company to the shareholders of the parent company

Stock—a marketable piece of paper representing the fractional ownership of an underlying business

Tactical-asset allocation—computer program designed to indicate whether stocks or bonds are a better buy

Takeover multiple— multiple of earnings, cash flow, or revenues paid to acquire a company

Investment—an asset purchased to provide a return; investments, in contrast to speculations, eventually generate cash flow for the benefit of the owners (see speculation)

Speculation—an asset having no underlying economics and throwing off no cash flow to the benefit of its owner (see investment)

Intangible asset—an asset without physical presence; examples include intellectual property rights (patents) or going-concern value (goodwill)

Tangible asset—an asset physically in existence

Institutional investors —money managers, pension fund managers, and managers of mutual funds

Employee Retirement Income Security Act of 1974 (ERISA)—legislation that requires institutional investors to act as fiduciaries for future retirees by adopting the “prudent-man standard” (see prudent-man standard)

Prudent-man standard—the obligation under ERISA to restrict one’s investments to those a “prudent” (conservative) person would make (see Employee Retirement Income Security Act of 1974 (ERISA)

Equity “stubs”—low priced, highly leveraged stocks, often resulting from a corporate recapitalization (see recapitalization)

Recapitalization—financial restructuring of a company whereby the company borrows against its assets and distributes the proceeds to shareholders

Exchange offer—an offer made by a company to its security holders to exchange new, less-onerous securities for those outstanding

Goodwill amortization—the gradual expensing of the intangible asset known as goodwill, which comes into existence when a company is purchased for more than its tangible book value

Illiquid security—a security that trades infrequently, usually with a large spread between the bid and asked prices (see liquid security)

Liquid security—a security that trades frequently and within a narrow spread between the bid and asked prices

Hedge—an investment that, by appreciating (depreciating) inversely to another, has the effect of cushioning price changes in the latter

Going long —buying a security (see short-selling)

Short-selling—the sale of a borrowed security (see going long)

Fundamental analysis— analyzing securities based on the operating performance (fundamentals) of the underlying business

Technical analysis—analysis of past security-price fluctuations using charts

Full position—ownership of as much of a given security as an investor is willing to hold

Financial distress—the condition of a business experiencing a shortfall of cash to meet operating needs and scheduled debt-service requirements

Covered-call writing—the practice of purchasing common stocks and then selling call options against them

Dividend—cash distributed by a company to its shareholders out of after-tax earnings

Discount rate—the rate of interest that would make an investor indifferent between present and future dollars

Depreciation—an accounting procedure by which long-lived assets are capitalized and then expensed over time.

Credit cycle—the ebb and flow in the availability of credit

Bankruptcy—a legal state wherein a debtor (borrower) is temporarily protected from creditors (lenders); under Chapter 11 of the federal bankruptcy code, companies may continue to operate

Chapter 11—a section of the federal bankruptcy code whereby a debtor is reorganized as a going concern rather than liquidated (see bankruptcy)

Catalyst—an internally or externally instigated corporate event that results in security holders realizing some or all of a company’s underlying value

Asked price (offer)—the price at which a security is offered for sale (see bid price)

Bid price—the price a potential buyer is willing to pay for a security (see asked price)

Arbitrage— the practice of investing in risk-free transactions to take advantage of pricing discrepancies between markets (see risk arbitrage)

Risk arbitrage—a specialized area involving investment in far-from-risk-free takeovers as well as spinoffs, liquidations, and other extraordinary corporate transactions.

Arbitrageur—investor in risk-arbitrage transactions

Cash-pay securities—securities required to make interest or dividend payments in cash (see non-cash-pay securities)

Non-cash-pay securities—securities permitted to pay interest or dividends in kind or at a later date rather than in cash as due (see cash-pay securities, pay-in-kind, and zero-coupon bond)

Pay-in-kind (PIK)—a security paying interest or dividends in kind rather than in cash

Zero-coupon bond—a bond that accrues interest until maturity rather than paying it in cash

Cash flow—the cash gain or loss experienced by a business during a particular period of operations

Breakup value—the expected proceeds if the assets of a company were sold to the highest bidder, whether as a going concern or not (see liquidation value)

Liquidation value—the expected proceeds if the assets of a company were sold off, but not as part of an ongoing enterprise

Call option—a contract enabling the owner to purchase a security at a fixed price on a particular date (see put option)

Put option—a contract enabling the purchaser to sell a security at a fixed price on a particular date

Bottom—up investing-strategy involving the identification of specific undervalued investment opportunities one at a time through fundamental analysis

Top-down investing—strategy involving making a macroeconomic forecast and then applying it to choose individual investments

Bond—a security representing a loan to a business or government entity

Callable bond—a bond that may be retired by the issuer at a specified price prior to its contractual maturity (see puttable bond)

Puttable bond—bond with embedded put features allowing holders to sell the bonds back to the issuer at a specified price and time (see callable bond)

Bear market—an environment characterized by generally declining share prices.

Bull market—an environment characterized by generally rising share prices.

Average down—to buy more of a security for less than one’s earlier purchase price(s), resulting in a reduction of the average cost

>>>>
Posted by calvintaneng > 17 minutes ago | Report Abuse

A reality update on palm oil

When Cpo was Rm2200 cost of Cpo production was Rm1400

profit Rm800 just enough to pay bank loan

Now Cpo at Rm4000 cost of cpo production Rm2000

Profit Rm2000

so after paying bank loan Rm800 there is Rm1200 surplus to pay good dividends

>>>>>

What is your intrinsic value for TSH?
Then we can understand your promotion.

When someone is buying, another is selling the same share?
When someone is selling, another is buying up the same share?

Who knows the company better?
Why are the sellers in the market? Do they know more than the buyers in the same market?
Why are the buyers in the market? Do they know more than the sellers in the same market?

In TSH, the insider has been buying up the shares in TSH for a very long time. However, he started buying when his personal shareholdings was around the teens. Now he holds greater than 20% of the shareholdings. TSH is a company listed by the CEO's family. Perhaps, he wishes to own more of this company.

TSH has about 800 big investors. The sellers of the shares have to be within this group. The other shareholders have very few shares to sell. When the CEO buys, who are the sellers?

As the CEO is buying 500,000 shares quite regularly, yet, the share price has dropped from high of 1.80 to 1.06, why? Are there more sellers to buyers in the market? What will happen to the share price assuming the CEO stops buying? Will the share price goes up or down?

What is the probability that the hero of NETX, calvintan's analysis is right? But, I did not see any intelligent analysis from him, other than his TOP-DOWN approach that CPO price is rising! :-)

What is the consequence to your investing should the hero of NETX analysis is wrong?

Possible theoretical scenarios facing iCap.

1. Continuation of iCAP the closed end fund for a new extended period.
2. The forced conversion of iCAP closed-end fund to iCAP open-end mutual funds.
3. In extreme case, the forced liquidation of iCAP closed-end fund.



These last 2 strategies are not risk-free, however, they could produce stock trading profits for closed-end fund investors.

The conversion of an undervalued closed-end fund to the open-end variety creates the profits. By definition, an open-end mutual fund trades at a price that reflects the market value of its holdings. So the price of an undervalued closed-end fund will rise if the fund is converted to an open-end fund.

Closed-end fund managers may oppose conversion for several reasons.

- First, they receive a management fee that is a percentage of total fund assets. After a fund is converted to open-end and the price rises, many fund investors typically sell, shrinking assets under management and management fees by one-third.

- Fund managers may also oppose conversion because of a belief that an open-end structure--which requires them to redeem investor shares on demand in cash--will hurt the fund in the long run.



Big funds or guns buying shares in a closed-end fund make the management of the closed-end fund uneasy. By presenting a restructuring proposal to fund managers, they are giving the managers a severe "this is your one chance to save your jobs" warning. "Some of the guys are waiting for it to happen to them".

iCap

Market price $2.00
NAV 3.27
Price / NAV = 61%
Price is trading at 39% discount to NAV. (4.1.2023)

Closed end fund often trades at a discount to its NAV. This discount is not unusual.

Why is iCap trading at a huge discount of 39% to its NAV?

Mr. TTB has written volumes on the likely reasons with little or no impact on this discount gap. He highlighted the activities of a significant institutional shareholder and has even taken it to court to prevent them from adding more shares as is written in the constitution of this fund.

Why is iCap not able to shrink this gap?

iCap

Market price $2.00
NAV 3.27
Price / NAV = 61%
Price is trading at 39% discount to NAV. (4.1.2023)

Closed end fund often trade at a discount to its NAVs. This discount is not unusual.

Why is iCap trading at a huge discount of 39% to its NAV?

Mr. TTB has written volumes on the likely reasons with little or no impact on this discount gap. He highlighted the activities of a significant institutional shareholder and has even taken it to court to prevent them from adding more shares as is written in the constitution of this fund.

Why is iCap not able to shrink this gap?