Posted by speakup > 2023-11-21 07:46 | Report Abuse

Batikman wanted to sell sptoto Gaming biz but keep HR Owen.

Posted by FastMoney666 > 2023-11-21 08:05 | Report Abuse

My condolences to all long time shareholders 😓

Posted by JunHoHoHoHo > 2023-11-22 15:54 | Report Abuse

Why...it doesn't slide to rm2 and below

Posted by JohnD0ugh > 2023-11-27 00:09 | Report Abuse

What is also so special about icapital.biz Berhad is the annual Investor Day, held since 2010. Through this annual not-for-profit event, icapital.biz Berhad, Tan Teng Boo and his team at Capital Dynamics have reached out to and benefitted tens of thousands of individual investors. Alibaba held its 1st Investor Day in 2018 but has stopped doing it after 2021.

Other publicly listed companies have since then copied us and have been holding their own Investor Days but none of them is anyway near the Investor Day of icapital.biz Berhad, either in terms of the wide social objectives, large scale, deep reach and sustainability.

With all its rich contents and presentations, the Investor Day of icapital.biz Berhad is without doubt Asia's most innovative investment event.

What else is so special about icapital.biz Berhad? In 2023, the Designated Person of icapital.biz Berhad came out with another ground breaking idea - the most innovative dividend policy in the whole world This sophisticated dividend policy of icapital.biz Berhad is based on the aggregate of a Base Rate Dividend (based on its net asset value (NAV)) and a Top-Up Dividend (based on the difference between its NAV and share price).

This innovative dividend policy together with a Dividend Reinvestment Plan will allow icapital.biz Berhad to trade at a rational price level, shareowners to enjoy long-term capital appreciation and still receive regular income. While the sophisticated dividend policy is certainly very innovative, what is even more impressive is the commitment that Capital Dynamics and Tan Teng Boo have given to icapital.biz Berhad and its many individual shareowners.

Over the years, Teng Boo and his team have been struggling and working hard to find an effective way of allowing icapital.biz Berhad to trade at a rational price level, its shareowners to enjoy long-term capital appreciation and still receive regular income.

After years of brainstorming with internal staff and external advisers, finally in 2023, the Designated Person of icapital.biz Berhad came out with the most innovative dividend policy in the whole world. Despite not knowing where his commitment will take him, Teng Boo stayed on this difficult journey because he fervently believed that he owes it to the many individual shareowners, people who have trusted him for years.


i Capital Newsletter Volume 35 Issue 12

Posted by JohnD0ugh > 2023-12-03 22:55 | Report Abuse

Before that, icapital.biz Berhad was the only publicly listed company that declared a dividend solely for the purpose of helping individual shareowners who were affected by the Covid-19 pandemic. A hefty 20 sen dividend per share was paid.

Anything else special ?

In the 2022 AGM of icapital.biz Berhad, its Designated Person recommended forming an ICAP Fan Club to promote and protect the long-term interests of the Fund and its many individual shareowners.

This is again a highly innovative idea from Teng Boo as icapital.biz Berhad is the only publicly listed company in Asia-Pacific to have such a fan club. Although there is plenty of preliminary work to sort out, the ICAP Fan Club is expected to be functioning in early 2024.

In summary, what we hear from the 19th AGM and the 2023 Investor Day is that there is only one icapital.biz Berhad in the whole world and the individual shareowners know they cannot find another icapital.biz Berhad if the Fund is wound up by City of London Investment Management, Pop Investment Ltd and their local running dogs.

The individual shareowners recognize that there is something very special and irreplaceable about icapital.biz Berhad.


i Capital Newsletter Volume 35 Issue 12

Posted by WolvesOfBursa > 2023-12-04 10:54 | Report Abuse

"It is better to stay humble than to be humbled."

Posted by ZhugeLiang88 > 2023-12-04 11:45 | Report Abuse

I have a suggestion for the fund, which is good for all shareholders (both incoming, and departing):

1) sell all stocks and buy 100% Berkshire.
2) whenever icap sells at discount to 2% of NAV, do share repurchase with no limit. and whenever icap sells at a premium of 2%, icap sell shares in the open market, or issue shares, also with no limit.
3) reduce mgmt. fee to 0.15% since they're just holding Berkshire. For RM 450 Mil, that's still RM 700k a year. Pretty good $. If the fund manager don't wanna do it, can just ask the board to hire someone to do it. Easy work.

It would be Berkshire proxy, except that it doesn't have Estate Tax. Also, it trades in RM, makes it convenient for us Malaysians to buy/sell Berkshire.

Had this been approved,
1) Icap would no longer be selling at a discount by more than 2%, and it will never be selling at a premium above 2%.
2) TTB likes to quote from Warren Buffett. Might as well invest in Berkshire so that he can quote Warren Buffett even more! :-)
3) Berkshire's performance is way better than than icap. Had this been implemented either 1,3,5,10 or since inception, shareholders would have been way richer than now.
4) It solves the problem of "if icap is liquidated, where to invest the proceeds". Just buy Berkshire.

Had this been implemented, i would invest in this fund significantly. And i would recommend it to all my friends/family to invest in it too. And before anyone asked me to buy berkshire directly, there is an estate tax for anything above USD 60k.

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 2023-12-06 09:21 | Report Abuse

https://youtu.be/r3_41Whvr1I?si=KVuhYd8LeFl75eeh

Posted by JunHoHoHoHo > 2023-12-06 15:15 | Report Abuse

@ZhugeLiang88. What trading platform do you use to buy Berkshire (oversea stock)?

Posted by ZhugeLiang88 > 2023-12-07 10:35 | Report Abuse

@JunHoHoHoHo Interactive Brokers

Posted by WolvesOfBursa > 2023-12-08 11:03 | Report Abuse

Unfair to compare icap to Berkshire Hathaway. Berkshire has no geographical constraint but ICAP is limited to only Malaysia stock market.
Also it makes no sense to pay ICAP fee if all the money are invested in Berkshire for long term.
You could set up a family / trust fund to invest to address the USD60k concern.

Capital Dynamics runs a global fund, which performance is disastrous even compare to MSCI https://funds.icapital.biz/icgf/performance/index.html

ICAP investors are considered very lucky compare to investors of Capital Dynamic other funds.

Posted by JohnD0ugh > 2023-12-10 13:08 | Report Abuse

What we also hear from the 19th AGM and the 2023 Investor Day is that there is only one Tan Teng Boo and the individual investors and shareowners know they cannot find another Tan Teng Boo.

They trust him. The individual shareowners and participants recognize that there is something very special and irreplaceable about Tan Teng Boo. It has taken a long time for him to be recognised as such.

This year, the University Technology of Sydney (UTS) recognized his distinguished track record of achievement. Tan Teng Boo was appointed as an Adjunct Industry Professor at the UTS Business School, only the second person to be so appointed.

Teng Boo is the first and only Malaysian to be appointed as Adjunct Industry Professor of the UTS Business School. In 2014, Apple's co-founder Steve Wozniak was also appointed an Adjunct Industry Professor at the UTS, the first such appointment that Wozniak has accepted.

After he was invited and before he was appointed, Teng Boo has to submit his profile for UTS to review. Reproduced below is part of what was submitted to UTS:

"What Teng Boo has observed over the decades is that when a financial or economic crisis hits, individual retail investors have to typically bear the brunt, although in aggregate, they as taxpayers would be the ones who would have to eventually bail out the financial system and economy. These acute observations have made a huge impression on Teng Boo and have had a transformative impact on his life and career. Viewing this asymmetric fact of life as unfair, Teng Boo has early on resolved and made it the mission of Capital Dynamics to help society's underdog, the individual retail investor, in an area where his contributions can have the greatest positive impact on society - investing

Consequently, Capital Dynamics launched its iconic weekly i Capital's investment newsletter in English and Chinese in 1989, to provide a trusted source of quality, independent, and objective investment research and analysis. For once, individual investors can choose not to listen to tips or rumours or hearsay, and do not have to be always adversely affected in times of crisis. This weekly newsletter, and subsequently in 2002, its Internet version, www.icapital.biz, were made to be extremely affordable and accessible to individual investors and in the process helping and benefitting thousands of individual investors.


i Capital Newsletter Volume 35 Issue 12

Posted by WolvesOfBursa > 2023-12-10 15:14 | Report Abuse

If Tan Teng Boo is irreplaceable, it means there's a failure in succession plan, a RISK for investors.

Posted by dumbMoney > 2023-12-11 23:10 | Report Abuse

TTB is iCap. He owns the IP to the company's name.

Posted by FastMoney666 > 2023-12-12 13:33 | Report Abuse

After quiet for 3 weeks, no matter how quiet are his critics, JohnDough is going to continue to post angkat bakul article. So sad!

Just a couple of quick happenings update - COL tested the water by buying some small amount of shares. iCAP reaction was pending court case outcome, all shareholders can participate in DRIP. Still talking about DRIP tinge with no concrete outcome on dividend implementation date.

Posted by FastMoney666 > 2023-12-14 14:47 | Report Abuse

scolding, scolding and finally iCAP announced they will convene an EGM to get shareholders to approve DRIP on 29 Dec 2023....don't think anyone will oppose, just a formality.

iCAP will stick to it's gun that those participate in DRIP may get a discount. Any shrewd shareholder will first sign on to the program, when receive the additional shares, sell it in the open market, can get more cash.

Using below illustration, if you don't participate in DRIP, you get 1,000 cash dividend
Qty of shares 10,000
Price 2.7
Dividend 0.1
Cash Dividend 1,000

If you participate in DRIP you get to buy 411.52 shares with $1,000 at 10% discount to 2.70 (in actual iCap will use average 5 trading days price)
QTY @ 10% discount 411.52
Ex-dividend 2.6
Sell 411.62 shares from DRIP $1,069.96

Additional dividend of 7% or 70 Ringgit more compare to cash dividend.

With people selling/cashing out, will this widen the discount or narrowing the discount to NAV?

Posted by 4dview > 2023-12-15 12:41 | Report Abuse

FastMoney666
Your illustration that if one opts for ICAP’s DRIP, he can expect a 10% price discount in the issue share that he will receive from the DRIP.

This is not true because if you read carefully the terms of the DRIP, it provides that:

“The issue price of new shares under the DRIP shall be applied a discount ONLY when the market price of ICAP is above its NAV.”


It is unlikely that the issue price will get a discount in the foreseeable future since ICAP’s market price is persistently way below its NAV.

Posted by dumbMoney > 2023-12-15 17:20 | Report Abuse

@4dview My reading of the announcement is that management can fix the issue price of the DRIP at its discretion, with the exception if market price is above NAV, where the maximum 10% discount rule will apply. If there is no discount, no difference from buying from the market, where is the incentive to reinvest the dividend, which is the whole idea of the DRIP in the first place? The savings in transaction cost is not going to cut it as an inducement.

Posted by dumbMoney > 2023-12-15 17:24 | Report Abuse

The whole idea of the DRIP is for shareholders to have the cake and eat it at the same time, getting a dividend, but also reinvesting in the company, so no loss of fee income for CDAM too. That's the beauty of the plan in the first place, supposedly win win for shareholders and the fund manager, which a dividend without DRIP cannot satisfy.

Posted by dumbMoney > 2023-12-15 19:51 | Report Abuse

Actually, the hidden agenda of the DRIP is to dilute the holdings of the non-diehard shareholders who will just take the cash, while the die-hard shareholders will increase their holdings through the plan. So the greater the discount offered on DRIP shares, the less attractive will the cash option be, leading to a gradual change in the demographics of the shareholders. In other words, the DRIP plan is the golden handcuffs to retain the loyalty of the shareholders, making it expensive not to reinvest the dividend declared. So what you see is not what you get, you see the dividend cash, but cannot get to spend it if can buy more shares at a discount on top of the already discounted share price. Same as the much touted NAV, you can see it, but cannot get it unless and until the company is liquidated. This is just an analogy, not a suggestion for the company to be liquidated, lest I get accused of such a capital crime against the company. Of course, there is always the possibility that the share price may trade at a premium again, then you do not need to give discount any more.

Posted by dumbMoney > 2023-12-15 22:08 | Report Abuse

The trouble with discounted DRIP plan is that two can play at the same game of having the cake and eat it too, by arbitraging the discount as mentioned earlier, to get the cash dividend and the discount at the same time, but with the unintended result of selling of shares in the market when there would be none before.

Posted by 4dview > 2023-12-16 01:34 | Report Abuse

dumbMoney

Your argument for a discount in the issue price of the shares allotted in place of cash dividend is based on the common practice of a “normal” company. For “normal” companies, indeed a discount to the market price is given to shareholders who opt for shares in lieu of cash dividend, the reason for which you have very clearly stated.

However, ICAP is not a “”normal” company. The management is engaged in long drawn bitter litigation with its “substantial concerted party shareholder” which is City of London who “controversially” owns more than 20% shares.

If the shares alloted under the DRIP enjoys a discount, who will benefit the most? Isn’t it the City of London group? It will be the block that will increase its base the most since it surely has the capacity to opt for the DRIP in full whereas there will be some individual shareholders who will need the dividend as cash.

I would think that the proviso that
“The issue price of new shares under the DRIP shall be applied a discount ONLY when the market price of ICAP is above its NAV”
is not a typo error.

Posted by dumbMoney > 2023-12-16 02:26 | Report Abuse

@4dview If there is no discount, then my argument that who will want to take up the shares when they can buy the same in the market? Or just wait and see? Can the fund manager take the risk that the dividends paid out will not come back into the kitty? Or if it is going to be advantageous to COL more so than the other shareholders, why have it in the first place with all the song and dance? Anyway, why have a resolution that is subject to various interpretations and possible litigation later?

Posted by dumbMoney > 2023-12-16 02:35 | Report Abuse

Your quote :"DRIP shall be applied a discount ONLY when the market price of ICAP is above its NAV.”, the word ONLY is your addition, without it, it can also be interpreted that this is the ONLY exception to the earlier statement that management can fix the issue price without any qualifications. Why allow such ambiguities in such an important resolution?

Posted by FastMoney666 > 2023-12-16 03:01 | Report Abuse

They did cause a lot of confusion with their language and did not provide price & volume when they keep mentioning about Volume wrighted average market price. However based on the illustration of fixing price 2.5819 in para 4.1, illustrative dividend of 0.096, non drip holder with 10,000 shares will get 960 cash, drip holder will get 372 shares(960/2.5819), exdividend price will be 2.604. drip holder will worth 27,009.

None Drip holder will also have 27,000=10,000*2.604+960 cash dividend.

It appears that is no discount based on the illustration though discount were mention.

Anyhow perhaps still can sign up drip and see what happens. After all we can always sell those shares but some brokerage fees will be involved. Or may be clarify in EGM.

Posted by dumbMoney > 2023-12-16 03:03 | Report Abuse

A DRIP can be broken down into its two components, a dividend payment, and an optional rights issue to subscribe for more shares. There is no shareholders' decision to be made on the former, just accept whatever management decides to dish out. But for the rights, the choice is to accept or decline. Even though iCap may have special shareholders issues internally, the conventional market wisdom on rights issues should also apply to it. Without a discount, the level of acceptance will definitely be lower than that of one with discount. So it is then up to management to decide whether they want to maximise the acceptance or just leave it entirely to the shareholders, when deciding on whether to give a discount or not.

Posted by dumbMoney > 2023-12-16 06:12 | Report Abuse

For rights issue at a discount, the SOP for those not willing to increase their holdings but want to capture the discount is to arbitrage by selling the equivalent mother shares at market and pick up the rights at discount. This is where extra selling may be induced by the discount.

Posted by FastMoney666 > 2023-12-16 10:08 | Report Abuse

Additional information: Timing - they expect to implement this by Q1 '24.

This exercise will cost shareholders RM 0.8 million - approximately 0.2% to NAV RM 3.50/share.

Para 4.4 "Save for the estimated expenses of approximately RM0.8 million to be incurred in relation to
the Proposed DRP". All these are for legal, paperwork, Aussie Prof consulting fees? Perhaps there are more coming? Don't know -🤷- better to be transparent and don't surprise shareholders or buried it under a small footnote in the future.

The language is again confusing and not direct. If you expect to incur 0.80 m, say it. Or it is an accrual instead of saying "save for" if the whole exercise is eventually not to be implemented due to various reasons.

All these are for informational purpose and certainly do not want to be blamed for opposing to the program.....as long as they return part of the cash to shareholders instead of get locked in the discounts between share price and NAV, it is a welcome initiative.

Posted by dumbMoney > 2023-12-16 13:25 | Report Abuse

OK, just read the detailed information sheet on the DRIP. It appears to indicate no discount if price is below NAV. So the difference between using the dividend cash to buy in the market or taking the DRIP option is only the transaction cost. The level of acceptance will be reflective of the loyalty of shareholders. All things taken into consideration, the net effect is the cash dividend in the hands of shareholders, which is now free from the previous price discount on NAV, the bird in hand principle, so there should be a slight increase in the ex price of the share. Take an hypothetical example of a share with $4 NAV trading at a 25% discount at $3, pays a dividend of $1. The remaining $3 in NAV at the same 25% discount is now valued at 2.25, which when added to the $1 dividend received, gives a total of $3.25 instead of the previous $3.

Posted by JohnD0ugh > 2023-12-18 00:07 | Report Abuse

Another major initiative of Teng Boo in promoting and defending the long-term interests of the individual investors was to successfully list icapital.biz Berhad (ICAP), a retail closed-end fund, listed on the Malaysian stock exchange in October 2005. Currently the only listed closed-end fund on the said stock exchange, ICAP was set up to primarily serve individual investors (https://www.icapital.my/).

ICAP has over 3,000 individual investors with an asset size of around AUD165 million. The annual general meeting of ICAP has always been held on a Saturday, to encourage a high level of participation and for the convenience of individual investors. Prior to the pandemic, its annual general meeting has often witnessed an active participation of 700 to 800 shareholders.

The reason why ICAP exists (its raison d'etre) is explained in its annual report:

"icapital.biz Berhad exists for one simple reason: to allow long-term shareholders or more aptly called share owners, to benefit from value investing. Investing in your Fund allows the power of compounding to work for you. If we succeed in achieving this, we would have also shown that serious long-term investing in Bursa Securities (the Malaysian stock exchange) can offer superior returns."

Over the years, individual investors have been disillusioned as they found investing in the stock market to be frustrating and unrewarding. Gains cannot be sustained while losses were frequent. To help this important group of investors, Teng Boo decided way back in 2003 that a retail closed-end fund would be the most ideal channel to assist them.

Promoting and getting ICAP listed took two years of hard and pioneering work. When conducting its initial public offering in 2005, Teng Boo intentionally promoted and marketed ICAP only to individual investors; institutional investors were intentionally omitted.

In December 2021, at Teng Boo's recommendation, ICAP paid a Special COVID-19 Relief Dividend of 20 sen per share (or RM28 million which was more than 4% of ICAP net asset value) to its shareholders, who are substantially individual investors. This was at a time when many listed companies were omitting or cutting their dividends and when many individuals were financially affected by the pandemic.

This strategy of focusing only on individual investors has been passionately and relentlessly pursued by Teng Boo up to today. To put it simply, successfully building ICAP is akin to building a better Malaysia. To Teng Boo, they are synonymous.


i Capital Newsletter Volume 35 Issue 12

Posted by dumbMoney > 2023-12-18 12:33 | Report Abuse

If the above is true, it begs the question why the shares are still trading at a substantial discount, instead of at a premium like WB's Berkshire? Hype versus reality!

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 2023-12-23 10:13 | Report Abuse

Maybe a very good idea to liquidate icap closed end fund st the end of the tenure.

It is a long time since 2005, especially for its initial investors who are also older, just like Mr. Ttb.

Those wishing to continue investing can still park their money in the many other funds that Mr. TTB has created.

The innovative idea of distributing dividends and reinvesting via DRIP for those who wish to, was not the original intention of this fund. Its main aim is and should be to con⁰⁰tinue increase its NAV at a high rate of return.

Posted by Sslee > 2023-12-23 12:47 | Report Abuse

To put it simply, successfully building ICAP is akin to building a better Malaysia. To Teng Boo, they are synonymous

Another syiok sendiri syndrome.

i3lurker define syiok sendiri or "Fight Aeroplane" a Cantonese term for an uncurable medical condition meaning constant self pleasurization aka masturbation

Posted by dumbMoney > 2023-12-23 14:46 | Report Abuse

@Sslee This is like having a fan club for a pop icon!

Posted by JohnD0ugh > 2023-12-24 21:06 | Report Abuse

To reach out to even more individual investors, Teng Boo pioneered Asia's most innovative investment event, the Investor Day of ICAP (https://www.icapital.my/). In the spirit of tireless learning, ICAP and Capital Dynamics have been organising the highly successful Investor Day since 2010.

The primary objective of this not-for-profit Investor Day is to educate the general public on the benefits of sound investing. In each Investor Day, always held on a Sunday for their convenience, it is most gratifying to see thousands of individual investors participate and benefit.

Throughout his decades-long investing and business career, Teng Boo has always believed in empowering and championing individual investors. As he said during the 2014 Investor Day in October 2014 : "if I can convert one person to become a better person and a better investor from this, I would be happy.

That person would go on to influence other people in their lives, and eventually they would all make a better Malaysian economy." To him, the equation is simple : a robust economy needs a strong capital market, which in turns needs informed participants, including individual investors.

This dedication to helping others, along with his passion for reading, contributes to his ability to educate, guide, and inspire others in both formal and informal settings. His engagement with universities, societies and numerous non-profit organisations, where he delivers talks, lectures, and seminars, enriches the academic discourse on investment-related subjects. Through these interactions, he contributes significantly to the development of future financial and investment professionals, especially among university students.

Other than that, to encourage university students to acquire knowledge of value investing and its benefits, under Teng Boo's leadership, Capital Dynamics organizes the Budding Value Investor Award (BVIA), a global investment research competition that requires participants to submit and present research papers, held since 2019.

In the 2020/2021 competition, winners received cash prizes, certificate, and a 3-month paid internship with Capital Dynamics under Tan Teng Boo's direct supervision (https://bvia.icapital.biz/). The BVIA is only opened to university students.


i Capital Newsletter Volume 35 Issue 12

Posted by dumbMoney > 2023-12-25 12:15 | Report Abuse

Great 3-month internship directly under TTB is better than a MBA, as claimed by the former. Think of all the unique and innovative ideas they can learn from the master himself, adjunct professor of finance for UTS, and the savings in tuition fees!

Posted by FastMoney666 > 2023-12-25 13:55 | Report Abuse

Merry Christmas.....

Ranting here also can train our brains by sparing with the fund manager with the constant "supervision". 😎

I am kind of confused what is iCap....started with marketing of 15% CAGR return fund, then 10%, then the most innovative dividend fund and now izzit is also an ESG fund?

Peace on earth.......I shall show restraint.

Posted by dumbMoney > 2023-12-25 20:10 | Report Abuse

What better marketing slogan than "Better than best"? This says it all for iCap/CDAM, in your face, for all those attending the AGM/Investors Day. A bit ironic that the CEF with a first in the world innovative dividend policy is also the one with one of the deepest price discount. The cost effectiveness of these marketing efforts need to be examined. Saving cost by not printing the annual reports in full color is negated by the 6-figure expenses for the lavish AGM/Investor Day, both for the company and also for the shareholders in transport costs. On a per market cap basis, the AGM and road show costs must be among the highest for all Bursa listed firms, at least for all the AGM's I have attended so far.

Posted by Sslee > 2023-12-25 20:37 | Report Abuse

"Better than best" or "In the land of the blind, the one-eyed man is king"

Posted by dumbMoney > 2023-12-25 20:51 | Report Abuse

Just to illustrate, on 20/12/23, COL bought 55,700 iCap shares from the market for a cost of $154,289, but the market cap of the company improved by 8 sen as a result, or 11.2 million for all shareholders. On the other hand, iCap blew a few times that amount in legal costs against COL, with no value add.

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 2023-12-27 17:38 | Report Abuse

Dividends and DRIP

Who, among the many players of iCap, will benefit the most from this?

Posted by FastMoney666 > 2023-12-28 09:20 | Report Abuse

NAV increases ---> All wins.

Cash dividend --> Reduces NAV, Fund Manager Losses.

Minority shareholders that don't have voting rights concern, no need to worry about dilutions for not participating in DRIP.

You control your destiny when you have cash in hand - buy more iCap when the price is lower(assuming you are still his fan-se) or invest in other shares.

Systematic way of cashing out iCAP, assuming the fund manager can grow NAV over a long if you have been thinking exiting but got stuck.

DRIP --> NAV stays the same, Fund Manager charge as % to NAV wins.

Shareholders that love the fund manager think they may continue to stay invested on dollar averaging basis.

Let the fund manager retained the cash and compound it, assuming he still has the Midas touch.

If you a big enough shareholder, gain more control over time at the expense of those do not participate in DRIP.

Tomorrow is the voting time - For or Against - DRIP. The outcome is pretty predictable - with still many old faithful, you will expect DRIP to be approved. It's a non-event.

Posted by FastMoney666 > 2023-12-30 01:24 | Report Abuse

Recently Capital A requested for extension from 31/12/2023 to 30/6/2023 to submit its regularisation plan.....The fund manager always claims about low risk, high return.....I beg to differ on this one....he committed almost 7% of fund in Capital A. It is certainly a high risk, high return bet it can exit PN 17. It's a bet on sentiment turnaround with a big gap up!

Stock: [ICAP]: ICAPITAL.BIZ BHD

1 month ago | Report Abuse

For iCAP die hard fan....in the future, you monitor yourself on what your fund manager have bought for you the combo meals on CAPA
Counter ************************************************ Qty********Cost*****Cost per share*****Price 31/10/2023*** Fair Value
Capital A Berhad - Ordinary shares******CAPITAL-A****29,282,200**24,811,409** 0.85***0.84*** 24,597,048
Capital A Berhad - Redeemable Convertible Unsecured Islamic Debt Securities
******************************************CAPITALA-LA**9,760,733**7,320,550*** 0.75*** 0.87*** 8,491,838
Capital A Berhad - Warrants**
*****************************************CAPITALA-WA***4,880,366*****0**********0******0.375*** 1,830,137
Total cost 32,131,959 Fair Value 34,919,023
Gain 2,787,064
Gain % 8.7%

Chap sang!

--------------------------

Capital A has many issues but the crux of the issue is it has negative equity. In a situation of negative equity, a company certainly cannot declare dividend and even raise concern of going concern. Hence they need to fix this first.

How big is this hole? It's about RM $ 17.3 billion, as of 30/9/2023, Capital A is still making losses about 468 million...if it keep making losses, this hole will get bigger.

However, on EBITDA basis, it made close to about $ 400 million ++/quarter or about 1.7 billion/year. This may still be able to keep them afloat but the PN17 overhang will be there.

Capital A proposed to raise about USD 1 billion + cash via SPA of a company listed in Nasdaq GMFI. They will form CAPI and combine with GMFI. CAPI will acquire 100% equity interest in Air Asia and has the right to collect royalty and responsible for the brand management. Also 100% equity interest in Fleet Consolidated Pte Ltd for the procurement and delivery of planned fleet.

They also considering equity raising exercise Philippines AirAsia and Indonesia AirAsia....

In a similar situation with AirAsia X, they had almost RM 35 billion accumulated losses and a big bulk of it was due to provision of termination claim. They did a few things. They have successfully renegotiated with creditors and at same time raised some funds. AirAsia X subsequently were profitable since Q3/2022. They undergone the capital reduction exercise. All these were the catalyst of them successful exited PN 17 and share price jumped almost 300%++ from 0.70 to as high as 2.4.

Some people wanting to bet the similar thing from 0.8++ to RM 2++, 300% profit. The key word is BET -- gamble that EBITDA will carry them through with the sufficient cash flow and be able to raise enough equity or debt, capital reduction exercise to wipe out the accumulated losses to be lifted from PN17.

Posted by Sslee > 2023-12-30 08:06 | Report Abuse

However, on EBITDA basis, it made close to about $ 400 million ++/quarter or about 1.7 billion/year

EBITDA pisitive, is it really so???
Do you know under MFRS 16:

(i) On the Consolidated Income Statement, expenses which were previously included under aircraft operating leases will be replaced by finance costs – lease liabilities and depreciation of right of use asset;

(ii) On the Consolidated Cash Flow Statement, operating lease rental outflows, previously recorded within net cash flow from operating activities, are classified as “net cash flow used in financing activities” for repayment of principal of lease liabilities.

CapA' NUMBER DONT LIE..and it is horrible.

Net current liabialities increase from begining of year
Net current liabilities: RM (8,509,066,000) to as at 30/9/2023
Net current liabilities: RM (12,527,863,000)
Is that a good 9 months for capA?
Will capA not default on the current liabilities in the next 12 months?

As at 31/12/2022 Capital A
Current assets: RM 1,768,954,000
Current liabilities: RM 10,278,023,000
Net current liabilities: RM (8,509,066,000)
Shareholders’ equity RM (5,725,093,000)
Non-controlling interest: RM (3,791,865,000)
Total equity: RM (9,516,958,000)

As at 30/9/2023 Capital A
Current assets: RM 2,072,007,000
Current liabilities: RM 14,599,870,000
Net current liabilities: RM (12,527,863,000)
Shareholders’ equity RM (8,427,155,000)
Non-controlling interest: RM (2,101,925,000)
Total equity: RM (10,529,080,000)

Repost for you to ponder with leases payment of abt RM 700 million and increasing per quarter can capA make any meaningfull profit in 2024?

Quarter end 30/09/23: Cumulative 9 months
RM: RM
Depreciation on right of use assets: (444,404,000): (1,124,591,000)
Finance cost -lease liabilities: (251,274,000): (656,333,000)

CapA is now like a taxi driver, driving a rental car from a taxi company.
How many passengers a taxi driver must picked up to pay for the car rental before he can earned a living?

For capA even last quarter 89% load factor is still a loss making quarter.

Posted by Sslee > 2023-12-30 08:12 | Report Abuse

By the way no one going to stop you from punting on an insolvent capA.

But for icapital to put investors money on capitalA and called it value investing is aka to the one eye man leading the blind.

Posted by WolvesOfBursa > 2023-12-30 09:42 | Report Abuse

Few years ago I attended their roadshow, the manager claimed there’s nothing to worry about China real estate, and the public just don’t understand China enough. Look at what happen to China real estate sector now.

At the same time, the fund manager has been predicting a recession or crash of the US market all this while.

If you listen to him and bet heavily on China/HK market instead of US. You probably end up on street.

Posted by speakup > 2023-12-30 09:51 | Report Abuse

if u Long China/HK and Short US right?

Posted by FastMoney666 > 2023-12-30 10:35 | Report Abuse

CapA has been operating on taxi renting model😂😂 but during Covid, they rented but parked at home while the rental was still running. They wanted to renegotiated for debt forgiveness 🙈 - if I die you die. They also suffered a lot of high costs when they restarted these grounded taxis.

About 2 weeks ago, the fund manager published CapA company analysis in his newsletter. One of them " 9M2023 cash generation however remains robust, with 9M2023 operating cash flow at more than RM 1.7 bln."

CapA is for sure is a gamble not a case for value investing. Cap A fundamentals has changed drastically, for those anchored on previous price high, it is not the fundamental that will back it up to the previous highs but it is the sentiment that will drive it up. The shareholders will risk massive dilutions when they fund it with equity.

Just a quick comment on the current liabilities on MYR 15 bln - of that 5 bln related to lease liabilities and 2 bln sales in advance(customer is lending to Cap A for free 😂😂) and another 1.7 billion on aircraft maintenance...in the worse case they still Tai Chi and nego for re-payment again.....But the trade and other payables 4.2 bln certainly needs to be paid else all his suppliers will stop delivery. Nett of receivables of 1 bln + 0.5 bln cash, memang x cukup. Certainly they will need to raise cash la.....first target I think 5 bln kot via SPA. Target by April 2024 per iCap newsletter analysis.

Below EBITDA - yes still have to pay for finance costs on the lese liabilities and borrowing -- so nett cash increase will not be a lot. No matter how we sliced and diced it, the best case is no bleeding but certainly need to raise more cash to meet the operating cash flow.

Full disclosure: I have neither long nor short on Cap A for now and for the future. These posts merely to point out what the fund manager had invested on behalf of the shareholders. Can win big by gambling but also can lose big when putting the chips on the wrong side.

Posted by Sslee > 2023-12-30 11:27 | Report Abuse

https://finance.yahoo.com/news/aetherium-acquisition-corp-receives-additional-133000199.html

Aetherium Acquisition Corp. Receives Additional Staff Determination Letter from Nasdaq
PR Newswire
December 1, 2023·5 min read

Posted by Sslee > 2023-12-30 11:44 | Report Abuse

By the way who gave authority to who to sign master brand licensing agreement dated May 31 this year, so that Brand AA has the right to collect royalty fees from AirAsia Aviation Group Ltd, Capital A’s aviation division?

Capital A International shall be made up of Brand AA Sdn Bhd and Fleet Consolidated Pte Ltd
Both Brand AA and Fleet Consolidated are newly formed subsidiaries and do not have any revenue.

Brand AA is a brand management company. It is the registered proprietor for all the rights under the AirAsia brand.
Under a master brand licensing agreement dated May 31 this year, Brand AA has the right to collect royalty fees from AirAsia Aviation Group Ltd, Capital A’s aviation division.

Fleet Consolidated, meanwhile, will primarily be responsible for the procurement and delivery of the requisite aircraft for the aviation group based on the agreed allocation plan.

The proposed deal is to merge CAPI with Aetherium Acquisition Corp (NASDAQ: GMFI), a Special Purpose Acquisition Company (“SPAC”) listed on the Nasdaq stock exchange for an indicative equity value of United States Dollars (“USD”) 1 billion based on an independent valuation of the AirAsia Brand.