Posted by JohnDough > 2022-05-22 15:20 | Report Abuse

“At RM2.05, ICAP is capitalized at RM287 mln. What do investors get in return?

Investors get to benefit from the hard work of a highly experienced fund manager, one who has experienced all the bear markets on the KLSE, right from the one in 1973.

In addition, investors get assets worth more than RM476 mln, comprising RM165 mln in cash holdings and a portfolio worth more than RM311 mln as at 28 Feb 2022. This portfolio is poised to appreciate significantly. Why? The answer is simple.

Private consumption growth, the main driver of Malaysia’s economic recovery, is set to normalize after 2 years of disruption. Tourist arrivals to Malaysia are set to follow this same trajectory. As such, many companies ICAP invested in should benefit handsomely.

ICAP’s portfolio will get another big boost skyward when CDAM, its fund manager, invests its RM165 mln cash holdings in undervalued stocks. When ICAP’s assets reach the RM1.0 bln or RM7.14 per share mark, will you be a beneficiary? Since May 2021, CDAM and related parties have bought 260,200 additional shares in ICAP.

As ICAP is a low-risk, high-return fund, the reasons for its appeal are obvious. Without any hesitation, i Capital is retaining its rating on i Capital.biz Berhad as a Buy for the long term, although, as the last 1 to 2 years have shown, its performance in the shorter term could be very attractive too.”


i Capital Newsletter Volume 33 Issue 36

Posted by TheContrarian > 2022-05-22 21:18 | Report Abuse

Hahaha, haven't you people realize that JohnDough is TTB?

Posted by dumbMoney > 2022-05-23 17:05 | Report Abuse

@TheContrarian, of course, we all do. The question is, if iCap is so good and management is buying, why not let the company buy back its own shares too? So many other listed companies are doing that.

Posted by dumbMoney > 2022-05-23 17:11 | Report Abuse

Or better still, stop wasting time and money fighting COL in court, just let the funds buy to their heart's content. The SC and the court so far has decided that no one has breached the 20% individual shareholding limit.

Posted by JohnDough > 2022-05-29 15:16 | Report Abuse

“On 9 Sep 2016, Capital Dynamics Sdn Bhd, Capital Dynamics Asset Management Sdn Bhd and Tan Teng Boo (Plaintiffs) instituted legal proceedings against a Cindy Yeap, a senior editor from The Edge, for authoring and publishing an article titled 'icapital.biz largest shareholder says fund fees high, to vote down director reappointments' on 14 Sep 2015, which contained multiple misleading, false and deceptive statements about the Plaintiffs.

The High Court ruled on 7 Dec 2018 that the said article is defamatory of the Plaintiffs (WA-23NCVC-46-09/2016 (CDAM & Ors v Cindy Yeap). Cindy Yeap appealed against the decision on 28 Dec 2018.

Capital Dynamics is pleased to announce that the Honourable Court of Appeal of Malaysia (Court of Appeal) has concluded this matter in its favour (Court of Appeal Civil Appeal W-01(NCVC)(W)-10-01/201)

On 11 May 2022, the Court of Appeal unanimously agreed with the High Court decision and held that the said 2015 article is defamatory of the Plaintiffs.

The 3 Court of Appeal judges echoed the decision of the High Court in holding that all elements of defamation had been successfully proven by the Plaintiffs, and rejecting Cindy Yeap's defences of justification, qualified privilege and reportage and/or Reynolds defence.

Further, they noted that the timing of the said article was very close to the Annual General Meeting of ICAP on 19 Sep 2015 and hence could amount to incitement of the shareholders to remove the Plaintiffs from their respective positions.

They concluded by saying that Cindy Yeap was irresponsible in her reporting which had the effect of lowering the Plaintiffs' reputation with the public.

Why is the defamation suit by Capital Dynamics Sdn Bhd, Capital Dynamics Asset Management Sdn Bhd and Tan Teng Boo and the decision of the High Court and Court of Appeal important ?

i Capital Newsletter Volume 33 Issue 37 (1 of 4)

Posted by JohnDough > 2022-05-29 15:16 | Report Abuse

An article can be useful, harmful or inconsequential. A defamatory article is unjust, unfair and harmful. In ICAP's case, it is harmful to the Plaintiffs and to the existing thousands of ICAP's shareowners as well as many more potential owners. Reputation attack is one of the toolkits used by activist investors especially in the developed markets.

Activist investors typically mount aggressive or hidden and sophisticated public relations campaigns in order to undermine shareholder confidence in a target company's performance and leadership, whether through social media, online forums or by using the more traditional media and public relation channels.

When seen in the context of Part V of the Capital Markets and Services Act 2007, the said article about ICAP and the Plaintiffs can be more than just causing defamatory harm. The Plaintiffs decided to take the court action to protect the interests of the thousands of shareowners of ICAP and make the stock market a less dangerous place for investors.

City of London Investment Management Company Ltd, a substantial shareholder of ICAP loves to complain publicly and loudly about the discount of ICAP. On the surface, nothing wrong about making such a complaint.

Except that City of London Investment Management Company Ltd was at the same time quietly accumulating millions of ICAP shares while it was giving the false and misleading impression to the KLSE that investors should not invest in ICAP because of the discount.

This London "colonial" investor actually bought so many shares that it has now exceeded the shareholding limit set by the regulators. City of London Investment Management Company Ltd bought millions of ICAP shares because of its discount, an attractive feature of a closed-end fund that it was exploiting when it was actually making all kinds of negative noises about the discount. Why? To allow it to keep buying at a discount?


i Capital Newsletter Volume 33 Issue 37 (2 of 4)

Posted by JohnDough > 2022-05-29 15:16 | Report Abuse

The contents in the 2015 article in the said defamation case contained a lot of materials about ICAP originally written by City of London Investment Management Company Ltd, and published in RNS, a web service of the London Stock Exchange.

Investors who bought ICAP shares at a discount in the last few years have made solid returns, much better than the MSCI Malaysia benchmark index.

We are trying to put together Part V, Market misconduct and other prohibited conduct of the Capital Markets and Services Act 2007, the said 2015 article and the behaviour of City of London
Investment Management Company Ltd in regularly deceiving Malaysian retail investors, most of whom are not familiar with a closed-end fund like ICAP. On the surface, nothing seems to be wrong but have we missed something?

i Capital Newsletter Volume 33 Issue 37 (3 of 4)

Posted by JohnDough > 2022-05-29 15:17 | Report Abuse

Capital Dynamics Sdn Bhd, Capital Dynamics Asset Management Sdn Bhd and Tan Teng Boo (Plaintiffs) and ICAP were organising the annual Investor Day for many years with the aim of educating Malaysian retail investors about value investing and a closed- end fund like ICAP. City of London Investment Management Company Ltd was against this educational campaign.

Scottish Mortgage Investment Trust (Scottish Mortgage) is a publicly traded investment trust aka closed-end fund. It invests globally looking for strong businesses with above-average returns and Scottish Mortgage is listed on the London Stock Exchange.

For many years, Scottish Mortgage was trading at a discount despite endless share buyback (an inappropriate tactic but loved by City of London Investment Management Company Ltd) and dividend payout.

In the end, Scottish Mortgage got rid of its discount by marketing to the British retail investors and in the process, reduced the portions held by institutional investors.

We now know why City of London Investment Management Company Ltd objected to our Investor Day. Perhaps we also know why the 2015 defamatory article was written.”

i Capital Newsletter Volume 33 Issue 37 (4 of 4)

Posted by dumbMoney > 2022-05-30 17:06 | Report Abuse

Both the SC and the courts so far have ruled that COL per se is not a shareholder of the company, hence the question of exceeding the individual shareholding limit did not arise. If 'control' can be deemed ownership, then all the GLCs and government institutional investment funds like EPF, Khazanah, PNB, Tabung Haji, LTAT are also owned by a single shareholder, i.e. the Government, and the same rules on ownership will apply.

Posted by dumbMoney > 2022-05-30 17:11 | Report Abuse

For transparency, just publish the full court judgment on the injunction application and let shareholders understand the basis of the rulings.

Posted by cnman53 > 2022-06-09 16:27 | Report Abuse

Yes, I agree with Mr dumbMoney, ICAP should publish the full court judgment for dismissing the injunction application by ICAP and may be explain why ICAP Management think they have valid reason to think otherwise.

Posted by Nepo > 2022-06-13 08:08 | Report Abuse

For long term value investors – please read this section.
icapital.biz Berhad is a Malaysia-focused fund, with an objective of long-term capital appreciation
based on the Bamboo value investing philosophy of Capital Dynamics. icapital.biz Berhad is not
allowed to sell short, invest in derivatives or undertake any borrowings.
A Rare Gem
The US inflationary situation is getting to a deeply worrying state amidst the Ukrainian Crisis that is
continuing with no resolution in sight. For Malaysians, the imminent GE15 is creating another level of
uncertainty. What should you as an investor do given the prevailing circumstances ?
icapital.biz Berhad has always been managed in such a way that its shareowners can sleep soundly at
night, knowing their hard earned savings are in good hands. I have also managed icapital.biz Berhad in
such a way that in times of crisis or dire need, icapital.biz Berhad is there for its share owners, witness
the special RM28 million Covid Relief dividend. Not only have I achieved all of the above, icapital.biz
Berhad has also delivered superior returns to its shareowners and is still boasting a substantial cashladen war chest.
A well-managed closed-end fund like icapital.biz Berhad is an excellent investment product for
individual investors, especially during tumultuous times like now. However, after so many decades,
there is still only one listed closed-end fund on Bursa Malaysia. The London, Sydney and New York
stock exchanges abound with closed-end funds. For Bursa Malaysia to have the same percentage as
London for example, the Malaysian stock market should see more than a hundred and thirty closedend funds listed, instead of just one. icapital.biz Berhad is without doubt a precious investment. Do not
let any investor who refuses to be a share owner destroy such a rare gem.

Posted by Nepo > 2022-06-13 08:09 | Report Abuse

Cash per share=RM 165million/140 million shares = RM 1.18
downside limited, Now is a good time to buy icap.
that is y conservative strategy is the best strategy during uncertainty time, and Icap is one of them

Posted by dumbMoney > 2022-06-13 11:15 | Report Abuse

@Nepo The irony is that COL wants to buy more shares for its funds and it is the company that is refusing to allow it.

Posted by cnman53 > 2022-06-15 10:53 | Report Abuse

With the management fighting against its shareowners, I am afraid not many new investors will be interested to invest in ICAP.

Posted by dumbMoney > 2022-06-15 19:00 | Report Abuse

@Nepo If iCapital is such a bargain, why aren't local investors increasing their shareholdings, as shown in this analysis of the 30 largest shareholders' movements over the years. Only major buyers are foreign funds, which now have overtaken the locals in the latest top shareholders list, and this is why the company is going to court to injunct them. https://1drv.ms/x/s!AgLvGZpm89Ysly1THGRIwnoteTOz?e=DFeF86

Posted by cnman53 > 2022-06-21 19:27 | Report Abuse

No update by ICAP on
Originating Summons No. WA-24NCC-517-11/2021 ICAP v. City of London Investment Management Limited
which was supposed to be heard by the High Court on 30 May 2022.

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 2022-07-07 13:12 | Report Abuse

dumbMoney

>>>>For transparency, just publish the full court judgment on the injunction application and let shareholders understand the basis of the rulings.
>>>>>

Has anyone here contacted COL directly for their version of the story in the court?

Posted by dumbMoney > 2022-07-09 01:36 | Report Abuse

@Integrity There is no need to contact COL as the company's announcement to the exchange itself clearly provided the grounds of the High Court judgement:
(1) The High Court finds that the Defendant is not a member of the Plaintiff and is therefore not caught under Clause 21(1) and 8(y) of the Plaintiff’s Constitution. The Plaintiff’s Constitution provides a clear meaning of “member” and thus, the High Court found that the mischief rule ought not be applied.

(2) The High Court takes note of the Plaintiff’s concern that the ultimate control in the shares of the Plaintiff is with the Defendant. However, the Court is not prepared to go beyond the four corners of the Plaintiff’s Constitution or to imply any term under the circumstances as this will cause confusion in the meaning of the word “shareholder”.
In plain English, the court has found that COL is not a shareholder of the company as defined by its own constitution, which is the main point of contention in the company's action. As I have mentioned before, COL is not in the list of the substantial shareholders of the company, as per the annual reports. So if this now disputed by the company, then it has been publishing a false list of shareholders all this while. Is the company arguing that all of a sudden, COL becomes a shareholder, from zero to above 20% overnight?

Posted by Loh Kok Wai W > 2022-07-26 12:59 | Report Abuse

Sleeping counter...non active counter....Management talk many,many....can't do anyting...better seld this counter.

Posted by Nepo > 2022-08-01 12:32 | Report Abuse

ok is a right time to buy icap@ RM 2.05

Posted by Nepo > 2022-08-04 10:51 | Report Abuse

can buy lor
time wait for no man..
i only admire hero to buy in now @ RM 2.03
what are you waiting for..? wait for RM 1?

Posted by dumbMoney > 2022-08-05 22:49 | Report Abuse

COL wanted to buy more shares but is prevented by the company's injunction. So if share price goes up in the meantime, and the company loses on the injunction bid, damages may be payable to COL for missed bargains.

Posted by fong7 > 2022-08-13 05:49 | Report Abuse

@Nepo do you know what a value trap is? I'm sure you know. But, like most retail "investors," knowing is very different from actually doing what they already know. This is the main difference between professional and amateur. TTB has behaved like a typical "Chinese glue" (中華膠) in recent years, which undoubtedly affected his investment judgment. He has been stubbornly waiting for a tedious world recession for at least four years, and it has yet to come. For this reason, TTB refuses to put cash to work. On the other hand, we see many masters doing the opposite. During market downturns, they either buy stocks or buy back their own shares. Warren Buffett has also been pouring in huge amounts of cash. Over the past 4 years, Buffett's BRK shares have risen 44.7%, while iCap has fallen 28.6%. It's not that iCap has been overlooked, it's that iCap has become the quintessential value trap stock. Its copious amounts of cash are useless because the TTB is not using this weapon. He's too stubborn to accept his own lapses in judgment, and he's a classic megalomaniac.

Posted by Nepo > 2022-08-16 09:37 | Report Abuse

From i3 Gambler,
Extract:-
"In May 2020, I bought some ICAP hoping for liquidation in August 2020.

"However, I did not realize that an amendment had been made in year 2016, passed with 98.71% rate, the tabling of liquidation would happen only in August 2025."
=====================..==================

Worse come to worst, wait for liquidation in August 2025. that time not easy for ttb to pass the resolution..

Posted by dumbMoney > 2022-08-16 23:18 | Report Abuse

@Nepo, if you want to liquidate the fund, no need to wait till 2025 that long. All you need to do is to vote in a new Board of Directors and TTB will quit and close down the fund and take back the name with him.

Posted by Nepo > 2022-08-18 14:50 | Report Abuse

3.24 (NAV)-RM2(market price)
=RM 1.24 discount 40%,
no one willing to buy, wondering what is happening..?

Posted by dumbMoney > 2022-08-18 21:45 | Report Abuse

The usual saying is "price is what you pay, value is what you get", here it is "value is what you have, but price is what you get" when you want to sell.

Posted by dumbMoney > 2022-08-22 22:15 | Report Abuse

A lot of old shareholders are trapped because they cannot afford or reluctant to leave the $1.24 discount on the table if they were to sell now. Who is going to bail them out?

Posted by cnman53 > 2022-08-22 23:40 | Report Abuse

And TB is giggling by himself at this stalemate.

Posted by fong7 > 2022-08-23 20:30 | Report Abuse

Does ICAP still a big invertor of Boustead? LCS scandal involved.
Former Boustead Heavy Industries Corp Bhd managing director Tan Sri Ahmad Ramli Mohd Nor today claimed trial to abusing his position by offering contracts for the RM9.13 billion procurement of littoral combat ships (LCS) by Boustead Naval Shipyard Sdn Bhd (BNS).
Is TTB good friend of him (too)? Long term investor even Boustead's horrible performance, the so called ultimate value investor TTB.

Posted by fong7 > 2022-08-23 20:34 | Report Abuse

@Nepo, calculating NAV vs market price discount isn't the way to valuate a stock's intrinsic value. You should open up your heart, read carefully what people comments in this thread, and digest them. Think calmly, don't involve self emotion in it. The truth will show his face. It's not the face you used to.

Posted by dumbMoney > 2022-08-23 21:39 | Report Abuse

Some companies are selling at less than the cash backing per share, e.g. MAA, make you wonder why?

Posted by dumbMoney > 2022-08-26 15:50 | Report Abuse

@Nepo The 1.24 price discount can be attributed to the cash portion of the portfolio, the 'free call option' which is not earning anything for shareholders after paying management fee and tax. How do you put a price on it?

Posted by fong7 > 2022-08-26 20:27 | Report Abuse

Exactly. All the cash can be just used to pay TTB and team management fees. What else can those cash used for? TTB is not buying any shares, and not paying investors' any dividend, and definitely no buyback plan. Market sees TTB, therefore consistently trading at huge discount. Investors can't sell the stock to monetize the cash in it because the stock price is horrible. It's not 1 year, 2 years, or 3 years in such condition. It's 4 years, 5 years. Who has so many 5 years to burn on their investment that still seeing no light for future? TTB keeps singing for China's success story in recent years. If so, shouldn't he already buy huge amount of China blue chips ETF such as PRINCIPAL FTSE CHINA 50 ETF? Did he? Ask yourself, what kind of fox TTB is. Can you trust any word coming out from his mouth.

Posted by dumbMoney > 2022-08-26 22:08 | Report Abuse

Any finance student who has studied options pricing will tell you there is no such thing as a free call option with no expiry date. The longer the expiry date, the more valuable is the option. The authors of the BS Option Pricing model got a Nobel Prize for it. Anyone who can disprove it deserves another one.

Posted by Income > 2022-08-26 22:35 |

Post removed.Why?

Posted by JohnD0ugh > 2022-08-28 16:23 | Report Abuse

The performance of icapital.biz Berhad has been outstanding, not just in terms of its NAV but also its share price over many years. Whether it is low inflation or high inflation, whether it is rising or falling interest rate, icapital.biz Berhad has consistently delivered superior returns to its shareowners and is still boasting of a substantial cash-laden war chest.

Let me recapitulate a fundamentally important point. A well-managed closed-end fund like icapital.biz Berhad is an excellent investment product for individual investors, especially during tumultuous times like now.

However, after so many decades, there is sadly still only one closed-end fund listed on Bursa Malaysia. The world-class London, Sydney and New York stock exchanges abound with hundreds of closed-end funds. Their investors have so many choices in terms of investment products.

Let me repeat what I think is a very important point to my fellow Malaysian shareowners - do not let any investor who refuses to think and act like a share owner destroy such a precious gem. It is indeed strange that the more a large foreign shareholder accumulates the shares of your Fund, the wider the discount becomes and persisted.

When your Fund was trading at a premium for many years, there was no such large foreign shareholder present. One does not need the IQ of Einstein to put two and two together. This is just my simple-minded observation.


icapital.biz Berhad 4Q22 report – commentary by fund manager

Posted by dumbMoney > 2022-08-29 01:14 | Report Abuse

With COL buying, share price (discount) went down, so without COL buying, as happening now because of the injunction, share price (discount) will go back up? For every share that COL bought, some local shareholders must have sold. Why not blame the sellers? If there were no sellers, COL would not be able to accumulate their block of shares in the first place.

Posted by dumbMoney > 2022-08-29 10:44 | Report Abuse

If you ask any market commentator what causes share price movements, besides fundamental factors, the most basic explanation is supply and demand. When there are more sellers than buyers, prices get depressed. Why should buyers push up prices when there are plenty of sellers willing to sell at lower prices? COL's objective as buyer is to collect shares at the cheapest prices possible, why blame them for this?

Posted by dumbMoney > 2022-08-29 11:05 | Report Abuse

Of course, if the company, or rather TTB keeps fighting COL in court, the latter may decide it is not worth their while pursuing if they are not welcome and turn sellers one day. Then you can blame them for selling. They have been buying for more than 10 years, have the share price been falling all this while because of them?

Posted by cnman53 > 2022-09-01 15:31 | Report Abuse

In the quarterly report dated 31-05-2022, the following disposal of investment is published in Bursa announcement:-

Disposition of Investments from March to May 2022 (4th Quarter 2022):-
Net
Consideration
No. Trade Date Description Total Cost Received Gain / (Loss)
(RM) (RM) (RM)
A B C = B - A
1 29-03-22 Suria Capital 158,875.49 115,707.35 (43,168.14)
2 01-04-22 Suria Capital 28,756.47 21,275.87 ( 7,480.60)
Total 187,631.96 136,983.22 ( 50,648.74)

The investment in Suria Capital Holdings Bhd was first made at least 14 years ago.
The above sales constitute only a small portion of its existing holdings.

Performance:
(50,648.74) / 187,631.96 x 100% = (26.99%)
A loss of 27% on its investment.

Considering its long term value investor claim, holding a “valued” stock for so long but then decided to dispose of part of its holdings at a loss of 27%, do you think it is a wise move?

Posted by cnman53 > 2022-09-01 15:42 | Report Abuse

No. Trade Date Description Total Cost Net Consideration Received Gain / (Loss)
1 29-03-22 Suria Capital 158,875.49 115,707.35 (43,168.14)
2 01-04-22 Suria Capital 28,756.47 21,275.87 ( 7,480.60)
Total 187,631.96 136,983.22 ( 50,648.74)

Trying to put back the misalignment above.

Posted by dumbMoney > 2022-09-02 12:50 | Report Abuse

@cnman53 To be fair, you need to add back dividends paid out by the stock over the years when calculating returns. Cannot be like TTB, always comparing against the KLCI without adding back the dividend yield of the component stocks.

Posted by CharlesT > 2022-09-02 13:32 | Report Abuse

Ya.....thats the secret behind ICap's better performance over KLCI...

Posted by dumbMoney > 2022-09-02 22:08 | Report Abuse

For a fair comparison with a dividend yield of say 3 and 3.5% annually for the KLCI and compounding for 10 years, the dividends would generate an extra returns of 34.4 and 41.06% respectively. With compounding for 16 years, which is the duration for iCap since listing, the figures would jump to 60.5 and 73.4% respectively. Hardly a level play field comparison.

Posted by stockraider > 2022-09-02 23:30 | Report Abuse

The best is to liquidate ICAP loh....u will get the best return mah!

Posted by JohnD0ugh > 2022-09-04 21:49 | Report Abuse

Capital Dynamics did not get to be Asia's first global investment firm without good reasons. As an independent investment firm with no ties to the large investment banks or stockbrokers or political organisations, Capital Dynamics has no choice but to rely on its own brain power and internal resources to survive and succeed.

Capital Dynamics just has to be damn good in what it does.

Or else Capital Dynamics would not have been able to be around since 1989 in one of the toughest industries there is. And damn good Capital Dynamics has been, since 1989.

It is not just the deeply respected weekly i Capital (or www.icapital.biz) but also in the local and global funds that Capital Dynamics manages (bear in mind that Capital Dynamics does not have any agents selling its funds or its weekly i Capital) and the way Capital Dynamics has stubbornly stuck to its integrity principle.

Capital Dynamics has been damn good since 1989 because of one very good reason.

Tan Teng Boo, its CEO, makes sure that Capital Dynamics conducts solid, comprehensive primary research (not secondary research) and as a consequence, consistently produces world-class analysis on a wide range of subjects, which then enables Capital Dynamics to make far-sighted, wise investment decisions.



i Capital Newsletter Volume 33 Issue 40

Posted by dumbMoney > 2022-09-07 22:58 | Report Abuse

As to who is the first Asian global investment firm, readers can check up Value Partners here https://www.valuepartners-group.com/en/about-us/overview/

Posted by dumbMoney > 2022-09-08 03:25 | Report Abuse

@WilliamWilkerson You have to excuse TTB's memory some time as he has mistakenly said that the Slater Walker boys were also controlling Sime Darby during the late 1960's and early 1970's in a recent interview. Can't blame him, as he was only a school boy then, but already dabbling in the stock market.