See, what a bunch of short sighted shareholders, willing to leave a dollar on the table and settle for a $2.50 offer, haha. Lock up the shares for another 100 years for your grand children. They will thank you for that.
one fine day, ttb buys & sapu icap shares, he is not going to let his son control by others which will tarnish his reputation. over these few years, he has enough reserve ( received from icap mgt fee over 60 millions..) to against with any rival takeover
@Nepo ICAP’s management fees are paid to CDSB and CDAM at 0.75% each (as shown in its 2005 IPO Prospectus). The management fees are then used to fund the operations of the companies, not just fees to TTB himself. You may purchase the companies’ financial statements from SSM for checking. Therefore, what you said won’t happen.
Probably some one jumped the gun, the injunction against COL has not been lifted yet, even though it should be just a question of time, unless the company can get another interim injunction pending the appeal to the Federal Court. If permission to appeal is refused, end of story then. Is there a Plan B?
@speakup Haha, like that I better start my own CEF then. Last week was the verdict of the court case, so did a bit of post mortem, that's all. Good thing it is along the lines I analysed, otherwise would be accused of posting rubbish again.
@observatory Depending on how the bought back shares are kept in the books. If as treasury shares, there is no change in AUM, just a swap of cash for treasury shares. It is only when the shares are cancelled that there is a reduction in AUM.
But when the shares are cancelled, the NAV per remaining share goes up because the discount to NAV is realised, So what the shareholders' gains will be the manager's loss.
@Just88 This is how the numbers are derived. If shares are bought back at say $2 when the NAV is say $3.40, when the shares are cancelled, the difference between the cost and NAV ($3.40-$2.00) i.e. $1.40, is then distributed among the remaining shareholders. So maximum allowed buyback of 10% paid up capital =14 million shares, surplus of $1.40 each = 19.6 million, shared by remaining (140-14) 126 million shares = 15.55 sen/share increase in NAV. This has the same effect as buying 28 million worth of shares from the market and selling them for 47.6 million, realising a profit of 19.6 million in the P&L accounts.
Since July 17, 2018, WB has overseen the repurchase of more than $62 billion of Berkshire Hathaway Class A and B stock. That's far more than Buffett's company has invested in Apple or Chevron.
In the interest of the long term investors/shareholders, ICAP should do share buyback as it will immediately increase the NAV per share of ICAP. Should the BOD acts in the best interest of its shareholders or the fund manager ?
A share buyback at a discount is effectively a transfer of wealth from the selling shareholders to the remaining shareholders, so this has a psychological impact on those intending to sell, why should they lose out on the price discount by selling? Better let others sell and i reap the benefits by keeping the shares instead. This will slow down the supply of sellers and can help narrow the discount. In US, companies can announce big buybacks, but are under no obligation to buy in full, just for the psychological impact on the share price, because that imply a temporary floor price supporting the share, giving confidence to the buyers to come in, and for sellers to hold back.
Yes, I agree. Then ICAP should do share buyback by all means ! Why keep talking about the quality of shareholders that is causing the large discount ??
WB has told shareholders that Berkshire will consider share buybacks if price drops below 1.2 times its intrinsic value. Given the financial strength of the company and the reputation of WB, this forms an invisible support line to investors confidence.
Can you imagine the consequences if iCap succeeds in its claim that COL is in breach of the limit and forced the latter to turn sellers? The exact opposite effect of announcing a share buyback plan.
The strategy of attracting individual investors was copied by Pershing Square Holdings (PSH), the 2nd largest closed-end fund in the world. Despite massively buying back its own shares and making regular dividend payments, PSH encountered the same NAV discount issue as Scottish Mortgage Investment Trust.
"In 2021, we increased our marketing efforts in the UK., specifically to retail investors and the 'platforms' they use, and remain focused on reaching a broader array of potential investors". In Mar 2021, PSH engaged a professional firm to cultivate demand across UK-based wealth managers and retail/adviser platforms, targeting individual investors (Source: 2021 Annual Report of PSH).
And what is icap director trying to say with purchase of 1,000 units from open market?
Director's Particular: Name MR BOH BOON CHIANG Details of Changes: Currency - Date of Change Type Number of Shares Price 20-Feb-2023 Acquired 1,000 2.075 Registered Name Public Nominees (Tempatan) Sdn. Bhd. Nature of Interest Direct Interest Consideration 2,075.62 Nature of Interest Direct Interest Shares Ordinary Shares Reason Acquisition of 1,000 ordinary shares on 20 February 2023 through open market. Consideration - Total no of securities after change Direct (units) 1,000 Direct (%) 0.00 Indirect (units) 0 Indirect (%) 0.00 Total (units) 1,000 Total (%) 0.00 Date of Notice 20-Feb-2023
Feels like the director was "instructed" by someone to buy a mere 10 lots to see who is his counterparty, as counterparty information can be useful when comes to analyzing who are the sellers.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
dumbMoney
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Posted by dumbMoney > 2023-02-19 21:03 | Report Abuse
See, what a bunch of short sighted shareholders, willing to leave a dollar on the table and settle for a $2.50 offer, haha. Lock up the shares for another 100 years for your grand children. They will thank you for that.