Posted by winnerzhang > 2015-11-22 23:42 | Report Abuse

TTB's closed end fund at 2.35 is undervalued since its Net Asset Value (NAV) is 2.94. With cash at 1.86 per share, this means we are paying only 0.49 for assets (unsold shares in the fund) worth 1.08 (2.94-1.86). Investors are not happy with its share price selling at a discount of 25% to its NAV. For value investors, buying at a discount in Closed End Fund is like buying blue chip shares at a steep discount. For example, buying Public Bank at 13.50 (25% discount to 18.10) in the present market. Isn't this a bargain? So, why do investors avoid icapital? icapital does not pay dividend as its objective is long term capital appreciation. Most of its shares under its portfolio pay good dividend (e.g F&N, Boustead, Padini, Wellcall and PIE). So, indirectly icapital shareholders also receive dividends. Even its strongest critic, City of London Investment Management continues to accumulate icapital. Surely, they see value in it. as they have 14% shareholdings and consistently buying more and more at current prices. Long term investors may want to look at this unloved ugly duckling that may one day turn into a beautiful swan! Disclosure: I have shares in icapital.