ICAPITAL.BIZ BHD

KLSE (MYR): ICAP (5108)

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Last Price

1.97

Today's Change

+0.03 (1.55%)

Day's Change

1.90 - 1.97

Trading Volume

23,000

Overview

Market Cap

276 Million

NOSH

140 Million

Avg Volume (4 weeks)

6,073

4 Weeks Range

1.90 - 1.99

4 Weeks Price Volatility (%)

77.78%

52 Weeks Range

1.87 - 2.53

52 Weeks Price Volatility (%)

15.15%

Previous Close

1.97

Open

1.91

Bid

1.93 x 14,100

Ask

1.97 x 8,000

Day's Range

1.90 - 1.97

Trading Volume

23,000

Financial Highlight

Latest Quarter | Ann. Date

31-May-2022 [#4] | 20-Jul-2022

Next QR | Est. Ann. Date

31-Aug-2022 | 11-Oct-2022

T4Q P/E | EY

-135.33 | -0.74%

T4Q DY | Payout %

0.00% | 0.00%

T4Q NAPS | P/NAPS

3.19 | 0.62

T4Q NP Margin | ROE

-28.71% | -0.46%

Market Buzz
Company Profile

Sector: CLOSED END FUND

Sector: CLOSED END FUND

Subsector: CLOSED END FUND

Subsector: CLOSED END FUND

Description:

icapital biz Bhd is a Malaysian closed-end fund. The primary investment objective is a long-term capital appreciation of its investments. The company mainly invests in undervalued companies which are listed on the Main Market of Bursa Malaysia Securities Berhad and the ACE Market of Bursa Securities. It also invests in cash deposits. The revenue generated by the company includes interest income, dividend income, and other income.

Discussions
5 people like this. Showing 50 of 3,676 comments

dumbMoney

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.

2 months ago

fong7

@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.

1 month ago

Nepo

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..

1 month ago

dumbMoney

@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.

1 month ago

Nepo

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

1 month ago

dumbMoney

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.

1 month ago

dumbMoney

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?

1 month ago

cnman53

And TB is giggling by himself at this stalemate.

1 month ago

fong7

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.

1 month ago

fong7

@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.

1 month ago

dumbMoney

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

1 month ago

dumbMoney

@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?

1 month ago

fong7

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.

1 month ago

dumbMoney

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.

1 month ago

Income

TTB is a Bursa renowned BLACK HOLE. Sucking all the money and spewing out deadly gamma radiation.
Don’t who don’t know are super clever of the last degree???



Posted by fong7 > Aug 26, 2022 8:27 PM | 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.

1 month ago

JohnD0ugh

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

1 month ago

dumbMoney

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.

1 month ago

dumbMoney

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?

1 month ago

dumbMoney

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?

1 month ago

cnman53

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?

1 month ago

cnman53

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.

1 month ago

dumbMoney

@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.

1 month ago

CharlesT

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

1 month ago

dumbMoney

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.

1 month ago

stockraider

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

1 month ago

JohnD0ugh

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

1 month ago

dumbMoney

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/

4 weeks ago

WilliamWilkerson

no way

4 weeks ago

dumbMoney

@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.

4 weeks ago

JohnD0ugh

Barring unforeseen circumstances, the odds favour the NAV of icapital.biz Bhd exceeding RM1 bln or RM7.14 per share.

icapital.biz Bhd is easily the most undervalued company on Bursa Malaysia and remains a misunderstood company; such a combination smells of a unique investment opportunity.

This is without taking into account the future strong increase in NAV.

In a world filled with uncertainty, icapital.biz Bhd represents a solid long-term investment.

If a subscriber starts with only RM500, and makes a monthly regular investment of RM500 and icapital.biz Bhd generates a return of only 8% per annum, the subscriber would have a total of RM251,278 in 224 months (18 years and 8 months).

If the return rises to 15% per annum, well, the end result will be much higher.


i Capital Newsletter Volume 33 Issue 7

3 weeks ago

dumbMoney

The standard disclaimer of most fund managers is that past performance is no indication or guarantee of future performance. Why stop at only 15% per annum, why not 20%? What is the CAGR since listing? Anywhere near 15%?

3 weeks ago

dumbMoney

BTW, the company was listed on 19 Oct 2005, didn't quite make it 18 years and 8 months yet. Want to give it a longer and more impressive track record? The same performance stretched over a longer period will reduce the CAGR.

3 weeks ago

dumbMoney

Until the share price discount to NAV is normalised, shareholder returns based on NAV is academic. What you see is not what you get. There are plenty of other companies on Bursa selling at deep discount to NAV, how do their shareholders calculate their returns on investment?

3 weeks ago

dumbMoney

The elephant in the room is not NAV performance, but share price discount. Blaming it on shareholders is management passing the buck. There were 4 listed closed end funds in Singapore in the past, but all ended up in members voluntary liquidation because of persistent share price discount, which management was unable or unwilling to address.

3 weeks ago

dumbMoney

The only other Malaysian listed closed end fund also suffered the same fate some years back because of the price discount. This is an existential threat to a CEF if not addressed by management.

3 weeks ago

JohnD0ugh

Many investors and investment analysts have failed to understand that icapital.biz Berhad is ideal for investors looking for a low-risk, high-return Malaysia focused fund.

icapital.biz Berhad's strong performance is not a fluke shot and its consistency is but the logical result of its fund manager's Bamboo value investing philosophy.

Developed by Tan Teng Boo, this eclectic investing style has proven itself time and again throughout a variety of financial market and economic conditions, including the 2020 pandemic recession and our current bear market.

i Capital Newsletter Volume 33 Issue 36


2 weeks ago

dumbMoney

So the share price discount is all investors and investment analysts' fault then, go fix it yourself, TTB has done his part admirably well and earned his fees. Good for him.

2 weeks ago

bryantfc

Discounted price will self correct, if dividend payout is consistently declare at rm0.20 per annum. This especially for retirees looking for annual income for yearly expenditure without affecting initial capital.

1 week ago

dumbMoney

That's 28 million a year in dividend and $420K a year reduction in management fees income.

1 week ago

Noni

Closed end funds, is always below NAV. Is a natural setup issue. This is not ETF.

1 week ago

bryantfc

A test to the sincerity of the ICAP management.

1 week ago

firehawk

Don;t dream about 20sen per annum, this is against his interest

1 week ago

Noni

You think is so easy to move it up 0.20? Market will sell and you going to end up holding more of the same thing.
Why should TTB take such risk to reward shareholders?

1 week ago

bryantfc

Yes agreed that it is a left and right pocket issues. Dividend payout has no real impact on wealth. In this situation it is different, demand for ICAP shares is very low despite NTA is growing rapidly. Why? Aren't you dissatisfied high cash holding ICAP which cause high management fees? What does longterm investor looking for? Perpectual grow in the investment value? Ultimately is what is the payout, a mature investment should have a continuous sustainanble payout.

1 week ago

dumbMoney

@bryantfc TTB's argument against dividends is that his counterpart (since he is supposed to be the Malaysian equivalent) WB's Berkshire also doesn't pay a dividend. iCapital's two previous dividends were one off, the first one is to use up the dividend franking credit, and the second one of 20 sen is a pacifier to shareholders before the AGM, a special Covid handout, like the Government's financial relief. @Noni, you said it, not me, haha. If TTB is not going to do it, shareholders can DIY with a liquidation. Your choice!

1 week ago

dumbMoney

This is reposting of my earlier comment, because of typing errors: @bryantfc Dividend payouts will not have much impact on shareholders' wealth because the share price will theoretically adjust for it ex-dividend, so it is just left pocket and right pocket. However, just raising the share price by 20 sen by reducing the price discount to NAV is real money you can take to the bank, and it is a win/win thingy for TTB also as there is no reduction in management fees payable, unlike a dividend payout.

1 week ago

dumbMoney

@bryantfc According to the Nobel Economic Prize winning M&M Theorem on corporate capital structure, dividend policy has no bearing on a company's market value. https://www.investopedia.com/terms/m/modigliani-millertheorem.asp#:~:text=The%20Modigliani%2DMiller%20theorem%20states,was%20introduced%20in%20the%201950s. For dividend paying companies, the role of dividends is as a signaling tool, an increase in payout is a signal that the company is optimistic on future earnings growth and vice versa. If a company can reinvest earnings at a higher returns than the cost of capital of its investors, like Berkshire, then not paying a dividend is optimal. And vice versa. Similarly, if the company's ROE is higher than what the market is rating it at, then a share buyback is suggested. For example, if the dividend yield is 5% and the company can borrow at 2.5% or lower, like during QE2, US companies were rushing to buy back their shares with cheap borrowings and boost their EPS and achieve higher share prices.

1 week ago

JohnD0ugh

The intellectual approach towards investing in the stock market differs greatly between those who time the market or stocks and those who practise value investing.

For the former, the market index or stock price is just a number to predict, making it in essence similar to gambling or speculating; for the latter, the market index is meaningless and irrelevant while the stock prices are to be used only in comparisons with the intrinsic value of a stock or business.


i Capital Newsletter Volume 31 Issue 36

1 week ago

JohnD0ugh

An investor needs to match his or her own investment objective with the investment product before investing.

As Tan Teng Boo explained, to understand icapital.biz Berhad better and see if it is suitable for your investment needs, think of two types of properties: Property A as an empty land and Property B as a shop house.

Question: which type of property is suitable for your investment needs? If you are looking at an investment that can provide you with regular income, obviously buying a shop house with rental would be the most suitable.

If you are looking for an investment that offers high long-term capital appreciation, buying a piece of land would be far superior. In Malaysia, just think of the property tycoons that bought empty pieces of land 40 or 50 years ago in places like Bangsar, Bandar Utama, Subang Jaya, etc. and sat on them and let the land appreciate in value.

Investing in icapital.biz Berhad is like buying such a piece of empty land. icapital.biz Berhad calls its investors "share owners" instead of "shareholders".

icapital.biz Berhad is certainly meant for the serious long-term investors,
people who want to be able to sleep soundly at night and then wake up later to see their asset value has appreciated substantially.


i Capital Newsletter Volume 30 Issue 1

3 days ago

Nepo

ANALYSIS OF SHAREHOLDINGS as at 24 August 2022
Cartaban Nominees (Asing) Sdn Bhd
SSBT Fund WB7A For Bill And Melinda Gates Foundation Trust 3,556,917 shares 2.541%
====..===========..===
Quite impressive, even Bill And Melinda Fates Foundation also holds Icap Share.
Source: Annual Report 2022-Analysis of Shareholding.

Extract from Wiki:-
"The Bill & Melinda Gates Foundation (BMGF), a merging of the William H. Gates Foundation and the Gates Learning Foundation,[5] is an American private foundation founded by Bill Gates and Melinda French Gates. Based in Seattle, Washington, it was launched in 2000 and is reported as of 2020 to be the second largest charitable foundation in the world,[6][7] holding $49.8 billion in assets.[4] On his 43rd birthday, Bill Gates gave the foundation $1 billion.[8] The primary stated goals of the foundation are to enhance healthcare and reduce extreme poverty across the world, and to expand educational opportunities and access to information technology in the U.S. Key individuals of the foundation include Bill Gates, Melinda French Gates, Warren Buffett, chief executive officer Mark Suzman,[9] and Michael Larson.[10]"

3 days ago

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