If you have invested in ICAP on 11th Jan 2008, you would have paid RM 2.78 per share for it, while its NAV is RM 2.22 . Over the next 4.5 years, the NAV risen from RM 2.22 to RM 2.94 on 22nd June 2012, for a total growth of 32.4% during this period.
But the same can't be said to your return as a shareholder during these period. The market price on 22nd June 2012 is only RM 2.15, giving you a return of negative 22.7%.
Why is NAV grows 32.4% during these period, while your return as a shareholder is -22.7% ?
It's because at the time of purchase, you're paying 25.2% PREMIUM over NAV, and at the time of sale, people is paying you 26.9% DISCOUNT over NAV.
While buying at discount to NAV is good, it is at the expense of the seller. So is vice versa to buying at premium.
Thus, the best way to be fair to both buyer and seller for the fund to trade close to its NAV, and the best way to achieve this is to have a policy by ICAP to ensure that the gap between NAV and market price isn't wide (say, anything more than plus or minus 5%).
Data available here: http://www.icapital.my/en/weeklynav
And the reason i vote for Laxey is because i'm voting for the gap between market price and NAV to reduce to be fair to both the buyer and seller. Although i know most of you are long term investors, but should you decide to sell one day, you would want to sell at a fair price, don't you?
Just like in Politics. Many vote for PKR not because they want Anwar. But it's because they want "change".
TTB, hope you'll close the gap by setting policy in place.
Subscribe to:
Post Comments (Atom)
Posts
7 comments:
How you expect Laxey to narrow the discount when their own fund is traded at much wider discount?!
iCap premium gone after financial crisis, during year 2008.
Let's see what he does during FYE 2009.
Bought - Astro, AirAsia, KLK, Boustead, Poh Kong,
Sold - TMI (Axiata) at huge losses, VADS and Air Asia.
2010:
Bought - Suria, MSC, Boustead and Tong Herr
Sold - Astro, KLK, Lion Diversified, Poh Kong, Swee Joo and TM.
2011:
Bought - Coastal, MSC and Suria
Sold - Hai-O, Mieco (AFAIK in losses),
2012:
Sold partial of its portfolio.
So my opinion is, he was punished by the minority shareholders. As your chart is shown, some of the top 30 shareholders reducing stake and those minority shareholders was lesser year by year.
If he hold KLK and TM by now, iCap would be making much more profit.
Top free business listing websites in India. It helps to get online marketing solutions to promote your local business online all over India.
Do you need Finance? Are you looking for Finance? Are you looking for finance to enlarge your business? We help individuals and companies to obtain finance for business expanding and to setup a new business ranging any amount. Get finance at affordable interest rate of 3%, Do you need this finance for business and to clear your bills? Then send us an email now for more information contact us now via (financialserviceoffer876@gmail.com) whats-App +918929509036 Dr James Eric Finance Pvt Ltd Thanks
I'm giving gratitude to Mr Pedro for all of his help in securing our loan for our new home here in Fruitland. You were organized & thorough & professional, as well as kind which made all of the difference in our interactions with you. We put our trust in you and you most definitely came through for us. Thank you for your patience as well as treating us as people rather than just home loan customers. You stand above the rest, I want to recommend anyone here looking for loan or investors to contact Mr Pedro and his staff because they are good people with gentle heart,Mr Pedro Email Contact : pedroloanss@gmail.com
Regards,
John Burley! Our hats off to you!!"
I was diagnosed as HEPATITIS B carrier in 2013 with fibrosis of the
liver already present. I started on antiviral medications which
reduced the viral load initially. After a couple of years the virus
became resistant. I started on HEPATITIS B Herbal treatment from
ULTIMATE LIFE CLINIC (www.ultimatelifeclinic.com) in March, 2020. Their
treatment totally reversed the virus. I did another blood test after
the 6 months long treatment and tested negative to the virus. Amazing
treatment! This treatment is a breakthrough for all HBV carriers.
My name is Fajar. I live in Bedono in Central Java I was in a very chronic financial issue and terminal health situation some few weeks back. After all my search for assistance from friends and neighbors proved abortive, I feel there was no one who truly cares. I became so exhausted due to lack of funds to expand my business and my 2 kids aged 5 and 8 were also not good looking due to lack of proper care as a result of finance. One faithful morning I saw an old time friend of my late husband and I told him all I have been going through and he said the only way he could help was to direct me to a good loan officer in USA that also helped him, He explained to me on how he was financially down and how he got boosted by this loan officer ( Mr Pedro who grant him 7,000,000.00 USD loan at an affordable rate of 2% rate . He further assured me that they were the only legit loan firm he found online. He gave me their email & That was how I applied and was also granted a loan and my life changed for the good. CONTACT THE ONLY GENUINE LENDER Mr Pedro VIA Email / Whatsapp +18632310632 pedroloanss@gmail.com to resolve your financial mess.
Post a Comment