Comments
(i) iCapital took profit on the following stocks in FY 2008 ended 31 May 2008.
Stock / Realized profit (RM '000) / iCapital Rating
1. Boustead / 578 / Buy and Hold
2. Integrax /383 / Hold
3. Lion D / 7485 / Buy and Hold
4. Petronas Dagangan / 2635 / Hold
5. Poh Kong/ 186 / Buy and Hold
6. UMW Holdings / 18,887 / Hold
7. United Malacca / 6,569 / Hold
Wonder why iCapital sold down their stakes in United Malacca and UMW while retaining its hold rating. Shall we read all hold = sell ????
(ii) Sold down plantations related and oil and gas stocks. However he is keeping some of the port and transportation stocks which are beneficiary of plantations sector. He is still pretty bullish about retail sector.
(iii) iCapital called for a hold for Mieco Chipboard and he is still keeping it. The value of the stock drop by 60%. It's seems like no cut-loss trigger.
(iv) iCapital is in favor of big cap in FY 2008, roughly about 65% big cap vs 35% small cap.
(v) iCapital lets its winners run as long as it can though many of them already gone up by more than 100%.
(vi) Made 194 trades in FY 2007 with transaction costs of $ 173 k vs 107 trades in FY 2008 incurred $ 284 k transaction costs. This means 17 trades/month in FY 2007 vs 9 trades/month in FY 2008. Turtle is kind of stupid, zero turnover in the last six months -- need to reconsider my yield maximization strategy.
(vii) My best guess of iCapital intrinsic value is around RM $ 2.10 - 2.20/share.
(viii) Watch what they do not what they said! Or let them manage your money!
Good luck to all.
3 comments:
People are usually confused between the Buy/Hold call recommendation in I-Capital and the actual portfolio management in I-Cap Bhd.
These two are different thing.
I-Capital buy/hold or sell recommendation is only focus on the value of the particular stock. Buy if undervalue. Sell if overvalue for that particular stock.
However the portfolio or fund management in I-Cap Bhd is more than just which stock to Invest. it involve portfolio management ie to adjust the stocks in the portfolio from time to time to get the highest returns possible.
It will disposed a stock (even still undervalue) to reserve the fund to invest in another which offer better value or returns simply because it's more attractive.
Hi,
A major portion of Parkson in ICAP portfolio is split from the liondiv. In 2007 annual report, ICAP owns 5408400 of liondiv. Hence, we should assume ICAP owns 7030920 shares of Parkson in 2007.
That means from 2007-2008, ICAP buy additional 1669080 shares of Parkson.
Giap Seng
Giap Seng,
Thanks for the highlight.
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