Monday, July 14, 2008
Review of FY 2008 iCapital Performance
(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.