Tuesday, April 14, 2009

iCapital's Investment In Axiata

Yet another freakingly boring post. :D

Last posted: A Quick Look At iCapital's Annual Report 2008


  • Or how about Axiata (formally known as TM International (TMI))?

    iCaital mentioned in its annual meeting that it owned some 2,200,000 shares in Axiata worth some 17.883 million. (That should work to an average cost of some 8.12 or so). Due to the incredible rights issue, Axiata plunged to below 2.50 recently.

    And iCapital is a shareholder.


    Now for a share to have plunged to so low and with the upcoming rights issue, surely iCapital needs to disclose and inform its minority shareholders what it intends to do.

    That is only correct, yes?

    Why can't it mention this in its quarterly earnings notes?

    Doesn't the minority shareholder have the right to know?

    Don't you think it's rather silly to ask the minority shareholder to wait till next annual meeting to find out more?

Axiata is now trading at 1.80.

iCapital.biz has 2,200,000 shares.

Based at 1.80 the shares are worth only 3.960 million. iCapital.biz cost is 17.883 million!

Ahem!

Them paper losses ... OUCH!

Ouch!!!!

Axiata's right issue is 5 for every 4 at 1.12.

Now IF iCapital undertakes the rights issue, will get 2,750,000 new shares of Axiata and they would need to fork up an additional 3.080 million ringgit.

This would means that iCapital potential investment in Axiata would be a whopping 20.996 million!

How?

Is iCapital undertaking this Axiata rights issue?

How?

And again with the lack of disclosure in iCapital's quarterly earnings, how does one know?

Does one have to wait for iCapital's next annual meeting to find out?

Kind of silly isn't it?

Can see the point of why iCapital needs to disclose their investment portfolio in their quarterly earnings report?

2 comments:

kinwing said...

Hi Moola,

According to the ICAP internet subscription, it did recommend to buy 'TMI' at 24/4/2008 with price of 8.05 (or 8.50) if Im not mistaken. And subsequently it did an analysis report to rate TMI at a "Long Term Buy" at 4-July-2008 (at tat time TMI was dropping from 8 to 5.85).

So last 2 weeks I wrote an email tat complained why Capital Dynamics (the company tat provide fund management service to ICAP n oso the ICAP magazine publisher) did not update TMI since its recommendation at 4-July-2008. Becuz the analyst should update his target company no more a quarter rite? Mb wat i wrote in the email seems not in a polite manner, so Capital Dynamics never reply my email's request to update TMI.

So u guest wat, in ICAP internet subscription, there is no more TMI column which previously dated 24/4/2008 with a recommended price of 8.05 (or 8.50?). It could be becuz TMI has changed to be 'Axiata'. So when I further look at 'Axiata' column, it stated tat Capital Dynamics this shares at 24/4/2008 with a recommended price at 3.823...Wat!? So the recommended price has been revised from 8.05 (or 8.5) to be 3.823?

There are 2 possibilities tat revising the price to 3.823. 1st possibility could be done purposely to lower the recommended price in order to cover their ass of making wrong investment. 2nd possibility could be tat ICAP has subscribed the right issue n average down the price...I think it could be the latter possibility. Anyhow, till today Capital Dynamic still no update to TMI but ICAP itself oredi buy the right issue...So i think im gonna write another lovely email to Capital Dynamics...XD


Kin Wing

kinwing said...

Here is my complain email...XD

Title: A Request to update TMI‏
From: Kin Wing
Sent: Wednesday, 25 Mar, 2009 11: 25 AM
To: myaccount@icapital.biz

Dear Sir/Madam,

I am the i Capital's internet subscriber and am a shareowner of ICAP.

i Capital's last mention about TMI and TM was at the same period, i.e. June of 2008 as I read them from the my previous subscription of the i Capital's printing version. And I was also informed during last year ICAP's AGM by the Capital Dynamics's Fund Manager, Mr. Tan Teng Boo, that ICAP has invested TMI.

As far to my concern, however, only TM was updated for the last few quarters whereby TMI was quiet since last year June. Is this an indicator showing that TMI has been disposed by ICAP and thus it is not worth a time to make follow up for TMI? So the i Capital's magazine subscribers who might last time followed as per the ICAP's advice is left to make their own investment decision on TMI without referring to the i Capital's update?

As you might notice that TMI's share price is going down sharply since the i Capital's recommendation due to the poor quarterly result as well as the announcement of right issue with a very low issue price which could harm the minority shareholders' benefit. I am concerned about this kind of progress that happened in TMI, so I feel very dissapointed that i Capital's does not act on this promptly by updating the subscribers with the TMI situation. Suppose every recommendation on a company's share should be updated quarterly?

I appreciate you are taking your time to read this email and I hope my email will not be dumped like TMI without any response and update.

Regards,
Kin Wing