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Saturday, October 10, 2009

VALUE BUY ICAPITAL.BIZ (ICAP)

Did you make great profit from my previous tips? Please check out my previous recommendation to see them for yourself.Track record doesn't lie.
ICAP is another stock for you to make superior profit. What is ICAP doing actually?
iCapital.biz Bhd is a closed-ended equity mutual fund launched and managed by Capital Dynamics Asset Management Sdn Bhd. It invests in the public equity markets of Malaysia. The fund invests in stocks of companies operating across financial sectors. It invests in value stocks of companies. The fund benchmarks the performance of its portfolio against the KLSE Composite index.
The attraction in ICAP lies in its portfolio,which consists of the following companies:
  • Integrax
    Parkson Holdings
    Astro
    Padini Holdings
    PIE
    Boustead
    Poh Kong Holdings
    Suria Capital
    Tong Herr Resources
    Petronas Dagangan
    F&N Holdings
    Telekom
    Kuala Lumpur Kepong
    Swee Joo
    Mieco Chipboard
    Lion Diversified
    Hai-O Enterprise
There are three potential upsides for ICAP:
a) Most of these companies have shot up in the recent recovery in the stock market. Most importantly, these companies are cash rich with little debt. These companies will definitely have plenty of room to grow by capitalising on distressed assets and ride on the economic recovery. ICAP is a great proxy to these companies
b) Current ICAP's NAV is RM 1.91 while its stock price is trading at a discount. It closed at RM1.79 on Friday. While buying ICAP at discount will provide some safety cushion, investors should also focus on its potential appreciation. ICAP still have about RM 30 mil cash on hand (based on its latest quarterly result) which placed it at a great position to buy on the dip.
c) ICAP is only allowed to invest in KLSE currently. If it is allowed to invest overseas,it will boost ICAP's potential and more investors will be more attracted to it since it provide a cheap proxy to value companies all around the world.
This is the right time to capitalise on ICAP

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