Letting go of iCap

I have decided to let go iCap. As mentioned before, while I think that iCap has a good manager, the investment ideas may not suit me. Anyway, I am selling to be able to buy some other stocks in future. The reason I bought iCap was due to it was really cheap. Now it is still cheap but not as cheap when I bought it at RM2.17. I have sold it at RM2.36 despite iCap hovering around RM2.4+ last week. Have to admit I am not a good seller.

Actual amount made over 4 months

Whatever it is, I think that the fight for board positions may not be over with today's large volume traded. Although, City of London Investment Fund has sold some stocks over the last few days, Laxey Partners may buy more. However, it remains my speculation for now.

ICap is now trading at a discount of 19.5% from its last week's NAV. Its major holdings remain to be PetDag, Padini, Parkson, F&N and Boustead.

Among the holdings, these are how I see it.

Petronas Dagangan

I like PetDag despite we seeing more and more oil and gas companies moving into the upstream side of the market. We saw BP letting go of the retail business many years ago and if I am not mistaken I am seeing many of Exxon-Mobil's branded stations changed to a brand called Petron. The letting go of the retail side of business could be good for PetDag in the longer run.

Padini

I have mentioned of my liking for Padini before, hence not repeating.

Parkson

As I like AEON and Tesco, I do like Parkson as well but the Malaysian operations only. Parkson is however heavily dependent on its China's income. For its China's operations, I am not able to reckon the position it is in. My guess is that the competition is getting really stiffer with Wal-Mart, Carrefour, Tesco fighting really hard in the hypermart business. Parkson's positioning is different but it is bound to affect Parkson no matter what. The 3 players are the largest retailers in the world ranking 1, 2 and 3. Where is Parkson? That could have affected the Malaysian owned retailer.

As for Parkson's venture in Indonesia and Vietnam, it is too early to tell the impact it is going to have onto the retailer.

F&N

Good company but its competitors are better brands and much bigger. I see its price as expensive although it does try hard diversifying into properties the next few years to cushion the negative impact.

Boustead

Great assets but I always have doubts on armed forces running companies. If you happened to be in Damansara, just compare One Utama (private owner, See Hoy Chan) against The Curve (Boustead). They are not far from each other. Which one you think has more potential or already is on the home run? This reflects management capabilities, in the eyes of an investor.

I always have the feeling that since most plantation, banks, properties stocks were doing well, Boustead will of course do well. Warren Buffett used to say, "Only when the tides are down, we will know who has been swimming naked."

Out of the largest 5 holdings, I like 2-1/2, hence may not suit my taste for now.