Capital Dynamics Tan Teng Boo Now Claims That Markets Have Bottom Few Months Ago!

Last month, I made a couple of postings on iCapital's quarterly earnings.

My issue was clear and simple.

I was reading it's quarterly earnings notes and I found the earnings notes lacking because the closed end fund gave a rather shockingly brief market outlook and of course the lack of disclosure was another issue.

These were the postings made.

1. A Quick Look At iCapital's Quarterly Earnings
2. iCapital.Biz Lack Of Disclosure In Their Quarterly Earnings
3. iCapital.Biz Lack Of Disclosure In Their Quarterly Earnings II
4. iCapital.Biz Lack Of Disclosure In Their Quarterly Earnings III
5. A Quick Look At iCapital's Annual Report 2008
6. iCapital's Investment In Axiata
7. iCapial And Their Potential 12 Million Ringgit Paper Losss In Axiata

And why was the earnings note shockingly brief?

Well when a potential investor or a minority shareholder of the fund reads the earnings notes, surely the would want to learn more about the current prospect of their investment.

Now since iCapital is a closed end fund, it's only right, in my flawed opinion that they give a proper account of their views on the current markets, right?

For example, if the fund reckons that the market would be in the doldrums, upon reading such market assessment, perhaps the minority investor has the option of remaining as an investor of the fund or the investor might want to cash out.

And this is what the company has to say LAST MONTH in their earning notes.

• Although the stock market remains depressed, as a value investor, iCapital.Biz Berhad with its Fund Manager and Investment Adviser will continue to seek stocks that are attractively priced.

Today, on Business Times, there is an article. 'Stock stampede coming and it's no bull'

• Managing director Tan Teng Boo believes that stock markets have bottomed "a few months ago" and that the global economy is on course to a V-shaped recovery.

Huh??????

Ok, so a month ago, Mr.Tan's iCapital remarks in iCapital.Biz earnings notes that stock market remains depressed. (see screen shot)

Now, he goes on media and proudly proclaims that stock markets have bottomed a few months ago?????

Well... how lah?

Still the same old same old eh?

LOL!

• 'Stock stampede coming and it's no bull'
  
  By Adeline Paul Raj Published: 2009/05/06
  
  A major bull run is under way in global stock markets, says the Capital Dynamics group, a fund manager with one of the most optimistic views of the market yet.
  
  Managing director Tan Teng Boo believes that stock markets have bottomed "a few months ago" and that the global economy is on course to a V-shaped recovery.
  
  "The global stock markets are on a major bullish reversal," he told reporters yesterday at the launch of a global unit trust fund.
  
  Economic data in almost every part of the world, including the US, is beginning to look much more positive, he said. Yet, investor sentiment has continued to remain negative.
  
  "I've never seen so much pessimism in my life. I want to go on the record as being bullish, amid pessimism," he remarked.
  
  Tan emphasised that this is not a bear market rally that the world is seeing. With economic fundamentals improving, global fund management firms will realise that if they don't start investing soon, they'll be under-performing the market.
  
  They then start to panic-buy, he said, and this sets the stage for sustainable market rally.
  
  "The current stock market rally will be sustained by the institutional lemmings which are still loaded with cash and the banking giants which have too much hoarded liquidity," he said.
  
  The same will happen in Malaysia, but here, there is the complicating factor of political uncertainty in certain states, he said.
  
  "Politically, Malaysia is still in a very uncertain phase, but what will help the stock market is the global economic recovery," he added.
  
  He thinks the Kuala Lumpur Composite Index (KLCI) will likely test the 1,400 to 1,500 point level within the next two to three years.
  
  The KLCI closed at 1008.87 yesterday, down by 0.49 point on profit-taking activity after three days of strong gains.
  
  Capital Dynamics has been on a stock-shopping spree over the last few months, Tan said. It owns shares in KL Kepong, Keppel Corp, Parkson, Tesco and Bank of East Asia, among others.
  
  The group's recently-opened Australian office Capital Dynamics (Australia) Ltd will manage the iCapital International Value Fund that was launched yesterday.
  
  This is a global open-ended fund denominated in the Australian dollar, meant for retail investors here and Down Under.
  
  Tan said the fund, which will be invested in value stocks in 42 markets, is targetting an annual return of between 15 per cent and 20 per cent. The minimum initial investment is A$20,000 (A$1 = RM3.00).
  
  Capital Group also has offices in Malaysia and Singapore.
  
  On the global financial crisis, Tan said the severe economic contraction can be almost entirely blamed on the collapse of US investment bank Lehman Brothers last September.
  
  "Without the policy flip-flop of the previous US administration in not rescuing Lehman, it would have been pretty much 'business as usual' for us," he remarked.