iCapital Did Explain Why It Lost So Much Money In Axiata!

Hmmm.... :D

Got a new comment on an old posting: Are My Comments On iCapital Overdone?

• invest said
  
  I tend to think your criticism on TTB is rather harsh and overdone considering a few points I which to make :-
  
  1) TTB did explain the losses in AXIATA in his AGM (those that attended the AGM would know).
  
  2) ICAP did not buy AXIATA from the market. ICAP got the shares as a result of the spin off of CELCOM (AIXIATA) from TELEKOM.
  
  3) Due to the rights issues call, ICAP decided not to take up the rights and decided to dispose the entire stake in AXIATA. TTB feels AXIATA might require further cash calls / funding in future for their expansion plan. Hence, ttb decided to sell and channel proceeds to another stock.
  
  In fact, I found the Q&A with TTB during the AGM was really a wonderful open time where TTB shared some of his thoughts and reasonings.
  
  I guess those that did not attend the AGM if you are shareholders really missed out.

Let me share some views again.

Firstly, many thanks for highlighting the fact that Mr.Tan did share with his loyal supporters on the massive losses iCapital suffered on Axiata.

Now perhaps let share with you my issue.

On the posting: http://everything27.blogspot.com/2009/06/icapital-lost-14-million-in-axiata.html

The following is the link to the screenshot I had posted on that posting: click here

In that quarterly earnings note, did iCapital explain why it sold? Did it? It did not and for me, it's in my flawed opinion, that it's unjustifiable that iCapital shareholders had to wait for the agm to discover if icapital will explain it losses or not! (In this case, iCapital did explain).

Why is it unjustifiable to wait? Well, iCapital.biz, is a traded entity. And the market, as you know, has it's own mindset. What if the market had sold iCapital down because of the losses? Would this be an impossible scenario? So why can't iCapital explain it losses in its earnings notes?

Is this such an impossible request?

To not explain in their earnings notes and to explain it only in the agm is like icapital telling their investors, 'hey we got huge losses in Axiata (14 million), you do not have to be worried for the next xxx of months. Just wait for my agm, then I will explain'. (In this case, icapital shareholder had to wait more than 2 months to find out the reasoning.)

Does that sound ridiculous?

For some, it does not but for some it's not only ridiculous but ludicrous! Reason? Lack of transparency and lack of respect to the investing public.

Now that was my point.

Did I blast iCapital for not explaining the Axiata loss in its AGM? No, I did not! My point from day one was that iCapital did not bother to explain its MASSIVE losses in its AGM. its quarterly earnings notes!

Regarding points 2 and 3. Thanks for highlighting this issue. Now if one wasn't a shareholder, would they have known? They would not yes?

And let's look at the reason why it sold its shares in Axiata.

Quote: "Due to the rights issues call, ICAP decided not to take up the rights and decided to dispose the entire stake in AXIATA. TTB feels AXIATA might require further cash calls / funding in future for their expansion plan. Hence, ttb decided to sell and channel proceeds to another stock. "

Now this is such a SIMPLE and ACCEPTABLE explanation, yes?

And if I had own Axiata, I might even consider selling based on the exact same reasoning. It was a simple and logical explanation. It's really a no brainer.

So why can't iCapital explain this simple reasoning to the investing public right after it sold it's shares in Axiata? Why did iCapital wait until the AGM (a couple of months later) only to explain what had happened?

Again, I ask, is such an action acceptable?

For me, I find it unacceptable.

Last but not least, if you think that I pointing out this issue as being overdone and harsh, well that's your right of opinion but I will not apologise for pointing out something that I clearly find as unacceptable.

Strange don't you think so?

Everything only wants to talk about the positive.

Those that point out the negatives are deemed as bad folks.

Hey, guess what? I do not have any problems with that. Serious! You see that's your right to only focus on the positives and ignore the negatives. Perhaps in this world, the negatives do not exist.