CapitaMalls Asia

[profittaker]

Ignoring ML report, if the price gets to 0.43x1.95=0.84. Could it mean $0.84 (if it ever happen) would be a damn good bargain?

only 43% of its NAV is operational

ML reduced RNAV from $1.95 to $1.53. So far is the most bearish reports I read.

[Aspellian]

If it drops to $1.30, I will buy more of this ticker in due course then. I have noted that it has around $1b cash.

With earnings now only expected to show significant improvement in 2013, we do not believe current valuations support share price.

It dropped to $1.25 today after gapping down slightly a few days back. being a new ipo - there is no base support. supposed to be Reit but only 1.5c so far - 1% yield is not helping. Analysts starting to downgrade - maybe more fats to be trimmed... and if it can sustain well operationally to 2012, really can consider to buy and hold... putting it on my watchlist.

[profittaker]

Thanks Aspellian. You have a very good point of yield, with other REITS falling, their yield is going higher and probably more attractive in that sense.

But using yield alone may be "too safe" approach to "judge" this ticker. Just side track, sis L mentioned 1b cash that is around $0.34, with 3.9b shares. (Please bear with my shallow FA. )

chart wise, the candle is acceptable positive. However, with overall market still negative, I am watching from the side.,

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[LenaHuat]

I don't understand investors' appetite for this IPO. Maybe I have missed some sentiments.
Isn't this pre-investment? Why would I want to pre-invest in this ticker? Its CEO said on TV that it cost some $200m to $250m to build a mall in China. They have so many in the pipeline and these will not yield ROE until some 2 to 3 years down the road. Wouldn't I have plenty of time to pick it up?

BTW, it's 4.9 times oversubscribed. Nevertheless, good wishes to those who hope to stag successfully.

Hi Profitaker and Aspellian
Thank QQ for the posts. It is delightful to read your discussion. If you read what I wrote way back in 2009, you will understand why I only plan to scoop them in 2011. It takes a long time for malls to stabilize and to gain brand name recognition. With this correction, I suppose I can lower my target to even S$1. Let's play by the market signals.

[Aspellian]

I don't understand investors' appetite for this IPO. Maybe I have missed some sentiments.
Isn't this pre-investment? Why would I want to pre-invest in this ticker? Its CEO said on TV that it cost some $200m to $250m to build a mall in China. They have so many in the pipeline and these will not yield ROE until some 2 to 3 years down the road. Wouldn't I have plenty of time to pick it up?

BTW, it's 4.9 times oversubscribed. Nevertheless, good wishes to those who hope to stag successfully.

Hi Profitaker and Aspellian
Thank QQ for the posts. It is delightful to read your discussion. If you read what I wrote way back in 2009, you will understand why I only plan to scoop them in 2011. It takes a long time for malls to stabilize and to gain brand name recognition. With this correction, I suppose I can lower my target to even S$1. Let's play by the market signals.

Hi LenaJie,

Thanks for your encouragement - i just sprouting nonsense...
I have so much to learn from you here - your posts have always been enlightening. In this forum i start to really realise that Knowledge and exercising prudence and wise judgement is critical to success (in life). I have learnt much values here (other than investment styles) from the many contributors.

[tonylim]

Share price is a vote of no confidence to the management.

[iam802]

I cut my loss after it breaks support at around 1.4

In fact, I should have cut it when it doesn't seems to be going up much after I entered into the position.

Gap resistance is around 1.28 now.

It is bearish on the Daily Chart and Weekly Chart.

[tonylim]

Hope to buy some below 1.1.

[LenaHuat]

This ticker is a very small investment for me. So I have kept it in my portfolio. The overall sentiment is pretty soft.
I will collect more of this but there is no need to rush to do it. Doing it this time when there is a big correction in the overall market.

[winston]

not vested

Singapore Hot Stocks-CapitaMalls Asia up on China earnings hopes

SINGAPORE, Aug 23 (Reuters) - Shares of Singapore's CapitaMalls Asia , which owns shopping malls, rose as much as 3 percent on Tuesday on hopes that significant completions of its malls and acquisitions in China could boost its earnings.

At 0312 GMT, CapitaMalls Asia shares were up 2.6 percent at S$1.195 on a volume of 2.6 million shares. In comparison, the broader Straits Times Index <.FTSTI> was 0.3 percent higher.

"There's a bit of optimism back on China retail malls, so that may bring some cheers to CapitaMalls Asia," said a local trader.

Deutsche Bank said in a report that the company's completed malls in China only account for 43 percent of net asset value, with an additional 17 percent to be completed in the second half of this year.

It added that the company's acquisition of the remaining 50 percent stake in Minhang and Hongkou malls for S$949 million ($785.4 million) is expected to contribute around S$13 million to profit after tax and minority interests.

CapitaMalls Asia management had also commented that it maintains a pricing advantage over local peers in China by upgrading its tenant mix while constantly revitalising its malls, Deutsche said.


Source: Reuters