Capitaland 01 (May 08 - May 10)

Capitaland 01 (May 08 - May 10)

Postby winston » Fri May 09, 2008 9:24 pm

Substantial shareholder Liew Mun Leong has reduced its stake in Capitaland Ltd from 0.0578% to 0.0575%.
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Capitaland

Postby winston » Thu May 22, 2008 7:40 pm

Mun Leong 'effect' plays on CapitaLand price again

Stock underperforms STI as CapitaLand CEO sells another tranche of his shares

By TEH HOOI LING


(SINGAPORE) Call it the Mun Leong effect.

As CapitaLand chief executive officer Liew Mun Leong disposed of another tranche of his shares, the company's stock once again underperformed the Straits Times Index. This seems to happen every time Mr Liew or his wife sell their shares in the open market.

The disposal does not appear to have any informational content as it is part of Mr Liew's regular practice to cash in on his stock options. The market, however, seems intent on reading something into it.

Mr Liew sold 800,000 CapitaLand shares last Friday at an average price of $6.87. This reduced his shareholding in South-east Asia's largest real estate company to about 800,000 shares.

What followed has almost become a pattern.

Yesterday, the stock shed six cents to end the day at $6.60 - 0.9 per cent lower. That was the highest it had been all day, falling at one point to a low of $6.47. In comparison, the STI slid by a marginal 0.1 per cent.

Earlier in the month, Mr Liew also sold 800,000 CapitaLand shares. On that occasion, the stock underpeformed the STI by 1.3 percentage points. Mr and Mrs Liew have disposed of CapitaLand stock six times in the last one and a half years. On each occasion, CapitaLand had underperformed the STI by an average one percentage point the day after the announcement was made.

Someone close to Mr Liew quipped that he sold his shares in order to pay his income tax. 'He received quite a big bonus last year, you know.' According to CapitaLand's annual report, Mr Liew received a salary $1.15 million and a bonus of $5.35 million last year. Others said that he was merely monetising part of his remuneration.

A CapitaLand spokesperson said: 'Share-based compensation forms a part of his (Mr Liew's) overall remuneration package, which carries tax liability. It is prudent cashflow management for an employee to sell some of his shares after exercising his options, as he has to pay taxes based on the difference between the exercise price and the market price at that point in time. Besides, Mr Liew typically sells some of his shares after results announcement, and during a period when the company is not announcing any significant or new development that has an impact on share price.'

Most of the options exercised by Mr Liew in the last couple of years had exercise price of $3 or less per share.

CapitaLand in recent years has switched to awarding performance shares instead of share options. Mr Liew has some 400,000 performance shares deliverable to him after 2008, and another 300,000 after 2009. He also has some stock options outstanding.
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Capitaland

Postby Aspellian » Fri May 23, 2008 9:06 am

Winston,

Thanks for highlighting this article to our attention. So this could be the reason why Capitaland dropped below $6.50.

I take the opportunity to vest in this excellant counter at below $6.40 for short-term trading purposes.

Cheers.

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DELIGHT, DISCIPLINE, DILIGENT, DETERMINATION, DESIRE

"Its not whether you're right or wrong thats important, but how much money you make when you're right and how much you lose when you're wrong." - Warren Buffet
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Re: Capitaland

Postby LenaHuat » Fri May 23, 2008 3:01 pm

Aspellian, I would prefer to wait for around S$6/00.

Good luck!
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Re: Capitaland

Postby Aspellian » Fri May 23, 2008 3:07 pm

Hi Lena,

Thanks for your advice! Any reason as to why $6? Do you look at charts? (trying to learn)

I based on $6.4 as I thought its already quite a low entry price... (ie... no basis.... oops) :roll:

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DELIGHT, DISCIPLINE, DILIGENT, DETERMINATION, DESIRE

"Its not whether you're right or wrong thats important, but how much money you make when you're right and how much you lose when you're wrong." - Warren Buffet
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Re: Capitaland

Postby kennynah » Fri May 23, 2008 3:07 pm

aspellian : welcome to HUuuatopedia !!!
Options Strategies & Discussions .(Trading Discipline : The Science of Constantly Acting on Knowledge Consistently - kennynah).Investment Strategies & Ideas

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Re: Capitaland

Postby Aspellian » Tue Jun 10, 2008 9:06 am

LenaHuat wrote:Aspellian, I would prefer to wait for around S$6/00.

Good luck!


Hi Lena,

You are spot - on!!!!!!
Entry price target of $6 reaching soon.

best of luck!

PROMISE, PASSION, PEACE, POWER, PURPOSE, PLAN, PATIENCE, PERSEVERANCE, PROTECTION
DELIGHT, DISCIPLINE, DILIGENT, DETERMINATION, DESIRE

"Its not whether you're right or wrong thats important, but how much money you make when you're right and how much you lose when you're wrong." - Warren Buffet
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Re: Capitaland

Postby LenaHuat » Tue Jun 10, 2008 4:10 pm

Hi Aspellian

Solly, not realli spot on. I'm very pessimistic abt equities for the next 3 months (if U follow my postings in other threads). Can defer tiptoeing in.
Good luck to your investment portfolio too. Do keep us posted. I will too.
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Re: Capitaland

Postby Aspellian » Tue Jun 10, 2008 6:25 pm

Hi Lena,

I will be slowly nibbling the stocks as they fall. when it has fall to a level that i'm comfortable to hold for certain stocks, I will go in and buy. difficult to time the bottom bottom. Cheers.

PROMISE, PASSION, PEACE, POWER, PURPOSE, PLAN, PATIENCE, PERSEVERANCE, PROTECTION
DELIGHT, DISCIPLINE, DILIGENT, DETERMINATION, DESIRE

"Its not whether you're right or wrong thats important, but how much money you make when you're right and how much you lose when you're wrong." - Warren Buffet
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Re: Capitaland

Postby Aspellian » Tue Jun 17, 2008 2:45 pm

Capitaland dropped to a low of $5.65. Any news on this counter?
Is it a buying opportunity or there's -ve news brewing?

I can only think of Capitaland's Vietnam's exposure....

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