Capitaland 01 (May 08 - May 10)

[millionairemind]

Some groups always know more than others in the market...

January 7, 2009, 6.44 pm (Singapore time)

CapitaLand declines to comment on rights issue rumours
By ANGELA TAN

CapitaLand Limited on Wednesday said it will not comment on market rumour and queries that the property group is planning a rights issue.

'In response to various media and analyst queries that CapitaLand is planning a rights issue, CapitaLand wishes to state that we will not comment on such market rumour or speculation,' it said.

CapitaLand said it regularly receives and reviews various proposals of a business, financing or other nature.

'It is CapitaLand's disclosure policy to make the appropriate announcements if and when required, in accordance with the SGX-ST Listing Rules.'

Market speculation was rife on Wednesday that the property developer is planning a rights issue to raise capital.

A media report quoted a source saying that while there is 'no definite decision, but a rights issue is being considered.

If the issue takes place shortly, it would be the second major Singapore company to raise money through a rights issue in less than a month.

In late December, DBS Group Holdings Ltd. said it planned to raise about S$4 billion to bulk up its capital base.

CapitaLand had S$4.2 billion in cash and cash equivalents as of Sept. 30, 2008.

The property market in Singapore and the region has cooled since last year.

Chief Executive Liew Mun Leong has said the company could consider acquiring some distressed real estate companies in Asia, including China and Australia.

The shares hit an intraday high of S$3.61 on Wednesday before ending at S$3.12, down 28 cents from Tuesday.

Kim Eng Securities has called a buy on the shares, with a target price of $4.18 a share.

Analyst Winston Liew said the Chinese government has in Dec 2008 cut its key 1-year lending rate to 5.31%, compared to a high of about 7.5% at the beginning of the year. It also unrolled a slew of measures aimed at the flagging real estate market.

'These measures could underpin a recovery in the Chinese property market possibly in 2H09, which will be positive for CapitaLand,' Mr Liew wrote.

'We think that CapitaLand is in a pole position for recovery in its key markets like Singapore and China, and is still sitting comfortably on its cash hoard of S$4.2 billion. Its diversification into the GCC is also thriving. Reiterating our BUY recommendation, our target price is raised to $4.18, based on a 10%-discount to RNAV.'

[winston]

No smoke without fire

[qxing78]

Analysts always like to say that Capitaland is sitting on cash hoard of $4 bil plus, but have they look at the outstanding loans/liabilities??
Luckily, I run fast, seeing the big volume sell-down yesterday.
Market action is always correct to follow for this kind of high profile stock.

[kennynah]

No smoke without fire

got...my cigarette ...hahaha... joke lah...

true...price/volume action, especially those significantly contrasting to norm, is a sure sign of inner circle acting on privi knowledge... so, best to heed the cue

[LenaHuat]

This ticker gave me discomfort many suns ago. My concern grew when I attended their last AGM.

[ucypmas]

Hi Lena

What made you uneasy at the AGM? Care to elaborate more?

Cheers

[LenaHuat]

Hi ucypmas
When I looked at the mgmt seated on the stage + 1 director on video conferencing mode, I got worried abt the way this company is being run.
One director had to be led by the arm to his seat. Subsequently, he could only get up from his seat with aid.
He's juz retired.
The Chairman................well see for yourself at the next AGM.
As to the director videoconferencing from NY, well juz look at what's happened at DBS.

Maybe, U can read my earlier comments.

[ucypmas]

Thanks. The chairman is old for sure, but don't know if he's senile yet.

Not vested in this counter because I don't really know how to value them properly.

[iam802]

I think this one is gone.

We don't speculate or comments on rumours. But, the chart says... heavy selling breaking a few support lines along the way.

1. Look at how it break the gap at around $3.30 with high volume.

2. And it gap down the next day and break $3.07 with high volume as well.

[financecaptain]

Hi ucypmas
When I looked at the mgmt seated on the stage + 1 director on video conferencing mode, I got worried abt the way this company is being run.
One director had to be led by the arm to his seat. Subsequently, he could only get up from his seat with aid.
He's juz retired.
The Chairman................well see for yourself at the next AGM.
As to the director videoconferencing from NY, well juz look at what's happened at DBS.

Maybe, U can read my earlier comments.

Good observation LH. Looks like an empire ruled by an emperor. Dangerous ... "Emperor's new clothes" and "past failures of dictatorships" come to my mind.