CapitaLand   

CapitaLand: Too early to bottom fish

Hi trader88.sg, thanks for the explanation!

trader88.sg      ( Date: 23-Jan-2009 16:13) Posted: The main purpose of rights issue is to raise capital. For any rights issue, if the existing shareholders do not subscribe the rights, they risk dilution of their holdings in the company and thus some shareholders prefer to sell their holdings. Moreover, the need to raise capital might mean that the company are in need of funding to tie over challenging times, thus it is negative sign. That is why any rights issue at the moment will likely drive prices down. However, in a normal/bullish economy, the need to raise capital to fund expansion is actually a good sign and therefore the rights issue will be usually followed by price surge.

 

I remember not so long ago, Capitaland was sold down in similar way after the company say they wont go the IT way during Internet boom and was sold down....

Farmer      ( Date: 23-Jan-2009 16:24) Posted: Haha! Old rumours come back to haunt this one huh? Right issue to fund expansion is definitely a positive move for the counter esp......to buy some LVS's share of IR in Sg? Only this one which i can think of now will need more cash on top of $4.2b. Getting interesting now.

 

Haha! Old rumours come back to haunt this one huh? Right issue to fund expansion is definitely a positive move for the counter esp......to buy some LVS's share of IR in Sg? Only this one which i can think of now will need more cash on top of $4.2b. Getting interesting now.

 

The main purpose of rights issue is to raise capital.


For any rights issue, if the existing shareholders do not subscribe the rights, they risk dilution of their holdings in the company and thus some shareholders prefer to sell their holdings. Moreover, the need to raise capital might mean that the company are in need of funding to tie over challenging times, thus it is negative sign. That is why any rights issue at the moment will likely drive prices down.


However, in a normal/bullish economy, the need to raise capital to fund expansion is actually a good sign and therefore the rights issue will be usually followed by price surge.





 

 

 Jan. 23 (Bloomberg) – CapitaLand Ltd., Southeast Asia’s biggest developer by sales, said it hasn’t decided on any fund- raising plans after receiving proposals
that include one for a rights offer.
    “CapitaLand wishes to state that it has received and is continuing to receive various proposals for fund raising,” the company said in a statement to the stock
exchange. “CapitaLand has not made any decisions. If and when there are any material
 developments, CapitaLand would make the appropriate announcement.”
    It didn’t give details about the proposals. Some of Singapore’s largest companies have turned to investors for cash as the global financial crisis tightens bank
lending. DBS Group Holdings Ltd., Singapore’s largest bank, said last month it’s seeking
 to raise S$4 billion ($2.7 billion) in funds by issuing rights to one new share for every two held by existing investors.
    CapitaLand said it made the statement in response to media reports on its fund-raising plans. The shares fell 4.4 percent to S$2.39 at the 12:30 p.m. local time
break before the release of the announcement. It was the biggest decliner on the Straits
 Times Index, which fell 0.5 percent.
    Liew Mun Leong, CapitaLand’s chief executive officer, said on Oct. 31 the developer’s cash position stood at S$4.2 billion, enabling it to seek opportunities for
acquisitions.
    For Related News and Information: Top South, Southeast Asia news: {TOP SAS  GO } Most-read Singapore news: {MNI SP  GO } CapitaLand’s Assets:
{CAPL SP  Equity  FA 19  GO }
    –Editors: Alan Soughley, Sean Collins
    To contact the reporter on this story: Chen Shiyin in Singapore at +65-6212-1170 or schen37@bloomberg.net.
    To contact the editor responsible for this story: Tony Jordan at +65-6212-1150 or tjordan3@bloomberg.net.
    -0- Jan/23/2009 05:29 GMT 01-23-09 0029EST

 

Hi, i'm not familiar with the purpose/meaning of issuing rights... but reading the pass posts seems to indicate that any company issuing of rights will cause it's price to drop?

Can kindly explain what's the rational of rights issuing that will cause price to drop?

ticklish8      ( Date: 23-Jan-2009 14:19) Posted: capitaland deny right 'CapitaLand wishes to state that it has received and is continuing to receive various proposals for fund raising. These proposals include rights issues. CapitaLand has not made any decisions,' the firm said in a filing to the stock exchange. The comment came as the firm enters into a tough period with Singapore property sales expected to slow significantly in 2009. CapitaLand's third-quarter net profit fell 26 per cent. CapitaLand, which is 40 per cent held by Singapore sovereign fund Temasek , said it had S$4.2 billion in cash at the end of the third-quarter. CapitaLand fell as much as 5.2 per cent on Friday and was the most actively traded counter on the Singapore Exchange. -- REUTERS     SINGAPORE - CapitaLand, Southeast Asia's largest developer, said on Friday it has not made any decision to raise funds via a rights issue.

 

In october captial land low was also 2.28. Then it went straight up again. before coming down in end november the it went down to 2.37. 

I think the pattern should repeat itself sending it's price up to $3 again.

My 2 cents worth. :D 

 

capitaland deny right



'CapitaLand wishes to state that it has received and is continuing to receive various proposals for fund raising. These proposals include rights issues. CapitaLand has not made any decisions,' the firm said in a filing to the stock exchange.

The comment came as the firm enters into a tough period with Singapore property sales expected to slow significantly in 2009. CapitaLand's third-quarter net profit fell 26 per cent.

CapitaLand, which is 40 per cent held by Singapore sovereign fund Temasek , said it had S$4.2 billion in cash at the end of the third-quarter.

CapitaLand fell as much as 5.2 per cent on Friday and was the most actively traded counter on the Singapore Exchange. -- REUTERS

 

 

SINGAPORE - CapitaLand, Southeast Asia's largest developer, said on Friday it has not made any decision to raise funds via a rights issue.

 

 

here we go again Live Quotes from SGX Rmk Last Change % Vol B Vol Buy Sell S Vol High Low Sector Capitaland 2.370 -0.130 -5.2 40,235 662 2.370 2.380 820 2.500 2.370 PROP

 

good luck to u! and everyone, happy cny in advance :) property counters a No-No for me till we see ecy out of the woods...

 

Don' taunt each other, help each other to win, not good for one another.....going forward,  i am buying slowly...we dont really know the bottom...yesterday went to investment seminar..expert said likely end 2009 bottom...but we really dont know...if ever this one got to 1.7...it is dirt cheap..it is cheap even at this level...

But i think 2.0 is the lowest..i dont think it will go to 1.7..if it did , i be buying more.

Good luck ..guy and gal..dont be sad, just keep buying slowly and bravely..u be rewarded.

OK..key to buy in the afternoon at... let see first...

 

haha i dun wan to short this at their support level. Not wise ;)

I rather wait for them to reach their new low den initiat long position

 

dinola      ( Date: 23-Jan-2009 13:06) Posted: good thinking, pls go ahead and short. freeme      ( Date: 23-Jan-2009 11:20) Posted: Oh.. so means that until mid feb, capital's share price might be driven down even more..

 

good thinking, pls go ahead and short.

freeme      ( Date: 23-Jan-2009 11:20) Posted: Oh.. so means that until mid feb, capital's share price might be driven down even more... ticklish8      ( Date: 23-Jan-2009 11:18) Posted: SINGAPORE (Dow Jones)--CapitaLand Ltd. (C31.SG) is considering a rights issue to raise about S$1.5 billion by offering one new rights share for every four existing shares at S$2.20 each, people familiar with the situation said Friday. "The consideration is for the capital increase to take place around mid-February, but there is no firm decision," one person said. Shares of the developer traded down 2.4% at S$2.44 each at 0235 GMT. A spokesman couldn't be immediately reached for comment. Last month, it said it wouldn't comment on market rumor or speculation, after Dow Jones Newswires reported the company was mulling the rights issue. CapitaLand had about 2.8 billion shares outstanding and S$4.2 billion in cash and cash equivalents at Sept. 30. Analysts say CapitaLand isn't in need of capital, but raising more money would allow it to buy distressed assets in attractive markets and put the company in a better position to face challenges in the current property market. The sector in Singapore and the region has cooled considerably 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. If the issue takes place, it would be the second major Singapore company to raise money through a rights issue in recent months. In late December, DBS Group Holdings Ltd. (D05.SG) said it planned to raise about S$4 billion to bulk up its capital base.

 

ok....button pressed liao ! buyQ 10x $2.29  !!! :D

 

plenty of activity going on.. 35mil lots done so far... wooo i think down and down liao sit tight

 

so, TA expert also cannot tell you through the chart that, they are going to issue right issue, right? ha ha.. okay la, the chart can tell you yesterday, huge volume sell down, every indicator turn down.. so now what? people have to cut loss now ? and buy it back later or what? or hold? or short?

can i buy it at $ 2 ?

heng ... i am not vested yet, but i am confident when weather turn good, $3 no problem... nei.. someone stratergy... he must be buying big now.

 

yes, free show. just don't anyhow press buttons.

 

not bad pre cny got show to watch i ordered mac delivery hehe, eat and watch at same time

 

just sit back and watch the show later loh....time will tell :D

 

hit 2.37, went back up to 2.43

another case of shot it down, prop it up and shoot it down again later??