CapitaLand   

CapitaLand: Too early to bottom fish

Just thinking on which is a better options if we want to get a best price of this stock?

(1)  Buy mother share and rights (during the trade ruights period) for eventual conversion; or

(2) Wait till all the rights shares are converted into mother shares on 23 Mar and see how's the dilution like.

Anyone can provide a bit more about the possible dilution that could happen or has it been discounted in the price now? Seriously, I'm not sure how much dilution can happen if all the rights (include excess rights) are fully executed. 

 

 

Underlined for you.

From now until 18 Feb
Shares trade cum-rights (CR). It's just an indication that a rights issue exercise is ongoing. Whoever is still holding Capitaland shares as of end trading day 18 Feb will be entitled to apply for the rights shares at a ratio of 1 rights share per 2 existing mother shares. For example, if you are holding 2 lots (2000 shares), you will be entitled to apply for 1 lot (1000 shares). If you have 1 lot, then your entitlement is 500 shares.

19 Feb
Shares trade ex-rights (XR). The price will be adjusted to reflect the inclusion of your rights shares. For example, if it closed at $2.36 on 18 Feb, the fair price when trading starts today will be $2.01 (rounded).

23 Feb
If you were holding any mother shares before 19 Feb, the ownership will be registered in CDP by this date. Based on this record, you will receive your nil-paid rights (also called renounceable rights). These will be deposited into your CDP account before 26 Feb. Nil-paid rights give the owner the choice to accept the rights shares at the issue price of $1.30. You do not have to pay for your nil-paid rights, and they are yours to trade (sell) starting from 26 Feb.

26 Feb to 6 Mar
Trading of nil-paid rights begin. Because it's a 1 for 2 exercise, the smallest lot size will be 500 shares. So on top of a Capitaland_R, a Capitaland_R500 counter will be set up for trading. For shareholders who do not wish to pay more money to convert his/her rights shares to mother shares, this time window allows you to sell away your nil-paid rights. For shareholders who wish to round up odd lots, they may also choose to do so through nil-paid rights purchases here. For investors who were not holding any mother shares previously but now wish to participate in the rights issue exercise, they can buy these nil-paid rights. Theoretically, nil-paid rights will cost the amount of (mother share price - rights issue price). For example, if the mother share now trades at $2, the nil-paid rights should be trading at $2 - $1.3 = $0.70.

12 Mar
Those holding nil-paid rights have to pay up by this date ($1.30 per share) to apply for the rights. If you do not wish to subscribe, make sure you sell away your nil-paid rights between 26 Feb and 6 Mar. If you still have them as of this date, for whatever reason, pay up and apply for the rights issue. Don't be an *censored* and hold on to your nil-paid rights and not apply for the rights! You may pay up either via post (using bank drafts or money order, no cheques accepted) or ATM (CDP account should be linked, but note down your CDP account number for keying in manually just in case)

This is also the date by which excess rights applications must be submitted. If you are holding odd lots, my advice is to apply for the excess rights. Priority in excess rights allocation is always given to holders with odd lots.

23 Mar
You may begin trading your rights shares today. You will see them in your CDP account as normal Capitaland shares (code C31). To know the allocation results in advance, check your CDP account on 22 Mar, they should already be in by then.

Henry$$$      ( Date: 25-Feb-2009 18:54) Posted: If you hold 2 lots of mother share before right expire, of cource, you got 2 lots free. Else you can buy the right from market. Eric explanation is clear and applied to nilpaid right only!!

 

correction, correction, correction -

if got 2 lots mother share before XR, you are entitled ONLY 1 lot and is not free. In fact you already paid for the right that's why the price (mother share before XR is 2.68) after CR is 2.22.

tomorrow opening right trading shld be 0.78.

Remember do not sell (right)  if right share + 1.3 < mother share trading price, unless you are very confident mother share going to drop further otherwise it will be wise to do a convertion rather sell

Henry$$$      ( Date: 25-Feb-2009 18:54) Posted: If you hold 2 lots of mother share before right expire, of cource, you got 2 lots free. Else you can buy the right from market. Eric explanation is clear and applied to nilpaid right only!!

 

If you hold 2 lots of mother share before right expire, of cource, you got 2 lots free. Else you can buy the right from market.

Eric explanation is clear and applied to nilpaid right only!!

 

hi henry,

             eric is not misleading us. His given example is correct. BTW, CDP just replied me on the nil-paid rights status..this is their reply:

Dear Sir

We wish to inform you that the Capitaland Rights issue starts on 26 February 2009. The rights shares will be credited into entitled shareholder's account on 26 February 2009.

Lai Jiahui (Miss)
Client Services
The Central Depository (Pte) Limited
Tel : (65) 65357511       Fax : (65) 65350775

Good luck to all vested, including me

Cheers,

oinkoink

 

ericsim      ( Date: 25-Feb-2009 13:42) Posted: i thinks there's some confusion - 1. if you are holding nil-paid right (presume 1000shares) now and don't intend to sell and to convert to mother share you still need to pay 1.3/share with admin fee (few $ can't remember) via atm etc... 2. IF  the closing price (1705hrs 2day) is at 2.1 now then offcourse the trading price will be 2.1-1.3=0.8 instead of 1.

 

i thinks there's some confusion -

1. if you are holding nil-paid right (presume 1000shares) now and don't intend to sell and to convert to mother share you still need to pay 1.3/share with admin fee (few $ can't remember) via atm etc...

2. IF  the closing price (1705hrs 2day) is at 2.1 now then offcourse the trading price will be 2.1-1.3=0.8 instead of 1.

 

 

Eric is assuming the mother share will close at 2.30. Since 1.30 is the right share price , then rigt price should be around $1/-.

Henry$$$      ( Date: 25-Feb-2009 13:19) Posted: I totally don't agree with your misleading calculation. If we buy right tomorrw at price A, then we need to pay A + its right price to exchange for one mother share. So what's reason its right should price at S$1 tomorrow. Please correct me if I am wrong!!   ericsim      ( Date: 25-Feb-2009 12:40) Posted: if mother share cheong then son will cheong lor.... therotically - right will be trading at mothershare - 1.3 that is if today mother share closed at 2.3 then tomorrow right trading shld be 2.3-1.3=1

 

I totally don't agree with your misleading calculation.

If we buy right tomorrw at price A, then we need to pay A + its right price to exchange for one mother share. So what's reason its right should price at S$1 tomorrow.

Please correct me if I am wrong!!

 

ericsim      ( Date: 25-Feb-2009 12:40) Posted: if mother share cheong then son will cheong lor.... therotically - right will be trading at mothershare - 1.3 that is if today mother share closed at 2.3 then tomorrow right trading shld be 2.3-1.3=1

 

if mother share cheong then son will cheong lor....

therotically - right will be trading at mothershare - 1.3 that is if today mother share closed at 2.3 then tomorrow right trading shld be 2.3-1.3=1  

 

Normally nil-paid rights , price will cheong or drop ?

 

hi mario1,

              thanks for sharing the info. hope tmr the shares will chiong with the nil-paid rights...LOL :D

cheers,

oinkoink

mario1      ( Date: 25-Feb-2009 09:47) Posted: i think normally it came quite late, i sold my DBS rights before I received any letter.

 

i think normally it came quite late, i sold my DBS rights before I received any letter.

 

hi charles,

              that means I'm not alone. I have just sent an email to CDP. Later I will call them to check the status. Will keep you all posted.

cheers,

oinkoink

charlesteo      ( Date: 25-Feb-2009 09:07) Posted: hihi  Same here, i've just checked my CDP acct but there's no record of the nil-paid rights ...

 

hihi

 Same here, i've just checked my CDP acct but there's no record of the nil-paid rights ...

 

hi all,

       did anyone of u receive the nil-paid rights in yr CDP account already? I hvn got mine yet..i thought tmr start trading of nil-paid rights?

cheers,

oinkoink

 

Let it go higher before shorting (ie. more meat)... 

 

Nice rebound...

 

1.97 ?!?!? hee...this is wat i call DECENT price !! i think 1.80 is definitely archievable ! :P

 

I just gathered the below from Reuters of 20th Feb U.S. markets. I'm just curious as to why the U.S. counter of Capitaland goes up whereas SG counter's slipping. It's rather frustrating to see a company with a healthy balance sheet & assets be beaten down so badly. Any insights??

CapitaLand Ltd (CLLDF.PK)

 

Anyone knows the avg price after XR?