CapitaLand: Too early to bottom fish

Came across the below earlier, and set me thinking if the proposed 7 cents dividend may initiate a reversal for this counter. Anyone can share?

CapitaLand: Buy (DMG, 10 Feb)
CapLand posted an 88.4% year-on-year (yoy) plunge in 4Q08 PATMI to S$78.0m, largely attributable to revaluation losses of S$103.9m related to assets in Japan, Australia and UK, lower revenue and lack of write back of provisions. Stripping away one-off and other non-operating items, we estimate operating income would have shrunk by a smaller margin of 31.6% yoy to S$202.5m. On a full year basis, FY08 PATMI came to S$1.26b, accounting for 104.7% of our estimates (S$1.20b, slightly above) and 92.1% of the Street's (S$1.37b, slightly below). Dividends of 7¢ per share have been proposed. It has announced a 1-for-2 rights issue (1.4b shares) to raise about S$1.84b at S$1.30 per share, which represents a 45% discount to S$2.36 (closing price on 6 Feb 09), 35% discount to S$2.01 (theoretical ex-rights price) and 54% discount to S$2.80 (postrights NTA). While we opine that CapLand's net gearing of 0.47x and cash position of S$4.2b do not warrant any immediate capital raising exercise (not least a share-dilutive one), we believe the additional cash could serve a handful of useful purposes: (i) acquisition of landbank in its core markets of Singapore and China, (ii) maintenance of healthy net gearing in the event of provisions in 2009 and (iii) prudent and precautionary measure against the credit crisis, which could derail its capital recycling strategy . Our new post-rights base case RNAV of S$3.72 takes into consideration the rights issue, as well as new target prices for its listed REITs. Applying a 30% discount due to its more diversified businesses compared to other developers and stronger balance sheet, we derive a new fair value of S$2.60. However, as the rights shares would only begin trading on 23 Mar 09, we will keep our BUY rating for CapLand at S$3.20. Catalysts include unthawing of credit markets, acquisitions of new land bank and signs of economic recovery.

never buy this share before, how to sell? short? don't want la... i don't short eventually...

hey, The Straits times said, 52 weeks lowest of capitaland is at $1.89, since when it was $1.89 in 52 weeks time? I thought it was $2.02 lowest ???

Take action to buy?... or sell?...

Both actions are potentially profitable... hehehe..   

aircraft, that depends on when you BUY. If you buy 2 lots yesterday (when share is traded cum-rights) or already owned 2 lots earlier, then YES you are entitled the 1 lot of rights. You need to pay $1300 on of before March 12 and you will get the 1000 new shares on or around  20 March.

However, if you buy your 2 lots TODAY ( trading is Ex-Rights), then you are not entitled the Rights.