CapitaLand   

CapitaLand: Too early to bottom fish

same here. juzzrade is always helping us...

sharehow      ( Date: 10-Feb-2009 09:12) Posted: hi so many names to mention, thanks for all the sharing:) hi juzztrade, u have been a great help to me, appreciate:)

 

hi so many names to mention, thanks for all the sharing:)

hi juzztrade, u have been a great help to me, appreciate:) 

 

oops!! looks like my butt's on FIRE again !! gosh!! help help! :D

 

the price now is super good for those who doesn't want right shares, just sell it now...

remember, you won't see the price correction until the ex-date... so, right now, the next 9 days, it's all up to public to react this news.

Eldarchen, well said, thanks for the elaboration..

 

open market at 2.32...now 2.40...seems like not a factor of yesterday news...

 

SHORTED 2.40 x5lots !! wish me luck! :D

 

Haha u posted it before I could . Anyways just to explain what jack meant 

Hmm lets compare this counter to DBS 

DBS needed to raise funds no choice - Capland don't have to but they are doing it to boost up their war chest
DBS Dec 15 Day high price - 10.40 a few days before rights announcement
They use price of Dec 19 price of 9.85 a 45% discount to issue the 1 rights for 2 shares at 5.42

Which means share price is worth about 8.38

Below is what happened when mkt opened on Dec 22

Day high 9.60 Low 8.81 Close 9.37 Open 8.90
Within 10 trading days, price hit 10.38 on Jan 7

Assuming its the same for capland

We should see capland hit 2.08 or so before closing ard 2.25-2.30

 

 

jackjames      ( Date: 09-Feb-2009 22:48) Posted:     26-Dec 29-Dec Delta % DBS Open 9.22 8.15 1.07 -11.61%   High 9.4 8.59 0.81 -8.62%   Low  9.22 8.1 1.12 -12.15%   Close 9.25 8.59 0.66 -7.14% you must look at the ratio of the rights, capitaland is about 45% cheaper, so, the magnitude can be bigger... but the above chart is to tell you what happen to DBS price during the ex-date of their rights, their rights is a little bit special with nil-paid rights , but the logic is all the same.

 

February 9, 2009, 4.10 pm (Singapore time) CapitaLand says Temasek to buy 40% rights issue     SINGAPORE - CapitaLand, 40 per cent-owned by Temasek Holdings, said on Monday the state investor would subscribe to 40 per cent of its S$1.84 billion (US$1.23 billion) fund-raising via a 1-for-2 rights issue.   CapitaLand chief financial officer Olivier Lim told a briefing the issue was fully underwritten and counted DBS and JP Morgan among its undewriters. CapitaLand brought forward its earnings announcement by one day and suspended trading in its shares on Monday. CapitaLand, which has its main operations in Singapore, China and Australia, posted October-December net profit of S$78 million, down from S$675 million a year ago. -- REUTERS

 

I have bought 10 Lots at 2.39 and with the 5 Lots of rights at 1.30, my average cost per share is around 2.03 before brokerage and tax. I will hold for long term.

Let see the reaction on the stock price tomorrow.  Best of luck to all.

 

Thanks for sharing...what price u think it will fall till tomorrow and after 23Feb base on your trading experience?

 

jackjames      ( Date: 09-Feb-2009 22:48) Posted:     26-Dec 29-Dec Delta % DBS Open 9.22 8.15 1.07 -11.61%   High 9.4 8.59 0.81 -8.62%   Low  9.22 8.1 1.12 -12.15%   Close 9.25 8.59 0.66 -7.14% you must look at the ratio of the rights, capitaland is about 45% cheaper, so, the magnitude can be bigger... but the above chart is to tell you what happen to DBS price during the ex-date of their rights, their rights is a little bit special with nil-paid rights , but the logic is all the same.

 

		26-Dec	29-Dec	Delta	%
DBS	Open	9.22	8.15	1.07	-11.61%
	High	9.4	8.59	0.81	-8.62%
	Low	9.22	8.1	1.12	-12.15%
	Close	9.25	8.59	0.66	-7.14%

you must look at the ratio of the rights, capitaland is about 45% cheaper, so, the magnitude can be bigger...

but the above chart is to tell you what happen to DBS price during the ex-date of their rights, their rights is a little bit special with nil-paid rights , but the logic is all the same.

 

hi sharehow, will try to call my broker to see if possible to get this done. thanks for advice.

we shall see the price on feb 23...

jackjames      ( Date: 09-Feb-2009 22:29) Posted: I do not know how extensively it will drop, but it will drop substantially on Feb 23, it's just like exdate for dividend, the price has to be corrected... and the magnitude also depend on the market sentimental, for example, if next Friday DOW crashes 300 points, then, the following monday, is just nice the ex-date, sure the impact will be more.. but one thing for sure, the price will be corrected on feb 23, 100%, you can click SGX chart of DBS and check their right ex-date, and look at the price, you will see the price zooming down.. now, it also depend on the closing price on Feb 20 Friday.. if the closing price on Friday is $2.36 or below... , confirm it will reach $2.... but don't be surprise, the closing price on Feb 20 can be $3... you never know, there are 9 more days to trade to reach Feb 20. good luck folks.. sharehow      ( Date: 09-Feb-2009 22:18) Posted: hi maxcty, is it possible to call your broker to get it done for u:) ? hi jackjames, do u mean the price would fall to $2 by 23 Feb?

 

You are entitled to the rights if you have bought the shares on a cum rights basic or if you already have the shares on book closure date. For me, I am getting more confusing after reading the long list of posts on this subject.  Regarding Lot Size of 500 shares.  I will check with my TR tomorrow.  Regards.

maxcty      ( Date: 09-Feb-2009 22:19) Posted: Hi Juzztrade. thanks for the information. Guess I wont be able to receive that letter or apply thru ATM.  so must apply then can purchase right shares, correct? if not, can only buy shares at normal way..... good to know that lot size of 500 shares are available..good...good

 

I do not know how extensively it will drop, but it will drop substantially on Feb 23, it's just like exdate for dividend, the price has to be corrected... and the magnitude also depend on the market sentimental, for example, if next Friday DOW crashes 300 points, then, the following monday, is just nice the ex-date, sure the impact will be more..

but one thing for sure, the price will be corrected on feb 23, 100%, you can click SGX chart of DBS and check their right ex-date, and look at the price, you will see the price zooming down.. now, it also depend on the closing price on Feb 20 Friday.. if the closing price on Friday is $2.36 or below... , confirm it will reach $2.... but don't be surprise, the closing price on Feb 20 can be $3... you never know, there are 9 more days to trade to reach Feb 20. good luck folks..

sharehow      ( Date: 09-Feb-2009 22:18) Posted: hi maxcty, is it possible to call your broker to get it done for u:) ? hi jackjames, do u mean the price would fall to $2 by 23 Feb?

 

REQUEST FOR LIFTING OF TRADING HALT

 

Hi Juzztrade. thanks for the information. Guess I wont be able to receive that letter or apply thru ATM. 

so must apply then can purchase right shares, correct? if not, can only buy shares at normal way.....

good to know that lot size of 500 shares are available..good...good

 

hi maxcty, is it possible to call your broker to get it done for u:) ?


hi jackjames, do u mean the price would fall to $2 by 23 Feb?

 

CDP will send mail letter to all shares holders.  Apply thru ATM.  You can apply for more provided it is available.  Normally it is always over- subcribed. Lot Size of 500 shares are available.

____________________________________________________________________________

Principal Terms of the Rights Issue

The

Rights Shares will be issued under the share issue mandate approved by

Shareholders

Pursuant to the

allotted on the basis of one (1)

at CapitaLand’s annual general meeting held on 29 April 2008.Rights Issue, up to 1,415,839,907 Rights Shares will be provisionallyRights Share for every two (2) existing Shares held by

Shareholders

expected to be traded on the Main Board of the

2009. The last date and time for acceptances, excess applications and payment for the

as at the Books Closure Date. The Rights will be renounceable and areSGX-ST from 26 February 2009 to 6 March

Rights Shares

applications).

The

existing

declared by

is expected to be 12 March 2009 at 5.00 p.m. (or 9.30 p.m. for electronicRights Shares will, on allotment and issue, rank pari passu in all respects with theShares and shall be entitled to all dividends, rights, allotments or other distributionsCapitaLand after the date of issue of the Rights Shares. It is expected that the

Rights Shares

Fractional entitlements to the

provisional allotments to the

aggregated and allotted to satisfy excess applications for

disposed of or otherwise dealt with in such manner as the

discretion, deem fit in the interests of

Shares

will be allotted and issued on or about 20 March 2009.Rights Shares will be disregarded and will, together withRights Shares which are not taken up for any reason, beRights Shares (if any) or beBoard may, in their absoluteCapitaLand. In the allotment of excess Rights, preference will be given for the rounding of odd lots, and substantial Shareholders

and

Full details of the terms and conditions of the

Information Statement

CapitaLand’s directors will rank last in priority.Rights Issue will be set out in the Offerto be lodged by CapitaLand with the MAS in connection with the

Rights Issue

approval from the

and to be despatched to Entitled Shareholders after the receipt of the inprincipleSGX-ST to deal in and for the listing of and quotation for the

Rights Shares

on the Official List of the SGX-ST.

 

 

maxcty      ( Date: 09-Feb-2009 21:32) Posted: mind if I ask, I have 3000 shares currently, how can I go about buying 'right issue' shares at the ration of 2:1? meaning I can buy 1500 shares now for price $1.30? Thanks for sharing... Juzztrade      ( Date: 09-Feb-2009 20:20) Posted: I am planning to hold for this counter after taking up the rights issue.  Total will be 15 lots and will DCA along the way if necessary.  Hopefully, can get dividend of 0.15 cents same like last year this coming month of May.

 

hi sharehow. thanks for sharing. so by going to atm to apply and pay? must be buy those right issue shares 1st before pay or the other way round?

where u get all these information?

another more troublesome part is I am working in overseas now..sian..

sharehow      ( Date: 09-Feb-2009 22:05) Posted: hi maxcty, 1 lot is 1000 share, i mean 2 lots:) ...so far this is the info i gather, we can go to atm (maybe few days from now?) and apply, then we pay, but the share is only allocated to us end of this month after all shares taken up...

 

For those who has not bought capitaland, don't get in blindly... learn the lesson from DBS right shares..

unless tomorrow opening price is less than $2... else, just wait... until the ex-date of right shares which is Feb 23, monday... you can see the price will be factored in by the right issue price of $1.30....    If the price flat for the rest of the day, you will definitely see $2 on Feb 23. no hurry to rush in.., what for buy now, and folk out more money to buy right shares, bull !