Quick thoughts on Capitaland

Capitaland deals with...what else? Real Estate.

I'm bullish on real estate in Singapore especially, with the PAP government's constant influx of foreigners into Singapore. (I'm not going to debate the merits of this policy; this is an investment blog.)

What then is the direction of prices of real estate? only one way, I feel.

Might as well buy a company that will benefit from this policy.

Hence, I'm looking into adding Capitaland into my stable of long term holdings.

I'm not an accountant, I can't read financial statements that well. Yet, the fact that Temasek owns almost 40% of this company gives me confidence. (Same reason why I invested in ST Engineering.)

Follow what the BBs are investing in...and the biggest BB in Singapore is none other than Temasek...

Capitaland's NAV is currently at 327c and NTA is at 316c.

For property stock, I think the NTA is more appropriate than NAV.

Capitaland is currently trading at $3.26 with a CD of $0.06. Logically, it should drop to $3.20 upon XD, but the recent trend has been counters dropping more than their dividend amount.

Let's see where would be a good place to buy, using charts:

Capland has recovered from it's low of 311c on 17th March 2011, during the height of the Japan crisis.
This was also the 52 week low.

Since Capland will be going XD next week, technically prices should fall to 320c.
Yet given the bearish bent to the market these couple of weeks, prices may fall further past it's dividend amount (just like ST Engg, SembMarine, SCI, Wilmar inter alia). A good price to get it might be around the 311c to 318c area next week.