CapitaMalls Asia

The consensus valuation of many research analysts has a $2.40 price target for CMA. Therefore, I wonder if $2.22 will get a lot of acceptance.

Incidently, Credit Suisse - one of the bankers, issued a buy call on 14-Feb with a target price of $2.52.

(14-04-2014, 04:51 PM)egghead Wrote: The consensus valuation of many research analysts has a $2.40 price target for CMA. Therefore, I wonder if $2.22 will get a lot of acceptance.

What is the likelihood of a higher offer than $2.22? CAPL is still short of about 25% to hit 90% target?
I have a small stake in CMA.

Your guess is as good as mine. Time will tell...

Just wondering, if the expectation is that CapitaLand would be able to privatise CapMallsAsia @ 2.22, why then there are people still willing to pay $2.2 to buy CapitaMalls Asia?

Buying @ 2.2 and accepting CapitaLand's offer will only earn about 0.4% at most and currently, it is possible to get FD with 1% interest. So, why the trouble?

(15-04-2014, 06:49 AM)starcraft_76 Wrote: Just wondering, if the expectation is that CapitaLand would be able to privatise CapMallsAsia @ 2.22, why then there are people still willing to pay $2.2 to buy CapitaMalls Asia?

Buying @ 2.2 and accepting CapitaLand's offer will only earn about 0.4% at most and currently, it is possible to get FD with 1% interest. So, why the trouble?

One of the explanation is obviously short covering.

Apr 11 435,000 SGD 785,655
Apr 10 2,459,310 SGD 4,447,959.2
Apr 09 104,000 SGD 182,290

Which mean if all the seller ONLY willing to sell @ 2.4 then those short cover had no choice but on our mercy?

(15-04-2014, 06:56 AM)starcraft_76 Wrote:

(15-04-2014, 06:49 AM)starcraft_76 Wrote: Just wondering, if the expectation is that CapitaLand would be able to privatise CapMallsAsia @ 2.22, why then there are people still willing to pay $2.2 to buy CapitaMalls Asia?

Buying @ 2.2 and accepting CapitaLand's offer will only earn about 0.4% at most and currently, it is possible to get FD with 1% interest. So, why the trouble?

One of the explanation is obviously short covering.

Apr 11 435,000 SGD 785,655
Apr 10 2,459,310 SGD 4,447,959.2
Apr 09 104,000 SGD 182,290

Which mean if all the seller ONLY willing to sell @ 2.4 then those short cover had no choice but on our mercy?

Ur Huh! Akin to:-
Short squeeze is a rapid increase in the price of a stock that occurs when there is a lack of supply and an excess of demand for the stock.

The reason is that CMA declared 1.75 cents dividend for FY2013. Since the offer of $2.22 is made including payment of this dividend, the offer is $2.2025 before dividend. The buying queue is likely buying on behalf of Capitaland

I feel that the real reason to take CMA private is because the current CEO has a different thinking as compared to the previous CEO. IF not, why list for only a few years and then take it back at higher price? The IPO expenses, and now the expenses to incur to take it private don't come cheap.

CMA is one of my most actively traded stock, due to its volatile price movement. In fact just last week I added on my position and was targeting to sell around 1.85++. Didn't see this coming. A small windfall for me no doubt but I am going to miss the fun with this stock.

(15-04-2014, 08:20 AM)Ben Wrote: I feel that the real reason to take CMA private is because the current CEO has a different thinking as compared to the previous CEO. IF not, why list for only a few years and then take it back at higher price? The IPO expenses, and now the expenses to incur to take it private don't come cheap.

CMA is one of my most actively traded stock, due to its volatile price movement. In fact just last week I added on my position and was targeting to sell around 1.85++. Didn't see this coming. A small windfall for me no doubt but I am going to miss the fun with this stock.

Personally, i believe that this is a stock with good growth potential that not everyone appreciate. It is definitely worth >$2.22, Capitaland is buying it on the cheap. I would rather hold CMA for capital appreciation than to sell it at $2.22.