Thursday, 13 July 2017

Why I Long After CapitaLand

Yes, pun intended. I am long on this counter.

Especially after watching today's Money Week, it has further reinforced my belief in CapitaLand. I am of the opinion that a big upside lies ahead for this company with a well balanced portfolio of 45% in China, 35% in Singapore and the rest in Europe and other parts of Asia.

This diversified portfolio is a good hedge against the sudden downturn of any of the markets which they operate in. Not to mention the big potential of China's and Vietnam's property markets.

If their China investments play out well, contributions to the top and bottom lines should come in the near to mid term which in turn translate to hopefully, capital and dividend yield gains.

Strong, visionary management team is often one of the factors that I look out for and the team at CapitaLand has my vote of confidence. Another one is ARA Asset Management which has since been delisted.

I am definitely long on this counter. Currently vested with 4,000 shares at $2.98. Looking to add more when opportunity arises. Wouldn't rule out averaging up too.

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